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How Does Amazon Assigns and Updates Product Ranks: How Can You Benefit?

At the end of the day, it does not make any difference what sort of goods you sell at the Amazon marketplace. To succeed in your business, you must adapt your working practices to the requirements of the online algorithms. In other words, soulless programs should like you to a larger extent than they like other salespersons. To achieve that, you need to learn some key facts about the Amazon sales rank, how it works, and why it was created. The company does not distribute much specific information about the core of their programs. The only way to deduct some facts about them is to analyze the working experience. Of course, we have to believe that the ranking algorithm does not change drastically over time, except for its self-learning subroutines.

A highly ranked product is naturally equal to the seller’s eventual success at the platform. Therefore, it is worth time to investigate the situation in proper detail and outline a few helpful bits of advice. In the article, we try to summarize our experience and share a few specific optimization tips for everyone interested.

What does Sales Rank at Amazon Mean?

You can exploit the standard Amazon search function at the top of the page to understand how the sales ranks are output for customers. You can easily find the present bestsellers. Furthermore, you can search for goods by the seller ranks to browse through best merchants who offer this or that deal. Their rankings designate the most popular products, i.e. the ones who get sold most frequently. The hall of fame is updated every hour, therefore, actually, quite a few sellers can find themselves in the coveted list.

What does Sales Rank at Amazon Mean?

The way how Amazon derives the ranking is a mystery, whereas the algorithm looks quite complicated. Nevertheless, certain facts can be assumed to be true. First, the program retrieves data from the currently available catalog and outputs them by relevance. Second, the Amazon company is well-known to be always customer-oriented. The algorithm tries to maximize profits from every visitor by advising each person the thing that he/she will ultimately purchase. Third, highly-ranking goods must have high conversion rates (the number of sales divided by the number of displays) and exhibit a high level of satisfaction (mostly five stars feedback).

What does Sales Rank at Amazon Mean?

Let's provide some practical examples to make things clearer.

  • ‘Number 1 in the category’ means Amazon sells more of this product than anything else.
  • ‘Number 3 in the category’: only two products are purchased more frequently than this product.
  • ‘Number 99 in the category’: the mentioned item is 99th best-selling one. Therefore, a customer may want to look at items from 1st to 98th before committing their purchase.

Rank importance for merchants depends heavily on the category. Being Number 1 in ‘Books’ does not mean much, while products, which are Numbers 1-5 in 'Pencils' probably deserve a way more attention.

How Do You Improve the Sales Rank

Nowadays, there are more than 350 million products in total. Based on the most recent data, third-party sales account for over 50% of all items shipped. As you see, the environment is indeed pretty competitive. Helping buyers find namely your products is challenging. So, what to do in this situation?

Advice 1: Optimize Your listings

You are expected to offer the best detail pages possible. Learn the rules of optimizing titles, descriptions, features, frequently asked questions, instructive images, keywords. They all heavily matter and can easily increase your ratings with little effort.

Advice 2. Always Select Most Suitable Product Category

Your items must be listed in the most granular level, i.e. the more levels exist, the better it is for you, say, 'Board Games' – 'Games' – 'Toys'. Choose smaller categories and your product rankings will increase.

Advice 3: Promotions and Seasonal Merchandise

Not all goods are equally popular throughout the year. School supplies (pens, erasers, copybooks, rulers) are naturally more popular at the end of summer. However, your actual sales may drop during this period because of the increase in competition in the respective category. In the meantime, when other merchants offer less, you may succeed thanks to planning and maintaining consistent stocks.

Pay attention to deals and promotions. Think about, say, the 'Lightning Deal' at the end of the year on a wonderful Christmas tree. This will help to greatly enhance the ranking, which will be valid up to the end of the holiday shopping season.

It is also important to run an independent investigation. Make records and try to understand at what periods the number of orders increases. Try maintaining daily and weekly selling goals that will improve your positions over time.

Advice 4: Maximize the Number of Sales

You need to routinely propose competitive prices and never run out-of-stock. These parameters work together. Do not try to sell very cheap, but better be aware that you have enough items available. The FBA service is very helpful to remain in-stock, avoid possible problems with on-time delivery and customer satisfaction.

Your item sales history matters very significantly. It is not perfect if you sold three thousand goods in a week after advertising and exhibit a comparatively poor record after that. The Amazon algorithms easily identify such cases and penalize merchants in terms of rating. For continued prosperity, aim for consistent sales and stable development.