Fulfillment by Amazon (FBA) is a dominant e-commerce program that allows a brand to ship its products to 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 their customers one- or two-day shipping. While there is an FBA fee to account for, shipping costs are typically much less than seller fulfillment via other providers, and Amazon takes responsibility for the customer service and return processing. 

However, life as an Amazon FBA seller comes with its own challenges. First, the brand must ship products into an FBA warehouse, thus creating a separate “warehouse” just for Amazon products. Also, the products must comply with all of the company’s requirements, including labels, temperature, and expiration dates. Then, once the product is at Amazon, it’s challenging to change, inspect or fix problems. Finally, Amazon controls the amount of inventory allocated to each product, frequently resulting in stock-outs during busy seasons. 

While FBA is often the key to winning on Amazon, joining is not mandatory for sellers. Instead, they may consider several other fulfillment options. Keep reading to learn more about four of the most popular alternatives. 

1. Fulfillment by Merchant

Fulfillment by Merchant (FBM) is when a brand uses its own warehouse 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 bundling products for sale to customers. 

Using FBM can be a good option for sellers who have their own warehouse or storage space or who can store their products at a third-party fulfillment center. It can also be a good option for sellers who want to have more control over the fulfillment process and be able to customize it to their own needs. For example, a seller may choose to use FBM if they want to include personalized thank-you notes or promotional materials with their orders, or if they want to offer a variety of shipping options to their customers.

However, using FBM also requires a seller to be organized and efficient in managing the fulfillment process. They will need to ensure that they have sufficient inventory to meet customer demand and that they can package and ship orders promptly. Sellers using FBM will also need to handle customer service inquiries related to their orders, including issues with shipping, returns, and exchanges. Companies relying on this model will also 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. 

2. A Third-Party Fulfillment Partner

Using a fulfillment company to sell on Amazon is a popular option for many sellers, as it allows them to outsource their products’ storage, packaging, and shipping to a third-party fulfillment center. This can be viable for sellers with inadequate warehouse or storage space or who prefer to focus on other aspects of their business while leaving fulfillment to the experts but don’t want to participate in Amazon’s FBA program. 

There are many fulfillment companies to choose from, and it is essential to do your research and compare their services, fees, and reputation before deciding which one to use. Once a fulfillment partner is identified, and a relationship is established, the brand’s products are delivered to the fulfillment center along with any necessary information regarding handling instructions and delivery methods.

To sell on Amazon, corresponding product listings will still need to be created for the products that a company plans to sell. When setting up those listings, the brand will designate them as “Fulfilled by Partner” and specify the fulfillment center handling the orders. Once orders are received, the details will need to be relayed to the fulfillment provider to have the product shipped to the customer. 

When using a fulfillment partner, it is still critical that the inventory is closely monitored and restocked as needed. Regardless of the fulfillment model, the ability to fulfill orders in a timely manner is the priority, and an order fulfillment service will be able to assist in this process.

3. Seller Fulfilled Prime

Seller Fulfilled Prime (SFP) can appear to be the best of both worlds. It allows a merchant to ship products out of their selected 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. To be eligible for SFP, sellers must meet certain requirements related to shipping speed, order accuracy, and customer service.

One of the main benefits of SFP is that it allows sellers to offer Prime shipping to their customers, which can be a significant advantage in a competitive marketplace. Prime members are known for their loyalty to the program, and offering Prime shipping can help a seller stand out and potentially attract more customers. 

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. 

4. FBA with help from a consultant

While selling FBA products can be less costly and more streamlined than managing all the logistics independently, it’s not the only step brands can take to optimize their Amazon sales. Integrating Amazon FBA consulting into their operations can ensure a company has the support and expertise necessary to make the most of the FBA option. 

The most valuable Amazon agencies can provide FBA-optimized warehousing space that is often advantageously located near Amazon’s shipping hubs. In addition to meeting the warehousing challenges an Amazon business faces, a reputable Amazon fulfillment consultant 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.

In some cases, retailers find success in traditional sales or via a direct-to-consumer website before attempting to add Amazon to their sales mix. When a brand finds its performance on the leading online marketplace to be lackluster compared with its other channels, it can signal a problem with the strategy or execution on the platform rather than a product weakness. 

‍These circumstances may be a good reason to ask for help from an experienced Amazon FBA partner. Although Amazon FBA 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. With an Amazon FBA expert, you know exactly who to contact about your account and can be confident that issues will be resolved with urgency. 

Clearly, an FBA partner can strengthen a brand’s Amazon presence in several ways, but one of its most essential capabilities 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. 

Choose Amify

Find the fastest, most efficient way to get your Amazon orders to their destination with help from an experienced partner. Amify can lead your FBA prep and inventory management initiatives, and fill the gap in your team’s Amazon expertise. Your path to success on the platform can start with a conversation.

One of the ways that Amazon sellers try to reach their full potential and land the coveted Buy Box is by opting to use Fulfillment by Amazon (FBA) rather than managing the process alone. The service outsources order fulfillment to the online retailer and puts your products inside an Amazon FBA warehouse where they can be picked, packed and shipped by an Amazon employee. Unlike a Vendor Central 1P relationship, the seller retains complete control over pricing and FBA inventory management while relying on Amazon logistics for the rest. 

Obviously, the decision to use Amazon’s FBA service comes with added costs. In addition to paying standard seller fees on orders, Amazon will also charge FBA fees based on the type and size of the product. Storage fees for the space that inventory takes up in Amazon’s fulfillment centers are yet another cost that results from using an FBA model for sales. 

However, some of these costs would likely originate elsewhere, such as from in-house employees or a different logistics provider. By partnering with an Amazon fulfillment center, sellers enjoy an easier path to Amazon Prime status for their products, reduced customer interactions and more streamlined processes for returns. 

Of course, FBA requires a solid understanding of the packaging requirements and Amazon’s rules for stocking inventory in their industry-leading supply chain. 

Don’t overlook the importance of FBA preparation

For brands planning to take advantage of the FBA service provided by Amazon, the process is more complicated than just shipping products to the global marketplace’s warehouses. The company has strict requirements that sellers must meet before products are accepted into their supply chain.  

Proper preparation ensures that your products are stored and handled correctly in the fulfillment center, which can help reduce damage and improve the overall customer experience. Meeting Amazon’s labeling and packaging requirements reduce the risk of product returns and shipping errors or delays. In exchange, sellers can take advantage of Amazon’s fast and reliable fulfillment network at a lower shipping cost than alternatives, which helps get the products to customers quickly and efficiently. For some brands, using an Amazon FBA prep service may be worthwhile to navigate the various requirements. 

General Packaging Rules

When selling via FBA, sellers must follow all general requirements for shipping inventory to Amazon’s fulfillment centers and realize that Amazon can refuse, return, or repackage any product that does not meet its standards. Occasionally, these mistakes may also lead to a fee for failing to satisfy Amazon product compliance rules.

First and foremost, every product must have a unique FNSKU (Fulfillment Network Stock Keeping Unit). An FNSKU label identifies a product as a Fulfillment by Amazon product and by an SKU. Sellers who market similar items, where the only differences between the products are size, shape, or color, must give each product variation a new FNSKU. For tracking purposes, each package must also have an exterior barcode or label, which can be scanned. The label must be accessible and readable.

Beyond the above requirements, the packaging rules can vary slightly according to the type of product. If an item fits multiple categories, it must be prepared for shipment according to all applicable categories’ regulations. Amazon also has specific rules for the different types of packaging options: 

Loose products – When sold together, loose products must be contained within one package. Units that are sold as sets with many pieces within one box must be marked with a label that says “Sold as set” or “Do not separate.”

Boxed units – Any shipments in boxes must be six-sided and completely sealed, and difficult to reopen. In addition, all boxes must be able to withstand a medium amount of pressure on any given side.

