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Amazon Ranking Basics
Increase visibility and sales through optimal rankings on Amazon
What are the Amazon Ranking Basics? With this you can increase your visibility and sales through optimal rankings on Amazon. But how do you achieve them? This Amazon tutorial will answer that question.
Amazon Ranking Basics - What is Ranking?
Ranking on Amazon, what is that actually? Ranking always means how well we can be found on our search terms as well. Means: we now have a product – let’s say in the case shoelaces – how good are we on the terms related to it, so means shoelaces, shoelaces white, shoelaces black, shoelaces one meter, shoelaces for women, for men. All the terms that are quasi relevant to our product, how well are we findable there. And then there is organic ranking, which means that if someone enters this term, the ranking should be very identical everywhere in Germany, at least for all people where this product is available. The bestseller would always be at position 1, i.e. at the top left, so to speak. Now if we imagine that we have our page here, we’ll do this as a drawing a little bit and we’ve now entered a keyword, in this case “shoelaces”. Means: we have that above or the customer has entered that, has searched the whole and now sees the whole results. Here are then different products you can draw in a bit, does not look so nice now, but it’s also just about the principle. Do we now have our products displayed here, that then goes down the whole page so to speak. I paint now times not completely to the end, but imagine that, customer searches, they these results page. As a rule, there are always four products per line and then about so 10-15 lines down. Normally per page quasi 50 results. Now means the customer enters shoelaces. There are also this page now of course also advertisements, for example, may be that the first results are mostly sponsored at the top. That is, that would now be quasi advertising, here that could now also be advertising, that then also, quite often the first line is completely advertising.
Advertising vs. Organic
The advertising, i.e. how it is displayed, does not have that much to do with the ranking at this point, because everyone can simply pay for it. If I now say “okay, Amazon I want to spend 5€ per click for this keyword shoelaces”, then I would also be displayed at the very top in the advertising. But this is advertising that has nothing to do with the organic ranking. The organic ranking would then be virtually all those displayed on this page now without advertising. Now that means for example under here, that would be at the 1 organic ranking, then two, then three, then four and so on and so forth. The goal is for each seller on his search terms, and they could then look like this, for example. There we have, for example, target laces, then we might have laces white, laces sneakers and all sorts of variations of them. The goal is to build very good visibility for all keywords that are relevant to our product, accordingly also very good ranking. Very good ranking means at least on page one for these search terms, in the best case very high up.
The search volume
Means now here always the advertising away thought, if we were now here among the first four ranking, we would get very much visibility. What do I mean by visibility? Each keyword has a so-called search volume, which means per month how many customers enter exactly this keyword, this search term. If we now take: Shoelaces, that’s about 70,000 searches per month. If we now imagine 70,000 customers search for this term and see our product, way up here in the top four for example, we have super visibility. We are clicked and bought by these customers in the best case.
Amazon Ranking Basics - The Ranking Factors
If we get a click through our organic ranking and then a sale, we count it all as organic revenue. Every Amazon merchant – almost every one – lives and manages their profits through organic sales. It is very rare that traders are very profitable in advertising – advertising is expensive, advertising must be paid, customers do not buy after clicking in the advertisement in the normal case. Means the advertising is now not so responsible for the profits, but the organic sales. But now, of course, the question is “okay, we know the goal, we want to be ranked very high here, in the top four maybe, what do we have to do for that?”. And what does it matter?”.
Now there are so-called ranking factors. So all sorts of things, factors that play a role in ranking. I’ll list a few, there are a lot, I would list a few, then say which ones I think are most important. Amazon itself does not make a very clear statement about how this algorithm works, but it is relatively easy to imagine. Ranking factors are for example: the rating in number, the rating in stars, so how many stars the product has on average, then the conversion rate, so how many customers look at the product and actually buy that, the more the better. Product which is bought very quickly compared to the calls, of course, is normally attractive product and Amazon would like to promote such a thing. Then we have the return rate, so to speak, how often customers return the product. Number of sales in the respective period. Sales in this period, then of course we also have price, which plays into it, variants play into it in part and many small things, but that’s what I’d say we’re looking at a bit today.
Amazon Ranking Basics - Which factors are most important?
