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Amazon Marketing Strategy | Create a profitable marketing plan in 2023
Amazon is the e-commerce market leader. The customer-centric and customer satisfaction approach by Amazon has turned this e-commerce giant into a world-dominating key player. Every seller, be it a small vendor or a big enterprise, everyone is trying to benefit from the reputation and customer share of this giant goliath. It is no longer a notion but a reality that customers use Amazon as the first platform to inquire about their doubts and the first point of contact to find almost any type of product information. You could work with us, the leading digital marketing agency to assist you in digital marketing.
Today, Amazon has such a big name in the industry that approximately 63% of online shoppers choose Amazon to investigate and research the products they want. However, with such an opportunity comes a significant level of competition where other sellers might get a hold of your target audience if they have a better strategy.
Perks of marketing on Amazon
In 2023, businesses must develop an effective Amazon marketing strategy to enhance their sales and profits. A product appearing at the top of Amazon search results increases the likelihood of attracting potential customers and generating sales.
There are numerous advantages to formulating and implementing an Amazon marketing strategy. The following are five such benefits:
With Amazon Marketing, your target market is your buyers.
Marketing on Amazon is a unique approach that focuses on presenting your products to potential buyers. The primary objective is to increase the visibility of your products and ultimately convert casual browsers into customers. By implementing an effective Amazon marketing strategy, you can enhance your chances of driving sales and achieving success on the platform.
You create brand awareness.
Amazon customers typically aim to find the most suitable product at the best possible price. By implementing an Amazon marketing strategy, your product page can also serve as your brand's page.
To enhance your brand's image, you can craft an engaging company narrative highlighting your product's advantages to potential customers. You can also leverage your page to increase brand visibility by showcasing other products in your shop.
Put your brand in front of potential customers with the "customer also bought" section.
To increase the visibility of your product on Amazon, there is another effective way besides ranking in top search results. When customers add an item to their cart or complete a purchase, they are shown "customers also bought" product recommendations. This presents a valuable opportunity to showcase your product to potential buyers.
Gain customer interest with free shipping or reduced shipping time.
Amazon's Prime shipping service has gained significant popularity among its customers. A recent survey suggests that nearly 80% of Amazon shoppers consider free and fast shipping a major factor for choosing Amazon as their shopping destination. To entice customers to your brand, offering free or discounted shipping can be an effective marketing strategy.
Use "Amazon Insights" to understand customer behavior.
Amazon Insights can be utilized to comprehend the habits and behaviors of your customers. By gaining an understanding of this data, you can improve your product development, effectively plan and execute product launches, and increase your sales.
How to create a strategic go-to-market move to get more sales on Amazon?
Focus on deploying an Amazon SEO strategy to rank higher for organic search results:
Amazon has an algorithm called A9 that decides which product to rank higher or lower for a given specific search query. Amazon's business model is that Amazon collects some charges as a commission of sales, per-unit activity fees, interest, etc. Thus, it is pretty apparent that more click-through rates and sales mean more revenue for Amazon. Here are some statistics on Amazon marketing.
Thus, if you think of Amazon SEO, you should be very clear that your product listing should excite the audience to buy it. Create genuine content and focus on Discoverability, relevance, and sales. Learn more about Amazon Listing Optimization.
With the help of tools like Sonar, Helium 10, Scientific Seller, and Keywordtool.io, you could generate a list of keywords that revolve around your product. Then, insert the most critical keywords in a readable manner for buyers, which could appease the A9 algorithm as well. The most critical areas to insert keywords are:
- Title of the product: Aim to keep it readable and SEO-friendly.
- Backend Keywords: Add up to 249 bytes of generic keywords in the search terms.
- Product description: Attaching keywords to your stock description in the style of bullet points is exalted.
Product Title with primary keywords and Product Images
The product image and title are the first things a potential buyer sees when clicking on a listing. Hence, it is essential to make them attractive and optimized.
To optimize your product title, start with conducting quick keyword research and shortlisting potential keywords or search terms that Amazon visitors use. Choose a primary keyword with the highest search volume and low competitiveness and use it in your title. Amazon's product title allows 200 characters (with spaces), but it is important to keep it simple, informative, and just focused on your primary keyword.
Your title should not be too short or too long. Extremely short titles will not help you rank high, while too long titles will make it hard for potential buyers to figure out what you are selling. Both can lead to low click-through rates (CTR).
