Amazon is the largest and most popular e-commerce platform in the world, with over 200 million active customers and millions of products for sale. As a seller or a buyer on Amazon, you may wonder how Amazon decides which products to show in the search results when someone types in a query. The answer lies in Amazon’s search algorithm, which is constantly evolving and changing to provide the best possible shopping experience for its users.
In this blog post, we will explain what Amazon’s algorithm is, how it works, what are the recent changes and updates, and how they affect sellers and buyers on Amazon. We will also share some tips and best practices for optimizing your product listings and ranking higher on Amazon in 2023.
What is Amazon’s Algorithm and How Does It Work?
Amazon’s algorithm is the system that matches a customer’s search query with the most relevant products in the Amazon catalog. The algorithm is based on a former subsidiary company called A9, which was founded in 2003 and is now part of Amazon’s core technology.
The algorithm uses various factors and criteria to rank products in the search results, such as:
- Relevance: How well the product title, description, features, and keywords match the search query.
- Performance: How well the product sells, based on its sales history, conversion rate, click-through rate, and customer reviews.
- Price: How competitive and attractive the product price is, compared to other similar products.
- Availability: How likely the product is to be in stock and ready to ship, based on its inventory level and fulfillment method.
- Selection: How many variations and options the product offers, such as size, color, style, etc.
- Customer Experience: How satisfied the customers are with the product and the seller, based on their ratings, feedback, returns, refunds, etc.
The algorithm also considers other factors that are not directly related to the product listing, such as:
- Sponsored Products: These are cost-per-click (CPC) ads that sellers can use to promote their products in the search results. Sponsored products are marked with a “Sponsored” label and appear above or below the organic results.
- Search Filters: These are options that customers can use to narrow down their search results by department, category, price range, customer reviews, programs and features, etc.
Search History: This is the record of previous searches that customers have performed on Amazon. The algorithm may use this information to personalize the search results based on their preferences and interests.
The algorithm is constantly learning from customer behavior and feedback, as well as from external sources such as market trends and competitor data. The algorithm updates itself frequently to improve its accuracy and relevance.
What are the Recent Changes and Updates to Amazon’s Algorithm?
Amazon does not publicly announce or disclose its algorithm changes or updates. However, based on observations and analysis by experts and sellers, some of the recent changes and updates that have been noticed are:
- More Focus on Relevance: The algorithm has shifted its focus from profitability to relevance. This means that it prioritizes products that are more closely related to the customer’s search query, even if they are not as profitable for Amazon. This change aims to improve customer satisfaction and loyalty by providing them with more accurate and relevant results.
- More Weight on Organic Sales: The algorithm has reduced the ranking benefit of PPC sales. This means that products that generate more sales from organic clicks have a higher chance of ranking higher than products that rely heavily on sponsored ads. This change encourages sellers to optimize their product listings for SEO rather than for PPC.
- More Influence of Seller Authority: The algorithm has introduced seller authority as a ranking factor. This means that products from sellers who have a higher reputation and credibility on Amazon have a higher chance of ranking higher than products from new or unknown sellers. This change rewards sellers who provide high-quality products and services to their customers.
- More Impact of Off-Site Traffic: The algorithm has increased the power of off-site traffic. This means that products that receive more traffic from external sources such as social media, blogs, websites, etc., have a higher chance of ranking higher than products that only receive traffic from within Amazon. This change motivates sellers to diversify their marketing channels and strategies.
How Do These Changes Affect Sellers and Buyers on Amazon?
These changes have significant implications for both sellers and buyers on Amazon. Here are some of the effects that these changes may have:
- For Sellers: These changes mean that sellers need to adapt their product listing optimization and marketing strategies to align with the algorithm’s new priorities and criteria. Sellers need to focus more on improving their product relevance, performance, price, availability, selection, customer experience, seller authority, and off-site traffic. Sellers also need to monitor their product ranking and sales performance regularly and make adjustments accordingly.
- For Buyers: These changes mean that buyers may see different products in the search results than before. Buyers may find more relevant and accurate products that match their search query, but they may also find fewer products that offer discounts, deals, or free shipping. Buyers may also see more products from established and reputable sellers, but they may also see fewer products from new or innovative sellers.
Tips and Best Practices for Optimizing Your Product Listings and Ranking Higher on Amazon in 2023
To help you optimize your product listings and rank higher on Amazon in 2023, here are some tips and best practices that you can follow:
- Conduct Keyword Research: Keywords are the words and phrases that customers use to search for products on Amazon. You need to identify the most relevant and popular keywords for your product niche and category, and use them strategically in your product title, description, features, and backend search terms. You can use tools such as SellerApp, Jungle Scout, or Helium 10to conduct keyword research and analysis.
- Optimize Your Title: Your product title is the first thing that customers see in the search results. You need to make it catchy, informative, and keyword-rich. You need to include the main keyword, the brand name, the product name, the key features or benefits, and the unique selling proposition (USP) of your product. You also need to follow Amazon’s style guidelines for your product category.
- Optimize Your Images: Your product images are the second thing that customers see in the search results. You need to make them high-quality, clear, and attractive. You need to follow Amazon’s image requirements for size, format, resolution, background, etc. You also need to use multiple images to showcase different angles, perspectives, details, variations, and uses of your product.
- Optimize Your Description and Features: Your product description and features are the third thing that customers see in the search results. You need to make them detailed, informative, and persuasive. You need to use bullet points to highlight the main features or benefits of your product, and use paragraphs to elaborate on them. You also need to use keywords, emotional triggers, social proof, guarantees, etc., to convince customers to buy your product.
- Optimize Your Price: Your product price is one of the most important factors that influence customer buying decisions. You need to make it competitive and attractive. You need to research your competitors’ prices and set yours accordingly. You also need to consider your costs, margins, fees, taxes, etc., when setting your price. You can use tools such as Repricer, BQool, or Feedvisor to automate your pricing strategy and adjust your price dynamically based on market conditions.
- Optimize Your Availability: Your product availability is another important factor that influences customer buying decisions. You need to make sure that your product is always in stock and ready to ship. You need to manage your inventory level and replenishment cycle efficiently. You also need to choose the best fulfillment method for your product: Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), or Seller Fulfilled Prime (SFP). You can use tools such as InventoryLab, Forecastly, or RestockPro to optimize your inventory management and fulfillment process.
- Optimize Your Customer Experience: Your customer experience is the ultimate factor that determines your success on Amazon. You need to make sure that your customers are satisfied with your product and service. You need to provide accurate and honest information about your product. You also need to deliver your product on time, handle customer inquiries promptly and professionally, resolve customer issues quickly and effectively, encourage customer reviews and feedback, etc. You can use tools such as FeedbackFive, Feedback Genius, or FeedbackWhiz to automate your customer communication and feedback management.
Satisfaction for the Customers – And the Algorithm
Amazon’s algorithm is a complex and dynamic system that aims to provide the best possible shopping experience for its customers. As a seller or a buyer on Amazon, you need to understand how the algorithm works, what are the recent changes and updates, and how they affect you. By following the tips and best practices we shared in this blog post, you can optimize your product listings and rank higheron Amazon in 2023. You can also satisfy the customers and the algorithm by providing high-quality products and services that meet or exceed their expectations. By doing so, you can increase your sales, profits, and reputation on Amazon, and grow your e-commerce business successfully.
We hope you found this blog post helpful and informative. If you have any questions or comments, please feel free to leave them below. We would love to hear from you.