For any brand, change is difficult. Most have an established fulfillment strategy for their direct-to-consumer website, business-to-business customers, and other marketplaces. So the possibility of changing an established plan for a single platform is unsurprisingly met with hesitation and frustration. The result is that many brands opt to keep the status quo, and instead, they attempt to integrate their current fulfillment solution with their Amazon goals.  

Unfortunately, for nearly every seller on the marketplace, success on Amazon depends on utilizing Fulfillment by Amazon (FBA). While there are a few rare exceptions, an understanding of the leading fulfillment models, along with the advantages of FBA, reveals the importance of this Amazon strategy.

Amazon Fulfillment Options 

Currently, Amazon offers three distinct fulfillment options for its marketplace sales. 

Fulfillment by Merchant (FBM) is when a brand uses its own warehouse or fulfillment provider to ship a product to the end customer. For example, a customer would place an order for a product on Amazon. That order is transmitted to the brand’s warehouse, which then picks, packs, and ships it to the end customer. On the surface, this seems like a suitable fulfillment method since inventory can be stored in one location and used to fulfill orders on Amazon, on a brand’s website, and on other marketplaces like Walmart.com. In addition, the merchant avoids having to comply with any Amazon-specific packaging, labeling or shipping requirements and may enjoy more flexibility when it comes to bundling products for sale to customers. 

However, companies relying on this model will be unlikely to gain Prime eligibility for their products and will have to manage the return process in-house. In most cases, shipping costs will also be higher than the FBA alternative, and shipping times will be longer by several days. 

Fulfillment by Amazon (FBA) is when a brand ships its products into an Amazon warehouse. When a customer buys a product on Amazon, the product is shipped from an Amazon warehouse to the end customer. The products are considered Prime eligible, and sellers can offer 1-2-day shipping to their customers. Shipping costs are typically much less than seller fulfillment via other providers, and Amazon takes responsibility for the customer service and return processing. 

FBA does come with its own set of challenges. The brand must ship products into Amazon warehouses, thus creating a separate “warehouse” just for Amazon products. Also, the products must comply with all of Amazon’s requirements, including labels, temperature, and expiration dates. Once the product is at Amazon, it’s challenging to change, inspect or fix problems. And finally, Amazon controls the amount of inventory allocated to each product, frequently resulting in stock-outs during busy seasons. 

Seller-Fulfilled Prime (SFP) can appear to be the best of both worlds. It allows a merchant to ship products out of their own warehouse while still qualifying for Amazon Prime, thereby maintaining the ability to sell inventory on direct-to-consumer sites and other marketplaces as well. In addition, sellers avoid the Amazon packaging requirements and can also kit products for convenience.  

The downsides include expensive shipping costs to meet the Amazon Prime delivery window and the difficulty of meeting Amazon’s high warehouse and carrier standards. In some cases, businesses utilizing this model will lose their SFP capabilities due to a temporary suspension when these standards are not met consistently. The SFP option is also out of reach for many sellers since participation is limited to sellers invited to participate by Amazon. 

Why brands need FBA to reach their full potential on Amazon

There are several ways that FBA can help a company succeed in the Amazon marketplace. Not only can it level the playing field against a brand’s biggest competitors, it often improves customer service and minimizes costs. In addition, shifting fulfillment responsibilities to Amazon allows sellers to focus on their true strengths. 

Using FBA allows the product to be Prime eligible

Over 100 million American households are Amazon prime members. Prime shipping gives these members two-day shipping across the United States. Customers like this and search for it when buying products on Amazon. At Amify, we often see a 50-100 percent increase in sales when a brand moves to Prime eligibility. 

FBA shipping is dramatically cheaper than other options (for most products)

Amazon is the largest shipper in the U.S. This allows them to have the lowest shipping rates in the country, and luckily they pass these along to FBA customers in the form of low shipping rates. For most products, we find the FBA shipping costs are 30-50 percent cheaper than a brand shipping products themselves (even when comparing two-day shipping on Amazon to five-day for other carriers. Using a one-pound product as an example, the FBA shipping cost is roughly $3.50 compared to $7.00 for many third-party-logistic vendors. With the average product price on Amazon around $17, this $3.50 per item in saved shipping costs amounts to a 20 percent increase in margin. This considerable cost difference requires an FBM brand to either increase its price or be willing to accept much lower (or even negative) margins. 

Amazon handles the majority of customer service and returns

When using FBA, Amazon will answer most customer service questions and take responsibility for any late-arriving shipments. This allows businesses to focus on making great products rather than responding to “where is my item?” questions all day. 

Seller-Fulfilled Prime (SFP) is not a realistic option

Seller-Fulfilled Prime was meant to be a win-win for brands. Prime eligibility while still shipping from their own warehouses. However, several years after its launch, less than one percent of Amazon orders are shipped using SFP. Why? This option has two main downsides that prevent it from being viable for most brands. First, to qualify, the brand must ship most products via one-day shipping, which is exceedingly expensive. This can cost $20 or more per item in shipping alone for many products. Since the average item on Amazon sells for $17, the majority of products would face a negative margin. This method only really works when price points are $100 or more. Secondly, it is challenging for a warehouse to maintain the high criteria for eligibility. Products need to be shipped out and delivered quickly. We find that even FedEx’s delivery standards are not high enough for SFP, leading to many account suspensions. 

The rare exceptions

Based on the above, we highly recommend that most brands use Amazon FBA to succeed on Amazon. But there are a few circumstances when using FBA isn’t the answer.

Oversized products like furniture

Certain large products can be shipped more efficiently using FBM than FBA. FBA largely calculates shipping costs based on weight and size. For example, a large couch might cost several hundred dollars in FBA fees because of its size. In these cases, it often makes more sense to ship FBM, as it saves one layer of shipping to Amazon warehouses. 

Prohibited FBA products

Certain products, such as compressed gas or meltable chocolates, cannot be shipped into FBA. Therefore, FBM becomes the only way to get these restricted products to buyers. 

Special Returns

When using FBA, you have to follow the Amazon 30-day return policy. In general, Amazon will issue its customers a return for any reason, even if the product is heavily used. In certain situations, this return policy is unacceptable for certain products. For instance, Amify used to work with a drone company that had a return rate of roughly 20 percent. Customers would purchase the drone, fly it into a wall and break it, then return it to Amazon for a full refund claiming it was defective. By using FBM, brands like this can better control which Amazon returns they can accept. 

Let Amify design a winning strategy for your brand

The experience and expertise of Amify’s team can help take your company to new heights. Schedule your account consultation today and learn what is keeping your Amazon business from reaching its goals. And how our results-oriented agency can put you back on the right track.

Simplify Amazon Store Management with an Agency Partner

Amazon store setup is designed to be relatively simple for brands utilizing the platform. And while the individual steps required are within the capabilities of most sellers, achieving the desired results is often more complicated. Pursuing the initiative successfully requires a strategic approach similar to developing a direct-to-consumer website. 

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Product organization, creativity and ongoing refinement are essential. However, an Amazon Store also unlocks access to new customer data that can increase conversions and ROI if used effectively. So, rather than an isolated tactic, Storefronts should be implemented as part of a broader campaign to develop followers and strengthen your Amazon business. If this combination of creative design, data analysis and campaign synergy seems overwhelming, you’re not alone. That’s why, for many Amazon businesses, choosing a partner to help build and manage an Amazon store is the ideal solution. 

When to consider outsourcing an Amazon Storefront

As an online seller, you know your inventory and product descriptions better than anyone. Unfortunately, building and optimizing an Amazon store takes more than familiarity with the products it carries. Rather than struggle to find the right formula before the opportunity is gone, e-commerce businesses facing these particular hurdles may find that a little help will go a long way toward winning on Amazon. 

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Lots of Competition

Due to its dominance, Amazon is one of the most competitive sales channels any brand faces. The challenges can be exponentially more difficult for items in highly-popular product categories, and breaking through the clutter can require extensive focus. Unfortunately, most companies don’t have the time or resources to dedicate to the task. As a result, they often juggle the responsibilities of multiple sales channels, product development, customer support and many other business demands. 

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Brands that face particularly stiff competition on Amazon are ideally situated to benefit from third-party Storefront management. Not only can the added expertise help them stand out, but the analytical and strategic edge that an effective agency can offer is also critical to their continued growth on a platform that is becoming ever more important to e-commerce.  

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Growing Product Line

Amazon Storefronts are the face of your entire brand on the marketplace. If your product line is changing or growing rapidly, uploading the latest inventory, optimizing the content and organizing them in your store can be a time-consuming process. 

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When you outsource your Amazon store to a professional service provider, adding a new product listing can become a less tedious step toward your goal of ramping up sales. They will have experience in batch uploading products, using parent-child variations appropriately and navigating the intricacies of copywriting, photography and optimizing content for each product listing. 

Underperforming Sales

In some cases, retailers with a record of success in traditional sales or via a direct-to-consumer website have trouble replicating that profitability on Amazon. Other times, established sellers don’t see any growth after launching an Amazon Store. In either case, the underperformance can be a frustrating experience and hard to reverse. Rather than a problem with the products, the discrepancy suggests a platform-specific weakness in strategy in execution. 

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Clearly, the size, competition and nuances of Amazon make it a challenge to master, even for brands that have found success elsewhere. An agency with deep experience and diverse expertise can ensure that the features and strengths that are working elsewhere reach the right shoppers and translate into conversions on Amazon as well. With a bit of help, an Amazon Storefront can join your other sales channels as a productive opportunity for growth. 

High impact advantages of expertise

A successful brand owner knows better than to dismiss the value of expertise. Instead, they will embrace a partner who can help their business achieve its Amazon goals sooner rather than later. Whether they support transitioning to Amazon FBA (Fulfillment by Amazon) or completing the Amazon Brand Registry process, there’s no shortage of self-proclaimed experts willing to work with you. However, choosing the right expert to manage your Amazon Storefront can give you confidence in these five areas. 

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Branding

One of the most significant advantages of creating a well-designed Amazon store is its incredible opportunity to raise brand awareness among shoppers. Research has shown that connecting with customers emotionally adds value for companies and that shoppers will pay a premium for products from brands that are aligned with their social priorities. 

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An Amazon Storefront offers sellers a chance to share their brand’s story with shoppers and develop that critical relationship. It’s also the best way to introduce customers to your entire product line, encouraging brand loyalty and using the success of one product to grow others. However, managing an Amazon store that meets these lofty expectations is hard. It demands knowledge of shopper preferences and Amazon-specific techniques to capitalize on the potential fully. 

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Efficiency

Amazon Storefronts are a valuable tool for sellers. Still, most marketplace shoppers will first find products through a traditional search before being introduced to the brand’s entire product line in their store. This structure makes it hard to isolate Storefront management from other areas of Amazon optimization. 

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Partnering with an Amazon agency can ensure your brand stays up-to-date on the latest trends, tools and features from Amazon more efficiently. It also allows you to focus your internal team’s skills and efforts on their current strengths rather than asking them to develop new ones. You can rely on a qualified agency with passionate experts to streamline your brand’s path to winning on Amazon.

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Responsiveness

Although an Amazon seller can expect some support from the global retailer initially, the company’s responsiveness and willingness to address issues are unlikely to satisfy brands in the long term. It’s not unheard of for companies to complain that their ability to get help from Amazon declines as they become more established sellers, and Amazon’s resources shift toward new businesses that will impact their own growth more. 

