Understanding how the Lyst algorithm works is essential for new partners. The algorithm is driven by three main factors: Conversion Rate, Return Rate, and Cost Per Acquisition (CPA).
As noted, CPA is a key factor in the algorithm, which helps determine where products and partners appear on Lyst. CPA is also the only factor within the partner's control—the higher the CPA, the more competitive the ranking. However, please be aware that we cannot guarantee specific performance outcomes due to additional dynamic factors, including product popularity and customer experience.
For benchmarking guidance, please refer to the table below:
- 25% = COMPETITIVE
- 18% = MIDRANGE
- 12% = RESTRICTIVE
It’s also important to note that our algorithm requires time to adapt to new partners’ data. The first three months of partnership serve as a ramp-up period. Product popularity can further impact algorithm positioning, so this may be a consideration for new partners without an established data history.
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