Online Retailing using Amazon
Anyone that sells their products on Amazon can expand their business enormously. Both the retailer and the online platform profit by cooperating with each other. The online operator reaches considerably more potential customers through the online marketplace, which is known across the world, while Amazon earns money on a commission basis for every item sold. Therefore, it is also in Amazon’s interests for every vendor to sell their goods as professionally as possible.
Amazon screens shop operators and what they offer according to certain criteria. With the aid of these results, the vendors are then ordered according to a particular ranking procedure. What happens on Google or eBay also happens here. Whichever product is at the very top is usually the one that is requested first, and in most cases, the one which is purchased the most often.
How can I achieve a positive ranking on Amazon?
The competition on Amazon is fierce. So how can you run your business so that you can keep up with your competitors? With some targeted courses of action you can win Amazon’s favor and rise up the ranking list.
- One of the most important tools for successful sales is provided by Amazon with the Buy Box. 85% of online visitors buy from retailers who can be found in the shopping cart field. Every online operator strives to achieve this. Overwhelmingly, this is accomplished with the help of the price offer. Furthermore, the range of goods in the Buy Box should be constantly updated and always well-stocked. As well as this, only online shop operators who swiftly and punctually deliver are assigned to the Buy Box.
- Amazon gives useful tips on how the title should be written. For this purpose, the 100 characters which are provided should be utilized extensively for the most important key terms. Anything that goes over this limit will not be shown.
- The correct keyword plays an important role. It’s only if you know which terms will be used to search for the product that you will be able to set the perfect basis for a successful search. The keyword density, as well as the positioning, can strengthen this impact even more. Amazon provides five fields for the suitable key terms. The 50 characters, which have to fit into this box, must be utilized to the greatest extent possible. Keywords directly corresponding to the product must be used. Synonyms and different ways of spelling words boost the possibility of getting a good ranking. Individual terms are separated from one another with a space.
- Each product should be shown clearly. The photo must have at least 1000 x 1000 pixels, so that the customer can easily zoom in on the picture. If you do not comply with Amazon’s standards, the photo will be completely omitted. For a good ranking it is not about the number of photos, the quality is the deciding factor.
- Of course, the price of your product has an effect on the customer’s buying behavior, and this definitely influences your Amazon ranking. However, you won’t automatically win the best position by simply undercutting the competition. The higher the price, the higher the commission received by Amazon. Therefore, you should set the price so that it is as high as possible while still appearing attractive to customers. With the perfect mixture of both factors, the conversion rate rises. Because of this, Amazon calculates the probability of a purchase on the basis of the price in the ranking procedure, even with completely new products.
- High delivery costs can cancel out even the best price offers. As customers are often discouraged from buying something due to delivery costs, these should be kept as low as possible or be dropped completely. Amazon themselves support free shipping with Amazon Prime. It can therefore be concluded that this type of hidden cost can have a negative effect on an item’s ranking.
- Amazon highly values good service, because, after all, it is their company whose name is being associated with the purchase. Speedy and punctual deliveries are a prerequisite for a positive rating.
- Customer reviews can upgrade online retailers’ offers. Firstly, the number of reviews is important. If several ratings already exist, then the average is shown. Reviews from customers who have already received the product are considered to carry more weight. Likewise, the factors which make a review valuable are assessed. The status of the critic, the detail included in the description, as well as any pictures or videos attached, are compared with each other in this procedure.
- Amazon takes negative responses into consideration solely for the purposes of assessing the retailer in a quantitative sense, as opposed to assessing the severity of the complaint.
- Cancellations before the dispatch has even taken place, including those which are reimbursed with credit notes, effect the ranking placement on Amazon negatively. If this happens frequently, then the shop operator should optimize their offer.
- On the other hand, if a product within a certain category is purchased more often than products which are similar, it is marked out by Amazon with a bestseller logo.
- The links to alternative products offer further opportunities to improve on the ranking list. Amazon prefers to list and rate different variations of the same product together.
- For Amazon, it is of course important how often an item is clicked on. This is measured by the “Click-Through Rate” (CTR). Of even more importance is the “Click to sale” (CTS), as with this, the website visitor becomes a customer. With new products, the success rate is determined according to a probability calculation.
- The bounce rate measures how often customers click on a product before rejecting it. It indicates that the customer did not find the item they were looking for here, and so has a counterproductive effect on the CTR. In contrast to this, Amazon rewards online operators whose visitors occupy themselves over a longer period of time with a particular product.
- In order to encourage the customer to learn more about the product in more detail, the product description needs to be convincing and interesting. It is useful to cleverly include the appropriate keywords.
- The features with the most relevant keywords are displayed at the very top and present a valuable contribution to the classification of the product.
- The opportunities that Amazon offers its operators should be exploited to their full potential. The more information provided, the higher the product’s position rises within the ranking list. A qualitatively poor listing ensures a drop in interest. With this, the exit rate rises and this causes a decrease in the rating.
- As a general rule, it is important to Amazon how many units of a single item are sold. For this, the turnover within different periods of time is measured. Even more important than the total turnover are the sales that have been recently generated.
The factors which have been mentioned up until this point directly influence the ranking position. Additionally, the following factors have an indirect effect on the ranking:
- As customers are often searching for particular branded items, the brand name should be always be mentioned.
- Similarly, the products should always be located in the correct category so that it is guaranteed that they will be easy to find.
- Q&As do not officially count towards the rating criteria. However, because they appear close to the title, they contribute towards the ranking.
For the most part, it is possible for almost every web shop operator to win over Amazon and achieve a good position on the ranking list.