amazon-seo

Amazon SEO: 5 Tactics To Grow Your Business On Top Of Amazon

Amazon SEO represents the set of marketing tactics that sellers on Amazon can employ to better rank their products’ pages organically (without paying for placement), thus building a continuous stream of customers on the store. In short, Amazon SEO leverages Amazon’s search capability to rank e-commerce pages and make more sales.

AspectExplanation
Definition of Amazon SEOAmazon SEO refers to the practice of optimizing product listings on the Amazon e-commerce platform to improve their visibility and ranking in Amazon search results. It is a subset of search engine optimization (SEO) tailored specifically for Amazon’s marketplace. Effective Amazon SEO involves various strategies and techniques, including keyword research, optimizing product titles and descriptions, enhancing product images, managing reviews and ratings, and optimizing pricing and inventory. The primary goal of Amazon SEO is to increase the visibility of products to potential customers, driving organic traffic and ultimately boosting sales on the platform. It plays a crucial role for sellers and brands looking to succeed in the competitive Amazon marketplace.
Key ConceptsSeveral key concepts define Amazon SEO:
Keyword ResearchKeyword research is a fundamental aspect of Amazon SEO. Sellers and brands identify relevant keywords and phrases that potential customers are likely to use when searching for products on Amazon. Keyword research informs optimization efforts and helps products appear in relevant search results.
Product Listing OptimizationProduct listing optimization involves creating and enhancing product listings to align with Amazon’s search algorithms and user preferences. This includes optimizing product titles, bullet points, product descriptions, and backend keywords. Effective product listing optimization improves the chances of products ranking higher in search results.
Image and Visual OptimizationImages and visuals are crucial for Amazon SEO. High-quality product images, lifestyle images, and infographics can improve product listings’ appeal and convey important information to potential buyers. Visual optimization enhances the attractiveness and informativeness of product listings.
Reviews and Ratings ManagementCustomer reviews and ratings play a significant role in Amazon SEO. Positive reviews and high ratings can boost a product’s visibility and credibility. Sellers often focus on generating positive reviews and managing customer feedback. Effective reviews and ratings management contributes to improved search rankings.
CharacteristicsAmazon SEO is characterized by the following attributes:
Competitive LandscapeThe Amazon marketplace is highly competitive, with numerous sellers offering similar products. This competitive landscape requires sellers to continually optimize their listings and stay updated with Amazon’s algorithm changes. Competitive landscape demands ongoing SEO efforts and adaptability.
Algorithmic FactorsAmazon’s search algorithm considers various factors when ranking products, including relevance, sales history, customer behavior, and keyword relevance. Understanding and working with these algorithmic factors is essential for effective Amazon SEO. Algorithmic factors influence product visibility and rankings.
Conversion Rate Optimization (CRO)Conversion rate optimization focuses on improving the rate at which Amazon shoppers convert into buyers after clicking on a product listing. This involves optimizing product images, descriptions, and user experience. CRO complements Amazon SEO by turning visibility into sales.
Data-Driven ApproachAmazon SEO relies on data analysis to measure the effectiveness of optimization efforts. Sellers and brands often use analytics tools to track rankings, traffic, and sales performance. A data-driven approach allows for continuous optimization.
Revenue ModelsAmazon sellers typically generate revenue through several models:
Retail ArbitrageRetail arbitrage involves purchasing products from retail stores or other sources and reselling them on Amazon at a higher price. Sellers profit from the price difference.
Private LabelingPrivate labeling involves creating custom-branded products or packaging and selling them on Amazon. Sellers build their brands and have more control over their product listings.
WholesaleWholesale sellers purchase products in bulk from manufacturers or distributors and resell them on Amazon. This model requires establishing relationships with suppliers.
DropshippingDropshipping involves listing and selling products on Amazon without holding inventory. Sellers fulfill orders by purchasing products from suppliers only when orders are placed.
AdvantagesAmazon SEO offers several advantages:
Increased VisibilityEffective Amazon SEO strategies can significantly increase the visibility of products in Amazon’s search results, making them more accessible to potential customers.
Higher Sales PotentialImproved product visibility often leads to higher sales potential. When products appear in relevant search results and attract organic traffic, they have a better chance of converting shoppers into buyers.
Competitive EdgeAmazon SEO can provide a competitive edge in the crowded Amazon marketplace. Sellers who optimize their listings effectively may outperform competitors and capture a larger share of the market.
Data-Driven Decision-MakingAmazon SEO relies on data analysis, allowing sellers to make informed decisions about optimization strategies. Data-driven insights help refine and target SEO efforts for better results.

Why does Amazon SEO matter?

