E-commerce has become increasingly profitable in today’s world due to several reasons, including:

  1. Global Reach: E-commerce allows businesses to reach customers all around the world, without the need for physical storefronts or distribution centers in different locations. This opens up new opportunities for businesses to expand their customer base and increase sales.
  2. Convenience: E-commerce allows customers to shop online from the comfort of their homes, at any time of the day or night. This convenience factor has become even more important during the COVID-19 pandemic, as more people are choosing to shop online to avoid going out in public.
  3. Lower Overhead Costs: E-commerce businesses typically have lower overhead costs compared to traditional brick-and-mortar businesses. This is because they don’t need to pay for rent, utilities, or other expenses associated with physical storefronts.
  4. Data-Driven Decision Making: E-commerce businesses have access to a wealth of data on customer behavior, preferences, and purchasing habits. This data can be used to make informed decisions about product offerings, pricing, and marketing strategies.
  5. Scalability: E-commerce businesses are highly scalable, meaning they can quickly and easily expand their operations to meet increasing demand. This makes it easier for businesses to grow and adapt to changing market conditions.

Overall, e-commerce has become a profitable business model in today’s world due to its global reach, convenience, lower overhead costs, data-driven decision making, and scalability. As more people continue to shop online, the potential for e-commerce businesses to succeed and grow is likely to increase.

What is Amazon A9 Algorithm

Amazon’s item search calculation is totally not quite the same as Google’s. At the point when a purchaser looks for an item on Amazon, results are conveyed through a two-venture process. Right off the bat, they pull significant outcomes from their index and afterward they rank them as per pertinence. 

Amazon needs to amplify income per client. They persistently assess their calculations “utilizing human decisions, automatic examination, key business measurements and execution measurements”.

Core Pillars of the A9 Algorithm

  1. Conversion rate – Factors that Amazon has found to have an effect on conversion rates including reviews, image quality and prices. It’s vital for sellers to keep their prices competitive to maintain a good Amazon conversion rate. This is just one of the ways repricing software can help your Amazon business.
  2. Relevancy – Factors that tell A9 when to consider your product page for a search result. To rank higher, your product needs to be relevant.
  3. Customer satisfaction and retention – Factors that aid customer retention including Amazon seller feedback and order defect rate (ODR). Make customers happy and they’ll keep coming back. The more positive seller feedback and good reviews you get, the more likely it is that you’ll win the sale.

21 Amazon Product Ranking Factors

Here’s a list of 21 factors across conversion, relevance and customer satisfaction that Amazon’s A9 algorithm considers when ranking your product.
Conversion rate factors
 
Deals rank (otherwise called the Amazon Best Sellers Rank) is quite possibly the main positioning factor. More deals = higher rankings and higher positioning = more deals!
 

2. Customer reviews
The number of product reviews you receive and the quality of these reviews are important ranking factors.

3. Answered questions
Answered questions are listed at the top of the product page and play an important part in conversions.

4. Image size and quality
Sellers should follow Amazon’s image guidelines to ensure their listings are not suppressed. By using high-quality images of a minimum of 1,000 x 1,000 pixels you can enable the zoom feature which allows buyers to see your products in more detail.

5. Price
As well as being one of the most important Buy Box factors, the price of your products also strongly influences conversion rates and sales. Learn more about Amazon Buy Box eligibility.

6. Parent-child products
By using Amazon’s parent-child product functionality you’ll direct customers to a single product page. This will help maximise your customer reviews. Learn more about parent-child relationships.

7. Time on page and bounce rate
The amount of time a customer spends of your listing will show Amazon how interested customers are in your product.

8. Product listing completeness
The more complete your product listing is, the better. Try to complete every single field in the listing setup page.

Relevancy factors

9. Title
A good product title will increase your conversion rate. To optimise your Amazon product title, it should contain keywords, be easy to read and be under 200 characters.

Here’s a good example directly from Amazon.

10. Features/bullet points
Displaying the product features in detailed bullet points which include keywords (like below) is a great way to increase conversions.

11. Product description
Use the product description to expand on your features and include your keywords. It’s worth putting the effort into getting this right as a great product description will increase your customer engagement and conversion rates.

Likewise, a product description which isn’t up to scratch could mean you lose sales (to a competitor) or result in negative buyer feedback. Discover how to remove negative feedback on Amazon.

12. Brand and manufacturer part number
If appropriate, you should always include the brand in your title. This helps buyers searching by brand name to find your products.

13. Specifications
The specifications section is where you should list the technical and physical details of your product including size, shipping weight, colour etc. Completing this section shows Amazon that you’re diligent when it comes to listings.

14. Category and sub-category
When setting up your product listing, make sure you select the most relevant category for your product.

15. Search terms
Amazon gives you five fields with a character limit to specify the search terms that you want to be associated with your product. You can use Google’s Keyword Planner to help you.

Here are Amazon’s best practices for providing keywords.

  • Don’t provide inaccurate, misleading, or irrelevant information.
  • Don’t provide excessively long content. Respect the limits that are set for different fields.
  • Don’t provide redundant information that is already captured in other fields such as title, author, product description, bullet points, brand, etc.
  • When entering several words as a search term, put them in the most logical order.
  • Use a single space to separate keywords. No commas, semicolons or carets are required.
  • Don’t include statements that are only temporarily true, e.g., “new,” “on sale,” “available now”.
  • Don’t include subjective claims such as amazing, good quality, etc.
  • Don’t include common misspellings of the product name.
  • Don’t provide variants of spacing, punctuation, capitalization, and pluralisation.
  • Don’t include terms that are abusive or offensive in nature.
  • Abbreviations, alternate names, topic (for books etc.), and key character (for books, movies etc.) could be included as keywords.
 

Customer satisfaction and retention factors

16. Negative seller feedback
All negative feedback counts against you equally in terms of product search results. Your feedback rating is also an important factor for your Buy Box chances.

17. Order processing speed
To be successful on Amazon, you need to ship fast and accurately. You’ll also rank higher with efficient order processing.

18. In-stock rate
Poor inventory management can result in popular products going out of stock. Amazon likes sellers who keep a high in-stock rate to minimise refunds and pre-fulfilment cancellations.

19. Perfect Order Percentage (POP)
Sellers who achieve a higher percentage of perfect orders will rank higher than those who experience order issues. Learn more about POP.

20. Order Defect Rate (ODR)
If a customer makes a claim against an order, this is considered an order defect. Defects include negative buyer feedback, A-to-Z Guarantee claim, shipment problems and chargebacks. Note, if the feedback is later removed by the buyer, this won’t count against your ODR. So, it’s worthwhile trying to resolve any issues that might occur. Check out this article to improve your order defect rate.

21. Exit rate
Your exit rate is the percentage of times a customer views your listing and then exits Amazon. Products with a lower exit rate will rank higher and convert more.