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When trying to maintain and improvise a feature as important as an Amazon Storefront, you don’t want to be stuck waiting for a response from the Amazon support team when something goes wrong or isn’t performing as expected. When you outsource this responsibility to an Amazon agency, you will know exactly who to contact about your account and have confidence that any problems will be addressed and resolved quickly.

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Optimization

Almost every aspect of selling on Amazon can be optimized for better performance. But Amazon listing optimization requires both SEO experts and familiarity with Amazon retail analytics. So rather than letting the optimization learning curve monopolize your time, why not turn it over to an agency that understands the goal and already has a process in place?

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In the case of Amazon Storefronts, there are a lot of ways for sellers to improve the design, content, and role it has in a company’s marketing plan. However, doing so requires the ability to perform detailed keyword research, data analysis and campaign planning. The decision to outsource Amazon store management is often based on a brand’s capacity to meet the demands of optimization. For many, the value of a partnership with Amazon experts and experience getting the most out of an Amazon Storefront is well worth the cost. 

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Conversions

Typically, shopper conversion is the most crucial measure of success on the Amazon marketplace. Leading prospective customers from search to cart to purchase is the funnel an Amazon store intends to accelerate.

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A results-oriented agency partner understands how to leverage an Amazon Storefront to increase your conversion rate. They can leverage digital marketing and Amazon platform promotions to attract shoppers and rely on high-impact design and features such as Enhanced Brand Content to increase customer orders. Launching and maintaining an Amazon store management requires a substantial amount of work and needs to positively impact your conversion rate to justify the effort. 

Selecting the right Storefront Partner

Finding a store builder suitable for your needs is about more than the services they provide. How they plan to make your Amazon product stand out could be even more critical. The team supporting your Storefront should align with your company in several ways. 

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Experience

Focus on more than just how long the agency has existed. A newer agency may have a talented team with decades of relevant experience. In contrast, an established agency could have lots of turnover that has led to leadership or specialists who have spent minimal time in the industry. You should also inquire how the resume of those managing your Amazon account matches your company’s goals. An agency with direct experience in your product category may seem ideal, but sellers are often better served by comparing an agency’s strengths with the brand’s goals, in this case, Storefront creation and management. 

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Track Record

Remember to pay close attention to an agency’s current roster of clients and past results. Any reputable agency should be able to provide detailed case studies that shed light on their capabilities and tactics. Ask for examples that have parallels to your company’s challenges and will reveal whether the agency would be a good fit as an Amazon partner. As important as who they have been able to help, is when their seller support took place. Amazon’s tools and policies are constantly evolving, and a service provider needs to be able to adjust accordingly. An agency with continuous success over time is more likely to be effective regardless of what lies ahead for the platform.

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Approach

Before settling on an agency partner, confirm their approach to managing your Storefront is a good fit for your company and your communication preferences. For example, find out if the agency relies primarily on a team of offshore specialists, junior staff or director-level staff to service their accounts. The approach will significantly impact the cost and quality of service the agency can provide, and your brand should choose a tier that aligns appropriately. 

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Goals

Much like the products for sale on the site, there are Amazon agencies to serve almost any need. Some specialize in Amazon Vendor Central, not . Others may focus on content rather than logistics. And many service providers will prefer to work with small, mid-size or large sellers instead of trying to attract clients from across the spectrum. 

Much like choosing an agency with the right experience for your needs, outsourcing Amazon Storefront management will likely go more smoothly if you choose an agency with a history of working with similar-sized companies on similar projects. You may find that those claiming to do it all struggle to meet expectations. 

Partner with Amify

The pros at Amify know that the Buy Box is just the first step to winning on Amazon. To be successful, a business needs an integrated and interconnected approach. That’s why we operate as your business partner, providing full strategy and execution throughout the product life cycle on Amazon. From supply chain management, warehousing, content creation, advertising, and more, Amify helps you drive growth where your business needs it. Schedule your Amazon Account Consultation today. 

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After a difficult start to the year for both the economy and most e-commerce brands, Amazon recently updated investors on its third-quarter earnings and what lies ahead. The global giant shared that even though Amazon Web Services showed some concerning signs of deceleration, their e-commerce division displayed more promising trends. For Amazon sellers with an eye toward the future, we wanted to spotlight the key takeaways that will most likely impact brands utilizing the platform:

#1 Growth is accelerating again

E-commerce sales on the Amazon platform grew an estimated 14 percent compared to last year, showing significant acceleration. However, Year-over-Year (YoY) growth last quarter settled in at a much more modest 4 percent. Now, after a year of slow and decelerating growth, the third-quarter numbers are the first to show a dramatic reacceleration. 

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We think this should be viewed as a positive sign and an indication that e-commerce is returning to its expected trendline growth of approximately 15 percent per year. What may be even more impressive than a return of meaningful growth is the fact that it is occurring despite the fears of a slowing economy and rising interest rates.  

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Sellers should be ready to capitalize on this return to normal. Effective optimization efforts, inventory management and impressive customer service will be the difference between the companies that experience similar growth and those that get left behind. 

#2 Third-Party (3P) sales still have the edge

As we have noted repeatedly, 3P sales continue to take market share from First-Party (1P) sales on Amazon. Much of this is driven by the fact that Amazon would rather be a marketplace than a retailer. Based on the reports from Amazon, we estimate that 3P sales increased 18 percent YoY in Q3. This slightly outpaced Amazon’s overall 14 percent growth but doubled the 9 percent YoY gain displayed in the previous quarter. Comparatively, 1P sales also saw a reacceleration this quarter to 7 percent YoY, up from the 4 percent decline they experienced in Q2. Currently, we anticipate 3P to continue its trend of becoming the more dominant sales model on the Amazon platform.  

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If they haven’t already, the remaining 1P brands should give serious consideration to shifting their model toward 3P sales. However, vendors who switch to Seller Central need a plan to do so successfully and be sure they have the internal resources or the right Amazon partner to provide the skills that 3P success demands. 

#3 The emphasis on advertising is increasing

The Amazon advertising business grew a hefty 25 percent YoY to reach $9.5 billion in revenue. Amazon ads are now an estimated 6.4 percent of total Gross Merchandise Value. However, ads grew faster than GMV, which means the ad prices are increasing. 

As Amazon’s ad business continues to grow and the ads become more expensive, it will require more emphasis on efficiency. Brands will need to be careful not to overspend on unprofitable keywords. However, this explosive growth also means that even more sellers are using Amazon advertising, and it’s becoming challenging for brands to compete on the Amazon platform without an appropriate advertising budget.  

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Moving ahead, successful Amazon advertising campaigns will require a talented team of people with experience in keyword research, A/B testing and compelling copywriting. Otherwise, you’ll risk spending more for less impact.

Prepare for what’s ahead with Amify 

Find out how an experienced team and proven process from Amify can evaluate your brand’s account health, provide daily monitoring, and help your business win on Amazon. ‍Connect with us today for a free consultation or to discuss our full-service Amazon platform management. 

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Amify, the groundbreaking Amazon agency, recently extended its track record of providing award-winning optimization services for sellers on the dominant e-commerce platform. Four of Amify’s partners received a MarCom Award in the 2022 competition thanks to an outstanding Amazon presence, created in collaboration with the agency’s experts. 

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“We’re thrilled that the creativity and skills of our team contributed to these client wins,” said Sam Bowman, Amify’s vice president of marketing. “Success on Amazon is hard to achieve, and the recognition from MarCom is yet another endorsement of our comprehensive approach. Amify pioneered the Amazon-as-a-Service model, and we’re proud that our clients can reap the benefits of our 10-plus years of experience.”

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Leading the way among the award recipients were Medicine Mama’s Apothecary and Blenders Eyewear, which each earned a Platinum Award as two of the most outstanding entries in the competition. Platinum Winners are spotlighted for their excellence in terms of quality, creativity, and resourcefulness, and represent the highest award given by the organization. 

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Medicine Mama’s Apothecary offers natural and organic skincare and personal care products that moisturize, soothe and nourish from head to toe. Created in a California kitchen in 1988, the company today consists of two brands: Sweet Bee Magic, a pure, natural skincare line, and Vmagic, a 100 percent natural feminine care line. Both product lines are made with pure, certified organic ingredients with active raw materials to create the highest quality natural products possible.

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Blenders Eyewear produces a wide range of men’s and women’s sunglasses and snow goggles. Driven by a company-wide motto of “live life in forward motion,” the products are predicated upon a bold aesthetic that emphasizes progressive colors aimed at an active lifestyle and demographic. As a result, Blenders is currently one of America’s fastest-growing sunglasses brands.

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Amify client Because Market also received a Gold Award in the international competition. The Gold Award is presented to marketing efforts that the judges found exceeded the high standards of the industry.

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The Because brand got its start when the founders’ sought to help their grandparents and then realized others could also benefit from getting cheaper, high-quality bladder control products delivered to their front door every month. The company’s products contain fewer chemicals than other brands and use materials sourced from the U.S. 

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Finally, MobyFox added an Honorable Mention certificate to Amify’s strong 2022 showing by meeting the expectations of the discerning judges. 

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MobyFox creates unique, high-quality, officially licensed smartwatch bands and exclusive Watch Faces for the Apple Watch. High-quality silicone, state-of-the-art printing, the easy-to-use Watch Face App and a large selection of beloved brands allow its customers to showcase their style.

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“The fact that every one of our four submissions earned recognition, two of them claiming a top spot, speaks to the consistency of our team’s work and the effectiveness of our data-driven insights into shopper expectations,” added Bowman.

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The 2022 international creative competition for marketing and communication professionals featured more than 6,000 entries from throughout the United States, Canada, and 43 other countries. 

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Judges are industry professionals who look for companies and individuals whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry. Entries come from corporate marketing and communication departments, advertising agencies, public relations firms, design shops, production companies, and freelancers.

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MarCom is one of the oldest, largest, and most-respected creative competitions in the world and is sponsored and judged by the Association of Marketing and Communication Professionals (AMCP), a 27-year-old international organization consisting of several thousand creative professionals. Winning a MarCom Award is highly sought-after, peer recognition from the creative industry. 

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About Amify

Amify delivers turnkey, award-winning services to help brands launch, manage and continually optimize their Amazon channel strategy. As the first Amazon-as-a-Service provider, we serve as an outsourced Amazon team, which helps companies own their brand on the world’s largest e-commerce platform. Responsible for more than $200M of goods sold on Amazon, the Amify team brings vast expertise to sellers, from branding and advertising to data analytics and business operations. From our high-performing, beautiful Storefronts to our optimized forecasting and logistics, our mission is to make it painless for clients to win on Amazon.

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A few improvements to an Amazon product listing can go a long way. Whether you’re trying to win the Buy Box or want to strengthen your branding, it can be challenging to determine where to focus your efforts. 

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However, as competition on the platform has increased, a growing number of sellers are relying on Amazon optimization services from outside agencies. These partners can offer teams of experts across diverse specialties to drive conversions and maximize ROI. Of course, there are some areas where this type of experienced help is most needed.  

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Product Title

The interaction between a prospective customer and your product listing often begins with your Amazon product title. A well-constructed and optimized product title can be the difference between profitable shopper conversions and a struggle to get your item in front of the appropriate audience. 

