Brands need an Amazon-specific strategy, and an associated set of tools, to plan, manage, measure and optimize their business on the e‑commerce platform.
I don’t need to explain the impact Amazon is having on e-commerce and the wider retail channel. The online retailer may not yet be as big as that other giant of the retail world, Walmart, but it’s dominance online, and growth in other areas, means it’s on its way to surpassing the big box retailer.
Amazon’s growth is unrelenting – in the US it is such a force that it accounted from nearly half of all e-commerce sales in 2018, growing by 30% to $258 billion in online retail sales for the year. In Europe and Asia, its also making a mark as the top online retailer in some of the largest e‑commerce markets including the UK, Germany, Italy, and Japan.
Every brand needs an Amazon strategy and an associated set of tools, to plan, manage, measure, and optimize its Amazon business. The online giant is not only affecting where consumers shop, but also how they shop. As a result, brands and product manufacturers need to change too. The evidence of how Amazon evolved from selling printed books online, to transforming the publishing industry with digital publishing can’t be disregarded by other industries.
All about the Data
Data is central to how Amazon does business, and how it analyses shopper activity, to engage and influence buyer behavior. And, it has to be said, consumers largely trust it with everything from their personal information and buying habits to the literal conversations they have in their own homes. To succeed on Amazon brands need to adopt a similar data-centric approach to planning and managing their Amazon strategy.
Amazon provides tools and data, to help brands manage product listings, landing pages, and advertising, including Vendor Central, Seller Central, Amazon Advertising, Chime and FTP. But brands need to look beyond the standard Amazon tool-kit to stay ahead of the game.
Below, and in the accompanying eBook, I’ve outlined a phased approach to planning, and executing Amazon activities for brands, including the data and insights, beyond what Amazon provides, that can really help take your e-commerce strategy to the next level.
Step 1: Beautiful Amazon Basics & Beyond
Amazon is more platform than online-retailer. As such, there are more options for managing performance on the platform than are available in many other online retailers. Understandably, Amazon’s vendor tools are largely designed to deliver on Amazon’s agenda. To go further and outsmart competitors who also have access to the same Amazon data, brands need to seek out a broader set of tools and insights, rather than only depending on the online retailer’s standard issue.
This means looking to the tried and trusted e-commerce e-Commerce Perfect Store playbook, with its emphasis on measuring, monitoring and managing KPIs for Content, Availability, Price & Promotions, Ratings & Reviews and Search. With Amazon brands also need to consider additional tactics such as BuyBox ownership, and product profitability.
Just like with any other online retailer, to deliver even a modicum of success you need ‘perfect’ availability and sales fundamentals, to ensure your products and brands can win the battle for search, own the BuyBox, and convert buyers at the right price.
At this stage you’ve also got to get a handle on planning, designing and delivering product information for the content-hungry platform. The number of options available on Amazon, and volume of content required means brands need the right tools to streamline content creation, manage content setup and distribution, and audit published content to ensure it is always up to date, and leverages all the capabilities of the Amazon platform including images, video and so-called Amazon A+ content.
Step 2: Increase Intensity for Deeper, Timelier Insights
Once you have your ‘basic’ e-commerce analytics and KPI monitoring delivering actionable insights, and content management working and delivering rich, engaging content, the next stage is relatively straightforward. Do more of it. The speed with which prices, promotions and listings change on Amazon means it’s worth considering increasing the frequency with which KPIs are measured and reports are updated – for some metrics at least.
Step 3: Advanced Amazon Analytics
At stage three in your Amazon program, it’s time to start taking advantage of some of the more advanced insights and analytics becoming available. Measurements such as Amazon Market Share estimates, Traffic & Conversion, Order Frequency, Basket Analysis and Advance Keyword Intelligence will add significantly to your Amazon playbook at this stage.
Stage 4: Optimize Promotions and iMedia Investment
With all your sales fundamentals, product content, ratings & reviews, and assortment lined-up it’s time to optimize your promotions and figure out how much you need to spend on advertising. Amazon offers a powerful platform to build product and brand awareness in parallel with driving sales, but achieving results, like all things on Amazon, is all about accessing and analyzing the data.
The tactics and KPIs outlined above are designed to drive the right actions to maximize a brand’s opportunity on what is arguably the world’s most influential e-commerce platform. Together they enable consumer products manufacturers to identify gaps, prioritize actions, and execute – turning data, insights, and content into sustainable Amazon sales growth. To Find out more download the eBook: "How to Succeed on Amazon"
