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Today I want to share with you my strategy on how I rank products in Amazon. ranking strategy It’s Q4 and this is the best time to sell – this is the buying season, so this is the best time to use this strategy.
Let me preface this by saying that the particular product I ranked in Amazon is one that I actually thought that had its day. This is a product that I neglected. I got busy this year and I actually stepped away a little bit from my Amazon FBA business.
I actually got hit with a horrendous long-term storage fee from FBA and I put out a video about what I did and what I suggest other people do to avoid those long term storage fees.
It caught me unawares because I just wasn’t paying attention.
The second thing I want to point out is that as a result of me neglecting this product, the product was at the bottom of the ocean, with zero sales rank in amazon, so the only way to get some traction on this product was obviously to advertise.
And then November arrived…
Here's what we're going to be covering...
- 1 The Strategy for Increasing Your Sales Rank in Amazon FBA
Amazon Q4: A Great Time for Sellers and Making Product Sales
I decided to throw a little bit of money down on the Casino Ad to see what happens, and I used my old strategy to rank products in Amazon, which I’m about to share with you here.Quarter 4 is a great time to sell on Amazon. Everybody is in a buying frenzy, and that's always good for sellers.Click To Tweet
The Strategy for Increasing Your Sales Rank in Amazon FBA
For this, we need Amazon’s PPC platform.
Now, if you sell with Amazon and you use their PPC system, you’ll know that the reporting side of things is a bit naff. Sales metrics don’t update until 24 and sometimes 48 hours.
This is far from ideal of course. To rank products in Amazon we need intelligence – and we get that from systems. This delay forces us to be guessing forward half the time, which really is pants.
When I first started out selling on Amazon, I’d lose my nerve when the ad spend increased and the sales remained at zero. It’s certainly unnerving to the beginner, and also to the veteran with big ad spend on a test or a whim.
But this is what we have to work with.
The trick it to keep your nerve. If you have a best selling product on your hands, then your ad spend could appear to be rocketing out of control, but in reality you may be making sales and profit which are not yet being reported.
The real shame here is that a knee-jerk reaction could have you pausing the ads or slowing down, killing that winning streak.
I have been a private seller for a while now, and I happen to have a way around this issue. It’s not perfect but it’s pretty close. So I’m going to share that with you too. If anything, it will calm your nerves.
Okay, so back to this.
I used the month of November to test my dead product with this good old strategy, and it worked very well. I actually doubled my money. Needless to say, the product is actually selling profitably.
The product I used was a great product to test because it had no sales rank in Amazon and no visibility, so I was literally starting from zero.
So here’s how I did it.
1. Start by Running an Ad Campaign
So the first job was to set up some ads. It all starts with the ads, because they bring visibility.Visibility in Amazon is what enables sales.Click To Tweet
2. Cap Your Budget to Start With
Nobody wants to spend a ton of money and actually make no sales and lose, and I’m no different.
So the trick here is to cap the budget to protect our cash. Start slow and keep your eye on the numbers.
That’s where I started. I put down a little bit of money to start with and I gauged my next move based on whether sales happened.
3. Start Increasing Your Ad Budget
Once you see that the product has some traction and you’re actually profitable, you up your daily budget on the ads and you keep your eye on the numbers.
You must be getting sales for this to work because if everyone’s clicking on your ads but no one’s actually buying the product, then this strategy isn’t going to work.
So, to recap so far:
- you put money down on the ads
- cap your daily budget
- keep your eye on the numbers
- when you start to see sales, start to increase your budget
4. What if Nobody Buys My Product?
If you’re in a situation where your ads are getting clicks but sales aren’t resulting, then that tells you that you probably need to revise your offer.
Here are some things you can do:
- check your competitors to see what they’re doing
- reposition your offer
- revise your pricing points
5. Keep Tweaking Your Ads for a Good ACoS
Ideally, you want more than a single ad running at all times. I have several ads running and this enables me to reallocate ad budget toward the winners.
This is important, as it helps you keep your ACoS fine tuned and performing well.
I keep my eye on my ads several times a day and if one ad starts to perform poorly, I lower the daily budget for that ad and I reallocate that budget to an ad that is performing better.
Now, day-to-day is a very very short window, but nonetheless when budget is a concern and when you’re playing with a product that you’re really not sure about, then it pays to actually pay a lot of attention and just tweak as you go.
Just keep tweaking your ads and keep reallocating those pennies towards the ads that are actually performing well. If the next day yesterday’s winners are not performing so well, you slow down the budget on those ads and you reallocate the rest to another ad that’s performing well.
6. Rinse and Repeat
Keep using this budget reallocation technique to keep everything fine-tuned and keep increasing the budget slowly.
Do this daily.
That’s basically the strategy.
Now let’s talk about why this works.
Achieving Sales Velocity in Amazon to Rank Products in Amazon
When you deploy this technique, what starts to happen is that you start to pick up sales velocity. This is the basis of how to rank products in Amazon.
That sales velocity starts to rank your product organically. It starts to bump your product up in the search engine results within Amazon.
Within one month of doing this – of tweaking the ads daily and then increasing the budget slowly to make sure I was getting the best performance – I’ve started to increase my sales velocity so that by the end of the month, as I write this, my product is almost in the top 16 now.
Now I’m seeing organic sales. So I’m actually looking at my units sold on a daily basis and my ad spend is a lot lower than it was in November because I’m actually beginning to sell organically.That's the real trick in Amazon: sales velocity = your product on page 1 = organic sales and no ad cost = more profit.Click To Tweet
Even if your product is ranking on page 2 you have a good chance of catching some organic sales. Every organic sale counts because it means you’re not paying for exposure, which in turn means you’re more profitable.
Ranking products in Amazon is mostly science. You need to have a good product of course, and the demand needs to be there in the first place.
Assuming that those things are in place, then it’s a case of feeding the Amazon algorithm what it wants: sales.
Sice your product has no visibility out of the gate, you must pay for that visibility in the marketplace. That means running ads.
Set your daily budget and run several ads. Once you start to see sales, tweak the ads to reallocate ad budget away from the poor performers and toward the winners.
Rinse and repeat.
Once you start to achieve sales velocity, your product will start to naturally rank higher in the Amazon eco system. This is because you are increasing your Amazon sales rank on that product.
Once you hit the top 16, you’ll start to see organic sales, and this is where you achieve maximum profitability.