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An optimized product title is more than just a description of your Amazon listing. It needs to be a concise balance of accuracy and detail that targets the most valuable keywords for your brand. One of the challenges of listing optimization is crafting a title that simultaneously satisfies the expectations of Amazon users and strategically influences the site’s algorithm.  

While it may take up less real estate than other parts of an Amazon listing, it certainly plays an outsized role in results. An optimization service partner with experience in copywriting and keyword research, as well as a clear understanding of the competitive landscape and Amazon’s algorithm, is the best way to ensure a product title supports sales growth rather than misses opportunities. 

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Keywords

Identifying the primary keywords that are most important to a listing’s performance is typically within a brand’s in-house capabilities. However, prioritizing those terms and effectively integrating them into an Amazon product listing is much more complicated. Search engine optimization (SEO) on the platform gauges relevance and value to determine how to best leverage a keyword in a product title, feature bullet points, product description or elsewhere. 

Optimization is also not as simple as repeating keywords numerous times. When it comes to Amazon’s algorithm and keywords, quality is way more important than quantity. In many cases, once a search term appears in your Amazon listing, it has likely added all the value it can. Therefore, adding it repeatedly, especially to the detriment of the copywriting, is unlikely to improve your spot in the search results. 

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An Amazon listing service can help identify and prioritize relevant keywords more effectively than most brands can accomplish alone. Reputable service providers can create an Amazon SEO optimization plan for both the broadest keywords and the long-tail keywords that help differentiate a brand from its competition and reach customers who are closer to the point of purchase. Most importantly, they have the experience to do so within engaging copy and while taking advantage of Amazon’s backend keyword tools that many brands overlook. 

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Images

Among the most influential pieces of Amazon content are high-quality images. In fact, 78 percent of people say video has convinced them to buy a product, while 30 percent of shoppers won’t even consider a product that presents low-quality images. However, optimizing photos means more than just good resolution and high resolution. The media on your product page should tell a story. Your products should be showcased from multiple angles and in use. In addition, any product image included in a product listing should reinforce the featured benefits you are trying to convey. 

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Well-designed and appealing infographics that add compelling text overlays and use precise measurements and comparisons to establish size and function are essential to this area of Amazon listing optimization. And remember, this deliberate approach to Amazon listing photos is about more than convincing buyers to add the product to their cart. It’s about ensuring that shoppers are informed and have the appropriate expectations when they receive the item so that the confusion or disappointment that might otherwise occur, and result in negative reviews, can be avoided. 

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A qualified Amazon agency partner can offer one-stop shopping for both the artistic skills that product photography requires and the campaign mindset necessary to make them a seamless part of your brand’s story. 

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Features & Description

While some brands might see much difference between their product’s key features and description, the ones that take optimization seriously know better. Amazon’s key feature section relies only on short bullets to communicate the most important aspects of a product to consumers. The text displayed in the key features can also weigh more heavily in the ranking done by the platform’s algorithm, making keyword placement critical. 

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Alternatively, the product description is the place to provide detailed information about product features and product usage to guide a customer’s purchase decision. It’s the place to highlight specific product information that was not included in other areas of an Amazon listing but may still influence Amazon shoppers. In both the features and description areas, sellers must follow Amazon policies, such as the restrictions on mentioning competition or promoting temporary price cuts. 

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Developing a key features section and product description that complement one another, taking advantage of keywords and captivating the audience with an eye toward conversions is not easy. Like so many parts of an Amazon listing, a single weak link can have a detrimental effect on the entire listing and result in long-term problems for an Amazon seller. That’s why relying on an Amazon expert to make sure these fundamental pieces are completed correctly is often the best way to ensure growth on the site. 

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Price

Most companies already know that product price is integral to their future success. However, brands that are new to Amazon may underestimate the impact that the site can have when calculating the optimum price. The immense competition can push sellers to lower prices, while the expense of selling on Amazon can make margins difficult to manage. 

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Pricing on Amazon should consider all these factors and be informed by the data available in the Brand Analytics dashboard. The pricing of any product also needs to be monitored continuously to identify threats from illegitimate sellers and avoid missing the opportunities that come with a fast-paced and fluctuating market. 

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A strong Amazon partner can help brands navigate pricing optimization amid various fulfillment options. Their Amazon experts will understand how the storage, packing and shipping costs will

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Storefront

Creating an Amazon Storefront is an incredible opportunity to raise brand awareness among shoppers and drive more sales. Customers who connect emotionally with a brand name have three times higher lifetime value. And according to Deloitte research, 80 percent of consumers would pay more for products if the company committed itself to being socially responsible, environmentally responsible, and/or paying higher wages.

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The process of creating a Storefront begins with the completion of the Brand Registry process within the Amazon marketplace. Still, beyond attaining eligibility, the initiative also requires a strategic approach similar to developing a direct-to-consumer website. Product organization, creativity and ongoing refinement are essential to an Amazon store. A Storefront also unlocks access to new customer data that can be used to increase conversions and ROI. 

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Rather than an isolated tactic, Storefronts should be implemented as part of a broader campaign to develop followers and strengthen your brand. The combination of creative design, data analysis and campaign synergy that is required for a successful Amazon Storefront makes it an ideal place to add help from an Amazon listing optimization service. 

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Fulfillment

Even as Amazon grows its share of online sales, the company continues to pioneer ways to disrupt the e-commerce industry beyond its retail marketplace. Currently, Amazon sellers have the choice of several fulfillment strategies to get their products to customers. And determining the best option is not always obvious. 

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Sellers, particularly those pursuing Amazon Prime status for their products, will often rely on Fulfillment by Amazon (FBA). Self-fulfillment remains an option for brands that wish to control the entire process from order to delivery. Meanwhile, recently-introduced Multi-Channel Fulfillment is growing in popularity, particularly among brands that already rely on Amazon FBA inventory for their sales and are looking to simplify their responsibilities. 

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Companies that rely on Amazon for fulfillment support must pay close attention to inventory management policies and storage costs to avoid unnecessary expenses that can substantially reduce margins. Similarly, sellers still using self-fulfillment often consider the possibility of transitioning to another model too overwhelming. In either scenario, the knowledge and consistency that Amazon agencies with expertise in fulfillment can offer may be well worth the cost for many brands facing these circumstances. 

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Customer Service

There’s no question that reviews, positive and negative, can impact product sales and conversion metrics. This is just one of the reasons why Amazon optimization should extend to the customer service experience that brands provide their customers. Poor customer service, and the subsequent poor product reviews that will appear on a site like Amazon, can impact your organic search rankings even before a shopper discovers your product detail page. 

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Although the FBA model shifts much of the customer service process from the seller to Amazon, it’s not an excuse to ignore customer response to your products. Brands retain responsibility for setting customer expectations and creating content that leads to positive reviews. The evidence is clear that anything less can be disastrous for growth. Surveys have shown that nine out of 10 customers read reviews before clicking the buy button, while eight out of 10 give them as much weight as a personal recommendation.

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From ensuring inventory remains in stock for loyal customers to scouring reviews to identify early signs of quality issues or customer confusion, an Amazon optimization agency can be an invaluable partner for companies that are committed to excellent customer service. 

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Amify can help

If you’re looking for help with your Amazon product listing optimization, Amify is the partner you need. Our optimization experts can provide award-winning SEO services, content creation and inventory management support for your brand. Contact us today to find out how to get started. 

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Most of our brand partners come to Amify from other Amazon service providers, unhappy with the service they have received. However, after hearing their stories, it’s clear that asking the right questions during their search could have helped companies avoid a terrible experience. 

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In some cases, these questions should have been asked of the prospective agency. In others, it’s a question the brand needs to answer to guide its search. Regardless, we wanted to share our insight on the inquiries that can make all the difference for brands trying to find an Amazon agency that is the right fit for their goals. 

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It’s all about alignment

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The long-term success of an Amazon partnership hinges on how well the agency’s capabilities align with the brand’s expectations. Creating a solid foundation requires the following:

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• Alignment on the services the brand needs to be successful on Amazon and the provider’s ability to provide them
• Alignment on quality, responsiveness, and ability of the provider to do what they say they can do
• Alignment on the realistic costs involved in running an Amazon business and the ability of the brand to pay for the desired level of quality

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Let’s break each of these areas of emphasis down to the key questions to ask…

‍

Alignment on the services the brand needs to be successful

‍

The Amazon marketplace is an $800 billion business. The services needed by the largest companies on the platform vary drastically compared to smaller brands. Finding a provider that aligns with your brand’s business model, sales level and service requirements is crucial. 

‍

What Amazon business model does your provider focus on? 

Amazon business providers typically split between those helping brands following a 1P model (selling products to Amazon) and those pursuing growth on the 3P marketplace (selling products on the Amazon marketplace). Therefore, picking a provider that focuses on your brand’s business model is best. If a provider says they do everything, you may find they are not good at either. 

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What services does the provider offer? And which ones will the brand need to handle internally? 

To run an Amazon 3P business, a brand needs help with Amazon strategy, content, copywriting, SEO, PPC advertising, customer service, Seller Central management, inventory management, fulfillment, exception handling, pricing, assortment management, financial planning, and many other aspects. Most service providers only handle a few of these, requiring the brand to manage the rest internally. It’s easy for a brand to assume the partner will do it all, only to realize they are still responsible for most of the workload. We suggest that brands have a list of the functions necessary to run the Amazon business and have a clear owner for each. When comparing proposals from partners, it’s a common mistake to overlook the specific services offered and simply choose the lowest-priced provider. Only later does the brand realize that most of the tasks will still need to be done internally and for an additional cost.  

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What size businesses do you focus on?

The needs of a big Amazon seller are different from the needs of a small brand. Understanding if the provider aligns with your brand’s size is also important. Providers usually break down into those serving brands with less than $500k in annual sales, agencies specializing in mid-sized sellers with $500k-$2 million of annual sales, and partners targeting companies with more than $2 million in sales each year. Your brand should align with the size the provider focuses on to limit the risk of low-quality service, overly-high costs, or the possibility of not being a priority for the provider. If an agency claims to serve brands of all sizes, that may again mean they will take any client and perform poorly. 

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Alignment on quality, responsiveness, and ability of the provider to deliver

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It is easy for firms to claim to be Amazon experts, but what differentiates most providers is their ability to deliver the quality level that a brand expects at a reasonable cost. 

‍

Can I meet the team I will be working with?

The number one reason we see brands leaving our competitors is a misalignment of the quality of the team they are working with. Providers often have a slick salesperson who can promise the world, but when the sale is closed, the brand is passed off to a junior employee with little experience managing accounts. By asking to meet the team upfront, a brand will quickly get to see if there is an alignment here. 

‍

How many employees does the provider have? Is the staff mostly employees or contractors? 

Sometimes, a service provider consists of five people in a townhouse claiming to be Amazon experts. These smaller providers have difficulty providing the consistency and breadth of the service many brands require. Larger, established companies have learned from their mistakes with previous clients and can likely provide a higher quality of consistent service. In addition, understaffed providers that rely heavily on contractors usually have a hard time delivering consistent, high-quality work. 

‍

Who are some of the agency’s key customers? 

A brand should look at the provider’s client roster to determine if they match up well in size and product category. If the brands that a prospective partner is currently working with have similarities to your business, the likelihood of success is much higher. 

