Amazon Best Seller Rank (BSR) Explained

The only publicly visible metric of product performance by Amazon is Best Seller Rank associated with each product or its variation, in a particular category.

BSR on Product Detail page

How does BSR is calculated? I guess very few people at Amazon’s core development team would know better. Since Amazon never published any detailed document including all the factors effecting BSR, Amazon sellers always have guess, assumptions and estimations. Moreover these assumptions are result of their own experience from product ranking and observing BSR dance or technical analysis.

If BSR number is higher, it means, sales are low and if BSR is smaller number, it means sales are increased.

BSR & Keyword Ranking

BSR, for sure is a function of sales or no sales. When an item is listed and there is no sales, the BSR will never be displayed, for obvious reason.

BSR & Keyword Ranking

As depicted in above image, when you start, you will have no (or undefined) BSR, for obvious reason that, no item is sold, so far.

First order, you will have some big BSR jump. Primarily, it seems like, the jump height and distance will depend upon, how many sellers have made 1 sale in last X days. Plus the quality of sales will effect how much keyword ranking will improve.

At second order, Amazon will decrease your BSR (improved), how much? there will be couple of factors, including but not limited to just your sales but your competition as well. The keyword ranking will improve, you will move up depending upon, how many sales your competition made in last X days on same keyword.

Influencers

Following are some main factors that contribute towards change in BSR;

  • Your sales or no sales & your sales history
  • Sales or no sales & sales history of your competition
  • Your or your competitor’s sales momentum
  • Quality of sales, during search did user came to your listing from Storefront page or search result page. The purchase was from Gift Card, the buyer was Prime or not etc
  • Number of returns and their types
  • Negative or Positive Reviews
  • Sales of other products in your main and sub categories
  • Time of day & day of week
  • Shopping Spree
  • Out of Stock shoots your BSR

Technical Analysis

Example #1

Following is a graph using Helium 10’s Chrome extension. The product is best seller in one of its sub category.

1st Organic Rank Product

The blue line is Selling Price, while pinkish is BSR. Notice the high spikes in the start. Notice down the road, the BSR got improved.

Example #2

Now look at this item, ranked at last of page 7. Notice how many fluctuations are there and BSR is not getting stable.

To me, seems like its images and listing content are not perfect and its not ranked over main keyword.

7th Page on Search Result, last organic product

Conclusion

Instead of worrying about your BSR, you should focus on factors effecting it

  • Rank on more keywords
  • Keep Sales Velocity & its Momentum up
  • Better have dispose-off return handling or recall them to some 3rd party warehouse
  • Keep your Review Ratings up. Do follow up with every review regardless of its ratings. Prove you care & respect your buyer’s opinion

Amazon PPC Basic

Amazon PPC Basic - Teemya

Amazon Pay Per Click helps you increase sales velocity, keep sales momentum or increase your profits. Prior starting your PPC, you need to understand not just Advertising screen under Amazon Seller Central, but core concepts behind.

Here are some key points;

  • Sponsored Ad Types
  • Campaign Types
  • Keyword Targeting
  • Search Terms
  • Negative Keywords
  • Product listing content
  • Psychological influencers
  • Profits
  • Campaign Budget and Bid

Sponsored Ad Types

Consider them as Sweet Spots. Definitely, Amazon made those spots, premium for a reason. Therefore, we will use them to achieve our goals.

  • Search Result Page
    • Brand Headline ASIN (top & bottom)
    • Sponsored Product (top, middle & bottom)
  • Product Detail Page
    • Brand Ad (below Bullet Points)
    • Product Display Ad (below Buy Box)
    • Sponsored Product Strip (above review section)

There are few more pages where Amazon display sponsored products like Lightning Deals page.

Campaign Types

There are two types of campaigns, based upon Goals, we use each or both types of campaigns.

  • Automatic Campaign: Let Amazon find keywords for you
  • Manual Campaign: Dictate Amazon with your own keywords.

Keyword Targeting

The Keyword Targeting define which types of search terms are acceptable. The use depend upon your goal.

  • Broad
  • Phrase
  • Exact

Keyword: mini refrigerator

Types of Keyword Targeting

Regardless of targeting type single/plural, slight-misspelling, helper words like “for” are ignored.

In Automatic Campaigns, we would not provide Keyword Targeting since we do not provide keywords to target and leave everything on Amazon’s algorithm.

Search Terms

These are the words or phrases typed or selected (auto-suggest) by user. Depending upon their type of Keyword Targeting, our product listing may appear in front of them.

These search terms will appear depending upon Broad, Phrase or Exact match keyword targeting. In Automatic Campaign, since we do not provide any keyword, we will have random and wild search terms, regardless of keyword targeting.

Negative Keywords

The keywords, that do not achieve our goal(s) and established as non-worthy after 7 days, its wise to mark them as Negative Keywords.

We can put a keyword as negative at Campaign or Ad set levels.

The negative keyword will also have keyword targeting.

Generally, its a good practice to put keyword as negative in the source campaign or ad set prior moving to next.

