What is the sales rank on Amazon?
Based on the performance of their sales, products within a single category are related to one another according to Amazon sales rank. Sales rank is hourly updated, has a range of 1 to over 1 million, is affected by seasonality, and has an unknown algorithm. Sales rank, also known as best seller ranking, indicates how well a product is selling in comparison to other products in the same category. A product with sales rank #1 is currently the most popular product in that category, followed by a product with sales rank (or best seller ranking) #2, etc. In other words, you can determine whose items are outperforming your own in terms of sales. As an Amazon seller it is important to have proper knowledge about amazon sellers rank calculator to increase your profits.
How is Amazon sales rankings determined?
The specific formula used to determine the sales rank is kept a secret by Amazon, which explains why the procedure is only known through theories and conjecture. It is rather obvious that just sales volume is taken into account, not additional data like the number of reviews, retail price, etc. However, it is unclear which time period is taken into account for the sales volume. Some hypotheses state that only sales made in the previous 12 hours are taken into account; other ideas propose time periods of 24 hours or longer.
We believe that when determining the Amazon sales rank, the sales volume over a far wider time period is taken into account. All products that weren’t purchased in the prior 24 hours would have to have the same sales rank if only purchases from the previous 24 hours were taken into account. This is not the case, though. The Amazon sales rank declines consistently over several weeks if no transactions are being made, demonstrating that Amazon considers a far longer purchase history when determining its best seller position.
Amazon examines these data and orders all products within a category in descending order after adding up the sales of each product and weighing them appropriately by how recently they occurred within the most recent calculation period. Therefore, a product’s position on the list of (top sellers) corresponds to its sales rank.
How can you raise my Amazon sales rank?
After reading a description of Amazon’s sales rank, including its definition, methodology, frequency of updates, and purposes, the issue of what you can do to enhance your own BSR naturally emerges. The solution appears as simple as it is challenging: outsell your rivals on Amazon. You must monitor both your own and your competitors’ sales volumes because the sales rank is a relative number. Your rating won’t rise if you sell 4 more units every day but your biggest rival does too.
You should never run out of stock since, as was previously indicated, higher sales volume results in better rankings. Your product’s sales rank won’t rise if it isn’t being purchased. Even worse, it allows your rivals time to outwit you.
This explains the impact (and significance) of inventory management. It’s crucial for merchants to send in enough product to maintain stock and to replace their inventory on schedule. It can be challenging to time everything. There are so many variables at play:
- Reorder points
- Seasonality
- Anomalies of past sales spikes
- Earlier stockouts
- Dates of manufacturer blackouts, etc.
However, mastering inventory management will help you outperform your rivals. You win the game if you forecast and manage your inventory more effectively than your rivals. You’ll generate revenue.