‍

Alignment on costs involved to run an Amazon business and the ability of the brand to pay for the desired level of quality

‍

Amazon claims it is easy to run a brand on its platform. In reality, it requires a lot of expertise in various areas ranging from graphic design and customer service to copywriting and advertising strategy. All of these specialties cost money and need to work together flawlessly. It is easy for a brand to underestimate how much work is involved and focus on price rather than quality. People with valuable Amazon experience are expensive to hire, and it’s important to remember you get what you pay for. A common rule of thumb is that it requires one employee for each $1 to $2 million of Amazon revenue. 

‍

Who do you want your head of Amazon to be? Offshore, junior employee, or seasoned director?

Is your brand a scrappy startup that hires a lot of offshore people? Or is your brand an established company with senior directors running its e-commerce divisions? In either case, your company needs a provider that employs teammates on an equivalent level. A damaging misalignment occurs when a brand that is accustomed to working with seasoned executives pays a low price for a lower tier of service. Amazon providers staff their teams using three primary models. 

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Offshore – The provider has a majority of its teams offshore. These models offer lower costs but sacrifice quality. 

‍

Junior staff- The provider mixes offshore teams with primarily junior staff in the United States. This mid-cost model offers a nice mix of higher quality and value. 

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Director-level staff – This model is made for established businesses that realize junior staff will not take them to the next phase of growth on Amazon. These companies are looking for quality over low cost. 

‍

Is your brand willing to make a long-term strategic investment in Amazon? 

Amazon is a huge opportunity, but it is also very competitive. It will take a brand many months or years to reach its potential on Amazon. Brands that expect huge success in the short term will usually be disappointed by the results, regardless of which agency they choose. 

Ask for Amify 

Start a conversation with Amify to find out if our decade of experience helping Amazon sellers grow and extensive platform knowledge is the right fit for your brand. Take some time to read our case studies, and discover why our clients average 100% growth in the first year after partnering with us..

‍

‍

As competition increases for the top spots in Amazon’s search results and  sales on the platform become a fundamental factor for a brand’s success, a growing number of sellers are turning to full-service Amazon agencies to find an edge. 

‍

These Amazon consulting partners can provide significant expertise that enhances capabilities, adds value, supports growth, and solves problems. Keep reading to learn more about the many ways an Amazon agency can take your brand to the next level on Amazon.

‍

An Amazon agency can enhance capabilities

Warehousing

Amazon seller success hinges on a company’s ability to get its products to customers quickly. In many cases, the best way to accomplish this is via Fulfillment by Amazon (FBA). The most valuable Amazon agencies can provide FBA-optimized warehousing space that is often advantageously located near Amazon’s shipping hubs. Whether a brand is shipping to Amazon as a vendor, supplying FBA inventory, or fulfilling customer orders directly, the storage, packing, labeling and shipping of a product need to be expertly managed. It’s just one of the many services that an Amazon agency can offer to streamline a company’s operations. 

‍

Logistics

In addition to the warehousing challenges an Amazon business faces, poorly-managed inventory can negatively affect a company’s bottom line. A reputable Amazon agency can provide cost-saving logistics solutions. These agencies have experience with Amazon’s FBA guidelines to ensure that products remain in stock for customer orders and that businesses can avoid the expensive aged-inventory fees that Amazon can charge for stagnant inventory. In addition, their technology and experience can keep the correct number of your items in stock at the right time by offering supply strategy, demand planning, tracking, storage monitoring and returns management.

‍

Platform Management

As the dominant e-commerce platform, selling on Amazon is a high-stakes undertaking for any business. Getting started is relatively simple, but finding success and maintaining it is much harder. An experienced agency can help establish and maintain a healthy Amazon seller account. They will also be able to set up your listings, protect your brand by monitoring and removing unauthorized sellers, and respond to customer inquiries or negative product reviews promptly and courteously. In other words, an agency can take the fundamental tasks accompanying selling on Amazon off your plate and likely complete them more efficiently. 

‍

Content

The competition on Amazon is fierce. And although listing products for sale on the site is a critical first step, it is by no means the end of the effort. Regardless of how many shoppers land on a listing, the most successful Amazon sellers know that high-quality product content is necessary to lead to conversions. Amazon agencies understand the platform’s search algorithm as well as the preferences and behaviors of customers. Their experience in Amazon listing optimization and Amazon search engine optimization (SEO) and keywords, designing eye-catching imagery and developing A+ Content that grabs attention. An agency can also lead the creation of a highly-shoppable Amazon Storefront that organizes and promotes products effectively while building a company’s brand loyalty.

‍

Marketing

Thriving Amazon businesses can rarely rely on content optimization alone. They also need a data-driven Amazon marketing strategy to get products in front of their ideal online customers, even beyond the Amazon platform. Partnering with a qualified agency can give brands access to more efficient advertising and media tactics, including sponsored brand ads, sponsored product promotions, sponsored display advertising, social media and video. Integrating a paid digital marketing plan with Amazon optimization ensures the best possible return on investment. Companies that specialize in helping Amazon sellers are well-equipped to navigate the complexities of such an approach. 

‍

Analytics

Whether from Amazon or elsewhere, one of the advantages of e-commerce is the incredible amount of data sellers can access. There’s often an overwhelming number of reports available regarding inventory, shoppers, advertising, buyers and more. The most effective Amazon agencies will be ready to help your brand identify growth potential and leverage the deepest data to increase brand awareness. Remember, it’s not just about monitoring this enormous cache of data. It must also be appropriately analyzed to reveal actionable insights that optimize and grow sales. In particular, Amazon sellers can benefit from an agency that utilizes the platform’s proprietary reports via Seller Central and supplements those metrics with outside data to create a fuller picture of a brand’s strengths and weaknesses. 

‍

Strategy

Clearly, an agency can strengthen a brand’s Amazon presence in several ways, but one of the most important capabilities it can offer is an informed and well-defined strategy. The relationship between an Amazon agency and a seller can add an invaluable perspective when building a plan to reach their goals in the marketplace. An agency with extensive experience and a track record of success will know which tools to turn to first and how to stack efforts effectively to create synergy for its client. Even long-time business owners can struggle with the intricacies of selling on Amazon and benefit from a strategic plan aimed at growth on the platform. 

‍

An Amazon agency can add value and support growth

‍

Time

Running any business is time-consuming, which gives a lot of value to strategies that reduce workload and delegate responsibilities. This dynamic can be even more pronounced for brands that rely on Amazon to reach customers. The demands of selling on the Amazon Marketplace are diverse and typically require ongoing attention. It’s not an effort that can be established and expected to continue successfully without deliberate focus and refinement. 

‍

An experienced Amazon agency can minimize the time your company spends trying to optimize its sales on the platform. It can provide instant expertise in the highest-impact areas for Amazon sellers or vendors, and minimize the time it takes to adjust to the retailer’s shifting policies and procedures. 

‍

Efficiency

Selling successfully on Amazon is easily a full-time responsibility, and it often takes more time than expected. Launching new product listings, optimizing them for your customers and the algorithm, and setting up and maintaining your storefront, are just the start of a long list of tasks that must be done and then improved over time.  

‍

Rather than dedicate so much effort to something beyond your traditional expertise, an Amazon agency can be sure your brand stays up-to-date on the latest trends, tools and features from Amazon more efficiently. After all, a qualified agency is filled with experts who are passionate about doing just that and ready to help streamline the path to reaching your business goals. 

‍

Knowledge

Businesses love versatile employees, but specialists can be the difference between getting things done and getting them done well. Copywriting, SEO, graphic design and branding are a few of the skills that Amazon success may depend on and that can benefit significantly from actual expertise. Unfortunately, while many people can comply with the site’s standards and recommendations in these areas, they are unlikely to create engaging content that helps brands to stand out and connect with shoppers.

‍

By outsourcing these skills to a full-service agency, you’ll enjoy award-winning product creative that drives conversions. Your listings can be optimized for SEO and keywords. Your customers will be drawn in with eye-catching imagery and A+ Content that grabs their attention. And your brand will benefit from a highly shoppable store backed by data.

‍

Costs

One of the main advantages an Amazon agency can bring to sellers with lots of growth potential is that outsourcing gives your company a more robust team at a lower cost. The alternative of hiring an internal team with similar capacity would be expensive and still likely to result in expertise gaps compared to what an agency can offer.

‍

For many companies, engaging an Amazon agency will be equivalent to hiring one or two full-time employees, but provide access to a broad selection of services with better results. An experienced external team already has all the relevant expertise and is poised to make the proper adjustments quickly and cost-effectively. Meanwhile, companies striving to build an internal team will risk missed opportunities while hiring and training new employees or dealing with unexpected turnover. 

‍

An Amazon agency can solve problems

‍

Underperformance

It’s not uncommon for retailers to find success in traditional sales or via a direct-to-consumer website before attempting to add Amazon to their sales mix. If, however, a brand finds its performance on the leading online marketplace to be lackluster compared with its other channels, that could signal a problem with the strategy or execution on the platform, not a product weakness. 

‍

These circumstances may be a good reason to ask for help from an experienced Amazon agency. Of course, the size, competition and nuances of Amazon make it a challenge to master, even for brands that have found success elsewhere. But, an agency can help make sure the features and strengths that are already driving your sales reach the right shoppers and translate into conversions on Amazon as well.  

‍

Poor Communication

Although Amazon sellers can expect some support from the global retailer when it comes to getting started on the site, it won’t match the service that an agency can provide. In some cases, brands can even see their ability to get help from Amazon decline as they become more established sellers, and Amazon’s resources shift toward new businesses that will impact their own growth more. 

‍

If you’re unable to get the answers you need from Amazon or don’t like the idea of being stuck waiting for a response from their support team when something goes wrong, an Amazon agency could be the answer. With a full-service partner, you know exactly who to reach out to about your account and can be confident that issues will be resolved with urgency. 

‍

Transitioning

Are you making a move from an Amazon vendor to Seller Central? Shifting from seller fulfillment to FBA? Launching a new product? Any of these transitions can be a challenge for Amazon sellers and a practical reason to consider adding an agency to your team. Most likely, the agency you choose will have gone through the process before and can guide you through a less stressful changeover. Before beginning any significant Amazon-related transition that is on the horizon for your company, speak to several Amazon agencies about how they could reduce risks and maximize the benefits. 

‍

Unexplored Tactics

Few of the brands selling on Amazon take advantage of all of the tools at their disposal on the platform. Whether it’s due to a lack of time, missing expertise or a focus on other priorities it could be hurting your company’s bottom line. Brand Registry, A+ Content, Amazon Storefronts, listing optimization, Multi-Channel Fulfillment, SEO service and Amazon ads are just some of the options available. And all of them are proven to increase conversions when implemented effectively. Sellers that haven’t been able to capitalize on these, and other tactics, regardless of the reason, should certainly explore whether an Amazon agency can transform this severe deficiency into a strength.

‍

Inconsistency

Amazon is constantly evolving, so staying informed about the latest policy changes, newest tools and fluctuating costs without help is nearly impossible for most businesses. The ones that try a do-it-yourself approach can struggle to develop a strategy that works consistently for their brand. Obviously, this can lead to unpredictable sales rather than steady growth. A successful partnership with an Amazon agency can minimize surprises and help companies anticipate what lies ahead for sellers on the platform. Because effective agencies are plugged into Amazon’s current trends and deeply understand the status quo, they can make your brand’s experience on the site much less volatile. 

