Amazon A10 Algorithm: How It Works and How to Increase Sales

What is the Amazon Algorithm?

The algorithm is a complex calculation system through which Amazon decides the sequence in which to show products. Consequently, understanding the mechanisms that govern it is essential for success on the marketplace. In fact, it is estimated that 70% of users never go past the first page when looking for a product; therefore, failing to appear among the top search results is equivalent to not selling. The algorithm is constantly updated and its most recent version, the Amazon A10 algorithm, has replaced the previous one, A9. Amazon does not directly state what the new release features are or the true principles behind this calculation system, but by constantly monitoring product performance, it is possible to understand how it works quite accurately. Below, we will summarize the best practices to improve product positioning and sell more on Amazon.

How the Amazon Algorithm Works

First of all, let's try to understand the main logic behind the Amazon algorithm. Unlike Google, which shows results based on relevance to the search terms entered by users, Amazon tends to reward products that have the best performance, both in terms of sales and other KPIs (Key Performance Indicators), including:

• Reviews;

• Conversion Rate, which is the ratio between clicks on the page and sales;

• CTR (Click Through Rate), which is the ratio between generated clicks and the number of times the listing appeared in the search results;

• Number of returns;

• Shipping speed;

• Use of Amazon FBA;

• Time spent on the page;

• Price;

• Number and quality of images.

All these elements will have a different weight, and the way listings are displayed is based on a weighted ranking of the various factors.

Furthermore, each keyword has its own personal ranking based on the performance of different ASINs for that keyword.

Example: If a user buys a kitchen table by typing the search terms "wooden rectangular kitchen table" and publishes a positive review, the purchased product will improve its ranking for the keyword "wooden rectangular kitchen table".

The reasons why Amazon follows these logics are mainly two, both quite intuitive:

• The marketplace's profit is a percentage (generally 15.75%) on sales. Therefore, Amazon has every interest in showing products that generate the best results first;

• If Amazon enjoys its current reputation, it is primarily thanks to the quality of services offered, such as rapid shipping, return management, and much more. Those who do not meet these standards will be penalized in the rankings.

Clearly, product relevance to the search terms also carries weight, and working accurately on Amazon SEO is of vital importance. Amazon's Search Engine Optimization allows the item to be placed in ranking lists and helps the algorithm understand what the product is, associate it with complementary products, and increase visibility.

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What's New in Amazon's A10 Algorithm

So far, we have listed the key elements at the base of the Amazon algorithm without emphasizing the latest changes introduced.

After several months of data analysis, it seems the marketplace has decided to give greater relevance to three KPIs in particular: conversion rate, CTR, and reviews.

Regarding the latter, we have dedicated a specific article offering some tips to get more reviews on Amazon, urging sellers to be very careful with unauthentic ones. In fact, Amazon review moderation software is becoming increasingly sophisticated, and the risk of account suspension is getting higher.

Concerning the first two indicators, it will be necessary to fully optimize product pages, trying to make them clear, engaging, and comprehensive. The time users are willing to spend on product pages is decreasing, and how an item is presented can be decisive. Furthermore, it is essential to take care of every aspect of the product page such as title, images (here we explain how to optimize them), bullet points, and all other elements.

Another factor to consider is that more and more users purchase on Amazon through the smartphone application, preferring it to desktop browsing. Optimizing the product page for the mobile version follows slightly different logics, but we have dedicated a specific article to this.

WANT TO KNOW IF YOUR PRODUCT PAGES ARE TRULY OPTIMIZED?

How to Increase Sales on Amazon

The mechanism behind the algorithm can seem controversial: to sell on Amazon, you need to improve product positioning, but to increase ranking on Amazon, you need to increase sales.

For famous brands, this might not represent an insurmountable obstacle, but for smaller and less known Sellers, it is often a significant barrier to entry.

Therefore, it is necessary to find a way to give an initial boost to Amazon sales. Subsequently, you will enter a sort of virtuous cycle where, if the product is good and has good KPIs, it will always maintain a relevant position in the ranking.

But what are the techniques to sell more?

Quality, price, and reviews are certainly indispensable, but without the right visibility, results are hard to achieve.

Some tips to increase product visibility on Amazon include:

• Creating advertising campaigns;

• Creating promotions such as discounts or coupons;

• Generating external traffic (from Social Networks, Web Pages, etc.).

Naturally, these strategies involve an initial investment, which can vary based on your goals, the competitiveness of your product category, and the speed at which you want to scale sales on Amazon. However, if managed correctly, they can be decisive for success on the platform.

Conclusions

The Amazon algorithm is constantly updated and aimed at providing the best possible experience to users. Knowing it is essential to improve product positioning and increase sales on Amazon. First of all, it will be necessary to optimize your product page, then try to increase sales and achieve the best possible performance. This requires complete and constant Amazon account management, as well as continuous updating regarding the latest news. For more information regarding the A10 algorithm, if your Amazon account has been deactivated, or for support in managing your Seller Central account.