Amazon will continue to dominate the ecommerce industry for the foreseeable future, as revealed by Statista’s report that over 2 billion individuals visit the platform monthly. In order to distinguish yourself and increase sales, it is crucial to understand Amazon’s algorithmic principle: their primary objective is to encourage continuous customer purchases, making them just as interested in sales as you, if not more so, as a seller.
How can you overcome the chicken versus egg dilemma to begin seeing improvements? The distinction is that Amazon lacks loyalty towards any brand except their own. Increased sales result in higher rankings, which consequently leads to more sales.
You can use the following marketing strategies to increase your sales on Amazon.
1. Cover the basics
Tips and tricks alone cannot substitute for solid marketing fundamentals. It is important to consider strategy rather than just tactics. Do you possess high-quality photographs and compelling text? How have you positioned your brand or product? Are your prices competitive or does your product stand out from others?
Your basics need to be covered before you can start optimizing, and this applies to every channel, particularly Amazon.
2. Reanalyze your keywords and focus on keyword relevancy
When considering Amazon’s algorithm, it is akin to stating that Google’s algorithm prioritizes delivering optimum answers. However, rankings involve numerous factors and intricacies, not solely based on customers purchasing products.
- Ratings.
- Sales fulfillment.
- Sales velocity.
- Inventory.
- Pricing.
- CTR.
The focus of the A10 Algorithm update is on matching the shopper’s interest/intent rather than prioritizing Amazon’s profitability. This update, which appears to be a combination of multiple updates over the years rather than a single major update, aims to show products based on searchers’ preferences.
While you may have done keyword research when you first set up your product detail page, shopping behaviors may have changed. You should regularly conduct keyword research and make sure you have the terms placed throughout the product detail page. This includes important areas like title, description, and bullet points.
When writing, it is not enough to just include keywords. It is important to write in a way that persuades shoppers to make a purchase. While the algorithm may determine your product’s ranking, it is the shoppers who read and ultimately decide whether or not to buy. Therefore, your writing must effectively persuade them that your product is the best option.
3. Invest more in advertising
Amazon Advertising is inevitably expanding and playing a crucial role in the company’s earnings. In 2021, Amazon generated a revenue totaling over $31 billion from advertising, surpassing its ad revenue of $10 billion from 2018 by more than three times.
To achieve success on Amazon, it is essential to have an ad campaign.
Amazon rewards sales and utilizing Amazon ads enables you to generate those sales. In contrast to Google Ads, where paid advertisements do not affect organic positioning, Amazon’s platform does. By increasing your investment in Amazon Ads, you can stimulate sales velocity and enhance your rankings.
The cost increases as the competition continues to grow.
Amazon is continuously improving its ads platform, providing you with more choices and data to enhance your Advertising Cost of Sales (ACoS). ACoS is determined by dividing your ad spend by your ad revenue and multiplying the result by 100.
4. Bring in more off-Amazon traffic
In order to maintain their dominant online position, Amazon considers obtaining traffic from external sources such as Google and Facebook, which could potentially lead to sales off their platform.
By utilizing the Brand Referral Bonus program, you can establish an external traffic campaign for your product listings and reap its benefits. Whether you opt for Google Ads, Facebook Ads, or any other campaign, if executed correctly, you can potentially earn commissions from Amazon and enhance the organic visibility of your products.
5. Use a coupon with Amazon advertising
Running a coupon for your sponsored product ads allows you to leverage both psychological triggers and offer enticing discounts and deals. These ads enable your product to be displayed in the search results for targeted terms, making them highly effective.
Running a coupon simultaneously allows searchers to view your discounted product. This benefits both the click-through rate (CTR) from search results and the conversion rate, which are important metrics for successful Amazon marketing strategies.
Having a coupon is enough in many cases, regardless of the amount.
Even if you’re unable to generate a sustainable profit by offering a coupon along with advertising, it is still advisable to consider it for a certain duration. The enhancements in your rankings have the potential to result in increased sales even after the entire advertising campaign.
Even though you should always be cautious, it is important to remember that you are not working independently and should stay prepared for competitors aiming to obtain your market share.
6. Invest in high-quality videos
Although photos receive the majority of attention and deserve it, videos have also become essential in order to have a high-quality listing. By providing potential buyers with more information, you can increase sales and improve reviews by gaining their understanding and trust in your product.
Here are four video tips that could assist you in increasing your sales from your Amazon listing.
- Shoot a video describing and using your products.
- Make sure you have a plan to address the pain points your product solves and highlight other important differentiating factors.
- Highlight how your product compares to others and show it being used with a lifestyle video to determine what resonates most with your buyers.
- Keep it focused on sales.
7. Optimized Amazon SEO
To maximize the visibility of your products on Amazon, it is important to optimize them for Amazon SEO. This will increase the chances of your customers finding them when they search for relevant terms. Amazon’s search engine prioritizes well-described product searches and displays them at the top of the recommended searches. Therefore, it is crucial to focus on the following aspects.
Keywords
Amazon allows you to include up to 250 characters on the backend to add keywords that can increase the chances of your product being discovered. These keywords are not visible to customers but help in associating your product with specific search terms. It is important to conduct thorough keyword research to effectively compete within the Amazon marketplace.
Titles
To enhance your clickthrough rate and increase sales, put yourself in the customer’s perspective when crafting a title. Incorporate pertinent keywords to maintain the same meaning.
Descriptions
– Bullet points, included in your product descriptions, can help distinguish you from the competition. – By outlining the important features of your product with bullet points, you can increase conversions.
Images
Amazon has very clear guidelines regarding images. Clear, easy to understand, information-rich, and attractive images are recommended for products.
Q&A
To satisfy your customers’ need for information, consider incorporating a Q&A section where you can address frequently asked questions and ensure your customers are well-informed.
8. Affiliate marketing
The Amazon affiliate program provided by Amazon enables website owners to display Amazon products on their websites. If individuals click on these links and make purchases, a commission is earned.
This Amazon marketing strategy is beneficial because it leads new visitors to your Amazon page. Displaying your products on diverse websites can attract a brand-new group of customers that you would not acquire otherwise.
9. Amazon advertising
Amazon advertisements come in three types and help to expose your product to users who may not have come across it on their own.
Product display ads
Amazon PPC ads, known as product display ads, are extremely popular due to their widespread presence and a relatively high conversion rate of approximately 10%.
Sponsored brand ads
Sponsored brand ads comprise a headline, logo, and a maximum of three products and can be spotted on the search page, aiding in boosting brand awareness.
Display ads
Amazon display ads are cost-per-click (CPC) ads that can appear on the Amazon website and app, as well as on websites and apps not owned by Amazon. These ads can be customized to direct users to your Amazon store, product page, or a specially optimized landing page.
10. Third-party advertising
Just because you are selling on Amazon does not mean that your advertising is limited to the platform. Utilizing third-party advertising can improve clickthrough and conversion rates. Ensure that you always optimize your ads by making use of data. Automated data reporting greatly assists in this process.
Google Ads
Google receives more than 63,000 searches every second, which makes it an important marketing channel. Google ads for ecommerce represent a substantial portion of the total ads displayed on Google. By using Google Ads, you can utilize features such as retargeting and email marketing.
Facebook ads
With Facebook being a prominent figure in the realm of social media, you have the opportunity to drive a whole new set of customers to your Amazon store and products by making use of their paid ads platform.
