Amazon Marketplace allows individuals and businesses to sell products through Amazon's website. It gives sellers access to Amazon's large customer base. To be successful on Marketplace, sellers must understand how to optimize various factors like product listings, pricing, reviews, and inventory management. The A9 algorithm ranks sellers based on metrics like conversion rate, customer satisfaction, and relevance to the customer's search terms. It considers up to 30 factors to provide customers with the most relevant products.

1. Amazon MarketPlace
Done by Mr Clement Robert H.

2. What is an Amazon MarketPlace
❖ Service to sell through the Amazon Website
❖ Amazon is
➢ Retailer Driven Business Website
■ Individual Account
■ Pro Merchant Account
■ Sells its own products
➢ Has Other Services
■ Cloud Services through Amazon Web Services
● IaaS, SaaS, PaaS,
■ Etc
❖ Amazon MarketPlace is the Service which enables individuals to use
Amazon Website when selling their products

3. Objectives
● Understanding of
○ How to start selling on the Amazon MarketPlace
○ How to increase Visibility
○ Feedback mechanism & Online Reputation
○ Payment & Refund Process
○ How does MarketPlace Web Services work
● References
○ http://startupbros.com/rank-amazon/
○ https://moz.com/blog/amazon-seo-organic-search-ranking-factors#factors

4. New Seller at Amazon-#1
● New Seller Account Plan
○ Individual
○ Pro Merchant
Individual Account Pro Merchant
£0.75 (VAT-exclusive) per item fee for
each item that sells
Monthly subscription fee
Single listing creation using the 1x1 GUI Bulk listing tools
Online listing and order management Inventory and order reports
Price limit of £10,000 for each listing* Generally no price limits for listings

5. New Seller at Amazon-#2
● What new products should they add? (Respond to customers needs)
● How much inventory should they keep for a particular product to fulfil customers needs?
● How to satisfy customers by providing more choices and better service?

6. What do Customers Need?
● Products matching their search strings -Exceed their expectations!!
● Popular products
● Products with Positive Reviews
● Pictures illustrating/explaining their product accurately
● Added Benefits associated (free delivery, combined products, etc)
● Seller’s location
● Seller’s Reputation (he/she handles refund if needed…)
● Etc

7. How does Amazon achieve that?
● Information to Sellers
○ Recommendations on Inventory Stock
○ Suggestions on new products they can add in the stock
○ Inventory out of stock Alert
● Information to Customers
○ Dynamic Pricing strategy
■ Customer activity, available inventory, competitor price, order history, expected
margin,etc
○ Reviews, Ranks, Answered questions, etc,
● Amazon uses
○ A9 Algorithm to generate all of those information

8. How does Amazon achieve that?- Cont’d
● Amazon has many sellers per each product
○ Ranking Needed in order to sort the results from buyer’s search string
● Every seller wants to win the BuyBox*
○ The Buy Box is the box on a product detail page where customers can begin the purchasing process by adding items to their
shopping carts.- Amazon

9. Search Engine Optimization-A9 Algorithm
● When the User hits “Search button”, 2 steps are taken:
○ Results matching the search string are determined and
○ Ranking algorithms help in bringing in front the results which are relevant to the buyer.

10. A9 Algorithm
● Recall
○ Amazon core business is Making Money
● How?
○ They always maximize Revenue per Customer (RPC)
○ They track every action that a customer takes on Amazon (even the mouse movement)
○ A9 links what user has browsed with their goal to maximize the RPC
● Core Pillars of A9 Algorithm
○ Conversion Rate (Customer reviews, quality of the image & pricing)
○ Relevancy (title, product description, etc)
○ Customer Satisfaction and Retention (Feedback & Order Defect Rate)

11. Sales Rank
● More sales means high ranking ------high ranking means more sales
○ Increase chances to sell more
● How about the new sellers in this competition?
○ They have to use other means to make their products bought
■ Adverts, search their products, free gifts, etc
■ Social media, Other factors, etc
● How to increase sales
○ Just start selling
○ Funny but true-----Buy your own products!!!
● Conversion Rate
● Relevance
● Customer Satisfaction

12. Customers Reviews
● More reviews help in product discoverability
● 5 Star Rating too
● Conversion Rate
● Relevance
● Customer Satisfaction

13. Price
● Customers tend to buy cheap products
● Less priced items are likely to be listed at the top
● But, other factors apply too (ratings, reviews, etc)
● Conversion Rate
● Relevance
● Customer Satisfaction

14. Other Conversion-Rate Factors
● Answered Questions
○ More Q & A tend to attract customers
● Image Size and Quality
○ Sound funny but amazon take into account the image size and quality
○ Some categories won’t even display results which an image less than
1000x1000 pixels
● Parent-Child Products
○ For example, create child node based on color, size, type referring to the same product
○ This increases reviews since those from children will be counted on the parent products
● Conversion Rate
● Relevance
● Customer Satisfaction