Product listing content

The product listing content play an important role. Specifically, automatic campaign decides keywords from main/sub category, title, bullet points, description, backend search & platinum terms and product specifics. Some sellers believe keywords in reviews and EBC/A+ Content also play vital role in automatic keyword discovery.

Psychological influencers

Amazon badges influences buyer decision be it Best Seller or Amazon Choice or New Arrival. The digital coupon and Positive review rating 4.7+ will also put a positive impact on your buyer’s buying decision.

Profits

Particularly in Amazon PPC, profits is not always limited to just monetary value. Impressions, clicks, click-thru-rate (CTR), Conversion Rate (RA), sales etc will aide your decision regarding keeping the keyword or stop it.

ACoS – Advertisement Cost of Advertisement

This is a percentile metric use to find performance of ad spend over Amazon PPC.


ACoS = Ad Spend ÷ Ad Revenue x 100

Suppose, it cost $25 as spending over ad to get orders worth $100. We will find our ACoS as follows;
ACoS = ( $25 ÷ $100 ) x 100
ACoS = 0.25 x 100
ACoS = 25%

What ACoS is good?

Its relative to your goal, but generally, your profit is your target ACoS. This is how you will identify, if your spendings are more.

Campaign Budget and Bid

I would say, start with minimum. Like if your budget is just $10, start just 1 automatic campaign with $10 budget. However, if you have $30 budget, then start 3 automatic campaign. If you want to start manual campaign with your own keywords, then distribute the initial budget into all of your campaigns, $10 each.

Keyword bid should be little over suggested big, because most of the people will be doing the same. In order to be ahead of competition, you should apply $0.02 to $0.03 more than suggested bid.

Amazon Advertising Interface

Get familiar yourself with Amazon Advertising Interface. Play around.

Whats next?

Once you are equipped with basic knowledge you should move to identify your expectations with Amazon PPC, plan your goals.

Best!

Amazon PPC Goals

Amazon PPC Goals
Amazon PPC Goals

Lets be honest, Amazon Pay Per Click is one legitimate and effective way to rank keywords of your newly listed. Yeah, I agree, it takes time, but hey, hustles are fun, no?

The successful PPC Campaign is NOT just about, if you are earning profits as in monetary term. The success is when you are achieving your goals. Don’t get me wrong, the ultimate goal remain profits, but, its relative and we reach there, one step at a time.

Goals

Your goals literally define if your PPC is doing good or not.

You can look at your goals from any perspectives, but since its all about Keywords and Search Terms, I would set my goals depending upon my keywords.

  • Discovery
  • Scalability
  • Profitability

Discovery

To me, the PPC starts with Discovery goal where, we will just focus on identification of our keywords. To aide, I will use both Automatic and Manual Campaigns

Either create just single Automatic campaign with $100 budget or create 10 campaigns with $10 budget each. Multiple automatic campaigns will put Amazon at work, really. After a week or so, you will have winner and looser automatic campaigns. You will be free to keep or remove any number of campaigns.

Since Amazon algorithm in reality is Artificial Intelligence based upon whatever information, we’ve provided to Amazon. Its completely natural to not stuff your content with all keywords or miss the important keywords.

Manual campaign will be filled with hand picked keywords. Thats how you take control of your fate in your hands and rather dictate Amazon to find if our researched keywords are worthy.

Since Automatic Campaigns are suppose to work during whole life of a product, we should never stop them.

Once you see good number of keywords after 7 days, you will move them to another Manual Campaign’s adset as phrase. Its upto you, if you plan to move as broad, but definitely you will not move them as exact at this stage.

Scalability

It can be either separate Manual Campaign with its own single adset or one adset in a Manual Campaign. Some expert suggest to have keyword niche related campaign or adset.

The goal is to nurture good keywords separately. This is the stage where we will scale up keyword, we will try fine tuning keyword targeting, bid up/down, campaign budget testing, adding keyword to our content etc.

Moved keywords from Discovery Campaigns will be either broad or phrase, depending upon your strategy.

Once we find, the keyword is scaled up and no further optimization can be applied, we will move it to Profitability Campaign.

Same as in Discovery Campaign, we should move the keyword, means, put as negative keyword with Right match type in source campaign or ad set.

Profitability

It is the Ultimate Goal of whole Amazon PPC drill and bottom line.It can be either another adset in existing Manual Campaign or single adset in its own Campaign.

Similar to Scalability, you have liberty, put proven keywords with lowest possible ACoS in last few weeks.

These can be phrase or exact, but chances are high, most of the keywords will be Exact match type.

Like always, never forget to put same keyword with right match-type as Negative keyword in previous adset or campaign.

Conclusion

Watch closely, keep an eye over keywords and their performance and based upon your goal, add or remove keywords.

Amazon PPC, will ideally go on and on until your item is live and you’ve intentions to keep selling. PPC Discovery, Scalability and Profitability are more like operations than time-specific project.

Best of luck with your PPC hustle.

P.S: Feel free to post your questions in comments. Or you can always contact me over teemya.com for free advise and tips.