‍

Find the right Amazon agency

‍

Experience

One of the first things a brand should investigate when considering an Amazon agency is the experience the partner brings to the table. It’s typically best to find an agency that can provide vast and deep expertise. Leadership or team members considered Amazon experts can be valuable, but be sure to inquire about how that type of resume matches your company’s goals. If it was in an irrelevant role, it might not be as attractive of a feature. Similarly, an agency with direct experience in your product category may seem ideal, but sellers are often better served by matching an agency’s strengths with the brand’s goals. 

‍

Team & Accountability

Be sure you know exactly who at the agency will be responsible for your account. The last thing your brand needs is to find out after closing the deal that you’ve never actually met the person leading your Amazon plan. Seek clarity on how accounts are managed, how responsibilities are shared among your account team, and who your company’s primary point of contact will be. 

‍

It’s also essential to determine how progress toward your goals will be measured. Remember, immediate success on Amazon is rare and instead requires commitment and determination. That’s why both the brand and its Amazon partner need to be on the same page regarding the milestones that matter along the way. 

‍

Technology

Amazon agencies may have proprietary technology supporting their claims to help a brand win on Amazon. When considering a partner with its own technology, take the time to understand how they use these tools and what data they rely on to power them. Different agencies may focus on their analysis of different functions of an Amazon business, which may vary in alignment with your goals. Also, brands should avoid agencies that position any technologies as the singular solution for a company. Instead, finding a provider that offers a productive mix of tech and hands-on oversight is best. 

‍

Results

It may seem obvious, but don’t forget to pay close attention to an agency’s previous results and current client list. Reviewing case studies, especially those with parallels to your company’s challenges, can reveal insight into the agency’s fit as an Amazon partner. It’s also helpful to examine Amazon accomplishments over time. Have they been able to find success as Amazon has evolved, or is it limited to a smaller window that raises questions about their current or future effectiveness? 

‍

Partner with Amify

At Amify, we have helped premium brands achieve their Amazon goals for more than a decade. From Amazon SEO to enhanced brand content, teaming up with us puts world-class, up-to-the-minute platform knowledge on your side. 

‍

Our industry-leading expertise can unlock the full potential of a product listing, build a branded Amazon store, or determine the best ad spend for your Amazon advertising campaign. If you’re looking for a comprehensive, results-oriented approach to growing your Amazon business, contact us today to learn more. 

‍

As competition increases for the top spots in Amazon’s search results and  sales on the platform become a fundamental factor for a brand’s success, a growing number of sellers are turning to full-service Amazon agencies to find an edge. 

‍

These Amazon consulting partners can provide significant expertise that enhances capabilities, adds value, supports growth, and solves problems. Keep reading to learn more about the many ways an Amazon agency can take your brand to the next level on Amazon.

‍

An Amazon agency can enhance capabilities

‍

Warehousing

Amazon seller success hinges on a company’s ability to get its products to customers quickly. In many cases, the best way to accomplish this is via Fulfillment by Amazon (FBA). The most valuable Amazon agencies can provide FBA-optimized warehousing space that is often advantageously located near Amazon’s shipping hubs. Whether a brand is shipping to Amazon as a vendor, supplying FBA inventory, or fulfilling customer orders directly, the storage, packing, labeling and shipping of a product need to be expertly managed. It’s just one of the many services that an Amazon agency can offer to streamline a company’s operations. 

‍

Logistics

In addition to the warehousing challenges an Amazon business faces, poorly-managed inventory can negatively affect a company’s bottom line. A reputable Amazon agency can provide cost-saving logistics solutions. These agencies have experience with Amazon’s FBA guidelines to ensure that products remain in stock for customer orders and that businesses can avoid the expensive aged-inventory fees that Amazon can charge for stagnant inventory. In addition, their technology and experience can keep the correct number of your items in stock at the right time by offering supply strategy, demand planning, tracking, storage monitoring and returns management.

‍

Platform Management

As the dominant e-commerce platform, selling on Amazon is a high-stakes undertaking for any business. Getting started is relatively simple, but finding success and maintaining it is much harder. An experienced agency can help establish and maintain a healthy Amazon seller account. They will also be able to set up your listings, protect your brand by monitoring and removing unauthorized sellers, and respond to customer inquiries or negative product reviews promptly and courteously. In other words, an agency can take the fundamental tasks accompanying selling on Amazon off your plate and likely complete them more efficiently. 

‍

Content

The competition on Amazon is fierce. And although listing products for sale on the site is a critical first step, it is by no means the end of the effort. Regardless of how many shoppers land on a listing, the most successful Amazon sellers know that high-quality product content is necessary to lead to conversions. Amazon agencies understand the platform’s search algorithm as well as the preferences and behaviors of customers. Their experience in Amazon listing optimization and Amazon search engine optimization (SEO) and keywords, designing eye-catching imagery and developing A+ Content that grabs attention. An agency can also lead the creation of a highly-shoppable Amazon Storefront that organizes and promotes products effectively while building a company’s brand loyalty.

‍

Marketing

Thriving Amazon businesses can rarely rely on content optimization alone. They also need a data-driven Amazon marketing strategy to get products in front of their ideal online customers, even beyond the Amazon platform. Partnering with a qualified agency can give brands access to more efficient advertising and media tactics, including sponsored brand ads, sponsored product promotions, sponsored display advertising, social media and video. Integrating a paid digital marketing plan with Amazon optimization ensures the best possible return on investment. Companies that specialize in helping Amazon sellers are well-equipped to navigate the complexities of such an approach. 

‍

Analytics

Whether from Amazon or elsewhere, one of the advantages of e-commerce is the incredible amount of data sellers can access. There’s often an overwhelming number of reports available regarding inventory, shoppers, advertising, buyers and more. The most effective Amazon agencies will be ready to help your brand identify growth potential and leverage the deepest data to increase brand awareness. Remember, it’s not just about monitoring this enormous cache of data. It must also be appropriately analyzed to reveal actionable insights that optimize and grow sales. In particular, Amazon sellers can benefit from an agency that utilizes the platform’s proprietary reports via Seller Central and supplements those metrics with outside data to create a fuller picture of a brand’s strengths and weaknesses. 

‍

Strategy

Clearly, an agency can strengthen a brand’s Amazon presence in several ways, but one of the most important capabilities it can offer is an informed and well-defined strategy. The relationship between an Amazon agency and a seller can add an invaluable perspective when building a plan to reach their goals in the marketplace. An agency with extensive experience and a track record of success will know which tools to turn to first and how to stack efforts effectively to create synergy for its client. Even long-time business owners can struggle with the intricacies of selling on Amazon and benefit from a strategic plan aimed at growth on the platform. 

‍

An Amazon agency can add value and support growth

‍

Time

Running any business is time-consuming, which gives a lot of value to strategies that reduce workload and delegate responsibilities. This dynamic can be even more pronounced for brands that rely on Amazon to reach customers. The demands of selling on the Amazon Marketplace are diverse and typically require ongoing attention. It’s not an effort that can be established and expected to continue successfully without deliberate focus and refinement. 

‍

An experienced Amazon agency can minimize the time your company spends trying to optimize its sales on the platform. It can provide instant expertise in the highest-impact areas for Amazon sellers or vendors, and minimize the time it takes to adjust to the retailer’s shifting policies and procedures. 

‍

Efficiency

Selling successfully on Amazon is easily a full-time responsibility, and it often takes more time than expected. Launching new product listings, optimizing them for your customers and the algorithm, and setting up and maintaining your storefront, are just the start of a long list of tasks that must be done and then improved over time.  

‍

Rather than dedicate so much effort to something beyond your traditional expertise, an Amazon agency can be sure your brand stays up-to-date on the latest trends, tools and features from Amazon more efficiently. After all, a qualified agency is filled with experts who are passionate about doing just that and ready to help streamline the path to reaching your business goals. 

‍

Knowledge

Businesses love versatile employees, but specialists can be the difference between getting things done and getting them done well. Copywriting, SEO, graphic design and branding are a few of the skills that Amazon success may depend on and that can benefit significantly from actual expertise. Unfortunately, while many people can comply with the site’s standards and recommendations in these areas, they are unlikely to create engaging content that helps brands to stand out and connect with shoppers.

‍

By outsourcing these skills to a full-service agency, you’ll enjoy award-winning product creative that drives conversions. Your listings can be optimized for SEO and keywords. Your customers will be drawn in with eye-catching imagery and A+ Content that grabs their attention. And your brand will benefit from a highly shoppable store backed by data.

‍

Costs

One of the main advantages an Amazon agency can bring to sellers with lots of growth potential is that outsourcing gives your company a more robust team at a lower cost. The alternative of hiring an internal team with similar capacity would be expensive and still likely to result in expertise gaps compared to what an agency can offer.

‍

For many companies, engaging an Amazon agency will be equivalent to hiring one or two full-time employees, but provide access to a broad selection of services with better results. An experienced external team already has all the relevant expertise and is poised to make the proper adjustments quickly and cost-effectively. Meanwhile, companies striving to build an internal team will risk missed opportunities while hiring and training new employees or dealing with unexpected turnover. 

‍

An Amazon agency can solve problems

‍

Underperformance

It’s not uncommon for retailers to find success in traditional sales or via a direct-to-consumer website before attempting to add Amazon to their sales mix. If, however, a brand finds its performance on the leading online marketplace to be lackluster compared with its other channels, that could signal a problem with the strategy or execution on the platform, not a product weakness. 

‍

These circumstances may be a good reason to ask for help from an experienced Amazon agency. Of course, the size, competition and nuances of Amazon make it a challenge to master, even for brands that have found success elsewhere. But, an agency can help make sure the features and strengths that are already driving your sales reach the right shoppers and translate into conversions on Amazon as well.  

‍

Poor Communication

Although Amazon sellers can expect some support from the global retailer when it comes to getting started on the site, it won’t match the service that an agency can provide. In some cases, brands can even see their ability to get help from Amazon decline as they become more established sellers, and Amazon’s resources shift toward new businesses that will impact their own growth more. 

‍

If you’re unable to get the answers you need from Amazon or don’t like the idea of being stuck waiting for a response from their support team when something goes wrong, an Amazon agency could be the answer. With a full-service partner, you know exactly who to reach out to about your account and can be confident that issues will be resolved with urgency. 

‍

Transitioning

Are you making a move from an Amazon vendor to Seller Central? Shifting from seller fulfillment to FBA? Launching a new product? Any of these transitions can be a challenge for Amazon sellers and a practical reason to consider adding an agency to your team. Most likely, the agency you choose will have gone through the process before and can guide you through a less stressful changeover. Before beginning any significant Amazon-related transition that is on the horizon for your company, speak to several Amazon agencies about how they could reduce risks and maximize the benefits. 

‍

Unexplored Tactics

Few of the brands selling on Amazon take advantage of all of the tools at their disposal on the platform. Whether it’s due to a lack of time, missing expertise or a focus on other priorities it could be hurting your company’s bottom line. Brand Registry, A+ Content, Amazon Storefronts, listing optimization, Multi-Channel Fulfillment, SEO service and Amazon ads are just some of the options available. And all of them are proven to increase conversions when implemented effectively. Sellers that haven’t been able to capitalize on these, and other tactics, regardless of the reason, should certainly explore whether an Amazon agency can transform this severe deficiency into a strength.

