Is Amazon on your brand horizon? Here are some of our recommended areas for consideration.
Amazon has become synonymous with shopping on a global scale. In September 2020 Amazon.com ranked as the fifth most visited website globally attracting 5.2 billion visitors (Analytics Insight). Hourly sales are estimated to average over $17million (Repricer Express). Without doubt Amazon can open up a world of opportunities to many brands and very importantly to a wide range of brands at various stages of market development.
It is however a highly competitive and noisy space. With over 2.5 million active sellers and approximately 350 million products sold across the platform a considered and strategic plan is required by any brand wishing to launch successfully on Amazon.
- It’s a Marathon not a Sprint:
A range of factors feed into activating the Amazon Flywheel and ultimately building sales velocity. Begin by knowing that it will take time. Be realistic in your expectations. Work to get the basic foundations rights and build from there. Be highly targeted in your initial stages as you work to attract new customers to your brand rather than trying to compete immediately with category leaders. This will help to ensure that you build on each of the individual components that will ultimately combine to drive search match performance and sales velocity.
2. Knowing What Customers Value:
There are over 150 million Amazon Prime members around the world. Prime membership has been once again increasing with the marketplace gaining 14 million US Prime members over the past year (Feedvisor) and boasts a 93% retention rate after one year of service.
Over 70% of Prime members are very or extremely satisfied with their experience on Amazon. They are extremely loyal with over 89% more likely to buy on Amazon than any other platform. 74% of them shop online at least every few weeks and the average spend is more than $1000 per annum (Forbes).
The top cited benefit of membership is by far and away Free Shipping. If you want to attract these shoppers into your brand therefore it is strongly recommended to consider a Fulfilled by Amazon (FBA) strategy or at the least a Seller Fulfilled Prime commitment.
3. Paid & Organic Search: A Symbiotic Relationship:
Within Amazon there is a symbiotic relationship between organic and paid search. Paid search helps to drive brand discovery and visibility and hopefully conversions. Driving conversions and sales velocity will feed into the organic search ranking as the algorithm builds confidence in your products ability to convert. Over time the ratio between your paid and organic search will evolve as your organic rating increases however there is an ongoing need for the two to work in harmony to drive overall traffic and sales.
4. Conversion is King:
Amazon’s objective is to match customer search terms with the most relevant products in order to drive conversion. Ensuring your listings are optimised with the top performing keywords that will drive a search-results match is essential to driving traffic to you pages. There must however be a relevant match. If your page has a high bounce rate or low conversion rate this will negatively impact on your organic search.
5. Content to Engage:
A key aim on Amazon is to bring a customer from a search list to your product page where you can deliver more curated brand experience. These pages are a gateway to your brand and should be developed with engaging content and strong visuals. Key information should be quickly and succinctly conveyed and should of course be optimised for mobile.
6. Full Funnel Advertising:
Amazon is now the 3rd largest advertising platform in the US and has projected significant growth in this revenue stream over the coming years. An effective Amazon brand strategy must be supported by a well developed advertising strategy that considers a full funnel marketing approach. An increasing range of advertising formats, both on and off platform, and targeting options are becoming available. It is important to establish clear brand objectives and to determine what ad formats cohesively work to deliver these goals.
7. A Specialist Skill set and Specialist Technology!
Amazon’s is becoming increasingly sophisticated and specialised. A successful strategy must recognise both the specialist skill sets and the specialist technology required. These skills and technology support all areas of fulfillment, optimisation, advertising, pricing, market research, data analysis and more.