- What is the Amazon Review Velocity?
The Amazon Review Velocity (ARV) is an indicator of the speed at which a product is receiving customer reviews on Amazon’s platform. This refers to the number of reviews a product is receiving in a given period of time, such as in a day or a month.
It´s a KPI unknown by many and little monitored by most brands and sellers on Amazon when in my opinion, it is a fundamental ratio to measure to understand the performance of my product portfolio in marketplace, category, and product (ASIN) level.
- How can I calculate the Review Velocity? This is the Formula
The formula for calculating Amazon’s review velocity is the number of reviews received in a given time period divided by the number of days in that time period.
For example, if a product received 50 reviews in a month, the review velocity would be 70 reviews / 30 days = 2.33 reviews per day.
*** However, it is important to note that there is no official formula for calculating Amazon’s Review Velocity as this information is not public.***
There are plenty of different scenarios than should be analyzed in your monthly Amazon Strategy. Here some real examples:
Positive ARV with an increase in reviews
Negative ARV with a decrease in reviews
Positive ARV with an increase in reviews, but losing velocity
- Why this ARV is so important for Amazon and the brands?
1. From Amazon’s point of view, ARV (Amazon Reviews Velocity) is closely related to another ratio known as Amazon Sales Velocity (ASV). Sales Velocity is a metric that measures the speed at which products are sold on Amazon, and as with ARV, it is usually measured daily or in 30-day periods.
ARV is highly dependent on ASV and is one of the ratios that Amazon uses the most when it comes to monitoring and detecting possible manipulation of fake reviews. This is because a product must fall within the “normal parameters” between traffic, sales, and reviews left by users.
To give an example:
If you are a new seller, it is very common that to qualify for the Buy box, and then to generate the first sales and be able to launch Sponsored Ads campaigns and the conversion of your listings, you resort to asking for purchases and leave reviews to your family and friends (not recommended). Well, it is very unnatural that having 50 visits, you have 10 sales and they leave you 8 reviews, Amazon could understand that it is “very unnatural” and take measures in this regard.
However, it is not just a problem of new product launches, but that ASV and ARV metrics can be massively manipulated in products that are high performing or even category leaders, precisely to maintain and continue to generate sales and conversion.
Amazon Sales Velocity Account Review
When Amazon finds some discrepancy with the velocity limit, the company may subject the seller account to a velocity review. This review process is intended to ensure that the seller is not violating any policies related to artificially inflating sales or reviews.
When your account is under review, Amazon can:
- Reject or delete the reviews
- Retain the funds while allowing to continue shipping
- Temporarily prohibit selling privileges
- Take no further action
2. From brand´s point of view, ARV (Amazon Reviews Velocity) is veryclosely related to another ratio known as Amazon Sales Velocity (ASV). Sales Velocity is a metric that measures the speed at which products are sold on Amazon, and as with ARV, it is usually measured daily or in 30-day periods.
- Indicates customer interest in a product
- It can be a sign of a product’s popularity and demand (or the opposite)
- It can signal that a product is high quality and has positive customer experiences
- Increases trust in the product among potential buyers
- It can improve a product’s visibility and ranking on Amazon, leading to more sales
- It can indicate how well a product is performing compared to competitors
- It can help sellers identify areas where they can improve their product or customer service
- It can be used to make strategic pricing and inventory decisions
- It can help predict future sales and revenue for a business
- It can provide valuable insights into customer behavior and preferences