15. Other Conversion-Rate Factors-Cont’d
● Time on Page and
○ Customers spending a good time on a product page, are likely to buy/like it.
○ Amazon tracks time spent at each product page
● Bounce Rate
○ Amazon tracks Users’ activity on a product page (clicked links for example) and
○ Give points to it.
● Conversion Rate
● Relevance
● Customer Satisfaction

16. Title
● Title and Keyword Field are mostly used when the buyer is searching.
● Title: Up to 500 characters
■ Use Amazon Keyword Tool-> Auto Complete-> Makes the product linked to others
■ Brand, Description, Product Line, Color, Size and Quantity
■ Save Characters-> No Repetitions on keywords
● Keywords Field:
■ 5 keywords/phrases allowed
■ Don’t repeat the ones used in the title
● Conversion Rate
● Relevance
● Customer Satisfaction

17. Product Detail Factors
● Features/Bullet points
○ Amazon does not allow products without bullet points to be featured in the buy box→
Don’t repeat keywords used
● Product Descriptions
○ Expands the features.
○ Again, the more unique keyword are used, the more the product is discoverable
● Product Specifications
○ Refer to technical features (brand name, capacity, voltage required, etc)
○ Customers tend to buy read this before buying
○ But, it is product type oriented
● Conversion Rate
● Relevance
● Customer Satisfaction

18. Search Terms
● Each product has 5 fields of 50 characters each
● No repetition of words
● Better to put synonyms or spelling variations
● Conversion Rate
● Relevance
● Customer Satisfaction

19. Others
● Category and sub categories
○ Keep track of category the product belongs to
○ Better to put the product in the most relevant, and narrow category.
● Source Keyword
○ Amazon allows sellers to add additional keywords
● Brand and Manufacturer
○ Useful when a product was recommended→ Makes it easier to find it if it is associated
with the brand name and manufacturer.
● Conversion Rate
● Relevance
● Customer Satisfaction

20. Negative Seller Feedback
● Amazon values Negative Feedbacks !
○ the want sellers to learn from their mistakes
● It is a % of total feedback ratings
● Better negative feedback rate < 5%
● If > 5%, seller must review his business practices and adjust customers
demands
● Conversion Rate
● Relevance
● Customer Satisfaction

21. Other Customer Satisfaction Factors
● OPS (Order Processing Speed)
○ Amazon tracks and ranks how fast was the ordering process
● ISR (In Stock Rate)
○ Make the stock always available for the sellers→ Avoid negative feedbacks
● POP (Perfect Order Percentage)
○ How perfect is the process since the buyer clicks on buy item to when the product is
delivered
○ The higher, the better in ranking
● ODR (Order Defect Rate)
○ Opposite to POP
○ Possible ways: A to Z claims, shipment problems, Refund problems, negative reviews, etc
● Conversion Rate
● Relevance
● Customer Satisfaction

22. Feedback mechanism
● Calculated using a 5 stars system
○ Positive feedbacks: 5 and 4
○ Neutral Feedback: 3
○ Negative Feedback: 2 and 1
● Feedbacks are generated by the buyers
● Feedback %=Sum(positive Feedback rating)/Sum(all feedback ratings)
left in the last 30,90, 365 lifetime.
● Seller’s Stars=Sum(all feedback star values)/Sum(all feedbacks Ratings)
● Feedback increases with the product visibility

23. Feedback mechanism
● On time delivery
● Ask for apology when any issue arises
● Ask for Feedback (E-mail, etc)
● Refund when needed
● Keep in touch with the client when he/she contacts you during delivery
process.

24. Amazon MarketPlace Web Services (AMWS)
● API enabling sellers to exchange information on
○ Listing, Buyer’s orders, payment, and reports
● It allows to integrate them into an already existing business workflow
● As a result, it allows sellers to use Amazon inside their existing business
practices
● Features
○ Sellers can allows third party developers to access their amazon accounts
○ Sellers may access their accounts via different apps (mobile, etc)
○ Sellers may develop apps capable of letting buyers access their products

25. Summary
● Sellers must understand all the best practices in order to build a strong
reputation
● A9 Algorithm uses many factors (above 30) when sorting results
○ Relevance
○ Customer Satisfaction
○ Conversion rate
● But,which one that counts more than others? → UNKNOWN
○ Better to maximize all factors
● Amazon vs Big Data Processing
○ Data Mining is used to find customers tastes
■ Association rules to generate recommendations
■ Generated from the combination of many factors: shopping cart, time on pages,
links clicked, wishlists, geo places, etc.

26. Conclusion
It is very interesting to learn how different sciences are combined together to
create a robust business like Amazon!
● From Business Perspective
○ Amazon gets money, sellers too and customers get products
○ Business skills applied.
● Through Social Perspective
○ Human Needs(what a customer needs, when, where,why, what other products he is likely
to buy based on predictions,etc)
○ Human Satisfaction in shops (information needed for each product)
○ Human Interaction when shopping in real world
○ How data are used to create business relationships→ and make decisions
● To Computing Science Perspective
○ A single computing Engine doing all the jobs at once

27. Thank you