Poly bag units – Poly bags need to have a minimum thickness of at least 1.5 mils, and those with openings larger than five inches must contain suffocation warnings. These warnings must be printed on the bag or attached as a label in an easy-to-find location using an appropriately-sized font. The bag must be transparent and contain a barcode that can be scanned easily. The poly bag must be completely sealed and should not protrude more than 3 inches past the product’s dimensions.

Bubble wrap – Products with bubble wrap must be tightly wrapped and taped shut so the product cannot fall out, as well as labeled with a scannable barcode on the outside. The packaging should be sufficient to withstand a three-foot drop test on a hard surface without the contents breaking. Bubble wrap may be required because the item is fragile and could be easily damaged during transit or for heavy or dense items that could damage other shipments.

Over-boxing – Amazon may require over-boxing when there are safety concerns about shipping and handling. Over-boxing involves placing a prepared or packaged product in a box for added protection, even if the product is already boxed. For example, it is typically required for sharp items that could puncture packaging materials, fragile items that failed the bubble wrap drop test, hazardous liquids in glass containers over 4.2 oz, and for vinyl records.

In addition, Amazon may impose further requirements such as additional taping or case quantity limits to ensure products can be fulfilled efficiently and delivered in good condition. Items with expiration dates must include the date in MM-DD-YYYY format on both the individual unit and the shipping container. Approved supplies can be purchased directly from Amazon to make the packaging demands simpler for sellers.

Managing FBA returns

As an Amazon seller, returns are inevitable. Fortunately for FBA participants, Amazon handles the customer service and logistics of all returns. However, that doesn’t mean that brands can afford to ignore the reasons for or consequences of an Amazon return. When a product arrives at an Amazon facility as a return, it can either be returned to sellable inventory or marked as unsellable, depending on its condition and the reason, or disposition, indicated for the return. Therefore, it’s helpful for sellers to understand the different categories of returns and have a plan for dealing with each type. 

Sellable returns

In the best-case scenario, returned items will be identified as “sellable” and automatically returned to a brand’s FBA inventory to be resold to another customer. Under these circumstances, no additional action is required from the seller. However, if there is doubt that the item should be resold, it’s possible to place a removal order to have the product returned to the seller for inspection. 

Damaged returns

It’s not unusual for a return to result from a damaged item that is discovered before it is delivered to the purchaser. If the item were damaged in the warehouse because of a mistake by an FBA worker, the seller would be eligible for reimbursement. However, if it’s determined that the damage resulted because it was sent to the Amazon warehouse in that condition or the seller failed to meet Amazon’s packaging requirements, there will be no reimbursement. 

Customer damaged returns

Some items that are returned will be classified as “customer damaged” and will also not be returned to your sellable inventory. This category does not necessarily mean that the customer is at fault for the damage. Instead, it means that the customer discovered the damage upon delivery. Typically, these items warrant a removal order via Amazon Seller Central to inspect their actual condition and decide the next steps. Since the customer makes the damage determination rather than Amazon, the product’s actual status can vary greatly and is sometimes found to still be in new condition.

Carrier damaged returns

Occasionally, an item is damaged in transit to the customer. When this occurs, it is the fault of the shipping company used, such as UPS, FedEx or USPS. Amazon will reimburse sellers for these returns as long as they don’t request removal to have them returned. 

Defective returns

Similar to “customer damaged” returns, defective returns identify items that are returned when the customer states that it is obviously damaged or faulty. Again, this is an assessment from the customer, so sellers should inspect the item to determine the next steps. Otherwise, the item will join the brand’s “unsellable” FBA inventory.

Remember, too many claims of defective items can put an account in danger of a suspension and result in negative seller metrics. So if a customer returns an item as defective that is actually in good condition, the discrepancy should be reported to Amazon with evidence to try and avoid the negative consequences. 

Typically, a customer return must be completed within 30 days of the initial purchase. However, the window is extended during the holiday season beginning November 1 each year. Products purchased after that date can be returned until January 31 of the following year. If a return is processed, but the item is not returned to Amazon within 45 days, the company should reimburse the seller. Still, it’s best to monitor for this issue since Amazon may not provide the credit automatically every time. 

Amify is the whole package

Is your brand ready to win on Amazon marketplace? Partner with Amify and find out how Amazon FBA facilities can be the key to beating the competition and accomplishing your sales goals. Our team has a deep understanding of FBA requirements and how to leverage the program to achieve the growth you’ve been chasing. Schedule a consultation today.

As one of the world’s largest and most successful retailers, Amazon’s supply chain strategy plays a crucial role in its overall success. The company’s ability to efficiently source, produce, and deliver a wide variety of products to customers around the globe has helped it become the preeminent e-commerce leader. 

A closer look at the Amazon supply chain strategy reveals the reasons for the company’s dominance. Key elements drive the effectiveness and innovation that has outperformed the competition and attracted the world’s biggest brands to the Amazon marketplace.  

The fulfillment process

Inventory and Storage

The first step in getting products to the customers who placed the order is making sure the items are available to be shipped out. For some sellers, this means having a supply of the inventory in stock at a business, warehouse space, storage facility or third-party warehouse. In the case of Fulfillment by Amazon (FBA), it requires sellers to ship products to Amazon’s distribution centers in a manner that meets the company’s strict compliance requirements. 

Success for an Amazon seller via FBA or other means requires careful inventory management. It’s imperative that the sellers are capable of meeting customer demand and planning for seasonal surges and events such as Cyber Monday or Prime Day. 

Understanding Amazon’s FBA shipping criteria allows sellers to keep their products in stock for customers and ensures a fast and efficient shipping process. The rules include using boxes that match Amazon’s size requirements and avoiding loose packing materials such as packing peanuts or shredded paper. In addition, the shipping label should not be placed over box seams, and each unit should have a scannable barcode with no extraneous barcodes on case-packed units or shipping containers that might create confusion at Amazon’s warehouse. Finally, of course, the packaging should also be sufficient to protect the products while in transit to the Amazon distribution centers. 

Order placement

With the inventory ready for distribution, the next step in the process occurs when a customer orders the item. A brand’s marketing, optimization and reputation all play an integral role in driving these conversions. 

Once a transaction is completed, the seller can begin processing the order and moving on to the final phase of delivering the chosen item to its intended recipient. 

Pick, pack and ship

The pick, pack, and ship stage includes the steps required to ship a product to a customer. The process typically involves the following steps:

Picking – This is the selection of the specific items that are included in the customer’s order. In a warehouse setting, this might involve using a handheld device to scan the items and add them to the order.

Packing – Once the items have been picked, they need to be appropriately packaged for shipping. This usually requires placing the items in a box or other packaging, along with any necessary packing materials to protect the items during shipping.

Shipping – The final step is to ship the order to the customer. The shipper must print a shipping label, attach it to the package, and hand it off to the appropriate shipping carrier, such as USPS, UPS or FedEx.

Seller fulfillment options

Fulfillment by Merchant

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 order 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 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

One of the ways that Amazon sellers try to reach their full potential and land the coveted Buy Box is by opting to use Fulfillment by Amazon (FBA) rather than managing the process alone. The service outsources order fulfillment to the online retailer and puts your products inside an Amazon FBA warehouse where they can be picked, packed and shipped by an Amazon employee. Unlike a Vendor Central 1P relationship, the seller retains complete control over pricing and inventory management while relying on Amazon logistics for the rest. 

Obviously, the decision to use Amazon’s FBA service comes with added costs. In addition to paying standard seller fees on orders, Amazon will also charge a fulfillment fee based on the type and size of the product. Storage fees for the space that inventory takes up in Amazon’s fulfillment centers are yet another cost that results from using an FBA model for sales. 

