Less than a decade ago, luxury and premium-priced brands were hesitant to sell on Amazon. These days, you can buy everything from three dollar toothpaste to an $18,000 Elie Saab dress on his ecommerce site.
Amazon has grown by gaining consumer and business trust, leading to more brands worldwide listing their products with the multinational technology company† 1.6 million parcels are shipped per day and approximately 1.9 million users rely on the site to sell their products† How can brands differentiate themselves in a sea of comparable products and competing brands? “The key to success on Amazon is evoking emotion in consumers,” says CEO and founder of Rank Bell Amazon brand marketing agency, Izabela Hamilton. “Amazon is the marketplace where you shop for keywords, but if you can convert that “keyword” into a real brand, you win.”
Consumer Packaged Good (CPG) brands with a D2C and B2B business model that don’t sell on Amazon are missing out on additional, lucrative revenue. In many cases, brands listed on Amazon may not scale without an effective growth strategy. Here are four necessary steps to grow your business on Amazon.
1. Create your shipping and inventory strategy
Companies must register Amazon’s Seller Central to start selling. Once a business is approved, sellers have two choices for execution: FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant). With FBA, the seller ships products to Amazon and the company stores inventory, fulfills orders, and is responsible for handling returns. There are fixed running and stocking costs for FBA and will vary based on the size and weight of your product. With FBM, the seller facilitates the packing and shipping of orders placed on Amazon through their own shipping warehouse. Creating an Amazon store can be challenging to navigate at first, but there are videos, FAQs, and agents available to help on Seller Central. You can also take the help of Amazon experts consultants Quebec Ontario.
Companies that choose FBA have a significant advantage in choosing their shipping method as most customers prefer free shipping within 2 days. If you take this route, it is essential to have the necessary inventory in stock. A good rule of thumb is to have twice your inventory lead time on hand.
“Recently, a major Tiktok maker was organically featured Leopara as one of her ‘Amazon Favorites’ and our Amazon inventory sold out within a week. I started restocking almost immediately so customers could still pre-order, but with Amazon’s replenishment lead times, it took nearly a month for the stock to get back to the ‘Prime’ two-day ship category,” says Leopara- founder Rachel Vicknair.
2. Title and Bullet SEO Optimization
Image content is one of the biggest conversion factors when an Amazon shopper decides to purchase a product. Amazon SEO and Product Research Specialist Brandon Demercado said, “Your main image will affect whether a customer clicks on your listing, but the rest of your listing images, video, A+ content and brand story will help translate into a purchase for your product. Infographics that deliver unique selling points and lifestyle Highlighting images that allow the customer to visualize themselves using your product, combined with great branding, are essential if you want to take your listings to the next level.”
A listing with high conversions isn’t worth much if people can’t find your product. Highly optimized SEO gives Amazon a blueprint to give you the best coverage available, drive more customers, and give you more opportunities for people to buy your products. “A well-optimized title and bullet points strike the balance between clearly communicating what your product is, why they want it, and how yours is the product they want,” Brandon added. The difference between a poorly written and an optimized listing can affect indexing for 30 versus 300 keywords.
3. Get Reviews
Reviews influence consumers’ purchasing decisions. Amazon has a strict review policy that prohibits sellers from manipulating reviews, so yours must be authentic. If a seller is caught using fraudulent reviews, Amazon reserves the right to rescind the seller, withhold funds and take legal action. Paying for, offering refunds, or incentivizing customers are among the prohibited tactics for collecting reviews.
It’s okay to put an insert in your products to encourage customers to leave feedback; the key is not to influence customers or solicit positive reviews. You can create a call to action on your social media platforms to leave a review on any site they bought from. If you sell on Amazon, chances are you’ll get reviews for the ask’s site. Brands often have a plethora of customers who discover their product on their website but buy it on Amazon to receive free shipping. By capturing emails on your website, you can send periodic newsletters asking your customers to leave a review on every platform they purchased your product from, including Amazon.
4. Pay Per Click Ads
The last step to running ads is to use PPC. Start by creating a few discovery campaigns, such as ‘auto’ and ‘phrase keywords match’ campaigns. Then run the ad with a reasonable budget. How much you spend will depend on your bids, not your budget. To find out what to launch, review your reports and find out which search terms converted with a healthy return on ad spend.
“I always test based on Amazon’s automated campaign and the keywords I’m creating. You don’t need a huge budget to get started. $50 a day is enough to work with. If the campaign is doing well, increase the budget,” says CEO of Trivium Group, Mina Elias. Mina suggests calculating how much you’re selling minus your fees, cost of goods, and advertising. If you have a positive profit, continue to increase the budget and let the campaign spend while keeping an eye on inventory levels.
Engaging an experienced individual or company that specializes in Amazon growth can provide the fastest results and typically requires a commission (or commission) on ad sales. If your budget isn’t there yet, network with other founders who sell on Amazon and educate yourself by watching tutorials. With the right strategy, a great product will thrive on Amazon.