You may have heard authors and other publishing professionals talk about the Amazon algorithm and how it impacts their books. In this article, we break down what an algorithm is, how the Amazon algorithm works and how it impacts you as an author. Before we begin: Don’t be intimidated by the terms you see. Everyone can understand how this works. And, as an author who is aiming to sell more books on Amazon, it is important that you understand what’s going on behind the scenes.
In today’s world of online shopping and e-commerce, a lot has changed in how retailers are able to sell products to their customers. In a physical store, every customer sees the same thing – the same displays, the same products on the shelves, the same signage. Because every customer sees the same thing, the owner of a physical store tries to appeal to the average customer. She tries to display the products that the majority of customers will like and she runs promotions that will appeal to the majority of customers. This is why when you walk into a Barnes & Noble, you will see displays packed with books by James Patterson and other best selling authors. James Patterson appeals to the majority of mystery readers so it’s a good bet for the bookseller whose goal is to sell as many books as possible.
Online stores give store owners the ability to personalize the experience for every single customer. Personalization means each customer sees different products, different promotions, and different displays. The largest online store in the United States is Amazon.com. Amazon has gotten very good at personalizing the shopping experience for every customer that visits the website.
Let’s start with some definitions:
Data is information, plain and simple.
An Algorithm, in this case, is a computerized process that takes in information (data) and spits out conclusions based on patterns in that information.
Amazon has lots of data on its customers. It knows what they browse, what they buy, what they review, and what they return. Amazon makes money when you purchase more things from them, so their goal is to recommend products that you are most likely to purchase. They figure this out by taking all of the data they have on all of their customers and building an artificial intelligence that can determine what you are most likely to buy based on your past actions. Many people refer to this artificial intelligence as the “Amazon algorithm”. The part of the Amazon algorithm that has the greatest effect on buyers and sellers on Amazon is the part that leverages item-to-item collaborative filtering (people who buy x also buy y)
Data about people buying stuff + Pattern recognition written by smart people = Amazon Algorithm
Examples:
You see this play out all over the Amazon website in the Also Bought items that appear on every product page on Amazon. The Amazon algorithm has determined these Also Boughts by looking at the data associated with each person and each purchase on Amazon. In doing so, the algorithm has noticed that a high percentage of time people who bought Baby Formula also bought Diapers. Someone who bought baby formula may also have bought a notepad but when the algorithm looked at the data in aggregate it determined that there was a high correlation between Baby Formula and Diapers but a low correlation between Baby Formula and notepads.
This logic holds true for all products on Amazon, including books!
According to Chris Fox, “it’s becoming conventional wisdom that smart authors want to see books very similar to their own in that area.” If you see similar titles to your own in your Also Boughts it means that the algorithm understands what your book is about and who is most likely to purchase it. Additionally, if books similar to yours are showing up in your Also Bought section, then there is a good chance that your book is showing up in these similar books’ Also Bought section. This is how Amazon is helping you get in front of new readers who are the most likely to buy your book. The Also Bought listing is the place where Amazon is marketing and selling your book for you. It’s incredibly valuable placement because, at that moment, the shopper is considering buying a book in your genre, and although they first landed on a title that isn’t yours, there is a chance they will purchase your book in addition to (or instead of) that original title. Amazon also frequently sends emails to its customers with book recommendations based on these Also Bought listings.
Let’s look at an example:
In visiting the product page for Mark Dawson’s latest novel, Blackout, we can scroll down to the section titled “Customers who bought this item also bought” to see the Also Boughts for this book. Blackout is an action-packed thriller. The first page of Mark’s Also Boughts are other books by Mark Dawson. This tells us that fans of Mark Dawson are the most likely people to purchase another Mark Dawson book. It tells us Mark has an avid fan base that is likely purchasing all the books that he puts out. If we scroll over to see additional Also Boughts, we start to see books that are not authored by Mark. These books have similar looking covers to Blackout and are also action-based thrillers. We can see that Amazon understands what type of book Blackout is, and knows who is likely to purchase it: readers who like action thrillers.
So how do you make sure your book appears in the right Also Boughts and in Amazon’s marketing emails? Amazon can only recommend your book once the algorithm has enough data points to know who to recommend your book to. When your book is newly published, Amazon does not know very much about who is going to like it. Yes, you have input keywords and genres to give the algorithm a general idea, but the algorithm is waiting for sales and downloads to determine who your target reader is. Once the algorithm has determined a profile for your target reader, it will start including your book in the Also Boughts and recommendation emails. A mistake many authors make is that they get their first sales from friends and family. This is fine if you write science fiction and all the members of your friend and family pool are avid science fiction fans. But if they’re not, you are confusing the algorithm by giving it faulty information about who your target reader is.
