Amazon's New AI Ranking Algorithm with Vannesa Hung

Seller Sessions Amazon FBA and Private Label

Amazon's New AI Ranking Algorithm with Vannesa Hung

Host: Adam Heist

Guest: Vannesa Hung

Introduction

Welcome back to another episode of the Seller Sessions podcast. In this episode, host Adam Heist delves into the fascinating world of Amazon's AI advancements with Vannesa Hung, a renowned Amazon expert. The discussion centers around Amazon's new AI-driven ranking algorithm, known as Cosmo, and its profound implications for sellers on the platform.

Amazon's AI and the New Ranking Algorithm

Adam kicks off the episode by discussing Amazon's significant investment in AI technologies and how it's revolutionizing the ranking algorithm. He mentions Cosmo, a system designed to fundamentally change how products are shown to customers on Amazon. Vannesa, who has a deep understanding of Amazon's backend systems, introduces the concept of Cosmo and its potential impact on sellers.

The Evolution of Listing Optimization

Vannesa explains the traditional approach to listing optimization, which focused heavily on keywords. Sellers have historically optimized their titles, bullet points, and backend attributes to rank for specific keywords. This method was based on the premise that Amazon is the largest search engine for products, and success depended on appearing in searches for relevant keywords.

The Shift from Keywords to Context

With the introduction of Cosmo, Vannesa highlights a significant shift from a keyword-centric approach to a context-driven model. Cosmo utilizes common sense knowledge to understand products better, going beyond keywords to consider the context and intent behind a search. This means that product listings will need to be enriched with more detailed information to provide a holistic understanding of the product's use and target audience.

Implications for Sellers

Vannesa discusses the major implications of this shift for Amazon sellers:

• Audience Understanding: Sellers need to have a deep understanding of their target audience. This involves knowing their preferences, behaviors, and buying intentions.
• Enhanced Listings: Listings should now include detailed contextual information. This includes lifestyle images and descriptions that provide context about the product's use and its suitability for different scenarios.
• Backend Optimization: It's crucial to fill out all relevant attributes in the backend, ensuring that the AI has comprehensive data to work with.

Testing and Preparing for the Future

Adam and Vannesa discuss practical steps sellers can take to prepare for this new AI-driven environment:

• Use AI Tools: Leverage AI tools like ChatGPT to understand your audience better and generate comprehensive listing content.
• Test Listings: Use Amazon's new listing generator to test how well your product is understood by the AI. This helps identify any discrepancies and allows for adjustments to be made.
• Monitor Changes: Stay informed about updates from Amazon, particularly those announced at events like Amazon Accelerate, which will feature extensive tracks on AI advancements.

Real-World Examples and Insights

Throughout the conversation, Vannesa shares real-world examples from her experiences with clients. She illustrates how changes in listing content and images have led to reclassification of products by Amazon's AI, underscoring the importance of getting the context right.

Conclusion

Adam wraps up the episode by emphasizing the dynamic nature of selling on Amazon and the importance of staying ahead of changes. Vannesa reiterates that while keywords remain important, the context provided around them will be the key differentiator in the new AI-driven landscape.

For sellers looking to navigate these changes, Vannesa offers her expertise through her service called Amazon Intelligence, where she helps optimize catalogs based on these new principles.

Call to Action

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