Generating sales on Amazon is the ultimate goal of every online merchant. Amazon stands as the unchallenged e-commerce behemoth, accounting for 13.7% of the global e-commerce market share and 52% of the US.

Ecommerce market share.

While every online vendor wishes to be a part of the rising star, selling on it comes with certain challenges that everyone may not be prepared for.

When it comes to selling on Amazon, there are but two key determinants of the merchant’s online success, bringing traffic towards the site and then converting the traffic into sales.

In this article, we take the opportunity of sharing 5 key tips that every online merchant can use to increase sales on Amazon.

Create a Great Listing Page

Getting traffic from your listings is good, but converting them into sales is the next big task.

Using attractive web copy built from persuasive text is a great tactic to engage your customers and stimulate purchase decisions.

Using compelling catchphrases, informative descriptions, and product details that highlight your product’s value proposition will help you convert your customer.

Since today’s customers share a very short span of time on online sites, you need to make sure you get the most of it by showing the best of what you have to offer.

Good content helps in engaging customers, giving them reasons to stick around, and encouraging them to explore your products.

Similarly, visual content such as images, videos, infographics, animations, and other visual elements play a central role in supplementing that engagement.

As a matter of fact, customers have been found to respond faster to good images than plain textual information.

To leverage this, make sure to use HD images with zoom options so customers can explore your product thoroughly.

You can also use infographics to explain the benefits of using your products through statistical data and graphical representations.

Secure as Many Positive Reviews as You Can

Securing reviews is sadly the most neglected practice of improving listings on Amazon.

Fortunately, they are the most effective as well. Getting reviews on your product listings has two major benefits.

  • It improves your rankings on Amazon search results, bringing.
  • They come with social proof which improves your conversion rate.

Since building reviews requires effort, you cannot rely entirely on the customer to get positive feedback on your listings.

To get the feedback your page needs to stimulate conversions, you must make follow-ups on your customers and offer them incentives to secure a maximum number of reviews.

Doing this pro-actively will get a great review section that resonates with your product appeal.

To streamline this process, you can send emails to ask for reviews instead of doing it individually for each customer. although approaching your customers personally is the best way to go about it, you cannot rely on it forever and you will at some point be forced to automate it.

Understand the user’s intent 

To bring more traffic toward your product pages, you must pay attention to ranking your listings high on Amazon.

Rankings directly compliment your conversions and sales rate.

Amazon listings play a deciding role in it by giving the right space, traffic, and exposure to your keyword to generate sales.

While rankings products, keywords play an imperative role in improving your website SEO and generating organic results.

In order to make their worth, you must research your target niche and include relevant and purposeful keywords.

Popular keywords help in thrusting your rankings since they already share high search volume.

Using them strategically with your products can yield great results and effectively boost your Amazon listings. You can use Google’s Keyword Planner, Ahrefs Tool, or SEM rush to vet your keywords.

Leverage from Customer Psychology 

Amazon has always remained a great platform to learn about new markets and explore changing customer behaviors.

This environment that Amazon promotes is greatly attributed to the abundance of social proof present in it.

Social proof is a major stimulant in the conversion process and deeply links with human psychology.

In principle, customers will always seek the experience of other customers who have used the product before making a purchase decision.

This relates to the human tendency of seeking guidance from other members of the same society before starting a pursuit.

Similarly, a customer will always prefer buying from a vendor whose products are being recommended by other customers.

This is so powerful that can triumph factors such as brand loyalty, product superiority, and even price comparison.

The simplest way to replicate this on Amazon is to add proof of your product’s success by mentioning the number of sales, reviews, commendations, or even shares in your listing’s copy.

For example, you can design a catchphrase quoting,

 “Join the 10+ million community of customers using this product” or add a statistical quote such as “over 7000 positive reviews.”

Read Next: Amazon Business Model

Improve Your Pricing Strategy 

Product pricing is another key part of digital marketing that often gets overlooked.

Showing your prices transparently not only helps customers get the measure of your brand, but also engenders trust and confidence in them.

Setting a price that covers your costs without slashing your profit margin is highly crucial.

An overly low price is just as detrimental to your conversions as an inflated price.

Therefore, balancing your price based on factors on the ground is important not just for your sales, but also for your brand image.

On Amazon, this demands special focus since competition is high and new products can quickly get the shovel if they do not meet their mark.

To make sure your prices are on point, first explore your target segment, learn about their purchasing power, their preferences, and build a value-based pricing strategy that does not establish conflict with your sales strategy.

Once you get a clear perception of your customer, you can successfully set enticing pricing for your products on Amazon.

