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Copyright 2017 - Q4 Amazon Virtual Summit
Reverse Engineering
Amazon’s Product Search
Algorithm
Expand Brand Visibility & Drive Channel Sales Growth
● Session Recording + Slides Will Be Sent Out
● Join in the Poll Questions
● Submit Questions for me to answer
● Resources Available
Today’s Logistics
Overview
Founded in 2007
Google Premier Partner
600+ Active Retail Clients
Top 50 Fastest Growing Company San Diego
D E L I V E R I N G
L A S T I N G
R E S U L T S F O R O U R
C L I E N T S
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
Creative Services
About CPC Strategy
Pat Petriello
Head of Marketplace Strategy
Today’s Speakers
● Former professional Seller on Amazon.com, Amazon.co.uk, eBay &
Rakuten.com
● Former member of Amazon’s Seller Service Team in Seattle
● CPC’s Amazon partner liaison for branded content, paid and
display advertising
● Founder of CPC’s Amazon Sales Acceleration Department
● Digital Transformation of the CPG Space
● Unpacking Amazon’s Organic Search Algorithm
● Direct Factors That Drive the A9 Algorithm
● Indirect Factors That Influence the A9 Algorithm
● Q&A
Today’s Agenda
Copyright 2017 - Q4 Amazon Virtual Summit
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2Digital Transformation of the CPG Space
Enduring Shift in the Consumer Economy
Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
New Fulfillment Formats are Proliferating
Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
Big Brands are Being Nibbled to Death
Brands are Still Falling Behind
Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
Source: https://www.survata.com/blog/amazon-takes-49-percent-of-consumers-first-product-search-but-search-engines-rebound/
Where Consumers Begin Their Product Search
Brands own the responsibility
of ensuring they have an
optimized presence on the
channels their customers and
potential customers shop on.
*2017 study results
Poll Question
Copyright 2017 - Q4 Amazon Virtual Summit
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2
Unpacking Amazon’s Organic Search
Algorithm
A9 Algorithm 101
Reverse Engineering Amazon’s Product Search Algorithm
Copyright 2017 - Q4 Amazon Virtual Summit
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2
Direct Factors That Drive
the A9 Algorithm
Direct Factor: Sales Velocity
How does sales velocity play a
factor?
● Sales Velocity is king
● Sales relative to your competition is the
best way to move the needle
● Recent (Weighted) vs lifetime sales
velocity
● Sales velocity as a measure of conversion
Direct Factor: Text-Match Relevancy
Source: https://sellercentral.amazon.com/gp/help/help.html/?itemID=G10471&ref_=ag_G10471_h_r0_cont_sgsearch
Direct Factor: Product Availability
What’s the True Cost of Stocking out on Amazon?
Correlated Vendor Metric: OOS & Replenishable GV %
The percentage of glance views (hits) during which the ASIN was out of stock but replenishable. This is measured over the total
number of customer glance views (hits) that the ASIN had.
Lost Sales When Product is out of Stock
+
Loss in Organic Ranking (Result of Lost Sales Velocity)
+
Re-Investment in Resources to Recover Ranking
=
True Cost of Stock Outs on Amazon
Direct Factor: Pricing
Lower Priced Products
Tend to Show up higher on the Amazon SERP
Correlated Vendor Metric: LBB Due to Price %
The percentage page views during which Amazon had the item in replenishable state and lost buy box to a third
party merchant due to uncompetitive price. This excludes items that are not released yet.
Copyright 2017 - Q4 Amazon Virtual Summit
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2
Indirect Factors That Drive
the A9 Algorithm
Indirect Factor: Fulfillment Method
Indirect Factor: Reviews
Indirect Factor: Promotions
Indirect Factor: Images/Content
A+ ContentEnhanced Brand Content
How do these play a
role?
● According to Amazon:
5%+ increase
in sales due to
increased traffic &
conversion
● Does NOT get indexed
Indirect Factor: AdvertisingPurchaseIntent
Low
High
Headline Search Ads
Sponsored Products
Product
Display
Ads
Influencing the A9 Algorithm
● Consider text match relevancy with content
● Data driven decision making
● Leverage FBA
● Implement EBC / A+
● Advertising execution
● Sales velocity
Pat Petriello
Head of Marketplace Strategy
Questions?
