Amazon has always been a giant in the e-book business. It was only a matter of time before they created an automated e-book sales ranking system to help affiliates make more money with their Amazon based websites.
And guess what? Amazon has done exactly that and have set up a detailed Sales Rank Chart and detailed sales rank explanation for you to read and understand.
If you have ever searched for “Amazon” on Google, Yahoo or MSN, you probably noticed the constant spiking of your page results. You may be wondering what the high ranking is about. Well the problem lies with Amazon’s “return on sales” metric.
“Return on sales” is the means by which Amazon determines how many times your Amazon site was visited by customers. Amazon’s system uses the Average Revenue Per Click (ARPPC) system. This system tries to measure the amount of money an affiliate spends on their website.
Amazon goes by the theory that as much money as they make from each click on an affiliate’s Amazon website, they will eventually see a return on investment (ROI). So every time a customer visits an affiliate’s Amazon website, Amazon will make money by letting them order from their site.
It doesn’t matter if the Amazon link is a banner with an ad on Amazon.com. Amazon uses its own robots to determine the content of each of its pages, and in turn, determine how well the affiliate’s page was designed. Amazon’s job is to make sure Amazon is not only in the minds of its customers, but also how it promotes itself to be seen by future customers.
This is how does sales rank mean Amazon. Amazon wants their customers to come back and buy from them again. And that is where the two main metrics used are used – the ROC (Sales Rank Correlation Coefficient) and ARPPC.
The ROC is essentially an indicator that shows the correlation between two different websites that use the same title or keyword. So for example, if you have a site that uses the keyword “Amazon” and you have another site that uses the same keyword, Amazon is correlated with your first site.
“ARPPC” is the average cost per click or CPM for each site. So if Amazon is the most popular site on Google, and you are listed as the number two site on Google, you may be linked through a page on Amazon. So how does Amazon sales rank really work?
To answer the question “how does sales rank mean Amazon”, Amazon uses a CPM calculation. By using the ROC function, Amazon’s robots determine which pages of each site are selling the most. They then assign the respective sales pages a CPM based on how high the CTR was for that page.
This calculation is called CPM (Cost Per Mille) and is used as a basis for determining how many units of Amazon you will sell based on your visitors. These numbers are then used as the base figure in Amazon’s profit and loss statements.
So now you know what Amazon sales rank means Amazon. It’s easy to understand and to implement, so don’t miss out on all of the opportunity Amazon has to increase your sales!