The world’s richest man, Jeff Bezos, founded his wonder child, the Amazon webshop, more than 20 years ago. He did it at a time when the internet was still somewhat a suspicious thing, a soon-to-be-over trend. Bezos’s dream was an everything store. Today his vision is fulfilled. IMPACT 80/20 Digital Project Manager Meril Mägi dived into the fascinating subject of Amazon, took part in Amazon conference held this Spring, and has now the proper stamina to share what she has learned with you.
More and more people order from the internet, which means that businesses must adapt to the situation and have a strong online presence. Even though the purchase itself might be done in a physical shop, the research is still done online. Amazon is, without a doubt, the worlds biggest online store. And, its visitors are people who have a strong purchase intent.
People visit Amazon also to compare prices and find new products. So, one could say that Amazon is also a search engine. When Google is used mainly to search for websites and info, Amazon is used to search for products.
We have an issue though. Amazon is a sales channel with enormous potential for trading companies, but it tends to be overlooked.
- Amazon has more than 310 million active customers.
- Amazon has more than 353 million products on sale (in addition to books, media, wine, and services).
- Amazon Prime members spend 1300 dollars on average per year, seven percent of them buy something every day.
- Amazon visitors have a purchasing mindset which means that the good conversion rate is approximately 15 percent (that is 3-5 times more than other e-shops).
First step: competitor analysis and trends
How to decide whether Amazon is the right channel for you?
If you have a product or a product category that you wish to sell on Amazon, the first thing you must do is look around on Amazon. See what is going on in those categories, what others are doing. The most important thing is to start with the competitor analysis.
There really isn’t a point to enter a product field on Amazon which is already very competitive. Why? Because it would need too big of an investment at first to stay competitive and get on the first page.
Some tips to look for in the analysis:
- Go through your competitor’s product lists and write down all the names, product features, descriptions, pictures, and prices.
- Analyze competitions brand – the tone and use of language in the product description, product design, etc.
- Evaluate monthly average sales. You can do it using Jungle Scout application.
- Analyze competitors feedback from users (the reviews), and write down what they like about the products and what they don’t like.
- Find out what the competitors are lacking and fill that gap. Bare in mind, one must show, not just tell (certificates, pictures).
- Visit competitors Amazon Store page.
- Analyze the keywords used by competitors. There are several tools for that, i.e., Sonar, Merchantwords or Helium10.
Then work out, based on the results of the analysis, how you can offer more value to your customers than your competitors do.
When I took part in the Amazon conference in Spring, a thought by Ott Kraut, who is a successful merchant on Amazon for many years by now, stuck to me: “The competition is one of the things you cannot change, but you can base your actions on it. Offer more value than your competitors.”
Next step: advertising and marketing
After you have decided that Amazon is for you, the next step is setting up marketing and advertising strategies. Below I am going to suggest a couple of things you need to do:
- Fix your product page. It must have high-quality pictures that introduce the features and show how to use your product. Well-written product description with all the relevant keywords is also a must. Another great thought from the conference mentioned above: “Keep in mind that you sell pictures, numbers, texts, and trends on Amazon, not products.”
- If possible, use Enhanced Brand Content.
- It is imperative for users to share their experience. Feedback is crucial because it creates trust in buyers.
- You can also do influencer marketing as a part of your marketing strategy, but you must take into account that it might not be a good fit for all the products and services. It is important to find the right influencer whose followers are your end clients. A good example is a popular party game Cards Against Humanity that got a great kick off using influencer marketing. Read about their success story to get inspired!
- Thoroughly thought through search term strategy.
- PPC-advertising (pay-per-click).
- Social media marketing.
In conclusion, know that Amazon is an amazing sales channel. But, to gain success on Amazon, you must first conduct a thorough competitor analysis, then create a sales and marketing strategy, and be very persistent.
And, don’t forget – 20 percent of your time must be spent on things that bring you 80 percent of results.
If you need advice or help, get in contact!
Author: Kerttu Kongas