Think about Friends and Family from the algorithm’s point of view:
Let’s say the Algorithm is watching your new book, which is classified as science fiction.
The algorithm is going to have a hard time figuring out who the target readers are since there is no common purchase history or preference among the customers who account for your initial sales.
Now, let’s think about your target readers from the Algorithms Point of View:
They love the genre you write in and have purchased items on Amazon that indicate that. When your target reader discovers your book the algorithm sees this activity:
With enough data points, the algorithm will figure out that the common thread among these customers who liked your book, is that they like science fiction. Once it has this common thread, the algorithm can start recommending your book in the Also Bought section below relevant products that your fans (and people like them) have purchased in the past and are browsing in the present. You want to make sure your Also Boughts are tightly aligned with your specific genre so your book is targeted toward the right kind of reader.
To determine your current Also Boughts you can simply go to your book on Amazon in incognito mode in your browser and scroll down to take a look. There is a nifty tool out here called Yasiv that will visualize your Also Boughts for you. Check out David Gaughran’s post on how to use Yasiv, it’s a gem.
Now that we know what the algorithm is and how it works, how do you get your target readers to purchase your book so that you can feed the most relevant data points to the algorithm? Or how do you fix your Also Boughts if they are ugly. Here are the steps:
Step 1: Identify your sub-genre
To get Also Boughts to work for you, you want your book to be featured in the Also Boughts of books similar to yours. So the first step is to identify your genre so you can identify the other books and authors in your genre. Defining your genre broadly, as Mystery/Thriller or Romance, for example, is not good enough. You need to identify the specific sub-genre within your main genre.
For example:
To get a sense of the sub-genress that are out there, go to the Amazon Best Seller charts and navigate into your genre and then navigate deeper into the sub-genres available. Here is an example of us navigating into the Psychological Thriller sub-genre:
Our click path was Mystery, Thriller & Suspense –> Suspense –> Psychological
It’s worth clicking on many of the genres and sub-genres so you can feel certain you have picked the best sub-genre for your book.
Step 2: Evaluate your Cover
Once you have identified your sub-genre, take a hard look your book cover and compare it to the book covers populating the bestseller list for your genre. You want your book cover to look like it belongs with those books if it was featured on the bestseller list with them. If your book cover looks markedly different, take the time to redesign it so it fits your sub-genre. You are facing an uphill battle if your cover does not fit your genre and the next steps will not work if your cover does not appeal to your target reader.
Step 3: Make a List of Books and Authors for your Also Boughts
Once you are comfortable that your book cover is appropriate, go back to the bestseller list and make a list of the authors and books that are most like yours. For this exercise don’t confine yourself to just the bestseller list. As you click on books like yours, also look at the books populating their Also Boughts and click on those, and so on. Eventually, you should have a list of 50+ books and/or authors where you’d like your book featured in the Also Boughts.
Step 4: Populate your Also Boughts with Books Like Yours
Now that you know what your specific sub-genre is and which books are like yours, it’s time give Amazon the data it needs to include your book in the appropriate Also Boughts. There are two effective ways to do this and we recommend both:
The first tactic is to use book promotion services to send hundreds of your target readers to purchase or download your book.
To get this right you will want to make sure that the promotional site that you’re using has narrow genre definitions (sweet romance is separated from steamy romance; mystery is separate from cozy mystery; science fiction is separate from fantasy). That will ensure that readers within your sub-genre are the ones feeding the algorithm. The lower your price when you run a promotion, the more readers will engage with your book, and the more data you will feed the algorithm. Offering your book for free upon release can be especially effective since it allows you to feed the algorithm hundreds to thousands of data points in 24 hours. Running a discounted promotion at 99c is effective, but not as effective as a free promotion since fewer readers will download your book. The benefit to running a book promotion is that it is quick and easy to set up and once it’s set up your work is done. Many of our customers use our book promotion services (Freebooksy, Bargain Booksy, Red Feather Romance, NewInBooks) to feed the algorithm. Reedsy’s directory of promotion services is also a great resource.
Book promotion services allow you to get in front of your target readers in a specific sub-genre, however, you cannot target a specific author or book with book promotion services. Which brings us to the second tactic.
The second tactic is to run Amazon Ads targeting the authors and books on the list you made in Step 3.
