Amazon Operations: In-depth analysis of the interaction between category rankings, keywords, and advertising rankings

On the Amazon platform, category ranking (Best Sellers Rank, BSR) is one of the important indicators for measuring product performance. Category rankings not only reflect the sales of a product, but are also closely related to its performance in different categories. The ranking of a product in different categories is different. The Amazon system will determine its specific position in each category based on factors such as sales volume, conversion rate, performance indicators, etc.

Detailed explanation of category ranking

1. Dynamics and Diversity

• Dynamic: The category ranking of a product fluctuates with time. For example, it may be ranked 10th in the morning and may become 15th or 7th in the afternoon. The ideal situation is to rank among the top 100,000 in the major categories, the top 10,000 in the second-level categories, the top 1,000 in the third-level categories, and the top 100 in the fourth-level categories.
• Variety: A product may be ranked in multiple related categories, for example, ranked 19th in the “Cell Phones & Accessories” category, ranked in “Portable Power Banks” (portable power banks) subcategory ranked 2nd.

2. Small categories and major categories

• Small category rankings: Paying attention to the rankings of small categories can help sellers understand the performance of direct competitors and help develop more effective operating strategies.
• Broad Category Ranking: While the broad category ranking has less direct impact on operational strategy, it can help assess the market’s overall capacity and seasonal changes.

Keyword and ad placement ranking

In addition to category rankings, keyword rankings and advertising space rankings are also factors that sellers must pay attention to.

Keyword ranking

• Definition: Keyword ranking refers to the position of a product in search results when searching using specific keywords. Influencing factors include conversion rate, order quantity, historical sales, evaluation stars and quantity, etc.
• Influencing factors: Sales volume and BSR ranking have a significant impact on keyword rankings. Generally, products with good sales are more likely to appear at the top of keyword search results.

Advertisement ranking

• Definition: Ad placement ranking depends on bidding and keyword quality score. Quality score is affected by multiple factors such as evaluation star rating, conversion rate, and keyword relevance.
• Importance: A higher ad position means higher exposure and click-through rates, which may lead to more orders.

Interaction between the three

• Cycle effect: There is a mutually reinforcing relationship between BSR ranking, keyword ranking, and advertising ranking. For example, an increase in BSR ranking will lead to an increase in keyword ranking, which will affect the priority of advertising slots.
• Dynamic Perspective: Sellers should view the relationship between these three rankings and their mutual influence from a dynamic perspective, and improve one of the rankings to improve the rankings of the other two.

To sum up, it is crucial for Amazon sellers to understand and make good use of category rankings, keyword rankings and advertising rankings. Proper use of this ranking information can help sellers optimize product performance and enhance competitiveness.