Below is a standard formula Amazon merchants use to set their pricing

TEV (True Economic Value) = Cost of the best alternative + Value of performance differential

Key Highlights

  • Amazon SEO Overview:
    • Amazon SEO refers to the strategies used by sellers to improve the organic ranking of their product pages on Amazon’s search results.
    • The goal of Amazon SEO is to attract more customers to product pages and convert them into sales.
  • Challenges of Selling on Amazon:
    • Amazon holds a significant share of the global e-commerce market (13.7%) and the US market (52%).
    • Success on Amazon depends on generating traffic to product pages and converting that traffic into sales.
  • Key Tips to Increase Sales on Amazon:
    • Create a Great Listing Page:
      • Use persuasive text, catchphrases, informative descriptions, and product details to engage and convert customers.
      • Visual content like images, videos, infographics, and animations enhance engagement and communication.
    • Secure Positive Reviews:
      • Reviews improve rankings on Amazon search results and provide social proof for better conversion rates.
      • Proactively request reviews from customers and offer incentives to maximize positive feedback.
    • Understand User Intent:
      • Pay attention to ranking products high on Amazon using relevant keywords.
      • Research target niche, include purposeful keywords, and use popular keywords strategically.
    • Leverage Customer Psychology:
      • Social proof influences customer behavior, and reviews and recommendations drive purchase decisions.
      • Mention sales, reviews, commendations, and shares in listing copy to provide proof of product success.
    • Improve Pricing Strategy:
      • Transparent pricing builds customer trust and confidence.
      • Balance pricing to cover costs and profit margins without being overly low or inflated.
      • Consider competition and target segment preferences when setting prices.
  • Importance of Transparent Pricing:
    • Transparent pricing helps customers understand the brand and builds trust.
    • Pricing should cover costs without slashing profit margins, and overly low or inflated prices should be avoided.
    • A value-based pricing strategy should align with customer preferences and purchasing power.
  • Formula for Pricing:
    • TEV (True Economic Value) = Cost of the best alternative + Value of performance differential.

Amazon SEO Tactics

Amazon SEO TacticsDescriptionHow to UseWhen to Use
Keyword ResearchIdentify relevant keywords for your product listings.Incorporate keywords naturally into your listings.Before creating or updating product listings.
Optimize Product TitleCreate a concise, keyword-rich product title.Place primary keywords at the beginning of the title.When creating or updating product listings.
Compelling DescriptionsWrite informative and persuasive product descriptions.Use bullet points for easy readability.When creating or updating product listings.
Use High-Quality ImagesInclude clear, high-resolution images of your product.Follow Amazon’s image guidelines.Always have high-quality images in listings.
Backend KeywordsUtilize backend search terms for additional keywords.Avoid keyword stuffing or irrelevant terms.When optimizing existing listings.
Monitor Customer ReviewsAddress negative reviews and provide excellent service.Encourage satisfied customers to leave reviews.Continuously manage reviews and respond.
Competitive PricingPrice your products competitively in your category.Use Amazon’s automated repricing tools if needed.Regularly check and adjust pricing strategies.
Sponsored Products AdsRun Amazon PPC campaigns for increased visibility.Monitor campaign performance and adjust bids.To boost visibility and sales during promotions.
Enhanced Brand ContentUse A+ Content to enhance your product listings.Showcase your brand story and product features.When you want to highlight your brand identity.
Fulfillment MethodChoose FBA (Fulfillment by Amazon) for better rankings.Ideal for Prime eligibility and improved rankings.When you can benefit from Amazon’s fulfillment.
Inventory ManagementKeep products in stock and available for purchase.Avoid running out of stock to maintain visibility.Continuously monitor and restock inventory.
A/B TestingExperiment with different listing elements for optimization.Measure performance to determine the best changes.When optimizing existing listings for conversion.

Read Next: Amazon Business Model

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Amazon Business Model

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Amazon has a diversified business model. In 2021 Amazon posted over $469 billion in revenues and over $33 billion in net profits. Online stores contributed to over 47% of Amazon revenues, Third-party Seller Services,  Amazon AWS, Subscription Services, Advertising revenues, and Physical Stores.

Amazon Mission Statement

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Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

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In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!

Amazon Revenues

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Amazon has a business model with many moving parts. With the e-commerce platform which generated over $222 billion in 2021, followed by third-party stores services which generated over $103 billion, Amazon AWS, which generated over $62 billion, Amazon advertising which generated over $31 billion and Amazon Prime which also generated over $31 billion, and physical stores which generated over $17 billion.

Amazon Cash Conversion

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Working Backwards

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The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”

Amazon Flywheel

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The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

Jeff Bezos Day One

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In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

Read Next: Amazon Business Model

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