When running ads you will want to choose the Sponsored Products option as that allows you to target specific keywords, authors, and books. We recommend that you first set up an Automatic Targeting campaign at a low daily budget. Next, you will set up Manual Targeting campaigns for each of the books and authors you identified on your list. This means you will likely have more than 30 campaigns running if you choose to target everyone on your list. The benefit to Amazon Ads is that you can specifically target authors and books. Running Amazon Ads can be time-consuming as you have to monitor your ads on a daily basis and it can take time for you to see results as ads may take time to get impressions and clicks. But once those ads start rolling you are feeding the Algorithm on a daily basis.
Both these tactics will help you get your book in front of the right readers. When these readers browse and purchase your book they are feeding the algorithm useful, actionable information.
A Note on ARCs
Some authors cultivate a pool of beta readers and super fans by joining the conversation in Facebook groups, Goodreads groups and other reader forums where their target readers hang out. Once they’ve established a rapport they ask these readers to join their beta readers group or mailing list. It is important to remember that providing an ARC to your beta readers will not help your Also Boughts as the transaction is not happening on Amazon and Amazon, therefore, will not be able to link that reader and that reader’s data to your book. If you want your beta readers or mailing list readers to help cultivate your Also Boughts these readers must download or purchase the book on Amazon. An easy way to facilitate that is to run a free or discount day and tell your readers to go and purchase the book then. This will feed the algorithm valuable data points AND it will improve your Amazon sales rank.
Whew. It’s a lot of information, I know! Here’s the bite-size summary:
Footnote on Amazon’s Patent
Back in 2001 Amazon was granted a patent on its collaborative recommendation service. The patent describes the recommendation service as “A recommendation service is a computer-implemented service that recommends items from a database of items. The recommendations are customized to particular users based on information known about the users. One common application for recommendation services involves recommending products to online customers. For example, online merchants commonly provide services for recommending products (books, compact discs, videos, etc.) to customers based on profiles that have been developed for such customers. Recommendation services are also common for recommending Web sites, articles, and other types of informational content to users. “
View Comments
Simply fantastic article! Thanks Ricci.
Excellent article. Bargain Booksy has always been my number one go to when I release a new book or do a promotion. Thank you!
Thanks Dianne :-) And thanks for being a customer!
This was a great post. You laid out the concepts clearly and concisely. I have several new ideas to roll into my current promotional efforts to help grow my visibility. Thank you!
Wow. Just when I thought I had it all right! Well, I know what I'll be doing this weekend: making sure my sub-genres are spot-on, and thinking about which day (and book) to run another Booksy ad.
Thank you so much for this info.
Now let's sell some books!!
I'm really frustrated with much of this.
You say to go find authors of similar book sub-genres, but for what? There is a reference later to an Amazon Targeted campaign, but there is no correlation. I clicked on the campaign and right off the bat it wants to connect with 'brands.' There is no explanation of what 'brands' are! Is that where you target other authors for an association? If that is where you enter another authors name, how does one get their email address and phone number? There isn't enough information about this to make any sense of it. After reading this, I have no better idea as to how to get those 'also bought' associations.
Hi C. Craig - I understand that getting started with Amazon Ads can be frustrating. Running Amazon ads is a whole post in itself and we hope to write one in the future. You can try Dave Chesson free course that breaks it all down or hire someone to help you.
Hi, Ricci,
If I gift my ARCs via Amazon as opposed to sending them out via BookFunnel wil this help with also boughts?
Thanks,
Peter
Hi Peter,
I'm going to be honest, didn't know the answer to this off the top of my head. I did a little searching and I can't find an official statement from Amazon, but some forum entries lead me to believe that if you gift someone a book and they redeem it, then that purchase gets attributed to the reader you gifted it to, instead of being attributed to your account. If this is correct, that would mean that as long as your ARC readers are your target reader (people who like and purchase books within your genre) it should positively affect your Also Boughts. However, since I can't seem to find a solid answer here, I can't officially recommend one over the other. Please let us know if you try this and how it goes!
Such great advice, just have one question in regards to Amazon ads, re this sentence: This means you will likely have more than 30 campaigns running if you choose to target everyone on your list.
Do you actually mean a separate campaign for each book or author? Or do you mean including these under one campaign as keywords? I have lots of books on Amazon, and if this means a separate campaign for each individual one, it's daunting.
Very best,
Bobbyd
Hi Bobby - The way Amazon ads works is that you can only select one book to advertise for each audience. So, yes, you could have up to 30 campaigns for one title. If you write a series, then running ads on Book 1 will drive sales of other books in the series. If you don't write in a series, I'd recommend picking your best-reviewed book or your newest book and making sure you highlight your other books at the end of this book. With this strategy even though you're only running ads to one title, it will drive sales of your other titles. Something else to know is that Amazon makes it easy to replicate a campaign and change your targeting. So you can conceivably set up a new campaign in 2-3 minutes, if you have already done the work of identifying your target audience for each campaign. Dave Chesson has a great free course that will take you step by step through running Amazon Ads.