Schedule Your Amazon Sales Evaluation: cpcstrategy.com/amazon-vendor-services
● Former professional Seller on Amazon.com, Amazon.co.uk, eBay &
Rakuten.com
● Former member of Amazon’s Seller Service Team in Seattle
● CPC’s Amazon partner liaison for branded content, paid and
display advertising
● Founder of CPC’s Amazon Sales Acceleration Department

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Reverse Engineering Amazon’s Product Search Algorithm

  • 1. Copyright 2017 - Q4 Amazon Virtual Summit Reverse Engineering Amazon’s Product Search Algorithm Expand Brand Visibility & Drive Channel Sales Growth
  • 2. ● Session Recording + Slides Will Be Sent Out ● Join in the Poll Questions ● Submit Questions for me to answer ● Resources Available Today’s Logistics
  • 3. Overview Founded in 2007 Google Premier Partner 600+ Active Retail Clients Top 50 Fastest Growing Company San Diego D E L I V E R I N G L A S T I N G R E S U L T S F O R O U R C L I E N T S Solutions Retail-focused PPC & Shopping Amazon Sales Acceleration Facebook Performance Marketing Creative Services About CPC Strategy
  • 4. Pat Petriello Head of Marketplace Strategy Today’s Speakers ● Former professional Seller on Amazon.com, Amazon.co.uk, eBay & Rakuten.com ● Former member of Amazon’s Seller Service Team in Seattle ● CPC’s Amazon partner liaison for branded content, paid and display advertising ● Founder of CPC’s Amazon Sales Acceleration Department
  • 5. ● Digital Transformation of the CPG Space ● Unpacking Amazon’s Organic Search Algorithm ● Direct Factors That Drive the A9 Algorithm ● Indirect Factors That Influence the A9 Algorithm ● Q&A Today’s Agenda
  • 6. Copyright 2017 - Q4 Amazon Virtual Summit SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2Digital Transformation of the CPG Space
  • 7. Enduring Shift in the Consumer Economy Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
  • 8. New Fulfillment Formats are Proliferating Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
  • 10. Brands are Still Falling Behind Source: https://www.iab.com/wp-content/uploads/2018/02/The-Direct-Brand-Economy-Master-Deck-v13.pdf
  • 11. Source: https://www.survata.com/blog/amazon-takes-49-percent-of-consumers-first-product-search-but-search-engines-rebound/ Where Consumers Begin Their Product Search Brands own the responsibility of ensuring they have an optimized presence on the channels their customers and potential customers shop on. *2017 study results
  • 13. Copyright 2017 - Q4 Amazon Virtual Summit SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Unpacking Amazon’s Organic Search Algorithm
  • 16. Copyright 2017 - Q4 Amazon Virtual Summit SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Direct Factors That Drive the A9 Algorithm
  • 17. Direct Factor: Sales Velocity How does sales velocity play a factor? ● Sales Velocity is king ● Sales relative to your competition is the best way to move the needle ● Recent (Weighted) vs lifetime sales velocity ● Sales velocity as a measure of conversion
  • 18. Direct Factor: Text-Match Relevancy Source: https://sellercentral.amazon.com/gp/help/help.html/?itemID=G10471&ref_=ag_G10471_h_r0_cont_sgsearch
  • 19. Direct Factor: Product Availability What’s the True Cost of Stocking out on Amazon? Correlated Vendor Metric: OOS & Replenishable GV % The percentage of glance views (hits) during which the ASIN was out of stock but replenishable. This is measured over the total number of customer glance views (hits) that the ASIN had. Lost Sales When Product is out of Stock + Loss in Organic Ranking (Result of Lost Sales Velocity) + Re-Investment in Resources to Recover Ranking = True Cost of Stock Outs on Amazon
  • 20. Direct Factor: Pricing Lower Priced Products Tend to Show up higher on the Amazon SERP Correlated Vendor Metric: LBB Due to Price % The percentage page views during which Amazon had the item in replenishable state and lost buy box to a third party merchant due to uncompetitive price. This excludes items that are not released yet.
  • 21. Copyright 2017 - Q4 Amazon Virtual Summit SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Indirect Factors That Drive the A9 Algorithm
  • 25. Indirect Factor: Images/Content A+ ContentEnhanced Brand Content How do these play a role? ● According to Amazon: 5%+ increase in sales due to increased traffic & conversion ● Does NOT get indexed
  • 26. Indirect Factor: AdvertisingPurchaseIntent Low High Headline Search Ads Sponsored Products Product Display Ads
  • 27. Influencing the A9 Algorithm ● Consider text match relevancy with content ● Data driven decision making ● Leverage FBA ● Implement EBC / A+ ● Advertising execution ● Sales velocity
  • 28. Pat Petriello Head of Marketplace Strategy Questions? Schedule Your Amazon Sales Evaluation: cpcstrategy.com/amazon-vendor-services ● Former professional Seller on Amazon.com, Amazon.co.uk, eBay & Rakuten.com ● Former member of Amazon’s Seller Service Team in Seattle ● CPC’s Amazon partner liaison for branded content, paid and display advertising ● Founder of CPC’s Amazon Sales Acceleration Department