The Data Behind Item Sales Growth on Amazon.
Product ratings and reviews are an important factor in driving the Amazon algorithm, but what is the threshold of reviews needed to accelerate sales velocity? Using our proprietary reporting tool, Marshall Insights, we’ve found the sweet spot.
We reviewed a subset of 19K SKUs for our data analysis over a two-year time period to discover the optimal review count needed to accelerate unit velocity on an item.
Based on our findings, there are three key rating milestones that significantly alter sales growth:
- 16-25 Ratings: sales +25% v. baseline of 0 reviews
- 101 – 200 Ratings: sales +320% v. baseline of 0 reviews, +85% from 16-25 reviews
- 501-1,000 Ratings: sales +856% v. baseline of 0 reviews, +128% from 101-200 reviews
Achieving 1,000 reviews is the ideal rating threshold on Amazon. This group of items generates +118% sales growth on top of the 501-1,000 item bucket. After 1,000 reviews, we do not see a lift in incrementality which proves that the 1,000 review count is enough social proof to encourage conversion at a larger scale.
When considering benchmarks, Brands should focus on reaching key rating milestones that trigger sales acceleration.
The crucial review benchmarks to target are: 1) 16-25, 2) 101-200, 3) 501-1,000, 4) 1,000+.
As we know reviews are necessary for sales velocity, here are a few ways that you can help accelerate ratings on Amazon.
- Amazon Vine: Allows vendors and sellers to enroll up to 30 reviews per ASIN (limit may vary based on Amazon policies and category specific rules). Once a product reaches this threshold, additional reviews must be produced organically from customers
- Sell More Units: Unit velocity is the key to increasing the number of ratings on an item. The chart below shows the average number of units that must be sold per ASP price band to generate a single rating
At Marshall, we understand the inputs and outputs that drive your business. Every day, we help brands analyze their retailer data and build out strategies that support profitable growth. Interested in learning more? Reach out to us at marketing@marshassoc.com or visit our website to learn more!
