Profitability Series 3: Search funnel optimization

Your Amazon search funnel directly shapes your P&L.

BSR (Best Selling Rank) triggers your search funnel. Customer types in keyword → you get eye views (counted as impressions) which leads to click through rate (CTR) and a purchase (CVR).

Understanding this funnel reveals where there’s realistic potential to increase units sold -> revenue -> and thus profits.

Let’s dive deeper into evaluating these concepts and knowing when to prioritize each.

Better rank (BSR) leads to → higher placement on page 1 → higher impressions

Now there’s been debate on how the algorithm determines BSR, but it's majorly skewed on the side of unit velocity; and/or combination of category performance, pricing, bids, promotions, badges - whichever makes amazon more money.

Click through rate (CTR) is once the customer decides to explore your product with an intent to buy.

The ‘why’ behind CTR varies on consumer behavior but factors like hero image, product uniqueness, price, promos, and brand all work together.

How effectively your product description page (PDP) conveys your brand and product story will drive CVR.

𝗦𝗼 𝗵𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝗱𝗲𝗰𝗶𝗱𝗲 𝘄𝗵𝗮𝘁 𝘁𝗼 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻?

One is more controllable than the other (the latter being more expensive).

If CTR and CVR are strong, focus on impressions by targeting those high search volume keywords a) organically in the title and listing b) through ads.

There’s an endless cycle of fine-tuning your listing (keywords, content) to positively impact your BSR but after that, increasing impressions largely becomes a matter of efficiently allocating ad dollars.

On the other hand, if CTR is low, a) targeting more relevant & longer tail keywords b) showing up in segments that match your price point, helps in boosting unit velocity.

Tracking keyword-level rank will help you identify if you’re even getting visibility on page 1.

These funnel metrics directly impact units sold and revenue and are key to identify pockets of growth.