However, some of these costs would simply originate elsewhere, such as from in-house employees or a different logistics provider. By partnering with Amazon on fulfillment, sellers enjoy an easier path to Amazon Prime status for their products, reduced customer interactions and more streamlined processes for returns. 

Multi-channel fulfillment

Many Amazon businesses already take advantage of the platform’s Fulfillment by Amazon (FBA) program to support their efforts to get products ordered on Amazon to the buyer. However, fewer companies may realize that Amazon also offers similar fulfillment services for products that are ordered from other websites. With this option, Amazon Multi-Channel Fulfillment (MCF) can simplify the logistics of order fulfillment by providing the same features and services of Amazon FBA to fulfill orders that originate from most online merchants, including a brand’s direct-to-consumer (DTC) website.

Much like any other third-party logistics (3PL) company, Amazon allows sellers to store their inventory in their vast fulfillment network. Once products are in one or more of the company’s warehouses, order fulfillment can be automated by integrating Amazon’s services with other e-commerce platforms. Amazon will then handle the picking, packing and shipping of products even when they are ordered via a sales channel other than Amazon. These orders remain fully trackable, and Amazon Multi-Channel Fulfillment can also manage customer returns according to the seller’s preferences. 

While brands can use Amazon’s MCF and FBA programs simultaneously, it’s worth noting that the company will always prioritize Amazon orders over those from other sources. However, the Multi-Channel Fulfillment program is not restricted to sellers who use Amazon as one of their sales channels. Even brands that use only their own DTC site or alternative e-commerce solutions can still choose to have Amazon handle their order fulfillment. 

Amazon’s fulfillment advantages

Warehousing

Amazon’s growth over the past two decades is largely due to its approach to order fulfillment. The marketplace’s emphasis on quickly delivering items, including its popular two-day Prime shipping, has set the standard for the industry. But, clearly, their fulfillment strength begins with their warehousing strategy. 

The company’s largest warehouses are located in near population hubs, with the Amazon inventory split among them to minimize delays. Each distribution center is optimized to make picking, packing and shipping as efficient as possible. In addition, inventory storage is divided into separate areas according to demand and shipping requirements, such as one for magazines and books, another for Prime items and others for oversized or irregularly-shaped products. 

In addition, Amazon utilizes various types of warehouses and fulfillment centers dedicated to particular tasks. According to the company, these include:

Sortable fulfillment center – Around 800,000 square feet, sortable fulfillment centers can employ more than 1,500 full-time associates. In these buildings, Amazon employees pick, pack, and ship customer orders such as books, toys, and housewares. Thanks to the innovations of Amazon Robotics, associates often work alongside robots, allowing them to learn new skills and help create a more efficient process to meet customer demand.

Non-sortable fulfillment centers – Between 600,000 to 1 million square feet, non-sortable fulfillment centers employ more than 1,000 full-time associates. In these centers, associates pick, pack, and ship bulky or larger-sized customer items such as patio furniture, outdoor equipment, or rugs.

Sortation centers – At sortation centers, Amazon associates sort customer orders by final destination and consolidate them onto trucks for faster delivery. Amazon’s sort center network powers the ability to provide customers with everyday delivery, including Sunday delivery.

Receive centers – Amazon’s receive centers support customer fulfillment by taking in large orders of the types of inventory that are expected to sell quickly and then allocating those items to fulfillment centers within the network. 

Specialty – Amazon’s fulfillment network is also supported by additional types of buildings that handle specific categories of items or are pressed into service at peak times of the year, such as the holiday season. 

Delivery

Similar to its approach to warehousing, Amazon is revolutionizing the delivery options that customers can utilize when shopping on the platform. In recent years, Amazon has accelerated the time needed to get orders from storage to the purchaser and launched new methods that increase efficiency. 

Free, two-day Prime deliveries are likely one of the most familiar. While the company and its sellers still use third-party carriers like UPS, FedEx and the U.S. Postal Service for some deliveries, Amazon has also added its own proprietary shipping options. Drones that land in your backyard or on your roof can deliver products in a matter of hours. Amazon-branded trucks and delivery vans are now offered via a franchise-like structure to entrepreneurs and small businesses interested in expanding the company’s delivery footprint. 

The company also focuses on making the delivery process more convenient via its Hub & Locker and Hub Counter locations. At the same time, Amazon Key gives delivery drivers the ability to place packages inside a home or garage. As a result of these innovations, delivery times are reduced and convenience for shoppers and Amazon is increased.

Customer service and returns

Amazon has built a reputation for having a strong customer service team and for making it easy for customers to return products. This is likely because Amazon has invested heavily in developing a comprehensive and user-friendly returns policy and process and training its customer service staff to be knowledgeable, helpful, and efficient.

Amazon also offers a wide range of options for returning products, including the ability to return items by mail, at a local drop-off location, or select retail stores, and provides clear instructions for how to do so. Additionally, Amazon provides convenient tracking and updates throughout the returns process and often offers refunds or replacements quickly and without hassle. All of these factors contribute to making the customer service and returns experience with Amazon generally positive and stress-free.

When third-party sellers opt for an FBA agreement, Amazon handles the customer service and return processing for those brands. While this sometimes leads to concerns about the condition of returns and fraud, it does minimize the costs and time-consuming burden of handling those responsibilities in-house. 

Technology 

Amazon’s supply chain management relies heavily on technology and is often among the first to integrate new technologies. The company uses robots, automated conveyor belts, and other technology in its fulfillment centers to streamline the process of sorting, storing, and shipping orders. Advanced software optimizes routes and schedules for its delivery trucks, planes, and other transportation assets, to reduce costs and increase efficiency. Sophisticated algorithms and data analytics help track and manage inventory levels and predict product demand. Technology such as barcodes and RFID tags can track products throughout the supply chain and ensure that goods are shipped and delivered accurately and on time. And as mentioned, drones are now being used to make some Amazon Prime Air deliveries in larger markets. 

Overall, Amazon’s use of technology in its supply chain helps the company to operate more efficiently, reduce costs, and improve the speed and accuracy of its fulfillment and delivery operations. But the advantages also extend to the companies it works with. For example, the Seller Central and Vendor Central dashboards provide sellers with a central hub to manage their relationship with Amazon, and each offers a wealth of data to help with forecasting and optimization. 

Manufacturing

As Amazon has grown, so has its focus on private-label brands. Inspired by the success of house brands in brick-and-mortar stores, Amazon hoped to capitalize on its ability to market low-priced products backed by the company itself. Since committing to the tactic, they have offered private label products, some bearing the Amazon name, in categories ranging from food to clothing to electronics. 

However, new reporting indicates a shift may be on the horizon. While sellers and brands utilizing Amazon have previously focused on competing with Amazon’s private label brands, the new priority may be on learning how to adjust to a marketplace with fewer Amazon-branded products available, but new challenges that would accompany such a transition.

Both Vox and the Wall Street Journal addressed the potential change in Amazon’s strategy in recent weeks. Their reports centered on the possibility that Amazon’s efforts to drive market share in-house may lead to more harm than profit.  

Among the motivations for a decision to minimize these offerings is the scrutiny Amazon has faced from government regulators due to their private label products. There are well-documented questions about how Amazon’s role as a marketplace and data-collection company may conflict with its aspirations to sell more of its in-house brands. Regardless of what happens in the future, current sellers should be aware of the industry climate and have a plan to respond in ways that will grow their businesses. 

Amify can deliver for your brand 

Find the right Amazon warehousing strategy for your business with help from the experts at Amify. They understand the impact that a delivery option can have on your bottom line and how growing sellers can make Amazon’s supply chain strategy and operations an important advantage. Contact us today to learn more.

