Product Positioning on Amazon – The Fundamental Metrics

When you’re selling on Amazon, a good positioning of your product on the marketplace is one of the fundamental elements to keep in mind. It represents the master key to the success of your business on this online sales channel.

You don’t have to be an expert to understand why this is so. In fact, the majority of people searching for a product on Amazon usually do not go beyond the first or second page of Jeff Bezos’ browser. It’s the same thing that happens on Google where people researching for information seldom browse beyond the first page search results. This is why it’s so important to obtain and maintain a good positioning of your product on Amazon’s search page. You must strive to avoid that your product ends up on the back pages that nobody will look at.

But, this is only the easy part of the game. The tough part comes when we realize that Amazon has never revealed how its product positioning algorithm works. We don’t know which criteria the platform uses to determine the positioning of products on the search pages. As a consequence, understanding what you can do to impact effectively and positively on the positioning of your products can be quite complicated. Nonetheless, it seems logical to believe that there are some fundamental metrics that can strongly influence product positioning and that can somehow be handled by the seller.

Fundamental metrics

Conversion rate

Now, having said that, and thinking exclusively in terms of metrics, one of the KPI’s you must strongly keep in mind is the conversion rate. This KPI is the ratio between the number of persons that visit your product page (traffic) and the actual number of sales. The bigger the conversion rate, the more favorably will Amazon consider your product to be, as it proves to better satisfy its consumers’ needs. Hence, in order to increase your conversion rate you need to comprehend all the factors that determine it:

• the numerator, represented by the sales that correspond to the number of orders received for a given item;
• the denominator, represented by the traffic that corresponds to the number of sessions, that is, the number of visits customers have made to your product page during a 24 h period. If a same customer visits a page more than once during the same 24h time-lapse, the repeat visits will be excluded from the count.

Reviews

Among the other metrics, we must duly mention the number and score of the reviews you get on the marketplace. Obviously, the greater the number of positive reviews, the better will Amazon deem your product to be in comparison to other sellers’ offers with fewer reviews and lower ratios between the number of positive reviews with respect to the total number.

Sales Velocity

Lastly, we must mention that one of the metrics that are essential to obtaining a more satisfactory position is the sales velocity, meaning the number of units sold per day.

The above metrics are the main KPI’s to work on if you want to place your products in the best possible position on the search pages that interest you. Concentrate your strategical efforts on the number of orders and sessions as well as on the conversion rates. We are sure you will quickly scale the search results and win the most coveted positions for your products!