An optimized product title should entice buyers to click your listing. Therefore, ensure that your title's first 4-6 words are clear, reader-friendly, and concise. Keeping your title informative, optimized, and simple. This can increase the chances of attracting potential buyers and improving your sales.
Regarding product images, Amazon recommends sellers use larger photos, at least 1000 pixels wide so that it looks clear and attention-grabbing to customers. To optimize your product picture for the A9 algorithm, ensure the picture is of high resolution and is clicked under good light and eye-catching background.
Clear and precise Product Description
When a potential buyer is satisfied with your product's image, title, and price, they will likely review the product description before purchasing. The product description is a crucial factor that influences the ranking of your product on the A9 algorithm. Therefore, it is important to ensure that your description is concise, clear, and persuasive.
To optimize your product description for the A9 algorithm, include at least one of your keywords and write the content from a sales and customer perspective. Additionally, highlight how your product can benefit the buyer and incorporate emotional elements to make the description more appealing.
Optimize Backend keywords
The Backend keywords aren't visible to your customers but are essential for on-page keyword optimization. These keywords generally don't fit in the product description, yet you want to get indexed for these. To optimize these, add up to 249 bytes of generic keywords in the search terms.
Study your competition and set your prices.
The very first step in planning your Amazon marketing strategy should be studying your competitors. Start with analyzing the production descriptions of your competitors, especially those ranking at the top of product search. With this, you may get a hint of keywords or keyphrases picked up by Amazon's search engines.
In the following step, check the review section of your competitor's products. This section can be a goldmine of information, as here you can learn what your competition is doing right or what it is doing wrong. Use this information to replicate their success and avoid mistakes with your products.
Next, check out the Q&A section; here, you'll learn about your customer's pain points and how your competitors handle and solve their questions. You can use the information to update your products and solve the pain points of your target customers.
Now, talking about setting product prices, customers care a lot about product prices and shipping charges. Use strategies like free shipping or reduced shipping time to gain customer attention. Study your competitor's price and compare it with yours. Keep the price competitive and not underpriced such that you don't make a profit.
Deploy an Amazon Advertising (Amazon Marketing Services) strategy to get more organic sales.
Amazon advertising is very much similar to the pay-per-click system of Google. As a seller, you only pay when people click on your advertisements. This advertising method could be excellent for you as a seller to purchase visibility on the top for your targeted search queries.
As of recent data, Amazon has climbed to the third position as one of the largest digital advertising platforms in the United States. It is estimated that advertisers in the US will allocate approximately $4.61 billion toward Amazon's ad platform, representing about 4.1% of the country's total ad expenditure. With this, we can understand how crucial it is to include advertising in marketing strategy.
There are three ad types available on Amazon:
- Sponsored Products
- Sponsored Brands
- Sponsored Display Ads
Let us discuss each one of them in detail so that you could choose which one to opt for in your strategy. If these ads are run strategically, you have tremendous growth potential.
(a) Sponsored Products
Sponsored ads are simply cost-per-click ads(CPC ads) meant to promote individual listings on top of search results in Amazon. These advertisements have the sole purpose of bringing you more visibility by shooting the listings at the first page of shopping results and product pages.
Sponsored ads have the caliber to get you high sales as they are placed at positions where the prospective buyers are browsing for products related to yours.
(b) Sponsored Brands
Sponsored brand advertisements also use the cost-per-click method to charge, but they feature your brand logo, a custom heading, and up to three products in the top spot above Amazon search results. You could generate brand visibility and brand awareness. You could efficiently and proactively set a budget and choose how much to bid per click. You could send your customers to a different landing page on Amazon with the help of 'Sponsored Brands' advertisements.
(c) Sponsored Display Ads
You could reach buyers on and off Amazon using this self-service solution. These ads transfer customers to Amazon product specification pages. Pricing is cost-per-click, and there is no upfront fee. You could easily control your budget.
The cost-per-click for every ad on Amazon works in a second auction fashion. Here, the advertisers have to submit the highest amount they are ready to bid for every click. The advertiser with the highest bid amount wins the bidding war. Additionally, they don't have to pay the amount they bid. Instead, they pay only 0.01$ more than the second-highest bid.
For example, 'advertiser 1' bids for 4$ for every click, and their competitor 'advertiser 2' bids for 3$. In such a case, 'advertiser 1' wins the bidding bar. And, he only has to pay 3$+0.01$(that is, 3.01$) for every click.
