The latest data shows that Amazon has over 1.9 million selling partners and 300 million active customer accounts globally, making the competition fiercer than ever. If businesses want their products to rank higher and appear at the top for customers with high purchase intent, they need to understand how to navigate the search ranking factors on Amazon.
In this article, UpBase will discuss everything businesses need to know about advertising on Amazon, including the key metrics to monitor and how to achieve higher rankings on Amazon's Search Engine Results Pages (SERPs).
Understanding Amazon's Search Algorithm
Amazon's search algorithm is a complex system that helps the platform search, rank, and return the most relevant product listings for a given search query. Amazon considers multiple factors when determining product rankings on its Search Engine Results Pages (SERPs), including product listings, images, keywords, and customer reviews.
Search Engine Optimization (SEO) on Amazon is a complex and time-consuming task, but it is crucial because all of a brand's other marketing efforts are only valuable if customers can find the product.
Here are some statistics from Search Engine Journal that highlight the importance of appearing high in Amazon's rankings:
- 70% of Amazon customers never click past the first page of search results (SERPs).
- 35% of Amazon shoppers click on the first product on the search page.
- The top three product listings displayed in Amazon’s search results account for 64% of clicks.
In summary, the higher a product ranks, the greater its potential for sales. However, without extensive knowledge of Amazon's search ranking factors, it can be challenging to determine what will help a brand's product appear on the first page of Amazon's rankings.
Comparing Amazon Search and Google Search
Amazon's search engine and Google share fundamental similarities. Both rely on complex algorithms and keywords to rank results and meet user needs. They also display two types of results: paid and organic.
The main difference between Amazon's and Google's search engines lies in user intent. Google users are often in research and discovery mode, while Amazon users are in buying mode and typically know exactly what they are looking for.
Additionally, Amazon and Google use different keywords to guide qualified traffic. Keywords on Amazon are more product-focused, emphasizing specific benefits or features. In contrast, Google considers long-tail keywords, page load speed, and backlinks when ranking a page.
Comparing Amazon's A9 and A10 Algorithms
Amazon's A9 algorithm is the system used by Amazon to determine which products will rank in search results.
Similar to Google, Amazon's search algorithm does not explicitly disclose its ranking criteria. However, experience and continuous experimentation have helped sellers and marketers identify the following ranking factors:
- Conversion rate
- Click-through rate (CTR)
- Inventory levels
- Paid advertising
- Relevant keywords
- Sales history
- Seller reputation
Amazon's A9 algorithm focuses on two main factors: sales performance history and relevance to search keywords. A product with a strong sales performance history will rank higher on Amazon compared to its competitors. Similarly, a product listing that includes relevant keywords will appear higher in search engine results pages (SERPs).
However, algorithms continuously evolve to deliver better results for users. In December 2020, Amazon released an update to the A9 algorithm, unofficially referred to as A10.
The A10 algorithm uses similar ranking factors as A9, but the key difference lies in how the parameters are scored. For example, A10 places greater emphasis on customer search behavior and user experience. This means that natural search metrics and overall customer satisfaction have a greater impact compared to paid advertising.
While A9 directs users towards higher-margin products, A10 leads users to more accurate search results.
Factors Affecting Amazon's A10 Algorithm
Sales History
Sales history refers to how well a product has sold over time while it has been on Amazon. Products with a stable sales history are more likely to appear higher in search results. The earlier a business markets a product, the easier it is to boost sales and improve rankings on Amazon.
Conversion Rate
Like the A9 algorithm, the latest update is influenced by the percentage of viewers who purchase the product. The higher the conversion rate, the better the product's ranking.
Relevant Keywords
The A10 algorithm also checks if product listings include relevant keywords and high-search-volume terms that match potential buyers' intent. As a seller, brands should provide detailed information in product listings to ensure the product appears in relevant searches.
Pay-Per-Click (PPC) Advertising
PPC advertising has a lesser but still significant impact, especially when a brand is launching new products. Paid ads can be very effective as they place the brand's product at the top of targeted search results.
Important Factors to Note in Amazon A10
Seller Authority
Customers can leave two types of feedback on Amazon: seller feedback and product reviews. Seller authority is now rated higher and is influenced by several factors, including:
- Seller feedback ratings
- How the seller handles product returns
- Duration of activity on Amazon
- Product catalog diversity
Having a high inventory level and positive reviews can significantly boost the credibility of a seller’s store. This indicates that customers trust the brand and that the brand provides value through a diverse range of products.
Organic Sales
Organic sales occur when consumers search for a product and then purchase it from the search results without any marketing or paid advertising driving the purchase. With A10 placing less priority on paid advertising, brands need to implement a strong organic SEO strategy. Optimizing your product descriptions with relevant keywords can help your products reach potential buyers with high purchase intent.
External Traffic
A10 places emphasis on traffic coming to Amazon from external sources such as blogs and social media platforms. Brands can generate sales from outside sources by advertising their products on other advertising channels.
Click-Through Rate (CTR)
Click-through rate refers to how often potential customers click on a product after it is displayed in search results (SERPs). A10 places greater importance on CTR, meaning that compelling product titles and thumbnails are more crucial than ever. However, click-throughs should ultimately lead to conversions.
See more: How to Effectively Optimize Search Terms for Amazon Advertising Campaigns
How to Achieve High Rankings on Amazon
Start with Listing Optimization
Having high-quality product listings will help you rank higher and encourage users to stay on your page longer and convert.
Here are some factors you should optimize:
- Title: Listings that do not follow Amazon's product title guidelines may be removed from search results. Titles should be concise, specific, and naturally incorporate relevant keywords into the text.
- Product Images: Online shoppers buy with their eyes, so product images should be of the highest quality. The main thumbnail should be a high-quality image with a white background. Use professional images that meet Amazon’s image requirements.
- Product Description: Like the product title, the product description should be informative and easy to read. Use keyword-rich bullet points and make your content engaging. Instead of just listing technical and physical features, brands can also describe various ways customers can use the product.
A strong e-commerce SEO strategy can help convince the algorithm that this product listing is exactly what your target customers are looking for.
Limit the Use of Discounts and Promotions
Discounts and promotions are an important factor in the A9 algorithm but may not be as effective with A10. Instead, you should focus on increasing external traffic.
In addition to leveraging social media platforms, brands can also boost their external visibility by working with influencers or bloggers. Having them link to Amazon products on their pages can help the brand generate a steady stream of external traffic.
Encourage More Positive Reviews
Nothing builds trust better than a stream of positive reviews from customers. Studies show that 84% of shoppers trust online reviews as personal recommendations, and 91% of consumers frequently or occasionally read online reviews.
Direct feedback affects brand reputation and customer purchase decisions. More importantly, it impacts your seller reputation, which carries more weight in the A10 algorithm.
Encourage customers to leave reviews with photos and videos as frequently as possible. Automated review generation tools can simplify the process of requesting and tracking reviews. If you receive negative feedback, it’s best to address it promptly.
Conclusion
The Search Terms algorithm plays a crucial role in determining the effectiveness of your Amazon PPC campaigns. Understanding how this algorithm works helps you optimize keywords, manage advertising costs, and enhance conversion rates. By continuously monitoring and adjusting your strategy based on real data, you can maintain a competitive edge on Amazon, achieve your business goals, and maximize profits from your PPC campaigns. Don't hesitate to experiment and continually improve, as flexibility and adaptability are key to long-term success in the ever-changing Amazon environment.
