The A9 Algorithm was introduced by Amazon as a system that decides how products are ranked in search results. Typically, search results are results generated by an algorithm based on keywords and how closely the interface matches that keyword with whatever is in its’ database.
However, the A9 algorithm is unique to Amazon. The world’s online retailer, a business, bases search results off of keywords and sale conversions. In simpler terms, A9 generates results that are more likely t result in sales.
Amazon has over hundreds of millions of products listed across twenty categories, and search results generated will be loosely based on keyword matching and more so on stronger sales histories and higher conversion rates.
The Difference Between Ranking and Profitability
Ranking is defined as your position in the search results or in the category as a whole. Your product might rank higher in search results because of SEO (search engine optimization), praise-worthy reviews, or detailed descriptions.
Profitability is how well the product actually sells. This term is a lot more quantifiable than rankings. Your profits are displayed to you on your Amazon Seller Dashboard (so are your rankings). Your profits are essentially what you look over and assess how well you’re doing as an online seller.
Can One Exist Without The Other?
When asked to choose between either one of the two, most people opt for improved rankings. This isn’t because they aren’t looking to make a profit, but because online sellers assume that rankings inadvertently lead to profits.
While this might hold true for several other online retailers, the A9 system for Amazon would put your well-crafted description below a product that sells twice as much in search results. Thereby concluding that profits inadvertently lead to rankings in Amazon.
The cumulative effect this has is: products that are ranked higher will generate more traffic and have a better chance of achieving sales, but only if A9 determines that they have generated an apt number of sales to begin with. This will boost their rankings even more
How to be a Profitable Amazon Seller
There are a total of twenty product niches to choose from at Amazon and no one outranks the other in terms of most sales generated. The niches are variable in terms of profit based on seasons, sales, and occasions.
A profitable seller on Amazon has their products marketed competitively to other products in the same niche. What differentiates your product from the next guy’s? Some factors include: design, build, and price. Profitable sellers on Amazon market their product based on how the other guy is marketing theirs.
Their descriptions, prices, and advertisements are all centered competitively instead of individually. You’re trying to tell the seller to buy your product instead of theirs.
Another way to increase profits would be to be as proactive of a marketer as possible. Most sellers on Amazon already have small businesses of their own and could link back to their blogs or websites to increase engagement and build customer rapport. Ultimately resulting in increased sales.
In conclusion, the A9 algorithm introduced by Amazon operates on a business model quite different from traditional algorithms. The search results are optimized based on sales histories more so than they are on keyword optimizations. This means that profitability of your product is considered as a more important factor for higher returns than is the ranking of it.