Deciphering Amazon Sales Rank: A Deep Dive

Ah, the intricate world of Amazon selling! Over the years, with millions in products sold, we've gained a wealth of insights and nuances about the Amazon marketplace. Today, we aim to shed light on a perplexing aspect that has piqued the curiosity of many sellers - the enigma of the Amazon Sales Rank.

The Scenario

Imagine a product that has established its dominance on Amazon for almost half a decade. Boasting thousands of reviews and maintaining consistent sales, its performance seemed unbeatable. Then, out of the blue, the sales rank plummets overnight. From a remarkable 14,500, it skyrockets to an alarming 30,000. What could possibly lead to such a drastic shift? And why does it matter? Let's decode this.

Why Does Sales Rank Matter?

The Sales Rank, often referred to as the Best Sellers Rank (BSR), is a reflection of how well a product fares in comparison to others in its category. In simple terms, if your sales rank drops from 15,000 to 30,000 in a day, it implies that on Day 1, there were 15,000 products with a superior sales velocity than yours. By Day 2, this number had doubled.

Spotting the Inconsistencies

Interestingly, while sales for our aforementioned product began to recover slightly, its sales rank continued its upward (or should I say, downward) trajectory, reaching an even lower 35,000. This deviation is puzzling. Typically, sales and sales rank should move hand in hand. So what’s happening?

Decoding the Numbers

Let's say a product usually garners 10 to 15 units of sales daily. Suddenly, it drops to a single unit on Day 1. In the following days, the sales recover to 5 to 7 units, yet the sales rank stagnates between 30,000 to 35,000. 

One theory is that while your product experienced a decline and then a modest recovery, the products that surpassed you on the BSR continued to accelerate in sales. In other words, those products might consistently be selling more than 5 units per day, maintaining their superior rank.

The Revenue vs. Units Debate

Now, here’s where things get interesting. Some argue that BSR is influenced by revenue generation rather than units sold. If this holds true, pricing strategy becomes paramount. If sales rank indeed reflects revenue, sellers should aim to maximize their price point without compromising on consistent sales numbers. Why? Because increased revenue at the same sales volume will boost your rank. Through my own tests, I've found that slight increments in product price, say from $27 to $29, can significantly bolster profit margins without affecting sales velocity.

Seasonality and Categories

Moreover, it's crucial to remember that the BSR is category-specific. So, if our product in question belongs to the ATV accessory domain and we're in the off-season, the sales velocity will naturally dwindle. 

In Conclusion

The Amazon Sales Rank is a multifaceted tool that requires sellers to keep a vigilant eye. Whether it's algorithmic changes, category discrepancies, or sales velocity shifts, understanding the nuances of BSR can be the key to enhancing product performance. As sellers, we must consistently adapt, analyze, and optimize to stay ahead in the ever-evolving Amazon marketplace.

Action items

1. If you haven't already, become familiar with your own Sales Rank and Sales Velocity 

2. Test out different price points to increase revenue while maintaining your sales velocity

3. Spend sometime researching how to increase your sales rank

Here’s to your success!

Jon, Mike, and Matt

P.S. Want our Brand Fortress Blueprint course on how to use this powerful strategy for your brand? Take the quiz on our homepage and get this blueprint for free!