Understand how Sales Velocity Impacts Organic Performance on Amazon

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Monitoring your sales velocity enables you to gauge the efficacy of your marketing & sales process. 

 This blog post is broken down into three sections:

  1. Amazon Sales Velocity
  2. Understanding Amazon’s Sales Velocity Limits
  3. Use Case
Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

How does Amazon define Sales Velocity

Amazon defines sales velocity as the number and dollar amount of a seller's transactions during any given month. Amazon ranking is also highly dependent on sales produced; more sales lead to higher ranks. 

Amazon's A9 algorithm gives a lot of weightage to sales velocity, as it is immensely propitious for Amazon. The algorithm, therefore, analyzes sales results as one of the significant KPI and gives higher ranks to products that sell more. When the sales velocity lead by high conversion rates is high, it shoots up your sales and brings in positive reviews, thereby catalyzing your organic ranks and sales.

Setting your pricing strategy right is integral to have a better conversion rate and sales performance. DataHawk Organic Keyword Rank Tracker gives you information on all the important KPIs around a KEYWORD, one of them being pricing. This allows you to monitor your competitive landscape continually and adapt suitable pricing strategies to ensure a better trajectory for your Amazon business. You can thus set prices that are in accordance with your changing competitive landscape and henceforth ensure profits.

What are Amazon’s Sales Velocity Limits

Amazon clearly states the requirement to justify your sales velocity with sales history and reviews. Amazon could suspend your account if found otherwise. Amazon tracks sales velocity in order to protect its customers and sellers, implementing velocity limits that vary from seller to seller. It is set at the time of registration and applies to every seller. Amazon might increase your velocity limit after analyzing your account once you approach or exceed your velocity limit.

Only Amazon has the ability to deny or grant an increase in velocity limits for sellers wherein requesting an increase is not possible.

This is done to ensure consumers' protection against orders that cannot be fulfilled.

Amazon sales could be highly influenced and impacted by a number of factors, including what your product is and how you are selling it(promotions, Amazon product reviews, and advertising). For an ideal sales velocity on Amazon, there should be a constant ability to adapt, which comes from solid analysis and regular monitoring.

USE CASE

Here is a Use Case for you to leverage DataHawk's Keyword Tracker to understand how sales velocity impacts organic performance.

Steps to use Keyword Rank Tracker:

  • Once you are logged in to the platform, you need to create projects and add the desired products and keywords to it. 
  • Clicking on a product from the tracked product list will take you to a product detail page where you have all the important KPIs and tools.
  • Click on the Keyword Rank Tracker tab once you are inside a Product. 

The charts show the keyword ranking distribution of the number of keywords you are tracking for which this product is tracking for a specific position.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

Predicting the impact of your sales velocity on organic performance is very easy with DataHawk. With a detailed breakdown of the page ranks and positions for each keyword tracked, and, the product indexing for it, DataHawk enables you to predict the impact of your sales velocity on organic performance. 

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

Here is how you can do it.

We have tracked Olee Sleep 10 Inch Gel Infused Layer Top Memory Foam Mattress Blue from the mattress category, from March 12, 2020, to May 12, 2020.

The Keyword Rank Tracker will help you compare organic ranking before and after making sales. All you need to do is a simple regression analysis on how the ranks are changing with the increased or decreased sales.

In this example, we found that on April 9, 2020, the product was ranking on position 6 on page 1 for the keyword "mattress."

We found that the rank changed from 6 to 11 to 44 to 50 and became 10 on April 15, 2020. This clearly explains a change in the sales made. On April 10, there was a probable drop in sales that led to a drop in the ranking of the product. However, we see a significant upswing in the ranking after 4 days.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

You can simply put this change into numbers by knowing the number of units needed to sell for moving a rank forward or backward. For example, let's say, if after selling 150 units in a day, the rank takes a swing from 11 to 6, you can tell that to move one position ahead, the number of units to be sold for this product is 30.

Sales velocity being one the most important factor to A9 algorithm drives its decision to give higher ranks for higher sales.

You can get a clear and quick view of Amazon 3P Sales Data of a product on Seller Central and understand how it affects your keyword rankings. DataHawk Finance dashboard provides a minimalist and helpful sales reporting for Seller Central merchants to analyze the performance quickly.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

This enables you to see how your daily sales velocity is impacting your organic performance and then leverage the insight to make more sales.

Additionally,

DataHawk also provides you sales estimates and the estimated units sold of every tracked product from the list of products ranking organically for a tracked keyword.

This could help you understand how your daily sales velocity correlates with your SEO performance and thus leverage the insight to make more sales.

For instance, for the keyword "Purple mattress," we see the following results.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

Here is how you can do this,

  • Click on the "KEYWORD" tab from the left section beside the navigation bar. This takes you to the list of keywords that you are tracking. Here, we have tracked a few products and suitable keywords for a subcategory, "mattresses."
  • Click on any keyword of your choice, which you want to analyze or choose the keyword that is relevant to your product from the list of keywords.
Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance
  • This brings you to the keyword detail page where you have all the important KPIs and tools for keywords.
Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

Here, you can see and browse through Products that are ranking Organically for that Keyword while accessing critical data around them, apply your desired additional filters, and start tracking the products you want.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

To keep an eye on the sales performance of products ranking on your desired keywords, DataHawk Keyword Rank Tracker provides you the exact pricing of the products and the estimated monthly sales and the estimated units sold, which will allow you to analyze the sales velocity.

For instance, we have tracked "Zinus Green Tea 12-inch Memory Foam Mattress, Queen", which has a monthly estimated sales of $15,254,173, and the monthly estimated units sold are found to be 54,103.

Amazon Keyword Rank Tracking to Understand how Sales Velocity Impacts Organic Performance

At DataHawk we have developed a robust sales reporting dashboard that helps Seller Central users get an instant view of their daily sales data even on an ASIN-level. When correlated with other data such as BSR & SEO performance, your entire Amazon performance and understanding starts making a lot more sense.

Leverage Keyword Rank Tracking is a series of Use Cases where we will cover every aspect of how you can generate and leverage profitable keywords to make a measurable impact on your Amazon business with DataHawk.

Stay tuned for the next episode.

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