And now the question: What are the criteria/factors that are by far the most important? As an Amazon customer, you would now assume “okay, the best products are shown to me at the top of the ranking”. The best means, so to speak: the best quality, best price and so on. For the customer, that would probably be the assumption, but is usually not always the same. The thing is Amazon is of course building the platform so that the customers are happy, but the bottom line for Amazon is still above, let’s say the happiness of the customers, that the sales are right. Amazon is a big company and for them, revenue and revenue growth is actually priority number one in my opinion. Means: Amazon is very interested in which products generate sales for the platform. Because sales means you can show all shareholder sales targets of course, and show sales growth, and the more sales to the product makes the more Amazon charges. If we now consider that the most important thing for Amazon is sales, then we can actually imagine which of these factors probably play the biggest role for Amazon’s ranking. And that is number of sales and revenue itself, both are the most important factors.
Quite often, when we use tools now: Jungle Scout, Helium 10, AMZ-Scout without advertising one of these tools, we will see most of the time already with the keywords we enter, the sellers who earn the most money are at the top. And that’s also intended in exactly the same way, if the seller now makes 100,000 euros in sales with his products per month, he definitely already spends 15,000 euros in sales fees, maybe another 10,000 euros for fulfillment fees at Amazon, maybe another 10,000 euros in advertising costs, that is, he brings Amazon a lot of money in fees and also wins in the sense, and makes a powerful turnover that is also very good for Amazon to show.
Why not always products with the best quality rank well
Amazon does not show the best products at the top, but actually those that generate the most money for platform and if we know that, it is quite interesting for us, because then we can of course already consider why is our ranking not so good. Is it because of the ratings, is it because of the conversion rate, do we have too many returns. It’s all relevant. The biggest factor, however, is definitely the turnover. If we generate very strong sales on our keywords that are relevant, Amazon will promote us higher and higher over time. Means now, if we open the other graphic here again, if the top 4 sellers for example for shoelaces – average I say make 50,000 euros sales per month – and we now come into such a market, our turnover is now 5000 euros. The whole top 4 sellers for this product – whatever product by the way – they’re now doing 50,000 sales a month on average and we’re doing 5000. What incentive is there for Amazon to rank us higher? So make it more visible? We currently bring in little money and there are sellers who already make much more, so there is 0 incentive for Amazon to place us higher.
How can you increase your rankings?
Now the question is: How can we increase our ranking? And for this we simply have to think first and foremost, of course, the setup in the account must be correct. Means: the price must be right, the variants if available must be right, the images must be great, there should be A+ so branded content, SEO is very important so that we can generate ranking at all on the terms. But now it’s like all these things I just described, they’re actually just the base. The real ranking comes from the sales themselves and now there is actually only one very powerful tool that we can use to influence that ranking and influence the sales accordingly. This is clearly Amazon advertising, i.e. PPC. We can generate sales by advertising on Amazon, on our terms that we have already figured out before. Which shows Amazon “hey, on these terms the seller has gotten stronger now, maybe that shouldn’t be on page 3 anymore, it should be on page 2, then page 1” and on and on up.
Amazon Ranking Basics - Why PPC is so important
PPC is by far the most powerful tool at Amazon and the pivotal point where projects either become scalable, profitable, or in case of doubt a lot of money is burned. About PPC I had already talked a bit other video, but will be more videos to come. Today quasi simply as a conclusion what is ranking, what are keywords also a bit and what influences the ranking. Simply to correct them the mindset a bit. Because many sellers think “My pictures are not good, that’s why I don’t sell properly”, “My SEO is not good”, “My price is 2 € too high” or so, everything plays a role. But the PPC is probably where the problems arise the most. The pictures as long as the once really well done, you do not have to adjust them every week. The PPC campaigns, if they are doing very well, you don’t have to adjust them as often either. But until you get there, you have to optimize a lot. That’s kind of what you should put a little bit of focus on.
Amazon agency eBakery
We hope we could save you from the most common beginner mistakes. If you have any questions or if you want to leave the optimization to the professionals, please feel free to make an appointment with us. We are happy to help you as Amazon SEO agency, Amazon PPC agency, but also general Amazon agency.
Do you have questions or need an individual offer? Do not hesitate to contact us.
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