‍

Inconsistency

Amazon is constantly evolving, so staying informed about the latest policy changes, newest tools and fluctuating costs without help is nearly impossible for most businesses. The ones that try a do-it-yourself approach can struggle to develop a strategy that works consistently for their brand. Obviously, this can lead to unpredictable sales rather than steady growth. A successful partnership with an Amazon agency can minimize surprises and help companies anticipate what lies ahead for sellers on the platform. Because effective agencies are plugged into Amazon’s current trends and deeply understand the status quo, they can make your brand’s experience on the site much less volatile. 

‍

Find the right Amazon agency

‍

Experience

One of the first things a brand should investigate when considering an Amazon agency is the experience the partner brings to the table. It’s typically best to find an agency that can provide vast and deep expertise. Leadership or team members considered Amazon experts can be valuable, but be sure to inquire about how that type of resume matches your company’s goals. If it was in an irrelevant role, it might not be as attractive of a feature. Similarly, an agency with direct experience in your product category may seem ideal, but sellers are often better served by matching an agency’s strengths with the brand’s goals. 

‍

Team & Accountability

Be sure you know exactly who at the agency will be responsible for your account. The last thing your brand needs is to find out after closing the deal that you’ve never actually met the person leading your Amazon plan. Seek clarity on how accounts are managed, how responsibilities are shared among your account team, and who your company’s primary point of contact will be. 

‍

It’s also essential to determine how progress toward your goals will be measured. Remember, immediate success on Amazon is rare and instead requires commitment and determination. That’s why both the brand and its Amazon partner need to be on the same page regarding the milestones that matter along the way. 

‍

Technology

Amazon agencies may have proprietary technology supporting their claims to help a brand win on Amazon. When considering a partner with its own technology, take the time to understand how they use these tools and what data they rely on to power them. Different agencies may focus on their analysis of different functions of an Amazon business, which may vary in alignment with your goals. Also, brands should avoid agencies that position any technologies as the singular solution for a company. Instead, finding a provider that offers a productive mix of tech and hands-on oversight is best. 

‍

Results

It may seem obvious, but don’t forget to pay close attention to an agency’s previous results and current client list. Reviewing case studies, especially those with parallels to your company’s challenges, can reveal insight into the agency’s fit as an Amazon partner. It’s also helpful to examine Amazon accomplishments over time. Have they been able to find success as Amazon has evolved, or is it limited to a smaller window that raises questions about their current or future effectiveness? 

‍

Partner with Amify

At Amify, we have helped premium brands achieve their Amazon goals for more than a decade. From Amazon SEO to enhanced brand content, teaming up with us puts world-class, up-to-the-minute platform knowledge on your side. 

‍

Our industry-leading expertise can unlock the full potential of a product listing, build a branded Amazon store, or determine the best ad spend for your Amazon advertising campaign. If you’re looking for a comprehensive, results-oriented approach to growing your Amazon business, contact us today to learn more. 

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Before you can begin to understand all the tools and strategies that lead to success on Amazon, a language lesson could be the most important first step. At Amify, we have the expertise to guide you through every challenge the platform puts in your path. But we also know communication between our team and our clients is critical. That’s why we put together this Amazon glossary to ensure we’re all on the same page when it comes to the technical jargon and acronyms that can be tough to navigate. Spend some time getting up to speed on the vocabulary, and then reach out to start a conversation about how we can help your Amazon business reach its full potential. 

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1P

Shorthand for the First-party Amazon Vendor Central Model where a brand sells its product directly to Amazon at wholesale prices. Amazon then lists the product for sale as Amazon and sells it to the end consumer.

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3P

Shorthand for the Third-party Amazon Seller Central Model where a business uses Amazon to sell their product, or to be a retailer for another brand and sells directly to consumers via the marketplace. This can also include Amazon FBA sellers. 

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3PL

Shorthand for Third-party logistics or companies that provide storage and fulfillment services for e-commerce companies. 

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A

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A+ Content

This is enhanced brand content for Amazon product pages that can take many forms, including high-quality images, comparison charts, video content, FAQs, and more.

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ACoS

Advertising Cost of Sale. The percentage of sales spent on advertising. The formula for this is total ad spend divided by sales attributed to that advertising effort. 

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Affiliates

A referral program designed to drive traffic and sales to Amazon via third-party sites or influencers, such as blogs, news sites or social media. 

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Aged Inventory Surchage

Previously known as a long term storage fee, this fee is charged on inventory that is stored by Amazon for a seller for more than 271 days, and increases after 365 days. 

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AGS

Amazon Global Selling, a program that allows sellers to list products on Amazon marketplaces beyond their own borders. 

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AMZ

The stock symbol for Amazon. 

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AMZL

The abbreviation for Amazon Logistics. 

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API

Application Program Interface is a technology that simplifies the process of communication between different software applications.

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ASIN

Amazon Standard Identification Number. A unique 10-character alphanumeric identifier that is used specifically on Amazon.

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ASN

Advanced Shipment Notification. It provides notice to Amazon when a company is shipping a product to one of its fulfillment warehouses, and is typically required for the shipment to be accepted. 

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ASP

Average Selling Price. Calculated by net sales divided by the number of products sold.

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AWS

Amazon Web Services is a cloud computing platform that is among the most comprehensive in the world. 

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B

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B2B

Business to Business, or e-commerce between two businesses.

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B2C

Business to Customer, or e-commerce between a business and a customer.

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Brand Analytics

Comprehensive data reporting and analysis made available to brands enrolled in the Amazon via Seller Central. 

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Brand Registry

Amazon’s free program for brands to use to protect intellectual property, manage listings, and grow.

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BSR

Best Seller Rank. An Amazon Best Sellers calculation is given to each product based on Amazon sales, and is updated hourly to reflect recent and historical sales of every item sold on Amazon.

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Buy Box

Each item sold on Amazon has only one Buy Box regardless of how many sellers have that item in their inventory. Amazon’s algorithm determines which seller receives the Amazon Buy Box and therefore becomes the default seller for the item when customers add a product to their cart. Since more than 80% of all Amazon sales happen through the Buy Box, it’s extremely valuable territory that brands seek to win. The best methods for success are strong sales, excellent customer service, and a stellar Star Rating 

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C

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Category Page

The landing page for a specific group of products listed on the Amazon website, such as books or electronics.

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CCR

Counterfeit Complaint Rate tracks customer claims that an item they purchased was inauthentic. 

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Child ASIN

An ASIN that requires shoppers to select additional options, such as size or color, to purchase. 

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COGs

Cost of Goods Sold. The value of goods sold during a certain period of time.

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Concessions

This is the term Amazon uses to refer to the company’s refunds and returns to customers.

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CPC

Cost Per Click. A digital advertising term that describes the cost for each user that clicked on a display ad. It is calculated by dividing the ad spend by the number of click throughs and common way to pay for an Amazon ad. 

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CPS

Costs Per Shipment. 

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CPU

Contacts Per Unit. This is a metric used to calculate the fee for Customer Service by Amazon that tracks the number of customer contacts Amazon completed during the fulfillment of a unit. 

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CSBA

Customer Service by Amazon. A paid service that provides customer service from Amazon for self-fulfilled products. 

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CTR

Click Through Rate. A metric that measures the number of clicks per impression of an advertisement.

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CX

Customer Experience

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D

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DOTD

Deal of the Day. A single item or small set of closely related items that are discounted for a period of one day only. Learn more about Amazon deal and promotion types.

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DNR

Delivered Not Received, a term used in Amazon warehousing for shipments that have not been checked into the inventory. 

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Dropship

Dropshipping is a fulfillment method used when retailers don’t physically have or ship the item. Instead, the product is shipped directly to the customer by a third-party.

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DPV

Detail Page Views. A metric showing the number of impressions of a single detail page.

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DSP

Demand Side Platform. Amazon DSP is the company’s display advertising program.

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DSP

Can also refer to Delivery Service Provider, a participant in Amazon’s delivery network program. 

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DTC

Direct to Consumer. 

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E

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EDD

Estimated Delivery Date.

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EXSD

Expected Ship Date.

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F

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FBA

Fulfillment by Amazon. A fee-based service, Amazon FBA is when Amazon manages the packing and shipping of products sold on the site, on behalf of a third-party seller. Orders are shipped to customers from an Amazon Fulfillment Center. 

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FBM

Fulfilled by Merchant. This refers to self-fulfillment by Amazon sellers and can also be called Merchant Fulfilled. 

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FC

Fulfillment Center also known as an Amazon warehouse.

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FNSKU

Fulfillment Network Stock Keeping Unit. This is an Amazon-specific identifier for products that are fulfilled by Amazon.

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FFP

Frustration-Free Packaging is an Amazon program that eliminates excessive packing and by shipping products in easy-to-open packaging that does not require additional Amazon boxing. 

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G

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Gated Category

These are product or brand categories that Amazon considers high-risk due to counterfeiting or other concerns. Sellers need prior approval to list products in these categories.

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Global SKU
A SKU that is part of a shared inventory pool and is available to be sold and shipped in multiple marketplaces. Learn more about the pros and cons of international ASINs..

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Goldbox

This is the industry term for Amazon’s main landing page. 

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H

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Hazmat

Hazardous materials, such as items that are flammable or otherwise dangerous and require special precautions and regulations to transport or store.

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I

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Impressions

The number of views that a digital ad receives.

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Individual Seller

Typically a low-volume Amazon seller that pays a per-item fee for each item sold on the platform, and does not have access to the advertising tools or data that professional sellers do. 

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IP

Intellectual Property.

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ISBN

International Standard Book Number. A 13-digit identity number assigned to individual books. 

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K

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KPI

Key Performance Indicators. Measurable values that are selected to monitor how well a business is performing against predetermined objectives.

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L

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LCL

Less Than Container Load, is a term used in ocean shipping to indicate a shipment is less than 18 cubic meters.

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LTL

Less Than Truckload, is a term used in ground transport to indicate a shipment is smaller than what would fill a typical semi-trailer. 

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Lightning Deal

A temporary sale or promotion on Amazon that is limited in time, inventory and purchase per customer. 

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Listing Optimization

The process of improving an Amazon detail page and product information, including titles, bullet points, features, description, and images.

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M

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Marketplace

The collection of products available for purchase on Amazon, often differentiated by country, such as in a reference to the U.S. Amazon Marketplace. 

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MAP

Minimum Advertised Price is the lowest sales price that a brand will allow to be publicly promoted for a particular product. 

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MCF

Multi-Channel Fulfillment gives sellers the option to pay for fulfillment services from Amazon for products that are sold on e-commerce sites other than Amazon.

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MOM

Month Over Month.

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MOQ

Minimum Order Quantity. The minimum amount Amazon must order from vendors 

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MTD

Month To Date.

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MSRP

Manufacturer’s Suggested Retail Price is the amount a manufacturer recommends that their product should be sold for. It’s sometimes referred to as the “list price.” As with MAP, brands need to monitor their MSRP carefully on Amazon. And just like MAP, Amazon does not commit to honoring MSRP with their Vendor Central partners.

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N

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NAFN

North American Fulfillment Network is Amazon’s warehouses and shipping partners across Canada, the U.S. and Mexico. 

