Amazon Geo Ranking – A Game Changer
In the ever-evolving world of eCommerce, staying competitive is not just about listing products and running ads. Amazon, a titan in the field, has introduced a game-changing feature called Geo Ranking. In this blog post, we’ll explore what Amazon’s geo ranking entails and unveil a golden strategy that can help you unlock its full potential.
Decoding Amazon’s Geo Ranking:
Consider you’re searching for a product on Amazon, let’s say, a water bottle. As you initiate your search, Amazon takes note of your delivery address by “PIN code.” The products displayed in your search results are then carefully curated based on this geographical information.
But here’s the twist: if you change your delivery address to another PIN code, you’ll likely see a different set of products. Why? Because Amazon’s goal is to present you with products that are more likely to sell well in your specific region.
So, you may think about which elements impact the selection of products showcased in various PIN codes. Several elements come into play, including swift delivery times, high seller ratings, and impressive conversion rates. Essentially, Amazon strives to match products with the preferences and purchasing habits of customers in each unique locale.
The Golden Strategy: Leveraging Geo Ranking to Your Advantage:
Now that you have a grasp of what Amazon’s geo ranking is all about, let’s delve into the golden strategy that can help you harness its power and elevate your Amazon success.
1. Identifying Weak Pin Codes:
Begin by conducting meticulous research on your top competitors. Scrutinize the keywords they’re ranking for and then perform keyword searches in various pin codes to see where your competitors are thriving and where they’re not. These “weak” pin codes represent golden opportunities for you to target and potentially dominate.
2. Establishing Virtual Places of Business (VPOB):
Once you’ve pinpointed promising pin codes, consider setting up Virtual Places of Business (VPOBs) in these regions. VPOBs empower you to boost your presence in specific areas by strategically positioning your products in warehouses near the target PIN codes. This can substantially enhance your delivery times, resulting in higher customer satisfaction and, consequently, more sales.
3. Optimizing Advertising Strategies:
To draw more traffic to your products in these newly targeted regions, consider utilizing Google Ads and Facebook Ads. These Ads allow you to target users by region, zip code, or state. By concentrating your advertising efforts on these areas, you can further enhance your visibility and sales.
The Fear of Missing Out:
One common concern that arises when sellers embrace geo ranking is the fear of missing out on sales from other regions. Amazon is taking buyer situations into account and implementing features accordingly. To ease these concerns, sellers can research competitors’ keyword ranking in specific PIN codes.
Overcoming Concerns About VPOB:
Some sellers might be apprehensive about setting up VPOBs due to concerns about GST compliance and costs. It’s important to note that for large sellers who are doing substantial monthly sales of typically more than 20 lakhs, the potential benefits of expanding into new regions outweigh the costs. Starting with a few VPOBs, monitoring expenses, and gradually expanding is a viable strategy.
Geo Ranking vs. General Ranking:
It’s essential to differentiate between Amazon’s geo ranking and its general ranking algorithm. While the general ranking algorithm considers factors like keyword relevance, reviews, and sales velocity to determine a product’s overall ranking, geo ranking focuses specifically on tailoring product listings to specific geographic regions. Both algorithms play pivotal roles in your success on Amazon, but understanding geo ranking allows you to fine-tune your strategy for specific areas.
Impact on Ads Performance:
Geo ranking can significantly impact your advertising performance. For instance, a seller located in the same region as their customers may enjoy a higher Click-Through Rate (CTR) due to quicker delivery times. In contrast, a seller located far away may experience lower CTR despite bidding higher. The key takeaway is that understanding which PIN codes work best for you can not only boost sales but also save you money in advertising costs.
The Future of Geo Ranking Data:
While Amazon currently provides data on sales volume, sellers are eagerly awaiting more detailed data related to PIN codes. This additional information would enable them to fine-tune their geo-ranking strategies further.
Conclusion:
Amazon’s geo-ranking algorithm is a powerful tool that can help you reach new customers and skyrocket your sales. By identifying untapped pin codes, strategically placing your products, and optimizing your advertising efforts, you can take advantage of this feature to thrive in the competitive eCommerce arena. So, sellers, don’t miss out on the opportunities geo ranking offers—start exploring new regions and watch your business flourish. The golden strategy is yours to implement.
