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Understanding Amazon’s Sales Velocity Limits
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Whether you are fine-tuning your SEO strategy or updating your product detail page content, always be sure to optimize for customer conversion first. Amazon rewards listings that perform, not necessarily listings that are overly stuffed with keywords. Improved visibility on Amazon will lead to an increased velocity of sale and level of conversion.
Amazon Sales Velocity
What exactly is sales velocity, though? Amazon defines sales velocity as the number and dollar amount of a seller’s transactions during any given month. The more sales you produce on Amazon, the higher you will rank. A high sales velocity is immensely beneficial to Amazon, so its A9 ranking algorithm analyzes sales results and increases the rankings for the products that sell well.
With a higher conversion rate and increased sales velocity, you will be able to accelerate incremental sales and generate positive customer reviews, fueling the flywheel effect. A well-informed pricing strategy will also play a role in determining your conversion rate and sales performance.
If you price your products strategically and competitively, your conversion rate will benefit. By leveraging real-time price optimization, such as with Feedvisor’s platform, you will be able to set prices that adapt to your constantly changing competitive landscape and optimally price to ensure the right balance of sales velocity and profitability.
Amazon monitors sales velocity regularly in order to protect its customers, implementing velocity limits that vary by seller. They are applied to all seller accounts and are set at the time of registration. If you approach or exceed your velocity limit, Amazon will analyze your account and may end up increasing your velocity limit as a result.
As part of Amazon’s evaluation process, only the company will grant or deny the velocity limit increases — you should not contact Amazon to have your velocity limit increased. Amazon notes that it can limit your selling privileges and/or withhold payments depending on any issues it uncovers. Essentially, putting sales velocity limits into place grants consumers protection against orders that cannot be fulfilled.
When evaluating your sales velocity, Amazon may place your account under an in-depth review if your current sales volumes or inventory are not supported by buyer feedback or an established sales history. If your account enters this review period, a temporary hold will be placed on it and your listings may be suspended.
The reviews typically conclude within 30 days, but Amazon can extend the period at its discretion. You can expedite your review if you send Amazon the below information:
- Length of time you have been in business
- Your inventory suppliers
- Anticipated monthly sales on Amazon
- Your shipping availability
- The address of any retail locations
- Links to other websites where you are actively selling
- Tracking information for recently shipped orders
- Tax ID or Dun and Bradstreet (D-U-N-S) number
You can send this information to Amazon by replying to the notice that was sent to you regarding the review, which can be found in the Notification page of the Customer Metrics section in your seller account. You are allowed to request feedback from buyers as long as you do not pressure them or offer incentives in exchange for the review.
Like sales performance, reviews can also indirectly impact your organic rank on Amazon, as they can influence your conversion rate. By responding to reviews in a timely manner, you are showing your customers — current and prospective — that you value their time and experience with your products.
Keeping a meticulous pulse on your sales velocity is critical, as new orders will be shown as “pending” until Amazon reviews — and likely raises — your velocity limits, allowing those orders to become available for shipment again. Your sales velocity on Amazon, therefore, has the ability to impact not only your organic ranking and conversion, but also your order completion and consumer experience, making it a variable you should track regularly.
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