Amazon, a dynamic marketplace
In just a few years, Jeff Bezos’ small company launched in his garage has become a major player in e-commerce, if not the largest. In the year 2021, the American giant’s e-commerce sales amounted to 468.78 billion US dollars (Statista, 2021).
Every hour, more than 66,000 orders are placed on the platform and in March 2021, there were more than 75,000,000 products in all categories. In Europe, Amazon has a 37.9% share of the online retail market (Statista, 2021).
A platform with many advantages
The Amazon marketplace is a very interesting sales channel for online merchants; anyone can sell their products there, provided they are suitable for online sales, of course, and it is easy to take those first steps. In addition, besides a rapid increase in sales and the acquisition of new customers, the platform offers sellers the possibility of international expansion and the marketing costs when promoting products or brands are low. Finally, by becoming a seller on the Amazon platform, your business will benefit from the giant’s reputation: when customers make purchases on Amazon, they can be sure that they are getting authentic products, that they will receive them quickly, and that their credit card information is secure and they will not receive spam from sellers.
How the Amazon marketplace works
Amazon has become an essential platform for selling and promoting products. However, the platform operates according to a very specific model that is unique to the American giant and that you need to understand in order to successfully launch and develop your Amazon online store.
The platform is divided into two poles: organic referencing and paid referencing. An algorithm, the A9 algorithm, created by Amazon, according to specific criteria, manages Amazon’s natural referencing and proceeds with product rankings. On the paid search side, there are 3 types of ads that work on a bidding system – the one that bids the highest amount wins the space and appears in the first results of the client.
For a month, we will publish a weekly series of articles on Amazon in which we will take a detailed look at how the platform works, including paid and natural search. Indeed, although Amazon is often considered a “Pay To Play” platform, organic search still plays a crucial role; with the number of shoppers on Amazon steadily increasing, even though organic search results get a smaller share of clicks, the total number of customers who click and buy from organic search results is increasing.
That’s why, in the next article, we’ll start by giving you an overview of how organic SEO works on Amazon. In addition to this article, we have created a white paper, which will be downloadable from our website, in which we will give you our tips and tricks to improve your organic SEO on Amazon.