It’s not advisable to enter a marketplace and not know anything about it. If you are to use Amazon as a platform to sell your products, you need to know the exact process of selling them successfully. One of your target as a seller should be the top spot in Amazon bestsellers rank. High Amazon ranking means that your business is getting more sales than your competitors.
But what is the exact BSR meaning? Can it affect your returns on investment? How can you use it to your advantage? How can you top the rank and end up with a feature in Amazon’s product best seller product page?
An Introduction to Amazon Rankings
Amazon uses an algorithm that determines the seller rank on the platform. A product’s Amazon ranking can be seen on the product’s detail page. Product ranks are usually listed according to their categories. There is a top-level category (e.g. Books), a subcategory (e.g. Children’s Books), and sub-subcategories (e.g. Growing Up & Facts of Life). When the rank is calculated, Amazon algorithm usually pays attention to the multiple top-level categories.
Amazon product ranking is updated hourly; the rank depends on the recent number of sales of the product and your historical sales in accordance with other products within the same category. Of course, the sellers list differs from one Amazon store to another. For instance, the Amazon book sales calculator may have detected that your ranking is #1 in Amazon.co.uk but #25 in Amazon.com. You can see the top 100 products in the Amazon BSR page.
The #1 rank meaning is that your product has been recently sold more than any products within your category on the specific Amazon store. This is to say that picking your niche is important as you need to consider your competitors in order to gain the top spot in the Amazon sales rank.
How Amazon BSR Rank is Calculated
Amazon sales rank calculator takes into account the product’s number of orders in comparison to other products in the same category within a specific amount of time. The best selling product in a category will get the BSR #1 spot. How can you get a high ranking?
If it’s your first time on Amazon, you might find it difficult to find your way to the top. Luckily, we have analyzed huge amounts of data to understand how BSR works. The following are the basic things that you need to know about Amazon product ranking:
- New items without sale does not have Amazon rankings yet.
- For a new product, the rank is calculated about 2-3 hours of the first sale.
- The calculation relies heavily on the recent sales but also takes into account historical sales or sales per day.
- There are product listings that don’t have their own ranking and only depend on their parent ASIN.
- Amazon bestsellers ranking is heavily dependent on the conversion rate of the product, the number of orders and the unit.
- It is possible to rise up in the ranking quickly, but it’s also possible to lose your ranking and plummet.
- The BSR of each product is re-calculated hourly. It’s nearly impossible to stay in the same spot for 24 hours.
How Important is BSR
It’s one thing for sellers to know about Amazon rankings, but it’s another for buyers to consider it in deciding their purchase.
We know that customers put importance on the reviews of the product. In fact, in many surveys, more than 80% of shoppers take into account reviews into their purchasing decision. However, will they take into account the sales rank Amazon? Most of them probably don’t even look at the product detail box. Will they type best seller products in the search results? Perhaps. However, they’re more likely to put heavier importance on the star rating than your ranking.
In fact, according to many experts, one should not put too much attention on BSR as it will not help you move up in the SERP. Because sellers focus on the SERP results, the best way you can gain traffic is if you increase your organic traffic.
If this is the case, why should you focus on getting good sales rank on Amazon at all?
Amazon rankings may or may not increase your visibility when customers are in a product search. However, it will definitely inform you about how well your product is selling in the last few hours and in the past. That is you don’t use “free sales” as a tactic to boost your profile. Technically, “free sales” will not improve your financial gains.
You can use BSR as a way to monitor the health of your product. Is it improving? Are you getting more sales? Usually, your BSR is in line with the number of reviews you get and your product standing on Amazon.
If you are planning to explore a new niche or release a new product, you can look at the current BSR of the specific category. It will give you answers about how many units have been sold each month. Thus, you can determine whether or not the niche is profitable enough.
Improving Your Amazon Best Seller Ranking
A lot of people find BSR confusing and unreliable. However, it’s still the best way for you to estimate if the niche you’re planning to go into is worth it.
Now that you know that you can take advantage of Amazon Best Seller Ranking in order to analyze the success rate of your niche, it pays to give more attention to how it works. It’s actually easy to understand if you spend a minute to really study it. Here are essential things that you should learn if you want to improve your BSR:
1. A quick spike in sales does not affect your BSR in the long term.
As mentioned, Amazon BSR formula weighs recent sales. However, it also uses a predictive formula that favors the stability of the sales rather than just a dramatic surge of sales over a short span of time. In other words, it will be hard to cheat on Amazon’s algorithm by buying your own products. One seller has tried it, and it has worked. However, the success does not last long. It quickly fades away as your competitors' listings take over.
It’s better if you launch a product over a week or month so that Amazon can collect consistent historical data that will help them make predictions about your future sales.
2. Your sales rank is relative.
When your product grows in ranking, it means that you have displaced other products which were previously on the list. However, it also means that there's a possibility that other products will take your current ranking. Thus, you need to maintain traffic to your listing and make consistent sales. You can use BSR as a way for you to monitor your conversions and stay on top of the competition.
3. Your reviews and ratings do not matter.
When we said that your BSR is usually in line with the number of reviews you get and your product standing in Amazon, we do not mean to say that your reviews and standing are part of the BSR calculation. It only means that if you´ve gotten more reviews and high standing, it implies that you have a good record of historical sales, which directly affects your BSR.
4. Increase in sales does not always mean an increase in your BSR.
Because your sales rank is relative, an increase in your sales does not necessarily mean an increase in your BSR. What if your sales have increased but so does your competitors’ sales? Let’s say that it is Mother’s day and people are going to Amazon to buy gifts, e.g. accessories, for their moms. This means that all accessory sellers will experience a sudden increase in sales.
What really matters is that you have outsold all other sellers in the same category. If you and another competitor have the same number of sales within an hour, Amazon will then take into account your previous sales to determine both of your rankings.
5. Sales of your product will not immediately reflect on the BSR.
Amazon has confirmed that they calculate the Bestsellers Rank every hour. However, there are times when there’s a lag in the increase in sales. Thus, the updated ranking is delayed. This lag usually only lasts for about 2 to 3 hours.
Though it’s not clear exactly how many products are ranked hourly, one survey on WebProNews found that in the books category alone, 10,000 books undergo ranking calculation every hour.
6. You need to start small in order to show growth.
If your aim is mainly to rank high, then it might not be advisable to experience high sales on the first day of your product release. Why? It will be difficult to top it the next day. It is better if you have low sales on the initial release and an improving sales on the following days. You should also take into consideration the possibility that your sales will fluctuate as compared to other products in the same category.
Helping You Improve Your Sales
So how do use this knowledge to improve your sales? Because Amazon Best Sellers Rank is volatile, so if you are to use an accurate sales estimation tool, it should take into account the fluctuations in BSR. Of course, if you really want to improve your sales, it’s not enough that you monitor your BSR, you also need to put more effort into marketing your products.
It’s easy to get excited about improving your Amazon ranking and waste your money to fulfill the goal. For instance, you can offer your products at a great discount. Sure, you’ll have higher sales. However, exactly how much are your returns on investment? Your goal should really be to drive organic sales to drive better future sales.
One effective way to improve your sales is gathering positive product reviews. The more reviews you have, the better your edge against your competitors is. Reviews can increase your visibility to customers and allows you to drive more traffic to your products page. SageMailer can help you keep track your feedback. If you subscribe now, you can enjoy a free 21-day trial.
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