New Amazon Sellers: Key Algorithms You Need to Know

In today’s fiercely competitive e-commerce landscape, starting an Amazon store is no easy feat. Beyond registering your brand and adding products, driving traffic to your listings is crucial for success. Therefore, understanding Amazon’s algorithms can significantly boost your visibility and sales.

Understanding Amazon’s Traffic Distribution

For third-party sellers, before getting into the details of Amazon’s algorithms, it’s important to first understand how traffic is distributed on the platform.

Amazon on-site traffic refers to the flow of visitors to a seller’s product page through various Amazon internal features such as recommendations, promotions, and search functions.

Amazon employs multiple mechanisms to manage and distribute this traffic, generally divided into the following five mechanisms (specifically for Seller Central stores):

1. Search Traffic

● Natural Search: Most Amazon’s traffic comes from natural search. This is where customers type keywords into the search bar, and the Amazon ranking algorithm determines which products appear at the top. Factors like sales, product relevance, and click-through rates play a crucial role.

● Paid Search (CPC): Another significant portion of traffic comes from paid search ads. These CPC (Cost-Per-Click) ads can appear at the top of search results or on other product pages, increasing visibility for a fee.

According to Amazon’s official stats, over 80% of its traffic comes from searches. In these search results, there are far more spots for organic rankings than for ads, which means natural search traffic makes up the bulk of the search traffic.

2. Category Traffic

Category traffic is the second-largest source of on-site traffic after search. Consumers typically use product categories, brands, and specific product attributes to refine their searches and find what they need.

Ensuring your product is correctly categorized can boost its visibility. For example, if you’re selling kitchen gadgets, make sure your product is listed under the correct category to appear in relevant searches.

3. List Rankings

List ranking traffic comes from Amazon’s ranking lists like best-sellers, hot new releases, and category-specific lists (you can find these by clicking the "Best Sellers" button on Amazon’s homepage).

This traffic is all natural and doesn’t require any paid ads or promotions. Because of this, things like your product’s sales rank and how many wishlists it’s on become super important for driving traffic to your page.

4. Promotional Traffic

Amazon’s promotional traffic mainly comes from various deals and coupons like Lightning Deals (LD), Best Deals (BD), Deal of the Day (DOTD), Outlet, Warehouse Deals, Digital Deals, and Woot!

Coupons display a green discount label, while Deals (such as Lightning Deals and Best Deals) have a red "Limited time deal" badge and enjoy special traffic entrances.

You can find all these promotions under the "Today’s Deals" tab located just below the search bar on Amazon’s homepage. By clicking on it, you can see all the current Coupons and Deals.

5. Associated Traffic

Associated traffic is all about those handy product recommendations you see while browsing Amazon.

Besides the products you search for, Amazon also suggests similar or related items that you might be interested in. This helps guide buyers to more products that match their interests.

Understanding Amazon’s Algorithms

Amazon’s algorithms, like the Amazon A9 algorithm and the newer COSMO algorithm, determine how products are ranked and displayed in search results based on factors like sales, relevance, and customer behavior.

For sellers, understanding these algorithms is significant as they directly impact product visibility, traffic, and ultimately, sales on the platform.

1. Amazon A9 Algorithm

Amazon’s current traffic distribution mechanism is primarily based on the A9 algorithm, which focuses heavily on product relevance and performance. Before 2020, the A9 algorithm’s metrics and weights were roughly as follows:

● Natural Search Traffic: 20%

● Product Page Conversion Rate: 18%

● 180-Day Sales History: 18%

● Sales from External Traffic: 16%

● Main Image Click-Through Rate: 14%

● Sales from Internal Exposure: 6%

● Amazon Sponsored Ads (Keyword Ads): 6%

● Exposure Level: 1%

● Seller Account Rating: 1%

Adjustments to the A9 algorithm have increased the weight of customer reviews to 16%, while reducing the weight of main image click-through rates and external sales. The number, rating, and accumulation speed of product reviews have become more critical for ranking.

2. Amazon COSMO Algorithm

In 2024, Amazon introduced the COSMO algorithm, a new mechanism that uses Large Language Models (LLM) to analyze consumer behavior and intent.

The COSMO algorithm focuses on consumer behavior, analyzing potential buying intent to enhance search results. While the A9 algorithm remains a fundamental aspect of Amazon’s system, and both algorithms will operate concurrently in the future.

Optimizing Your Amazon Store for Success

After understanding Amazon’s algorithms, you can implement the following strategies to enhance your store’s performance.

1. Product Research and Selection

Use tools like Jungle Scout to find profitable products. Look for items with high demand but low competition to maximize your chances of success.

2. Listing Optimization

Create detailed, keyword-rich product listings. Use high-quality images and thorough descriptions to attract and inform potential buyers.

3. Pricing Strategies

Competitive pricing is key. Monitor your competitors and adjust your prices to stay competitive while maintaining profitability.

4. Customer Service

Excellent customer service leads to positive reviews and repeat business. Respond to inquiries promptly and address any issues quickly.

Automating Your Shipping Process with iDPRT SP410BT

The iDPRT SP410BT is a powerful Bluetooth shipping label printer that helps Amazon sellers swiftly print waybills, Amazon barcodes, product labels, and packing labels, significantly improving your shipping and packaging speed.

Here’s how it can revolutionize your shipping process:

1. Speed and Efficiency

The iDPRT SP410BT prints at 6 IPS (inches per second), allowing you to print up to 72 4"x6" labels per minute, drastically speeding up your order processing. Its 203 DPI resolution ensures labels are clear and durable, reducing the risk of shipping errors.

2. Wireless Convenience

With Bluetooth connectivity and the HereLabel app, The iDPRT SP410BT enables you to print labels directly from your iOS or Android smartphone. This wireless convenience means you can manage your shipping process from anywhere.

3. Versatility

This 4x6 shipping label printer can handle a variety of label types and sizes, supporting widths from 2" to 4.25" (50mm to 108mm), and works with both fanfold and roll labels.

Whether you need to print shipping labels, address labels, warehousing barcodes, or product labels, the iDPRT SP410BT has got you covered.

4. System Compatibility

The iDPRT SP410BT is compatible with various operating systems, including Windows, Mac, Linux, and more. Drivers are easily downloadable from the iDPRT website, making setup a breeze.

5. Platform Integration

Seamlessly integrate the iDPRT SP410BT with major e-commerce platforms like Amazon, eBay, and Shopify. Direct printing from these platforms simplifies your workflow.

The iDPRT SP410BT Bluetooth shipping label printer is an invaluable tool that can streamline your shipping process, enhance operational efficiency, and ultimately improve customer satisfaction.

By understanding Amazon’s algorithms and implementing strategies and tools like the iDPRT SP410BT, you can significantly boost your store’s performance and achieve success in the highly competitive e-commerce landscape.