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NARF

The North America Remote Fulfillment program allows sellers to display their U.S. inventory on Amazon’s country-specific sites for Canada and Mexico. Shoppers on these sites are shown the available inventory at your price, plus a premium for import duties. To qualify, sellers must participate in FBA.

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NDA

Non Disclosure Agreement.

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NP

New Product.

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NR

Non Replenishable. An item that is no longer available.

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NTB

New to Brand. A relatively new advertising metric that indicates a purchase that resulted from an ad was made by an existing customer or one that had not purchased that product in the prior year.

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O

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ODR

Order Defect Rate. The percentage of a seller’s orders that receive negative feedback, an A-to-Z Guarantee claim, or a service credit card chargeback. It is a primary measure of an account’s health. 

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OOS

Out Of Stock.

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P

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P&L

Profit and Loss.

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Parent ASIN

The main product ASIN that has Child ASIN such as color, size or flavor variants underneath its product detail page.

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PCOGS

Product Cost of Goods Sold. The formula is shipped units multiplied by cost.

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PFP

Prep-Free Packaging

Small packaged products that can’t be shipped in their own containers, but are easy to open and not require extra prep by Amazon. They are shipped in Amazon boxes. 

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Prime Exclusive Discount

This is a price discount available to Prime members. Product offers with a Prime Exclusive Discount will show a discounted price with the regular price crossed out. 

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Product Display Ads

A type of display advertising where a product’s ad appears throughout Amazon on category and product pages.

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POD

Proof of Delivery. 

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PPC

Pay Per Click. A term used in digital advertising for ads that result in a fee to the advertisers each time the ad is clicked. Amazon PPC is common for advertisers on the platform.  

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Prime

Amazon Prime. A paid subscription service that provides free, fast delivery on millions of items, and includes streaming entertainment such as Prime Video. Only certain items sold on Amazon are prime eligible. 

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Private Label

Products sold by a retailer or supplier under their own brand name, but made by other manufacturers. Amazon offers a large selection of private label products such as its AmazonBasics line. 

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Professional Seller

A paid selling account on Amazon where a business pays a monthly fee rather than a few per item sold. These sellers have a wider range of services at their disposal to support their selling on Amazon, compared to individual sellers. 

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Project Zero

Project Zero uses the power of Amazon technology combined with brand insights to detect and remove counterfeits and protect sellers in the Brand Registry program. 

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Q

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Q1

First quarter or January – March of any year.

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Q2

Second quarter or April – June of any year.

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Q3

Third quarter. July – September of any year.

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Q4

Fourth quarter. October – December of any year.

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QA

Quality Assurance.

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R

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RoAS

Return on Ad Spend is a Key Performance Indicator that is used to determine media effectiveness. It is the retail sales return on the ad dollars you spend on Amazon.

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ROI

Return on Investment. A fundamental performance metric for businesses that compares the amount spent to the results to determine the success of an investment.

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RRP

Recommended Retail Price.

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S

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Sales Rank

Amazon’s internal ranking of products in search and browse.

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SEO

Search Engine Optimization is the act of increasing traffic and visibility to an online property via a search engine through keyword placement, content and other efforts other than paying for placement.

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SERP

A Search Engine Results Page is exactly what it sounds like: the page of results that appears after conducting a search on Amazon. 

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SIOC

Ships in Own Container. A category of Amazon’s Frustration Free Packaging initiative. 

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SKU

Stock Keeping Unit. A unique code used to identify products

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SnS

Subscribe and Save is Amazon’s subscription service that offers automatic ordering and delivery as well as discounted pricing for customers interested in recurring purchases.

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Small and Light

An Amazon fulfillment program that offers reduced shipping costs to sellers for qualified smaller items.

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Sponsored Brands

These ads are intended to support brand building by featuring multiple products from a single company. Appearing above search results, Sponsored Brand ads display a custom headline, logo and up to three products. Clicking on this type of ad typically sends shoppers to an Amazon Storefront or custom Amazon landing page. A video version of Sponsored Brand ads is also available to promote a product detail page.  

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Sponsored Display 

An Amazon Ad product that promotes items by placing display ads both on and off the platform and that can be targeted to a variety of audiences. 

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Sponsored Products

Similar to Google Adwords, A Sponsored Product ad is targeted using keywords and (ASIN) to reach Amazon shoppers. They allow advertisers to promote specific products within Amazon’s search results and product detail pages. They are the most popular form of advertising on Amazon. 

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Star Rating

The higher the average number of stars your products earn, the more likely your brand is likely to sell. More stars also increase your products’ odds of finding their way into the coveted Buy Box. And your products’ star ratings are not simply an average; Amazon also considers the age of reviews and whether they are Verified or Unverified Reviews

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Storefront

Sometimes referred to as an Amazon Brand Store, and limited to brands that have completed the Brand Registry process, an Amazon Storefront is a customized experience for shoppers that features all of a brand’s products on Amazon in one branded interface.

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T

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Third-Party Seller

A Third-party Seller uses Amazon to sell their product, or to be a retailer for another brand and sells directly to consumers via the marketplace.

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Top Reviewers

Every time a shopper reads a review, they are asked if they found it helpful. Those reviewers who receive the most “yes” votes for writing informative, useful reviews earn a Top Reviewer badge (e.g., “Top 1000 Reviewer,” “Top 50 Reviewer,” etc.) These reviewers’ opinions carry extra weight with shoppers and can increase or hinder your sales.

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TOS

Terms of Service.

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U

Unauthorized Sellers

Manufacturers and brands need to be diligent about monitoring unauthorized sellers on Amazon, particularly those selling below your MAP or MSRP (see above). Don’t expect Amazon to be of much help here (they see lower prices as a good thing for their consumers), but there are some steps you can take. If you encounter unauthorized sellers who are peddling defective or expired products, Amazon will help you resolve the matter.

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UPC

Universal Product Code. The 12-digit number displayed with a barcode on most retail products.

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Unverified Reviews

These are reviews written by people whose accounts suggest that they did not purchase the product in question on Amazon, or who bought it at a discounted price. Most shoppers are at least a tad skeptical about the reliability of these reviews.

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V

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Variation

This applies to products that are available in multiple sizes, flavors or colors. They can be listed as a main Parent ASIN, with each variation available as a different child ASIN.

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VAT

Value Added Tax is a consumption tax added to the cost of products that is common in the UK and EU.

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Verified Review

A review from a shopper that Amazon confirms as a purchase of the product in question.

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Vendor

Vendors, using Vendor Central, sell products to Amazon as a wholesaler. 

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Vine

Amazon Vine is an invitation-only program which selects the most insightful reviewers in the Amazon store to serve as Vine Voices. Vine Voices have the unique opportunity to order items free of charge and share their product experiences with Amazon customers to help them make informed buying decisions.

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Voucher/Coupon

A promotional deal on Amazon where a vendor or seller offers a limited-time discount.

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W

Warehouse Deals

These are discounted items sold by Amazon Warehouse. They are typically items that were returned or have minor cosmetic or packaging damage. 

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WOW

Week Over Week (when comparing metrics).

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Y

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YOY

Year Over Year (when comparing metrics).

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YTD

Year Over Year (when comparing metrics).

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Most Amazon sellers know that the platform’s search algorithm is crucial to their brand’s success. But few realize there is more to the formula than getting in front of the right customers quickly. Staying on a shopper’s radar throughout the decision-making process is often just as important. In fact, Amazon’s research has shown that only four percent of shoppers buy a product after their first search. Instead, it can take them an average of 6 to 7 days to make a purchase. 

One of the most effective ways to avoid losing prospective customers during this purchase journey of comparisons, evaluations and distractions is to utilize Amazon Sponsored Display advertising. When used correctly, this specialized Amazon tool can reach the relevant shoppers at the most critical points of their search and substantially boost conversions for an Amazon seller.

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Types of Amazon advertising

Before diving into the details of how Sponsored Display ads can support a company’s growth, it’s essential to understand that this feature is just one of several Amazon advertising initiatives available to brands and how each option differs from the others. 

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Sponsored Display

The origins of this Amazon advertising began in late 2019 when the site launched Sponsored Display ads, a self-service advertising solution available via both Vendor and Seller Central. A Sponsored Display Ad was unique from other Amazon product display ads in that it could reach targeted audiences on and off the platform. In 2020, Amazon expanded the offering to include the enhanced targeting of Sponsored Display Audiences. The advertising options have continued to evolve in recent years, and the services available to companies enrolled in Amazon Brand Registry are now simply known as Sponsored Display. 

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Sponsored Products

Similar to Google Adwords, A Sponsored Product ad is targeted using keywords and (ASIN) to reach Amazon shoppers. They allow advertisers to promote specific products within Amazon’s search results and product detail pages. They are the most popular form of advertising on Amazon. 

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Sponsored Brand

These ads are intended to support brand building by featuring multiple products from a single company. Appearing above search results, Sponsored Brand ads display a custom headline, logo and up to three products. Clicking on this type of ad typically sends shoppers to an Amazon Storefront or custom Amazon landing page. A video version of Sponsored Brand ads is also available to promote a product detail page.  

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Amazon DSP

The Demand-Side Platform (DSP) advertising from Amazon can be confused with Sponsored Display since it similarly offers the ability to target audiences on Amazon as well as other sites. However, Amazon DSP is not restricted to brands selling a product on Amazon and can therefore be used by brands hoping to draw shoppers away from the site. DSP advertising also requires a much more significant advertising investment and is sold based on the number of impressions the ads receive rather than when a user takes the extra step to click on the pitch. 

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Amazon Video Ads

With the growing popularity of streaming television services, Amazon also offers video ads that attract advertisers interested in reaching audiences unrelated to its dominant marketplace. These ads appear on the company’s TV properties, including Freevee, Twitch, live sports on Prime Video, top TV network and broadcast apps, and the News app on Fire TV. In addition, sales of out-stream video Ads on Amazon subsidiaries like IMDb and other sites can also be purchased in multiple delivery formats.

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Amazon Audio Ads

Amazon audio ads are 10 and 30 seconds commercials that play periodically between songs on Amazon Music’s free ad-supported tier. These can reach mobile and desktop users, as well as customers relying on Alexa-enabled devices like the Amazon Echo or Fire TV and give advertisers an opportunity to connect with customers beyond their screen time.

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Advantages of Sponsored Display 

The attraction of Amazon Sponsored Display advertising is mostly due to the visibility it offers brands and the targeting that can be done when creating a campaign. 

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Visibility

Unlike Sponsored Brands and Sponsored Products which are limited to appearing on the Amazon marketplace, Sponsored Display ads may appear on and off Amazon. Ultimately, where these ads show up will depend on the parameters of the ad campaign. 

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On the Amazon site, ads can display on product detail pages, next to customer reviews, under a featured offer or within search result pages. Outside of the marketplace, Sponsored Display ads may also reach audiences on mobile apps and third-party websites that have a relationship with Amazon. 

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Another bonus of Sponsored Display is that they include the visual elements that Amazon shoppers are accustomed to and trust. Since they are based on product listings, they feature images, star ratings, Prime badging, and prices directly from Amazon. In addition, they typically feature a shop now button that leads directly to the product detail page.  

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Targeting

A key benefit of Sponsored Display advertising lies in the targeting options. Amazon divides this ability into two areas. Advertisers can create a targeting strategy based on a similar product or relevant product category or choose to focus on specific types of audiences. 

