How do you really know when your Amazon business is doing well? Is it in the sales? Is it in the product ranking? Is it when you’re content looks great?
Running a successful Amazon business is all about an integrative approach. If one thing is off, then the scale isn’t balanced. You may see success but it won’t return the bottom line results you want. Take a look at how we approach Amazon and what you need to keep your eye on the prize.
Content is still king. When your listings look great and read well, you’re almost golden. Each category can require a different tact when writing so it’s important to keep that in mind when taking this on. Maybe you sell in Consumer Electronics and people require a more factual approach. You might think that a clothing brand would want some pizzazz in the writing but what data do you have to support this? We know what works. We also know how to test content, when consumer data is limited, and track that content to see how well it’s working.
Cost Analysis; know your margins. Sales could be off the rails but if your costs are too high you won’t be retaining any cash. Are sales important? Absolutely. Knowing how much Amazon is charging you to sell the item is equally important. Don’t forget about fulfillment fees if you’re using Fulfillment By Amazon. We often recommend you do due to increased visibility. Advertising cost? A must. Did you factor in that promotion you ran last week? It’s all important to know. Knowing when to focus on growth and when to focus on profitability is key to cost analysis.
Visibility is the lock. But what is the key? There are actually a fews keys to open this lock. Advertising gets your product in front of an audience. Promotions, such as Coupons and Lightning Deals, lower the barrier to purchase for consumers. Prime offers target a very active audience of customers that want their products and want them now! A well-written listing can solidify the success of all these factors. Once you’ve opened the door, we encourage you to get a wide and large net to capture all of the sales.
Tracking your progress. There are lots of systems out there that can help you track your KPIs but you have to know what to track first. Amazon’s reporting can leave something to be desired. There are a few key metrics in there though that are incredibly helpful. Here’s the essentials: Conversion Rate, Impressions, Product Rank, Review Rating, Keyword Indexing, and Search Ranking. Seem like a lot? It is. But it’s all data you need to know in order to determine if you’re making headway on Amazon or you’re just wasting your time. More often than not, you’re just not making the changes you need to make because you don’t have the data you need.
Optimize everything. Once you’ve collected some data, what do you do with it? Use it! Advertising provides you with a wealth of real customer data that you can then tie back into your listings. You can also create new advertising campaigns focused on these customer revelations. When you notice that people are visiting your listing but aren’t purchasing what does that mean? How do you make the appropriate changes? Use data and use it often.
Conclusion. There are a lot of things that need to be accomplished in order to really tackle Amazon with purpose and results in mind. It takes a team to truly get results. It also takes time. Don’t put up a listing and expect it start flying off the figurative shelves. It takes work paired with constant observations and optimizations. Take it from us, we’ve built a few businesses on Amazon. Maybe yours is next. What do you say?