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Amazon and its Product Rankings Algorithm

Online article: http://www.selfpublishingreview.com/2016/04/mythbusting-the-amazon-algorithm-reviews-and-ranking-for-authors/

This article discusses the ranking algorithm that Amazon uses in its search engine. Compared to Google, Amazon has 3 times the search traffic for products, and therefore it must support an efficient and fair search platform. We have discussed in class how companies like Facebook or Google rank slots for advertising, and how ranking is determined by hubs and authorities. Consumers use its product search machine to buy certain items, and Amazon’s algorithm lists certain products based on their rankings.

The results that Amazon pulls up is unique to each person’s shopping history and preferences. Typically, the items that are listed at the top are the most popular or best rated, so those items will usually benefit from that exposure. Amazon obviously wants to sell good products and help sellers out as well, but they also want to make money. They are a revenue driven company based on objectives such as ranking the most profit-making items in a 24 hour period. This information, one of many factors, is crucial for sellers because it will help them best prepare their products for the Amazon market, where pricing for similar products can be very competitive.

Rankings can be influenced by many factors detailed in Amazon documentation. The description of a product should be complete of features and full of relevant keywords that will help categorize the item. This strategy should also follow in the title because the algorithm will better help pick identify the item in future searches. Since items are catalogued in a node tree system, ranking will prioritize initially in niche categories, and then rise up to more general groups as an item improves its rank. Products that are intended for advertisement also get moved up in the list of items, as they contribute to the profit that Amazon makes.

Pricing should be in the same range as other similar items but they should be priced in a way such that it would give the best profit relative to competitors. Directly related to prices is the total number of sales in a 24 hour period compared to other competitors. Amazon really puts emphasis on this area because it benefits both parties benefit in maximizing revenue generation. Additionally, other factors include the Click Through Rate (CTR), which is the number of times that the product is clicked on the search listing. Verified reviews also play a part in ranking, and Amazon places priority on those that are recent or the most helpful. However, unverified reviews only count toward social proof. Social proof is just the public proof that a certain product has been reviewed a certain number of times. This is similar to the PageRank algorithm such that buyers may see that an item is referenced many times but may not be pointed by reliable or relevant sources. All of these various aspects influence how products are listed based on Amazon’s search engine, and these directly improved buyers and sellers experience in online shopping.

Comments

One Response to “ Amazon and its Product Rankings Algorithm ”

  • mathi

    Thank you so much for the info, It helped me a lot . I have an technology blog and do some affiliate marketing on it. So is it if fine to sell product on amazon with the brand name of my blog. And how to handle custom if you are an international seller.

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