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

These circumstances can be a good reason to ask for help from an experienced Amazon agency. The size, competition and nuances of Amazon make it a challenge to master, even for brands that have found success elsewhere. But, the right Amazon consultant can strengthen the most important areas of your business to help your brand reach more shoppers and drive faster conversions on Amazon. 

Warehousing & Logistics

Amazon seller success hinges on a company’s ability to get its products to customers quickly. Whether a brand is shipping to Amazon as a vendor, fulfilling customer orders directly, or relying on a Fulfillment by Amazon (FBA) model, the storage, packing, labeling and shipping of a product need to be expertly managed. The most valuable Amazon consultancy services can provide optimized warehousing space that is advantageously located near Amazon’s shipping hubs. It’s just one of the many services that an Amazon consultant can offer to streamline a company’s operations. 

In addition to the warehousing challenges an Amazon business faces, poorly-managed inventory can negatively impact a company’s bottom line. Fortunately, a reputable Amazon consulting expert can provide cost-saving logistics solutions. For example, a consultant can provide experience with Amazon’s FBA guidelines and ensure that products remain in stock for customer orders and that businesses can avoid the expensive aged-inventory fees that Amazon will charge for stagnant inventory. In addition, their technology and experience can keep your inventory optimized by offering supply strategy, demand planning, tracking, storage monitoring and returns management.

Amazon A+ 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 more Amazon sales. A consultant will understand the platform’s search algorithm as well as the preferences and behaviors of customers. Their experience in Amazon listing optimization, Amazon search engine optimization (SEO), designing eye-catching imagery and developing enhanced brand content that grabs attention can provide a much-needed edge. 

Among the most influential pieces of Amazon A+ content are high-quality images and videos. 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. Amazon seller consultants can create professionally shot and art-directed photos or videos will help you create visuals that don’t just look good but also help you sell. In addition, the media on your product pages or Amazon store should tell a story. An Amazon consultant knows how to showcase your product from multiple angles, add compelling text overlays to relay product benefits and use precise measurements and comparisons to establish its size and function. 

And remember, nothing packs a storytelling punch quite like video. Done correctly, it has the power to engage your customers and provide information that can minimize confusion and lead to fewer returns and better reviews.

Amazon Marketing Services

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 Amazon consulting experts can give brands access to more efficient advertising and media tactics, including Pay-Per-Click (PPC) advertising, social media and video. Integrating a paid digital marketing plan with optimization ensures the best possible return on investment. Amazon consulting services specializing in SEO and advertising are well-equipped to navigate the complexities of such an approach. 

An Amazon consulting service can also lead the creation of a highly-shoppable Amazon Storefront that organizes and promotes products effectively while building a company’s brand loyalty. Creating an Amazon Storefront should not be an isolated tactic. Instead, it needs to be part of a broader campaign to develop followers and strengthen your brand. Working with Amazon seller consulting services can ensure that the effort integrates ways to drive traffic to your Amazon shop using your other brand assets, such as social media followers, digital advertising or a Sponsored Brands campaign. 

‍Using these strategies can make your Amazon Storefront’s successes part of a comprehensive campaign that can help grow your business exponentially. Remember that just because Amazon is where your sales are happening, it’s not the only place to engage customers. If your brand intends to make Amazon its primary sales channel, all aspects of your branding and advertising should support your Amazon listings. Likewise, your presence on Amazon must contribute to your overall brand. 

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 central 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. 

In addition, 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 have trouble developing 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. 

Strategy & Analytics

Clearly, an agency can strengthen a brand’s Amazon presence in several ways, but one of the essential capabilities it can offer is an informed and well-defined strategy. The relationship between an Amazon expert and a seller can add an invaluable perspective when building a plan to reach their goals in the Amazon marketplace. An Amazon specialist 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 be overwhelmed with the intricacies of selling on Amazon and will benefit from a strategic plan aimed at growth on the platform. 

Whether from Amazon or elsewhere, one of the advantages of e-commerce is the incredible amount of data sellers can access. There’s often a daunting number of reports available regarding inventory, shoppers, advertising, buyers and more. The most effective Amazon account management 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 Amazon Seller Central and supplements those metrics with outside data to create a fuller picture of a brand’s strengths and weaknesses. 

Finally, few of the brands selling on Amazon take advantage of all the tools 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. As mentioned above, Amazon Brand Registry, A+ Content, Amazon Storefronts, product listing optimization, product research, Amazon SEO and Amazon PPC 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 seller consultant can transform this severe deficiency into a strength.

Consider making Amify your consulting partner

Turn to a trusted marketplace expert to attract shoppers to your product listings and convert them into buyers. The Amazon experts at Amify can develop the right digital marketing strategy, elevate your content or help your brand navigate the challenges of an Amazon FBA transition. Schedule your free Amazon Account Consultation to get started.

No single Amazon selling strategy will ensure success within the platform’s global marketplace. So while winning the Buy Box is an important piece of the puzzle, it’s only one step. And it doesn’t guarantee your sales will grow moving forward. 

Instead, sellers can pursue any number of different strategies in pursuit of the goals. Most of the time, it takes a combination of these tactics to achieve consistent results. 

#1 Maximize margins with Seller Central

The most common Amazon partnership, of course, is via a seller relationship with the retail platform. With more than 300 million shoppers worldwide and tens of millions of products, the Amazon marketplace plays an integral role in e-commerce in the United States. 

In the Seller Central (3P) model, a brand sells its product directly to the end customer through an Amazon Seller Central account. By avoiding a retailer, brands can realize increased profitability, gain more control over the customer experience, and enjoy increased visibility into data and sales trends. Brands that sell directly in this way typically add a clause to any retailer agreements prohibiting the product from being sold on Amazon by other distributors. 

As a 3P seller, brands can maximize their margins and avoid retailer costs. They also enjoy improved control of branding and the customer experience on the Amazon platform while having more access to data, customers and information. However, finding success with this type of 3P model can require an experienced team that understands Amazon optimization. Unfortunately, many brands do not have the internal skills or resources to manage selling on Amazon. In addition, it can be viewed as competition for other retail partners, and a brand may face more risk by having to own inventory until it is sold to the end consumer

‍In most cases, brands with experience selling directly to consumers and with high-margin products can benefit from opting for this model. These companies can use the valuable data to refine their strategy and will maintain control over their customer-facing interactions. On the other hand, businesses without appropriate margins or the resources to dedicate to Amazon optimization may not be well-served by a 3P model. 

#2 Consider Vendor Central

Unique from a traditional Amazon seller account, Amazon’s Vendor Central platform is the interface brands use to sell products directly to Amazon rather than to the consumers shopping in the marketplace. Amazon is then responsible for listing, selling and shipping the products. The Vendor Central model, commonly referred to as first-party or 1P selling, is an opportunity for companies to establish a relationship with Amazon and sell its products at wholesale prices. However, this model is an invite-only program and is usually limited to larger brands with $10M or more in revenue on the Amazon marketplace. 

For the few businesses eligible to become Amazon vendors, the 1P option has some attractive advantages. First, it’s easy to understand. Since it’s similar to any other relationship between a vendor and retailer, a brand does not need internal Amazon expertise. It’s also purchase-order based, so the brand receives large purchase orders from Amazon, which then pays for the inventory. Also, as a retailer, Amazon will often accept lower profitability than a 3P seller, as they compete with Walmart and other retailers on price. 

The 1P model is often a good fit for low-priced and highly competitive Consumer Packaged Goods (CPG). It can also work well for heavy products with high shipping costs, brands that sell through many distribution channels, and brands that do not attempt to enforce a MAP program. For other brands, the downside of operating with a 1P model can make it a less appealing option than the Amazon Seller Central route. By selling to a retail intermediary, a seller is giving up margin, making 1P far less profitable for premium quality brands in many cases. 

