March 19, 2019 by Price-Fuel
There are over 353 million products currently listed for sale on Amazon.
Buyers have more choice than ever before, which means that the competition is fierce — and product manufacturers have to cater to the demands of their market in order to stand out.
But with so many options on Amazon, how do you know which products are the most popular within certain departments and product categories?
Through the Amazon Best Seller Ranking.
But how exactly do products earn their ranking, and how can you make certain that you get on the ranking list and improve your sales strategy in the process?
Read on to find out.
Before we get into how to become an Amazon Best Seller, let’s first make certain that you’re clear on what this list is — and what it isn’t.
The Amazon Best Seller Rank (or BSR for short) is a ranking system that is given to every single product currently for sale on Amazon.
A product gets a specific score, calculated every hour, based on its historical and most recent sales data.
The higher the score, the more exposure the product gets within the department best sellers list and the specific category and sub-category listings that the product fits into.
Each department and sub-category has its own Amazon best sellers list, which can get a bit confusing.
Let’s take a look at an example to make things easier.
You want to find out the best seller rankings of a camping tent. Click on the specific tent you’re interested in, and scroll to the “Product Details” section. In that section, you’ll see the Amazon Best Sellers Rank.
This tent may rank #1,500 in the “Sports and Outdoors” department, but #5 in the specific sub-category of “Tents and Shelters.”
Remember that the ranking system breaks down the products and compares them according to their specific department. So, one product might rank #3,100 in the “Toys and Games” department, while another product also ranks #3,100 in the “Pet Supplies” department.
Currently, the “Home and Kitchen” department is the most popular category, as 60% of products on the BSR come from this department alone.
Now that you’ve grasped the basics, let’s quickly cover a few things that many people get wrong about the Amazon Best Seller Ranking.
Be aware that Amazon doesn’t actually share the algorithm they use to determine the rankings. So, while we can find out lots of things about the system, we can’t know it all. Additionally (and for many, frustratingly) Amazon’s ranking algorithm is constantly in flux.
This means that the list is constantly changing — but not only based on changes made to the algorithm itself. The ranking is updated every hour, and varies greatly based on sales and demand.
In other words?
A product that ranks highly today might not have that same high rank tomorrow.
It’s also important to understand that the Best Seller Ranking is not influenced by a product’s reviews or stars. Additionally, remember that just because a product has made more sales in the past few hours or weeks, doesn’t automatically mean that it will rise in the Best Seller Rank.
Because the sales one product makes are all relative to another product within that same category. So, even if the specific tent manufacturer we mentioned earlier sold 45% more units than it usually does, there could still be another tent manufacturer that’s selling way more than they are — even with that increase in sales.
By the year 2020, Amazon’s Marketplace will account for roughly $259 billion in sales.
Currently, over 1.7 million Marketplace sellers have items listed for sale on Amazon.
If you’re a seller/store owner on Amazon, or if you want to list your company’s products on Amazon, this means you need to do everything you can to get noticed. We know you want to understand how the Amazon Best Seller Marketplace can help.
You need to realize, however, that the ranking system isn’t really a form of advertising. Instead, it’s a way to understand your recent sales, and to look at how your products stack up in comparison to your competitors.
It’s not the best method to track the overall popularity of your specific products.
Use the ranking system to help you conduct better product research, especially when it comes to understanding the overall market demand for what you’re thinking of selling.
When you’re trying to decide which products to list in your store, you may want to list only the top 1% of items within a specific category. Let’s say the category you’re interested in currently has 40,000 total results.
If you want to sell items only in the top 1%, you should only sell the top 400 products on the BSR. This is an effective way to calculate your risk tolerance beforehand, and to determine the specific inventory you plan to sell in your store.
There are tons of available tools out there that make it easy for sellers to calculate and track the current BSR of their products. However, remember that sometimes, there are lags when it comes up updating the BSR.
In other words?
Don’t obsessively check your ranking.
We hope that this post has helped you to get a better understanding of how the Amazon Best Seller Ranking system works.
Of course, looking into the rankings is far from the only way to improve your store, make more sales, and understand what your customers are looking for.
We want to make it easy for you to optimize your Amazon listings — and make more money in the process.
We can help you to set the perfect prices for your products, and make the necessary changes in price depending on your sales. You can learn when you should raise prices on popular items, and when to undercut your competition with pricing strategies.
Start your free trial of our services today to learn exactly what you’ve been missing. We know you’ll love the results.