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Product targeting

By targeting competing or complementary products for Sponsored Display ad delivery, brands can capitalize on the opportunity to reach shoppers who are likely to have an interest in the product but may not realize it exists. Promoting product awareness and accelerating product discovery in this way can be a powerful way to connect with shoppers efficiently. 

Sponsored Display product targeting can be done in one of two ways. Advertisers can select specific products that are listed on Amazon and target the shoppers browsing those items. Companies can also opt to target product categories for a broader approach to reach a larger swath of prospective customers. 

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Audience targeting

Sponsored Display audiences campaigns are designed to reach shoppers based on their behaviors and preferences, and not just when they’re on Amazon. Rather than limiting the display ads to the search results and detail pages of specific products, advertisers can use Amazon audience targeting to engage or reengage prospective customers. These tactics targets shoppers who have previously viewed relevant products and categories or attempts to introduce an item to new customers who are likely to be interested. Amazon allows brands to create custom-built audiences or use pre-built audiences, depending on the goal of the Sponsored Display Campaign. 

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The custom-built options offer detailed refinement of these remarketing efforts. It is a marketing approach that targets users primarily on historical purchase behavior. Purchase remarketing can drive repeat purchases or cross-sell to existing customers by focusing on audiences who previously bought the same or complementary products. Views remarketing is similar, but rather than targeting past buyers, it homes in on shoppers who have viewed particular items but not yet purchased them. These custom-built tactics can also be improved by utilizing Amazon’s “Lookback windows” to designate the time period when the initial consumer purchase or view occurred, up to 90 days in the past for views remarketing or a full year before when utilizing purchases remarketing.

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Amazon’s pre-built audience targeting offers brands thousands of segments to help them target new customers based on their interests and behaviors. These are grouped into four major categories to simplify the process of building an effective campaign. In-market segments are shoppers who are currently shopping in a selected product category. Lifestyle segments can be used to target customers who exhibit behaviors that map to identities such as “foodies” or “sports enthusiasts” based on shopping, browsing and streaming history. Similar to lifestyle targeting, interest segments drill down more specifically to a single interest. Meanwhile, life event segments are also available for companies interested in reaching customers based on things like a marriage or the birth of a child.

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Sponsored Display costs

The cost to run a Sponsored display campaign will vary greatly depending on the number of products being advertised, the target audiences and the budget options that are chosen. For example, sponsored Display advertisers can opt for a cost-per-click (CPC) model, where advertising costs are only incurred when someone clicks on an ad, not when they see it. Or they can choose to pay by cost-per-thousand viewable impressions (vCPM), calculated by how often an ad is displayed to a shopper.  

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In addition, sellers must set a daily budget cap for Sponsored Display campaigns and choose a maximum bid that can be used to purchase available ad slots. Typically a new campaign will start with a $1 bid for CPC and a $5 bid for vCPM, with plans to monitor and adjust as the effort progresses. Both CPC and vCPM bids can also be optimized for impressions, page views and conversions depending on a company’s goals and preferences. 

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Setting up a successful Sponsored Display campaign

While success with a Sponsored Display campaign depends on many factors, including planning, familiarity with Amazon’s targeting options and the products being promoted, the steps to create a campaign are relatively simple.

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• Choose a campaign name – It’s best to use something straightforward that reflects the advertised product, including the Amazon Standard Identification Number (ASIN) and the campaign goal. This approach can make it easier to differentiate among multiple campaigns in the future. 

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• Select the start and end dates – While campaigns should be reviewed regularly for effectiveness, Amazon recommends leaving end dates open to avoid an abrupt end to a campaign and ensure that product sales data are appropriately attributed. 

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• Set the budget – Campaigns require a daily budget that can be adjusted at any time. Expect to spend $40 per day or more to start with for a campaign with the reach necessary to achieve noticeable results. If a daily budget runs out, the ads will stop displaying until midnight when it resets. 

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• Create an ad group – Ad groups allow you to organize multiple campaigns that use the same targets. This can make it easier to manage and monitor the performance of advertising efforts. 

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• Choose your targeting tactic – As discussed earlier, any Sponsored Display add must opt for either a product or audience targeting approach. 

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• Add the products to advertise – Choose one or more products from your lineup to add to the campaign. If a product is out of stock or loses the buy box to an alternative seller, the ads will no longer display to shoppers. 

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• Optimize the bid strategy – The final step before launching a campaign is to select a bid strategy. Brands must choose between CPC and vCPM billing methods and the optimization goal that best fits their campaign.

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When to use Sponsored Display

It’s common for brands to consider Sponsored Display to advertise established products, but new products can also benefit from a well-designed campaign. The targeting capabilities can allow companies to reach the buyers and shoppers of complementary products or introduce the item to audiences that are likely to be high-interest customers. 

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Furthermore, a campaign that uses product targeting to increase traffic and audience targeting to remarket to those visitors can be an extremely effective approach to launching a new product and ramping up sales quickly. 

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Sponsored Display can benefit both large and small businesses due to its targeting and cost flexibility. It can increase brand awareness and accelerate conversion, with adjustments available to emphasize either or a multi-pronged approach to do both. A Sponsored Display campaign also offers metric reporting that can be used to improve current advertising and inform decisions about future campaigns, Amazon optimization and even product improvements. 

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Make the most of Sponsored Display

Amazon Sponsored Display offers brands a powerful tool to enhance advertising campaigns, expand the marketing funnel and drive greater revenue and profits. For Amazon sellers and vendors, Sponsored Display can be used alongside Amazon Sponsored Brand purchases, Sponsored Products ads, and listing optimization to promote products efficiently. However, success requires a solid foundational strategy and a commitment to ongoing improvement. 

One way to increase the effectiveness of a Sponsored Display is to add 10 or more ASINs to the campaign. Having a variety of products will result in more impressions and better data to evaluate the performance of the ads compared to each other, which can reveal strengths and deficiencies.  

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It’s also critical that you contribute an appropriate ad spend to any Amazon display ads. Campaigns that run out of budget before the end of the day will be challenging to evaluate and adjust effectively. Comparing the effectiveness of Sponsored Display, Sponsored Brands and Sponsored Product ads simultaneously can also be helpful. Using similar targeting strategies and budgets across these types of sponsored ads can provide valuable insight. 

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Finally, it’s important that the data that Amazon makes available from its advertising solutions and listings is used to guide future advertising decisions and set campaign goals. Remember to experiment with different targeting tactics and review all of the metrics to identify what’s working and what isn’t. But be careful not to react too quickly. Instead, give ads multiple days or weeks of impressions before making adjustments. Similarly, novice campaigns often need as much as three months of tweaking to begin producing the desired results.  

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Amify can help

Don’t let the learning curve of Amazon Sponsored Display keep your products from reaching their full potential. Our Amify experts are ready to help your brand navigate the complicated world of targeting, optimization, data analysis and content creation. Trust their knowledge and experience to build the right Amazon ad mix for your products, and enjoy the results you’re seeking sooner, with less frustration, and at a lower cost than you thought possible. Contact us today to learn more. 

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Amify has been helping brands sell on the Amazon platform for more than a decade, and we have seen and made our fair share of mistakes during that time. However, we know it’s valuable to reflect on the lessons we have learned during this past decade, and we believe it’s helpful to share some of the most common mistakes. In our experience, these are a few of the self-inflicted blunders that are likely to derail brands as they pursue growth on the platform. 

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#1 Unrealistic expectations

We find that many brands expect huge sales and profitability from the start. We all want our products to be massively successful right out of the gate, but launching an overnight sensation is extremely rare. Instead, it often takes many years to perfect a product and craft a selling strategy that leads to sustainable growth. Brands need to take a long-term approach on Amazon to make it successful. The market is enormous and highly competitive. Time and patience are a necessity as new brands work to build their reputation against entrenched competitors. The good news is that perseverance does pay off. 

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#2 A lack of focus

Brands have limited time, money and resources. Still, it’s not unusual for them to try to do too much within these restraints. For example, they often want to launch all of their products on multiple Amazon marketplaces simultaneously and as quickly as possible. However, this “put everything everywhere” strategy causes a huge logistical distraction for a brand. So instead, we recommend that brands sell a small number of their top products on Amazon US first, expanding into other areas over time. It’s a much more straightforward approach to target 10 percent growth on Amazon US, which is by far the largest market, than it is to launch in other countries. 

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#3 Underinvesting in content and overinvesting in advertising

Advertising is expensive but easy. Creating awesome content specifically for Amazon isn’t as costly but can be time-consuming. We find many brands create product listings without much thought or understanding of the Amazon platform. Often these listings have a few bad pictures and bullet points like “Made in China.” Meanwhile, these same brands will spend thousands of dollars on advertising to drive traffic to these poor listings. Not surprisingly, the poor conversions of the ads are met with confusion from the novice sellers. 

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We know from experience that developing an amazing product listing that features high-quality copywriting, images and A+ Content is a step that brands cannot afford to overlook. It’s a surefire path to dramatically increasing sales and decreasing costs. Great content can realistically increase conversion rates by several percentage points. This increased efficiency has the added bonus of substantially lowering advertising costs and can lead to increased sales with much higher profitability. 

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#4 Thinking that Amazon cares about your brand

Amazon does not care about your brand. Again, Amazon does not care about your brand. However, Amazon is a business, and the platform wants to make money off your brand. But companies should approach the marketplace with a clear understanding that Amazon will not prioritize a seller’s internal profitability levels or provide unique advantages to any brand over its competition. Amazon knows that their customers are probably more loyal to them than to most brands selling on the site. If one brand goes away, shoppers are likely to buy from a competitor’s Amazon listing, which has little, if any, impact on Amazon. They still make their cut from the sale. The sooner a brand realizes that Amazon doesn’t care, the better it can build a strategy for growth on the site. 

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#5 Misunderstanding the value of product pages and seller listings

Every product on Amazon has its own unique product listing. But, if the item has multiple sellers, each seller’s offer is still represented by that single product page. Brands often overlook the fact that demand for their products at any given time is typically fixed. Therefore, whether there is one seller or 100 sellers of the product will yield the same amount of total sales in most circumstances. Despite this, we see brands that will spend countless hours selling to retailers that do nothing but list the product on Amazon and compete against the myriad other sellers of the same product. Eliminating the continuous addition of new sellers and minimizing the existing non-value-added retailers can streamline a business without diminishing overall sales on the Amazon platform. 

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#6 Underestimating how complicated it is to sell on Amazon

Selling on Amazon requires expertise in branding, advertising, SEO, creative content, customer service, platform management, inventory management, financial operations, and many other areas. In other words, finding success on Amazon is like running an entirely separate business with vastly different skill sets than the ones that likely built your company. There are very few people who can excel at both branding and financial management. And even with specialists for each critical aspect, those people and systems need to work together productively for an Amazon business to thrive. Most companies looking to get their start on Amazon don’t have the capacity to hire an entire team to develop a solid Amazon strategy and execute it properly. The brands that try adding the necessary experience, technology, and expertise to their in-house capabilities usually fall short. 

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Navigate Amazon’s biggest pitfalls with an experienced partner

The experts at Amify can give your brand the advantage of experience in the areas that matter most and the confidence of a strategy refined over a decade. Don’t let Amazon’s learning curve slow down your company’s success. Instead, rely on our team of generalists and specialists to give your brand the dedicated commitment to e-commerce growth that it deserves. Contact us today to learn more. 

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