It’s also clear that Amazon provides little guidance to its vendors. For example, the platform does not assist in overall strategy, brand positioning, merchandising, or provide technical support. Instead, Amazon simply buys the products. The retailer is also very aggressive at negotiating lower costs from their 1P suppliers by tacking on co-op advertising fees, return fees and chargebacks. And it’s not unusual for Amazon to disregard Minimum Advertised Pricing (MAP) guidelines to sell products for less than a supplier expects

#3 Use Fulfillment by Amazon (FBA)

There are several ways that FBA can help a company sell more efficiently in the Amazon marketplace. It can level the playing field against a brand’s biggest competitors and often improves customer service while minimizing costs. In addition, shifting fulfillment responsibilities to Amazon allows sellers to focus on their true strengths. 

One of the most significant advantages is that using Amazon 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 also dramatically cheaper than other options for most products. Since 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. This considerable cost difference requires brands that don’t use FBA to either increase its price or be willing to accept much lower (or even negative) margins. 

When using FBA, Amazon will also 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. 

#4 Have a smart pricing plan

Every brand looking to succeed on Amazon should take a deliberate approach to price. As e-commerce continues its rapid growth, pricing policies will become more critical for retailers and manufacturers. Online sales will likely continue their growth trend while consolidating among the largest online retailers, including Amazon. As this happens, the desire of smaller resellers to compete with industry leaders is more likely to lead to destructive price wars for products that aren’t backed by effective pricing strategies. 

Implementing effective pricing policies can help companies create mutually-beneficial relationships with retailers and shoppers. Resellers will appreciate the support from the brand that protects their margins. At the same time, consumers will enjoy more confidence in the value of a product and a less frustrating shopping experience due to the consistency across both e-commerce and brick-and-mortar stores. In addition to the positive impacts that a successful Amazon pricing strategy can have on a company’s retailers and customers, there are also substantial benefits for the brand. Prioritizing margins and protecting retailers from price wars increases a brand’s value in several ways. 

Minimum Advertised Price (MAP) may not be top of mind for brands, particularly new ones. True to the name, MAP is the minimum price a retailer can advertise for a product they sell. The MAP is set by the brand and should include a margin allowing retailers to profit reasonably. It applies to any retailer who carries the item and is intended to level the competition among sellers and avoid price wars. It differs from the more familiar Manufacturer’s Suggested Retail Price or MSRP, which refers to the amount that a manufacturer thinks a product should sell for. It does not create any restrictions on the advertised price. Brands can use MAP pricing to control the gap between MSRP and advertised prices. In this way, they can avoid the less-than-ideal message that a product is worth substantially lower than what the brand suggests. 

#5 Add A+ Content

Amazon A+ Content is your chance to provide fantastic product details for your Amazon product pages and integrate high-quality images, comparison charts, and more. In a world of e-commerce often driven by social media, shoppers now expect this combination of personalized service, captivating content, and a flawless user experience. 

Consider A+ Content necessary to showcase your products in the best ways possible. The visuals and copywriting must complement your website and social media in addition to connecting with your customers. Most importantly, you must communicate your product’s unique advantages over the competition and offer customers a satisfying shopping experience that creates loyalty.

Among the most influential pieces of Amazon content are high-quality images and videos. In fact, 78% of people say video has convinced them to buy a product, while 30% of shoppers won’t even consider a product that presents low-quality images. Professionally shot and art-directed photos or videos will help you create visuals that don’t just look good but also help you sell. Showcase your product from multiple angles, add compelling text overlays to relay product benefits and use precise measurements and comparisons to establish its size and function. And remember, nothing packs a storytelling punch quite like video. Done correctly, it has the power to engage your customers and provide information that can minimize confusion and lead to fewer returns and better reviews.

#6 Build a Storefront

Creating an Amazon Storefront is an incredible opportunity to raise brand awareness among Amazon customers, which can lead to 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.

As the face of your products on Amazon, brand owners should be highly involved with creating their Amazon Store. However, it’s essential to remember that design and branding are skills and not something to take lightly. While Amazon has gone to great lengths to make Storefront creation simple and accessible to any seller via templates and drag-and-drop tools, the task will undoubtedly benefit from a well-devised strategy and an experienced designer. 

‍Amazon Storefronts consist of various pages that feature a brand’s products and organize them in a customer-friendly way. Often, the best Stores will have an engaging homepage highlighting the most popular products, while an intuitive set of sub-pages makes it easy for shoppers to navigate the shop and find exactly what they are looking for. 

One of the most critical aspects of an effective Amazon Store is organization. In many cases, the navigation within your storefront should be set up similarly to your direct-to-consumer site, assuming it is already rooted in how consumers shop for your products. We recommend setting up the navigation by need or “job to be done.” This approach prioritizes the perspective of customers who typically shop based on a problem they are trying to solve. 

Opt for simple naming conventions for your store’s pages rather than trying to cram descriptive details into each one. Save those long-tail keyword efforts for your product listings. It’s also best to create a minimum of three pages for your Amazon Store. More expansive stores make organizing products in appropriate categories easier and keep shoppers in your brand store longer, often increasing sales per visitor. 

#7 Use keyword optimization

Optimization is also not as simple as repeating keywords numerous times. Regarding Amazon’s algorithm and keywords, quality is 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. 

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 likely to drive your product’s reach and grow sales. 

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. An effective Amazon SEO plan accounts for both the broadest keywords and the long-tail keywords that help differentiate a brand from its competition and target customers who are closer to the point of purchase. Adding these keywords to engaging copy and taking advantage of Amazon’s backend keyword tools will help your brand to grow its sales on the platform. 

#8 Integrate Amazon PPC

Every brand on the platform is looking for new ways to strengthen its Amazon sales. However, while optimization can give sellers the edge when pursuing the top organic search result, it’s not the only path to a better bottom line. Pay-per-click (PPC) Amazon ads can be a more direct way to drive traffic to a product listing or Amazon Storefront. These PPC ads allow e-commerce businesses to break through the immense competition on Amazon and increase their reach. But it requires a solid plan, a broad understanding of the tools available and skilled execution. 

For example, a key benefit of Sponsored Display advertising and other types of Amazon PPC advertising lies in the targeting options. Brands can create a targeting strategy based on a similar product or relevant product category or choose to focus on specific types of audiences. This type of product targeting can be helpful when promoting product awareness and attempting to accelerate product discovery. In addition, audience targeting can reach shoppers based on their behaviors and preferences, outside of Amazon by targeting shoppers who have previously viewed relevant products and categories or attempting to introduce an item to new customers who are likely to be interested. 

#9 Make the most of your reviews

Obviously, online shopping is more popular than ever, and buyers are extremely savvy about their options. As a result, many view reading product reviews as one of the best ways to inform their purchasing decision. 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. 

There’s no question that reviews, positive and negative, can impact product sales and conversion metrics. What may not be clear, though, is how the relationship between an Amazon review and sales can begin before a prospective customer even finds your listing. Product reviews on a site like Amazon can impact your organic rank among the search results even before a shopper discovers your product detail page.  

While it’s impossible to avoid ever receiving a negative review, there are ways to counter them. Shoppers will give them less weight if they are substantially outnumbered by four and five-star ones. Improved descriptions can also blunt their impact on decision-making if the product’s updated details specifically address the substance of past complaints. A less-than-stellar evaluation can give new customers a reason to hesitate before making purchases. But, it can be incredibly reassuring when you proactively alleviate the concern that an Amazon shopper will have an experience similar to that of an unhappy customer. If you take the time to use any negative reviews to improve your listing or process for the next shopper, your conversion rate will likely rise over time. 

#10 Embrace 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. But, the most effective sellers will leverage the data to reach more customers and increase conversions.

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, an Amazon seller can utilize the platform’s proprietary reports via Seller Central and supplement those metrics with other online store or marketing data to create a fuller picture of a brand’s strengths and weaknesses. 