That really doesn't explain why you would have 30 different ads running for one novel when you can target multiple authors in the same ad. I am puzzled.
I have a question about l”making a list of 50+ authors with the same sub-genre” - are you talking about how just “clicking” will help the algorithm, or is there a specific spot where we actually insert the author’s names, like in keywords?
Hi Brooke - Once you make a list of the authors and titles in your sub-genre, you actually enter those keywords into your Amazon Ads (AMS) campaigns. We're working on a post that walks you through how to set up AMS campaigns with keywords and I'll ping you when it's ready. I'd also recommend this free course to get a handle on AMS.
Hi Ricci,
Great post, really shed some light on how Amazon's 'Also Bought' system works.
I've been running a ppc ad using my list of keywords for quite a while and it's been profitable, about $7500 in sales, my ACoS is down around 7.5 %, and have earned 43 five star reviews. All good.
But it's time to adjust, started digging and found your article and a similar post by Jane Friedman (https://www.janefriedman.com/using-amazon-kdp-ads-sell-ebook-amazon/ Jan 2017)
She also recommends using book titles and authors with keywords, just including those titles and names with all the other keywords but it doesn't seem to be as focused on the 'also bought' idea. So I did that yesterday, added a bunch of titles and authors to the list of keywords, still pending review. (sponsored product, manual targeting)
Then I followed your suggestion and looked at yasif. Not good ... 243 similar books and zero pointing at my book.
So ... I'm up for running a bunch of unique campaigns for my list of comparable books ... did a search and have my list, but I'm not clear on how to use those titles.
Do I run individual campaigns with all the keywords I have now and add the title and author to that list?
Or campaigns with only the title and author as keywords? Or ... ?
I'd also be interested in using the promotional services for free books, but mine is not enrolled in KDP and it's 130MB so their delivery fee of 15¢ per MB is close to the retail price of $15, don't think I can do this.
Thanks again,
Duke Sharp
Garage Band Theory
Hi Duke - Congrats on your success with AMS so far. I'd recommend creating new ad campaigns for the list of authors and books you've found and make each one distinct to the author and their titles. For example, if one your targets is JK Rowling and one of your titles is Harry Potter, I'd set up a unique campaign and call it Rowling/Potter and include all keywords related to Rowling and the Harry Potter books in one campaign. I'd then set up another campaign for the second author and all their related titles, and so on. Make sense? For the promotion service, it sounds like Freebooksy will not work given your book size, but you could run a Bargain Booksy promo whenever you next run a Kindle Countdown Deal.
Thanks, and I really appreciate your help!
I think I'm getting this ... in AMS, click 'new campaign' button, then click 'sponsored product' option for campaign type, then choose which book I'm promoting. My books all show up, no problem.
I tried entering one of the similar title's asin in the search box and it wouldn't accept it, can only promote my titles ... (just checking in case that's what I was supposed to do with the new list of titles - wasn't 100% sure, now I am)
The keywords that I'm currently using for GBT using would be appropriate for the books in my list of similar titles ... music education. I started with about 150 words, have trimmed it back to about 100 that generate views/clicks/sales.
So, my first question ... could I just 'copy' the existing campaign, maybe edit-tailor my keyword list a bit, include the new author and title, re-name it ... do it again?
I understand I'll want to check daily once they're running and assuming I'll want to pay attention to the views/clicks on the new title/author as well as ACoS etc. I'm thinking I'd do a dozen campaigns to start, add another dozen in a couple weeks.
Of course, I'm wondering what might happen to the existing campaign if I suddenly have a dozen unique campaigns running, with about the same keyword list? Any thoughts?
The campaign now has daily budget set at $15, hasn't come close to that yet. Any recommendation about budget for the new campaigns?
And, last question ... after a while, with a bit of luck and patience, this will help GBT to start showing up as an “Also Bought” on other pages?
Pretty sure the Countdown deal requires enrolling in KDP and this title is not eligible, it's an ebook via Ingram too.
Thanks again!
DS
Hi Duke - I can't comment on all the questions you've posted on AMS but I do know that it is challenging to spend your total budget. There are some threads on Kboards where authors have shared their learnings that would be worth checking out.
Love this and thanks to Toby Neal for posting it. I also love using Free Booksy and your other promo sites. Thanks