We’re a long way off from Valentine’s day but nevertheless I want to talk about love. More specifically, the love Amazon has for your product.
If we’re doing everything right in Amazon’s eyes they will reward us by pushing us up through those search results to the top. So by keeping Amazon happy, we’ll get more exposure and more sales. Just like the best relationships, it’s win-win and we’ll grow (old) together.
Okay, that was a little gooey.
How can we win Amazon’s heart? We need to get a little mathematical.
Amazon loves equations
Amazon is a bit of a geek. It loves equations, or metrics as it refers to them.
I’m going to talk to you through 4 key metrics, why they’re so important to Amazon and how you can boost them.
1. Click-through rate. This is the number of people searching for a particular product divided by the number who click through to your listing. So, if 1000 people search for your product and 100 click through to your listing, then your rate is 10%.
The most important influences here are your main image and your title. We won’t go into how to optimise them here, there are lots of resources out there for that, but be sure these are top-notch.
2. Conversion rate or unit session percentage. Once a customer has clicked through to your listing, how many actually buy the item? This is the conversion rate (or as Amazon calls it, the unit session percentage). So, if 100 people look at your listing and 10 successfully complete checkout, then you have a rate of 10%.
What’s a good rate to aim for? It really depends on the category, but between 10 and 15% is a great average to shoot for. You can check your unit session percentage in your business reports.
To increase this you need to:
- Optimise all of your images
- Optimise your product description
- Ensure the price is affordable
- Have a few good reviews. A minimum of 5 is a good place to start.
3. Click-through rate divided by Amazon’s commission. Amazon loves making money more than anything else and one way is by taking a commission from your sale. The commission rate varies by what you sell, let’s assume 10%. Now, if your product sells for $30 and your rival’s sells for $50, Amazon is going to like your rival better – it’s making them $2 more on every sale. Therefore, to maximise its revenue, Amazon is going to push your rival’s listing up the ranks.
Pricing is a balancing act. Price too high and you’ll be out of your audience’s budget. My advice is to price your product in the top 10% of your niche.
Maximise the amount of money you make for Amazon and they’ll love you for it.
4. Number of sales divided by number of reviews. This is our last but an important metric as far as ranking is concerned. People are buying your product but is anybody reviewing it?
Amazon is very interested in the quality of your product, so it uses this metric to track your performance.
Amazon loves those nice reviews coming in. Getting reviews is an article in itself and I’ll be sure to write one in the future. But for now, there are lots of resources out there to help you.
Amazon is a business and ultimately wants to improve its overall Return On Investment (ROI), which is you, the seller. By improving the above 4 metrics, even if you improve each one by 5%, the cumulative effect on your ROI will be huge.
So this week, work on boosting these 4 rates and Amazon will love you forever – and instead of flowers and chocolates, Amazon will lavish you with that coveted spot at the top of the search results.
Lots of love ❤️😉