Joining the Amazon Brand Registry, a necessary first step to an Amazon Store, provides access to the Brand Analytics Dashboard. This, and other tools like Store Insights, allows your company to access data that you wouldn’t otherwise be available and have a glimpse into the habits and sales conversions originating from Amazon. Data such as the path your customers take to your listings and the effectiveness of a product listing can help your company evaluate current marketing efforts and provide direction for new initiatives.  

#11 Start with realistic 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 an Amazon selling strategy that leads to sustainable growth. Brands need to take a long-term approach to Amazon to make it successful. The market is enormous and highly competitive. Time and patience are necessary as new brands build their reputation against entrenched competitors. The good news is that perseverance does pay off. 

Remember, Amazon does not care about your brand. However, it is a business, and the platform wants to make money off your brand. Companies should approach the marketplace knowing that Amazon will not prioritize a seller’s internal profitability levels or provide unique advantages to any brand over its competition. Amazon realizes their customers are probably more loyal to them than 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. 

#12 Partner with Amify

At Amify, we have helped premium brands achieve their Amazon goals for over a decade. From Amazon marketing strategy to enhanced brand content, teaming up with us puts world-class, up-to-the-minute platform knowledge on your side. Review our case studies and discover why our clients average 100 percent growth in the first year after partnering with us.

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 why so many brand owners choose Amify. You’ll quickly see the results that keep our partnerships growing. From marketing and sales to analysis and logistics, our team is ready to help your company win on Amazon.

Search engine optimization (SEO) is critical for every e-commerce business. And brands with an Amazon seller account, in particular, face the extraordinary challenge of optimizing their Amazon product listing across many areas valued by the platform’s algorithm. It quickly becomes apparent that success depends on more than just using the right keywords in a product description. That’s why brands struggling to rise to the top of the marketplace search results should consider turning to an Amazon SEO agency for help.

Amazon SEO is worth the investment

The competition for potential customers 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 a high-quality Amazon listing is necessary to lead to sales. A failure to understand the platform’s search algorithm or make adjustments based on the preferences and behaviors of customers makes it nearly impossible to succeed in the marketplace. Unfortunately, it’s also a common weakness among Amazon sellers.

One of the ways that brands can overcome their struggles with Amazon SEO is by finding an experienced Amazon SEO company with the knowledge and staffing to help fill the gaps. Thriving businesses need a data-driven marketing strategy to get products in front of their ideal online customers on Amazon’s platform. And since the Amazon marketplace is essentially a search engine, SEO is an essential strategy for brands that want to capitalize on the shopping convenience that virtually everyone now has at their fingertips. But gaining a meaningful edge requires a thorough grasp of one of the fundamental building blocks of Amazon product SEO. A results-oriented Amazon SEO consultant can be well worth the investment when internal efforts are not meeting expectations. Their services will likely focus on several fundamental areas of SEO. 

Prioritizing keywords

In addition to keyword research, deploying them successfully requires prioritization. Primarily, this will be based on their relevance and value in the eyes of the Amazon search engine. Best practices for product listing optimization dictates that the highest priority keywords will be both directly related to your product and frequently searched by Amazon shoppers. These are the ones that will appear in product titles, while secondary terms should be used in bullet points. Product descriptions should include any useful keywords that aren’t relevant enough to make those high-visibility elements of a listing.

Integrating long-tail keywords

While your highest priority keywords are likely to be the ones most obvious to your product category, long-tail keywords are more specific searches that you can integrate into your Amazon SEO to target a particular type of customer. While they may return fewer Amazon search results, their specificity might help increase conversions. These keywords can often take the form of a question or include one or more defining aspects of a product. Typically, a shopper using long-tail keywords for their search is closer to the point of purchase, making them an excellent opportunity to increase your conversion rate. In addition, pinpointing the most relevant long-tail keywords can allow you to outmaneuver competitors and significantly strengthen your Amazon listing optimization. 

A+ Content

Amazon A+ Content is your chance to provide fantastic product details for your Amazon product pages. It requires high-quality images, comparison charts, video content, FAQs and more. Consider A+ Content and Amazon Store SEO as necessary to showcase your products and meet shopper expectations. The visuals and copywriting should complement your website and social media, in addition to connecting with your customers. Most importantly, it must communicate your product’s unique advantages over the competition and offer customers a satisfying shopping experience that creates loyalty. A+ Content is not indexed for search by Amazon, but any live text that’s not in an image could potentially affect search engine rankings.

A/B Testing

One of the most valuable strategies that a company can use to optimize its Amazon listings is A/B testing. Already a popular tactic for optimizing Google ads and Amazon PPC services, it has value in other areas as well. Put simply, it’s a comparison test to find the most effective way to influence shoppers. Consider it well-informed experimentation with an emphasis on tracking the results. Since Amazon rewards the listings with the best conversion rates, A/B testing, whether it comes to keywords, design or copywriting, is imperative for any business focused on maximizing ROI.

Find the best fit

Judging an Amazon firm’s experience may seem straightforward, but examining a prospective agency’s claims closely is helpful. Focus on more than just how long the agency has existed. For example, a newer Amazon SEO service may have a talented team with decades of relevant experience. In contrast, an established agency could have had lots of turnover resulting in leadership or specialists who have spent minimal time in the industry. 

Remember to also 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 SEO expert. As important as who they have been able to assist 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.

Ask questions that matter

Unfortunately, choosing the best partner for SEO services isn’t nearly as easy as finding a product on Amazon. Before you trust a third-party provider to lead your Amazon optimization plan, make sure you’re ready to ask the questions that will reveal what you need to know to make an informed decision.  

Do they understand my Amazon business model?

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. It’s also wise to work with an agency familiar with your fulfillment strategy, whether that’s Amazon FBA, direct fulfillment or something else. If a provider says they do everything, you may find they are not good at either. 

Are they experienced working with companies of a similar size?

The needs of a big Amazon seller are different from the needs of a small brand, so understanding if a provider aligns with your brand’s size is also important. Amazon marketing agencies 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. 

Who will be my direct contact at the agency?

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. 

Sometimes, a service provider consists of five people in a townhouse claiming to be experts in Amazon marketing services. 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 difficulty delivering consistent, high-quality work. 

Amazon providers typically staff their teams using three primary models:

• 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. 
• 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. 

By asking to meet the team upfront, a brand will quickly see if there will be a misalignment that can end up damaging your brand or falling short of your expectations.

Who are some of the agency’s key customers? 

A brand should look at a prospective partner’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. 

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 sometimes years to reach its potential on Amazon. Brands that expect massive success in the short term will usually be disappointed by the results, regardless of which agency they choose. 

Build your Amazon SEO strategy with Amify

The experts at Amify know that winning the Buy Box is just one step in the process of growing your Amazon sales. Customer satisfaction, listing content, Amazon advertising and more will all influence whether your product dominates a search result and converts shoppers. Contact us today to discover why we’re a partner unlike any other Amazon consultant. 

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 relying on Amazon SEO to reach 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 six to seven 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 ads. 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’s product listing.

Types of Amazon Sponsored Ads 

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 Amazon ad 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.

Sponsored Products

Similar to Google Adwords, Amazon Sponsored Product ads are targeted using keywords and Amazon Standard Identification Numbers (ASIN) to reach Amazon shoppers. They allow advertisers to promote specific products with Amazon search terms and product detail pages. They are the most popular form of advertising on Amazon. 

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. Amazon Sponsored Brands are also available as video ads to promote a product detail page.  

Advantages of Sponsored Ads 

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

While Sponsored Brands and Sponsored Products 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. 

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. 

Another bonus of Sponsored Ads 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.  

