Decoding the Algorithm: Unpacking Amazon’s Sales Strategies for Business Growth

  • 29/04/2024
  • 886 views

The Amazon marketplace grows increasingly competitive each day,

making it crucial for sellers like yourself to recognize and leverage sales patterns in order to stand apart from rivals.

By collecting and analyzing data across various markets and product categories, we gain insights into broad trends that we can then tailor to individual accounts.

This data-driven approach enables us to fine-tune bids and budgets, allowing for a more assertive strategy during days when conversion rates are predicted to be higher.

By investing more on days when potential buyers are more inclined to make a purchase..

you can expect to see a boost in sales and a decrease in your Advertising Cost of Sale (ACoS).

Customer Shopping Behaviors

A key trend that we monitor involves consumer shopping behaviors and how they vary throughout the week,

which in turn affects vital metrics such as sales and conversion rates.

Gaining an understanding of your target audience’s purchasing habits and aligning your marketing efforts with the natural ebb and flow of weekly sales can significantly enhance your overall performance.

Every customer on the Amazon platform has their own distinct preferences,

yet we can observe patterns in our clients’ overall sales performance and conversion rates. 

Consumers exhibit consistent behaviors throughout the week..

and after analyzing 138 million clicks, it’s evident that Mondays reign supreme.

On this day, both website visits and buying interest reach their peak, resulting in high search impressions and optimized ad performance.

Following closely behind, Tuesdays claim the runner-up spot, boasting above-average traffic and conversion rates, though a bit lower than Mondays.

Breaking Down Day-To-Day Performance Trends

Here’s a quick breakdown by each day:

Sunday: High Traffic X Low Conversion Rate

This is a high traffic day. However, we’re seeing the lowest average conversion rates which means shoppers are doing a lot of browsing but their purchase intent is low. 

Monday: High Traffic X High Conversion Rate

This is the best day overall.

Mondays have proven to have the highest traffic and the highest conversion rates throughout the week.

When optimizing campaigns from both a growth and efficiency standpoint, this would be the day to ramp up bids and budgets. 

Tuesday: Increased Traffic X High Conversion Rate

Tuesdays come in as the second-best day for conversion rates.

After assessing our data, we’re seeing above-average traffic, which shows that shoppers are still looking around while also completing some of the purchases.

From an optimization standpoint, Tuesdays can also be a great day to increase bids to help capture sales. 

Wednesday: Average Traffic X Good Conversion Rate

Wednesdays also perform well with both above-average traffic and conversion rate.

Thursday: Low Traffic X Low Conversion Rate 

Both traffic and average conversion decline on Thursdays.

Friday: Low Traffic X Average Conversion Rate

While Fridays show the lowest traffic, the average conversion rate remains at 13.6%.

This shows that shoppers on Fridays are usually more intentional with their purchases and likely know exactly what they’re looking for.

Saturday: Low Traffic X Low Conversion Rate

We’re seeing low traffic on Saturdays with low conversion rates.

From an optimization standpoint, this would be a great day to cut back bids and budgets due to lower buyer intent and sales volume.

Strategic Bidding for Purchase Patterns

 

We can leverage these recurring patterns of sales to fully optimize our bids to capitalize on Amazon’s most profitable sales days.

When anticipating days with high conversion rates, we can confidently raise bids to boost overall sales.

Conversely, on days with lower conversion rates, lowering our bids minimizes unnecessary expenditure and decreases ACoS.

By strategically adjusting bids when customers have a higher propensity to purchase, we can enhance the visibility of our ads..

Leading to an uptick in clicks and sales.

Given that customers exhibit a greater likelihood to convert during these periods..

a higher investment per click is justified by the improved returns.

Similarly, we can decrease bids when customer purchase intent is lower.

To identify these recurring patterns and refine our bid optimization,

we employ a sophisticated machine learning model.

Nonetheless, if you’re familiar with your account’s trends…

You can also implement these adjustments manually or through bulk files for optimal results.

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