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How to Increase Your Amazon Rankings Without Sacrificing Profitability
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Nearly half of consumers (44%) are not going past the second page of search results on Amazon and 26% frequently buy the first product listed on an Amazon results page.
Without thorough knowledge of Amazon’s SEO and its nuances, as well as how to optimize your sales rank, you are not only sacrificing valuable sales and traffic, but also giving in to the competition and blending in with a highly saturated crowd. In this article, we will explain how your pricing strategy impacts your sales rank and search position, as well as other KPIs such as discoverability and conversion.
Amazon SEO and Sales Rank Explained
SEO stands for search engine optimization, the process of increasing the quality and quantity of traffic from the organic or natural search results on search engines. However, because of user intent, Amazon’s search engine operates very differently than a search engine like Google.
Amazon is a product-based search engine, designed to help customers make purchases. It does not need to factor in informational search intent, such as “how to” queries, and can instead focus on pairing consumers with the most relevant products based on their search. To perform a search at scale, Amazon’s search algorithm, known as A9, determines which products are the most optimal matches with the customer’s entry and then scores them based on the product’s relevance to the consumer.
Amazon’s search algorithm is based on two core tenets: performance and relevance. A product with strong sales performance history will rank higher in Amazon’s search results, as will a product that uses the most effective keywords to match a customer’s search queries. For relevance, ask yourself how relevant your product is to what the customer is searching for. When optimizing your detail pages on Amazon, keep these two factors top of mind to increase your chances for higher organic rankings.
Sales rank, on the other hand, is a calculation based on Amazon sales that is updated on an hourly basis to reflect recent and historical sales of every product sold on the vast platform. Commonly referred to as the Best Sellers Rank (BSR), sales rank is a strong indicator of how well a product is performing overall. However, it does not always indicate how well an item is performing among other similar items. How, then, can you measure a product’s performance within its own category and against the competition? We provide the answer in the next section.
The Role Pricing Plays in Fueling the Flywheel
The prices that you set for your Amazon products can greatly impact your conversion rate and sales performance. Be sure to perform a competitive analysis to understand at what price points your competitors, both on and off Amazon, are listing similar products. If you price your products strategically and competitively, your conversion rate will benefit.
With Feedvisor’s dynamic ProductSphere™ pricing technology, you have the option to set the pricing strategy according to your key business objectives for the private label, branded, and single-seller SKUs in your catalog. If you are concerned with your Amazon sales and search ranking, you can pull the lever for revenue-focused price optimization in order to improve your rankings, accelerate sales, and identify the sweet-spot prices that positively impact your sales demand.
The Amazon flywheel can, in fact, be kickstarted with dynamic price optimization. Above anything on Amazon, consumers are enticed by competitive prices. Optimal pricing will generate more sales, which in turn can lead to improved sales rank and organic search placements without sacrificing your profits.
As a result, you will be able to understand the importance of tracking the impact of price changes on your per-item performance and demand as well as garner incremental reviews and organic traffic once the flywheel is accelerated.