Affiliate Marketing Strategy on Amazon could be a win-win situation for you.
In the affiliate marketing strategy, you have to pay a small commission to people who promote your product and get people to buy your product through their link. If a blogger mentions your product and has a high traffic volume for that targeted niche, then you have a great chance to get more exposure and free marketing done for your product, just for a charge of a small commission.
An affiliate system is a win-win scheme for you as your product gets in front of more people. Additionally, even the simplest marketing fundamental says that more sales mean more revenue(even if your profit margin is less, you could earn more by selling more). Thus, including an affiliate program for your product is a must-have strategy. More brand awareness and visibility are also guaranteed. Anything is better than a bland zero.
Include Social Media in your Amazon Strategy.
Social media has a tremendous power to generate brand visibility about yourself and your brands. If you have a social media strategy to send visitors to your Amazon page, it has great chances to bring you positive results with time. Amazon SEO takes time. Thus, you need to take proactive steps from your side to send direct traffic and generate sales, and in turn, revenue.
The digital world is competitive, and we all know this fact. Similarly, there is no difference in competition level when you try to sell at Amazon. Many people are trying to compete with you in your niche and target a common audience. To combat these situations, you need to have a social media strategy to cultivate a brand identity that offers value to your consumers with exciting posts, facts, and links.
You could also use Facebook ads, Twitter ads, Instagram ads, etc., to bring direct traffic to your Amazon page. You need to curate a strategy and do multiple A/B testing to analyze which campaign helps you the most to get the maximum return on investment(ROI). Codedesign also helps vendors from all across the globe to have a highly converting campaign. As Codedesign is data and analytics-driven, there is always a tremendous growth in the visibility and sales for vendors on Amazon.
Develop an Amazon review strategy.
In the E-commerce era, customer reviews and ratings are crucial as shoppers do not have the opportunity to physically inspect products before making a purchase. Recent data indicates that customers avoid brands with less than a 3.3-star rating.
As a customer-focused platform, Amazon recognizes the significance of customer reviews and ratings and integrates them prominently into its product pages. Amazon shoppers can conveniently access customer images, filter keywords, search for content within reviews, sort reviews by stars, and review customer questions and answers.
For sellers, prioritizing customer reviews and ratings are essential as they can significantly influence a shopper's purchase decision. Positive reviews can increase the chances of converting casual interest into a sale.
Sellers can take a few steps to maximize positive reviews, including a review request and thank-you note in product shipments, sending follow-up emails requesting reviews, and selling commonly-reviewed products. Additionally, Amazon permits sellers to respond to reviews, which can help engage with customers, express appreciation for purchases, and promptly address issues or complaints.
Engage in Amazon promotions.
Utilize Amazon Prime Day promotions to generate customer interest and stand out in front of new potential buyers.
Amazon Prime Day is an annual sales event exclusive to Prime members. It is a significant event for Amazon shoppers, offering deals on popular brands and small businesses.
For sellers, Prime Day provides an opportunity to promote their products and increase brand awareness. With over 150 million paid Prime members worldwide, using effective strategies can increase the chances of making sales during the event.
To attract customers, sellers can create coupons, share promo codes with potential buyers, and offer product discounts to stand out in the search results. Participation in Prime Day requires careful planning, and sellers should add it to their marketing strategy with ample time to plan and execute their product promotions.
How does Codedesign help Amazon sellers and vendors to grow their business on AMAZON?
Codedesign has a core value of serving sellers and vendors to get the maximum return on investments. We have a team of experts who are always excited to help the sellers and vendors from initial to end. Be it product research, product launch, finding daily sales, inventory data, and revenue for any Amazon product, Codedesign is always prepared to take these challenges.
We believe small businesses are essential for our community, and they help to improve the economy. Thus, we are on a mission to help Amazon sellers and vendors get the maximum returns with the assistance of our experts. Optimize your listing with us to see better results for your actions. You could look up to us for Amazon SEO, Amazon PPC, and growth management. If you need help optimizing your Amazon presence, contact us, and we'll take care of your account while you stay safe at home.
Amazon marketing strategy is vital for you to overcome the intense competition and thrive in the Amazon marketplace. Make sure that you optimize your product title, description, and images to get more click-through rate.
You could use Amazon advertising to make sure that your product gets more visibility. You need to strategize and do A/B testing to see which ads perform the best for you.
CodeDesign is a performance digital marketing and Amazon agency. Feel free to ask your queries.
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