One of the key benefits of Amazon Sponsored Advertising lies in the targeting options. Advertisers can create a targeting strategy based on a similar product or relevant product category or focus on specific audiences. 

Product targeting

By targeting competing or complementary products for Sponsored Ad delivery, brands can capitalize on the opportunity to reach shoppers who are likely to be interested 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 Ad product targeting can be done in one of two ways. Advertisers can select specific products 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.

Audience targeting

Sponsored Ad campaigns are designed to reach shoppers based on their behaviors and preferences. Brands can use audience targeting to engage or reengage prospective customers. These tactics target shoppers who have previously viewed relevant products and categories or attempt to introduce an item to new customers who are likely to be interested. In some cases, Amazon allows brands to create custom-built audiences or use pre-built audiences, depending on the goal of the Sponsored Ad campaign. 

An Amazon agency can help

Amazon ads offer 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, Amazon Sponsored Brands ads, and Amazon Sponsored Product ads can supplement listing optimization to promote products efficiently. However, success requires a solid foundational strategy and a commitment to ongoing improvement. Sometimes, it’s more than an Amazon seller can handle on their own. In this case, an experienced Sponsored Ad management service is an option worth exploring. They can help navigate the complexities of creating an efficient and effective Amazon Sponsored Ad campaign. 

One of the ways an ads manager can simplify the marketing effort is by advising an Amazon seller on the appropriate ad spend necessary to achieve its goals. Campaigns that exceed their budget quickly will be challenging to evaluate and adjust effectively. An adequate budget allows sellers to compare the effectiveness of Sponsored Display, Sponsored Brands and Sponsored Product ads simultaneously while using similar targeting strategies and budgets across these types of sponsored ads to gain valuable insight. 

Another benefit of an experienced partner comes from its familiarity with analyzing the wealth of data that comes from an Amazon Sponsored Ad campaign. It’s crucial that this data is used to guide future advertising decisions and set campaign goals. Experimentation with different targeting tactics and a review of all of the metrics can identify what’s working and what isn’t. These firms also understand not to react too quickly and the importance of giving ads multiple days or weeks of impressions before making adjustments. 

Finally, a third-party agency can be helpful when setting a clear goal for any Sponsored Advertising. It’s common for brands to consider this type of advertising for 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 likely to be high-interest customers. 

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. Of course, Amazon Sponsored Advertising can benefit both large and small businesses due to its flexibility. Done well, it can increase brand awareness, accelerate conversion, increase Amazon optimization and even lead to product improvements. 

A partner can set realistic expectations

The advertising cost to run a Sponsored Ad campaign will vary greatly depending on the number of products being advertised, the target audiences and the budget options that are chosen. For example, Amazon advertisers can opt for a pay-per-click (PPC) 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.  

For both PPC ads and those purchased by impressions, sellers must set a daily budget cap for the Sponsored Display ads 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 Amazon PPC 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. 

Working with a reputable agency makes it much easier to gauge the budget required to meet your brand’s goals. Thanks to a management service’s previous experience with Sponsored Ads management, they can also provide a more realistic timeline for seeing the full impact of any campaign and what those results may look like. 

Agency alignment matters

Unfortunately, experience alone is not enough to guarantee that a service provider will be a good fit for your company. It’s also critical that any Amazon partner aligns with your brand’s goals, team and budget. 

Goals

The Amazon marketplace is an $800 billion business. The services needed by the largest companies on the platform vary drastically compared to smaller brands. Therefore, finding an Amazon Sponsored ad manager that aligns with your brand’s business model and sales level is vital. Your brand should also seek a provider that regularly works with similarly-sized sellers to limit the risk of low-quality service, overly-high costs, or the possibility of not being a priority for the provider.

In addition, Amazon consulting services are typically split between firms that help brands following a 1P Vendor Central model (selling products to Amazon) and those pursuing growth on the 3P Seller Central marketplace (selling products on the Amazon marketplace). Therefore, picking a provider that already focuses on your brand’s business model is best. 

Team

The number one reason brands leave Amazon seller consulting services is a misalignment of the quality of the team they are working with. Often, established companies have learned from their mistakes with previous clients and can likely provide higher quality and more consistent service. While smaller, less experienced providers may be understaffed and rely heavily on contractors, which can lead to low-quality work. 

Budget

It is easy for a brand to underestimate how much work is involved with Amazon advertising management and focus on price rather than quality. However, low-cost Amazon consulting is more likely to rely on offshore teams with less quality control, while the most costly Amazon consulting experts will often provide your brand with director-level staff capable of accelerating growth. People with valuable Amazon marketing 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. 

Amify can help with more than advertising 

From digital marketing to fulfillment to data analysis, the Amazon experts at Amify are ready to build a comprehensive strategy to grow your business. Our decades of experience and commitment to clients ensure you are getting all you can out of your Amazon Seller Central account. Schedule your consultation with our team today.

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.

Every brand on the platform is looking for ways to strengthen its Amazon sales. However, while Amazon SEO can give sellers the edge when it comes to organic search results, it’s not the only path to a better bottom line. 

Pay-per-click (PPC) Amazon ads can be a more direct way to drive traffic to your product listings or Amazon Storefront. These PPC ads allow e-commerce businesses to break through the immense competition on Amazon and increase their reach. But it requires a solid plan, a broad understanding of the tools available and skilled execution on behalf of the advertiser. For many sellers, turning to an agency with experience in managing Amazon PPC campaigns is the best way to achieve online advertising success. 

Establishing a PPC plan

The last thing any Amazon seller should want is to run an Amazon campaign without a plan. While online advertising can be quite cost-effective, a poorly planned campaign will have very little Return on Ad Spend (RoAS), meaning you will have paid too much, no matter the cost. Relying on an Amazon PPC expert can ensure that your campaign is focused on more than just closing a sale. Instead, a reputable agency will help you align your business goals with your marketing efforts on the Amazon marketplace. 

Advertising tactics can be adjusted depending on whether you are trying to raise brand awareness, launch a new product or grow market dominance. For example, an Amazon agency can explain how targeting competing listings or keywords can help increase market share while remarketing strategies can help to drive conversions and increase profitability. 

More importantly, an experienced Amazon PPC service provider will already understand the nuanced ways to optimize a PPC advertising campaign, such as bidding thresholds and data analysis. That expertise can also help develop a more comprehensive campaign built on clearly established goals and complements other aspects of your marketing, such as social media and customer communications.  

Conducting keyword research 

While keywords play a role in successful search engine optimization, it’s not unusual for companies to undervalue keyword research. This is particularly true when it comes to PPC campaigns. But your brand doesn’t have to make the mistake of undermining digital marketing efforts with such an avoidable error. Instead, let an experienced Amazon agency take the lead in the process. 

The challenge of finding the best keywords for your brand to target often involves uncovering the search intent behind the potential options. Beyond just identifying relevant words and phrases, you must account for how those terms relate to a user’s objective and whether that purpose is adequately aligned with your company’s goals. Amazon PPC consultants are experienced in focusing on user intent and capable of narrowing the strategy down to the keywords that deserve the most attention. These PPC experts can help close the gap between your SEO goals and your audience’s online actions.

Of course, reducing Amazon PPC campaigns down to one or two words is rarely the most productive approach. So, while identifying these short but generic keywords, known as head keywords, is essential, it’s only a starting point. Long-tail keywords are another area where a brand pursuing successful Amazon SEO could benefit from some help from an Amazon PPC management company. These are a specific combination of keywords or phrases that closely mirror how a person might search for something online. For example, “waterproof shoes for kids” or “white round wall clock” would be long-tail keywords that could be targeted by brands more efficiently than the head keywords of “shoes” or “clock” alone. 

