Our second article on Amazon SEO Basics is intended to provide a brief overview of the so-called performance factors, in addition to the relevance factors already presented.
After creating a professional and keyword-optimized product listing, these are additional factors that ensure the findability and attractiveness of the listing and ultimately more sales. The limitation here, however, is that traders cannot directly influence all factors. See existingcountries for New Requirements for Amazon Retailers.
Out of economic self-interest, Amazon understandably only wants to show its customers on the search results pages those products that are most likely to trigger a purchase. For this purpose, the past sales performance is taken into account, which consists of:
1. Click-Through-Rate (CTR) oder Klickrate
The frequency of a click after a visual contact. If a product is shown in the search results but is then only rarely clicked on, this may be because the image and/or title are not meaningful or do not appear to be of high quality or even contradict each other. One such case would be that the title describes a men’s watch and the picture obviously shows a women’s watch.
2. Conversion Rate
The frequency of a purchase after opening or viewing the product listing. Customers leaving the product page without adding the item to their shopping cart can have similar causes to a poor CTR, such as a lack of quality or insufficient, contradictory or discouraging information. But it could also be due to a product review or a competing product displayed at the end of the listing that appears even more attractive.
Regardless of a conversion, Amazon also evaluates the time spent on a listing. If the dwell time is short and the bounce rate is high, this has an additional negative effect on the ranking.
The absolute sales of a product. The more frequently a product is sold, the more likely it is and the higher it will be displayed in the relevant search results and the better the Bestseller Rank (BSR) in the respective main and subcategory. If you make it to first place, you will also get the bestselling batch mentioned in our first article.
Adjusting screws for dealers
On the seller side, there are now a few options to increase the attractiveness and relevance of the listings for Amazon on the one hand and for potential customers on the other (which in turn influences Amazon’s ranking) and thus sustainably improve performance:
The price should of course initially include an appropriate margin for the retailer, but at the same time should not differ greatly from comparable products. If you are not the only provider of the product, i.e. several retailers “share” a listing and you want to win the coveted buy box (the shopping cart field), the only option is ultimately to get the cheapest price.
As part of the (total) price, shipping should be set as low as possible or the product should even be offered free of charge. Many customers only notice possible shipping costs during the checkout process and may then be upset about additional costs. If you have the shipping handled by Amazon and customers have registered for Prime, the shipping costs are eliminated anyway.
Customers usually expect a short processing and delivery time. The statement “In stock” is therefore very likely to result in more sales, a better ranking and also a better dealer rating than “Ready to ship in 2 to 3 days”.
The Prime logo, which stands for fast and free shipping, solves any problems or inhibitions regarding shipping costs and delivery times and is now the ultimate sales booster on Amazon. Every retailer should therefore strive to offer Prime products, either through Fulfillment by Amazon (FBA) or through Seller Fulfillment (FBM), the latter of which is subject to strict delivery conditions.
Products that are returned frequently will be penalized with a poor ranking in the long term. A better description and better product images might help here. However, the rate also depends heavily on the category, as clothing and fashion items, for example, are naturally tried out and returned more often.
Ratings are the decisive currency on Amazon and at the same time they are one of the factors that you as a retailer have the least control over. The more reviews – especially in relation to the competition – the better, but even more important is a good average, ideally 4 to 5 stars. It is also helpful if the reviews are authentic and do not seem bought and have been marked as useful by other customers.
In addition to the products, customers can also rate the retailers themselves. These reviews are not even noticed by most buyers and are therefore not a decisive factor in their purchase, but they are taken into account by Amazon’s search algorithm.
The algorithm also evaluates communication with customers, for example the rapid response to messages, public questions or negative feedback, and then displays the retailer’s products accordingly.
By taking relevance factors into account and thus creating an attractive and meaningful listing that is also related to relevant search queries, you lay the foundation for successful selling on Amazon.
In the next step, the performance factors, starting with attractive shipping conditions, good customer service and a continuously growing number of good reviews that are helpful for other customers, ensure long-term success.
If you get stuck at one point or another with your own products, please feel free to contact us. Our Amazon consultants are happy to help.