Amazon marketplace optimization unpacking the strategic levers that drive marketplace performance
Transcript of Amazon marketplace optimization unpacking the strategic levers that drive marketplace performance
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Amazon Marketplace Optimization
Unpacking the Strategic Levers that Drive Marketplace Performance
Rick Backus
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We Turn Browsers Into Buyers
Founded in 2007
Over +250 active retail clients
Top 50 fastest growing companies in
San Diego
Recognized as an Official Google
Shopping Partner
Exclusive focus on retail
Visit the New CPCStrategy.com
Services Include
Retail-focused Paid Search (PPC)
Google Shopping Management
Shopping Channel Management
Amazon Sales Acceleration
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Rick Backus
@CPC_Rick
Born & Raised in San Diego
Went to UCLA (Gonzaga is going down)
Worked at PriceGrabber.com
New Father of Emmett!
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Presentation Overview
The Amazon Plateau
Our Approach to Amazon
Discoverability Breakdown
Buyability Breakdown
Winning The Buy Box
Resources
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The Amazon Plateau
The Amazon Plateau: a long-term period
of stagnant sales growth
Without a strategy focused on ongoing
optimization, a seller will hit the proverbial
wall
The increased sophistication of the
Amazon Marketplace warrants a new
approach
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Approach to Success on the Marketplace
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Discoverability Lever: Product Content
Product Titles
Features / Bullets
Search Keywords
Category-specific Product Attributes
When should you invest resources
in optimizing product content?
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Discoverability Lever: Catalog Structure
Parent & Child SKU Relationships
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Discoverability Lever: Sponsored Products
Acceleration program for newer or low-
exposure ASINs
Discoverability lever for your top Buy Box
offers
Unveiling of Amazon’s search query data
http://www.cpcstrategy.com/amazon-
sponsored-products-guide/
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Discoverability Lever: Sales Performance History
Along with offer relevancy, sales
performance is the most important
discoverability factor
Amazon has the incentive to give top-
selling products the most visibility
Drives the virtuous cycle between
product discoverability & buyability
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What Is The Buy Box?
The Amazon Buy Box is an algorithm
that tries to give the customer the best
possible value for their money.
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How Is The Buy Box Winner Determined?
It does this by determining which product offerings promise the best balance of high seller performance and low cost price.
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Buy Box Rotations
If there are several merchants offering similar value for money, the Buy Box winner changes during the day, these changes are called “rotations”
For Example:
10 equal sellers will each get 10% of the Buy BoxA relatively high performing seller could have 70% of the Buy Box against a lower performing seller, who could have 30%
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Buyability Lever: Fulfillment Method
Strong Buy Box factor
The process for FBA assortment selection
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Buyability Lever: Fulfillment Latency
Strong Buy Box factor
Latency is entered at the
product-level in the catalog
feed
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Buyability Lever: Landed Price
Strong Buy Box factor – highly immediate and controllable
Should be leveraged based on your competitive landscape
Enable strike-through prices
How about raising prices?
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Buyability Lever: Product Reviews
Strong influencer of conversions
on the detail page
Significant lever for brands
When should you invest
resources in generating
product reviews?
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Buyability Lever: Seller Feedback
Buy Box factor
Almost always a strong reflection of
the quality of a seller’s fulfillment
processes
When should you invest in
generating seller reviews?
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Buyability Factor: Seller Rating
Strong Buy Box factor
Mostly comprised of multiple
components found within Seller
Central (ex. On-Time Delivery Rate
(ODR), Late Shipment Rate, etc.)
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Respect The Brackets
The higher your bracket, the higher your
Buy Box share
Jumping from one bracket to another
will have a stronger effect than moving
within the brackets themselves
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Seller Rating
Seller Rating is divided in to 6 brackets:
• 100-98%• 97-95%• 94-90%• 89-80%• 79-70%• Less than 70%
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Shipping Time
Like seller rating, these are divided into brackets:
• 0-2 days• 3-7 days• 8-13 days• 14 or more days
Again, jumping between brackets is more effective than moving between them.
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Create a No-Go-Zone
Understand the points below which you should never allow your metrics to go. These are:
– Seller Rating - Below 70%
– On-Time Delivery - Below 97%
– Tracked Orders - Below 98%
– Late Shipment Rate - Above 4%
– Cancellation Rate - Above 2.5%
– Shipping Time - More than 14 days
– Customer Response Time - More than 10% of messages over 24 hours
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Mobile = 100% of Sales Go To Buy Box
Over Christmas 2014, 50% of
Amazon customer shopped via
mobile
On mobile devices, the “More
buying choices” button is
practically invisible
Nearly 100% of mobile sales go
through the Buy Box
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Super URLs
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Resources
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Resources
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Resources
www.facebook.com/groups/ecommercegroup
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Resources
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Resources
www.theamazingseller.com
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www.cpcstrategy.com/miva
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Amazon Marketplace Optimization
Unpacking the Strategic Levers that Drive Marketplace Performance
Rick Backus