Targeting the right shoppers

A key benefit of Sponsored Display advertising and other types of Amazon PPC advertising lies in the targeting options. Advertisers can create a targeting strategy based on a similar product or relevant product category or choose to focus on specific types of audiences. A talented Amazon agency understands the strength of each approach and which one to implement based on the client’s goal. 

For example, product targeting can be helpful when promoting product awareness and attempting to accelerate product discovery. Audience targeting is designed to reach shoppers based on their behaviors and preferences, not only when they’re on Amazon. These tactics can target shoppers who have previously viewed relevant products and categories or attempt to introduce an item to new customers who are likely to be interested. 

Amazon PPC Campaigns offers brands a powerful tool to enhance advertising campaigns, expand the marketing funnel and drive greater revenue and profits. But the most successful campaigns are comprehensive, utilizing the full suite of advertising options such as 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 that can be best implemented with the help of Amazon PPC experts. 

Measuring advertising effectiveness

Brands that are new to Amazon PPC campaigns may overlook one of the most impactful aspects of success – measurement. This is despite the fact that Amazon offers a plethora of data to advertisers on the platform via its Seller Central advertising reports. Similar to the Google Analytics dashboard that brands may also be familiar with, these metrics offer incredible insight into the performance of product display ads or other Amazon ads and include:

• Advertising Cost of Sales (ACOS)
• Click-through rate (CTR)
• Impressions
• Return on Ad Spend (ROAS)
• Return on Investment (ROI)

When sellers work independently, it can be difficult to decipher what each of these statistics means for their campaign and how to benchmark them appropriately. However, sellers who opt to partner with an outside agency for PPC services enjoy the competitive advantage of working with specialists who know precisely how to interpret this data. More importantly, an agency can also find actionable insights from Amazon’s advertising metrics that will allow them to improve your campaign over time and launch new PPC campaigns more efficiently based on previous results.

Staying ahead of the competition 

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. Creating and managing an effective PPC campaign to drive prospective customers to your products can be asking too much of any Amazon seller. 

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Businesses love versatile employees, but Amazon marketing services are one area that benefits greatly from experience. It can be the difference between getting things done and getting them done well. Copywriting, keyword research, targeting, and branding are a few of the skills that Amazon PPC success depends on. Proven Amazon experts can increase conversions while minimizing ad spend. Rather than dedicate so much effort to something outside your comfort zone, an Amazon agency can ensure your brand stays up-to-date on the latest PPC advertising trends, tools and features from Amazon more efficiently. 

By outsourcing these skills to a full-service agency, you’ll enjoy award-winning product creative and can be confident that your PPC advertising will be optimized for the right keywords and targeted accurately. The additional experience can also make integrating valuable strategies like A/B testing into your Amazon advertising efforts more manageable. 

Let Amify design your next PPC campaign 

Amify can help your brand establish a data-driven advertising strategy that gets your products in front of the ideal audience. We plan and execute efficient media tactics, including sponsored products, brands, display and video, making sure you get the best possible ROI with your Amazon PPC campaigns. Contact us today to learn how Amify can maximize your Seller Central performance and ensure your advertising costs lead to tangible results.

Promoting products or services during viewers’ favorite TV shows is nothing new. But this type of video advertising has evolved dramatically in recent years thanks to the introduction of streaming video content. 

Today, many brands seek out advertising opportunities that can target specific types of consumers using a streaming service rather than buying broadcast or cable television ads. Not surprisingly, Amazon OTT advertising has become a major player due to its massive data collection and status as a streaming provider. But what can Amazon’s OTT advertising service mean for your sales? With the proper budget and a solid plan, it could be the difference between growth and getting left behind. Keep reading to learn more.  

Amazon’s over-the-top advertising

The expansion and affordability of high-speed internet, combined with the growing demand for convenience among consumers, has resulted in a proliferation of streaming video services. From Amazon Prime Video and Apple TV to Netflix and YouTube TV, there’s no shortage of alternatives to traditional tv, or what many in the advertising industry now refer to as linear tv. 

These streaming entertainment options are considered over-the-top (OTT) video content. The term reflects the fact that these streaming services bypass a traditional set-top box from a cable provider or over-the-air transmissions from local network stations. In addition to the many providers available, these services can be delivered via streaming devices like Amazon’s Fire Stick, a smart TV, gaming consoles or online platforms. 

The advertisements viewers see when streaming video content are typically called OTT ads or streaming TV ads. In the case of Amazon, they can tap into a vast database of customer data and various streaming video companies and partners to offer OTT ads that deliver a brand’s message to new, targeted audiences.

Despite their internet-connected origins, OTT streaming content is often not clickable, meaning the ads are often purchased based on impressions rather than a pay-per-click (PPC) model. However, they have the advantage of precise targeting and, in many cases, are non-skippable. These features, combined with their full-screen format, can make them a valuable tool in an advertiser’s arsenal. The Amazon OTT inventory is sold via the company’s Demand Side Platform. 

Amazon DSP Network

Amazon’s OTT offerings are a part of the Amazon Demand Side Platform (DSP). Initially introduced to advertisers as the Amazon Advertising Platform (AAP), it’s one of several Demand Side Platforms that have become popular in the online advertising industry. These tools are used to streamline and automate the buying and selling of online advertising. This programmatic approach allows advertisers and media buying agencies to bid automatically on ad inventory, including product display ads, video, mobile and search ads across multiple online properties.

Amazon’s DSP is designed to attract high-volume advertisers seeking a programmatic digital media campaign. The flexibility and reach offered by a DSP can be an efficient and cost-effective way to drive awareness and increase sales for brands with a substantial advertising budget and a clear understanding of their target audience. 

The language of streaming TV 

Like other areas of Amazon, the terminology related to OTT advertising can be confusing due to many acronyms and streaming-specific jargon. Therefore, getting a handle on the language is an essential first step to evaluating the potential of Amazon OTT. 

Advanced TV is the broad term for the delivery of streamed content to televisions and other devices. An array of acronyms fall under this umbrella, with each playing a unique role in OTT advertising opportunities. 

Connected TV, or CTV, is a device used to connect a television to the internet, making it capable of streaming video. According to Amazon, approximately 224 million people in the U.S. use a CTV, whether it’s gaming consoles, digital media players or smart TVs. 

TV Everywhere (TVE) allows viewers to stream digital television and video content regardless of location. Customers can use TVE to watch their subscription video services from multiple devices and on the go as long as they have internet access. 

Online video (OLV) ads run before, during, and after video content. OLV ads are not limited to streaming media or a particular type of device. They can be placed online within articles or websites and made a part of streaming video.

Video on demand (VOD) is video content that consumers access on their schedule rather than when the provider decides to show it. There are four main types of VOD:

• Subscription video on demand (SVOD) – Content accessible to consumers with a subscription that provides unlimited viewing access to the particular service. Amazon Prime Video is an example of SVOD.

• Transactional video on demand (TVOD) – This content relies on a pay-per-view model. Customers can purchase specific on-demand content, such as a movie or television episode, for repeated viewing or rent it for a limited time. 

• Ad-based video on demand (AVOD) – AVOD is a newer type of streaming that doesn’t require a subscription or transactional fee but is ad-supported. Amazon notes that AVOD is growing in popularity, with half of US adults ages 18-44 signing up for an AVOD service in the first three months of 2020 and nearly as many planning to add another AVOD in the next year. 

• Premium video on demand (PVOD) – This type of VOD offers premium video content from film studios and comes with higher price points than its other streaming counterparts. During the COVID-19 pandemic, some studios relied on PVOD as part of their movie premiere plans since many movie theaters were closed. 

The Advantages of OTT

Amazon OTT features extensive benefits for its users, but it’s not intended for every e-commerce brand. To determine if the service is a good fit for your company, you need to understand what it offers. 

First, because the available ad inventory spans more than just the Amazon marketplace, it can provide incredible reach. For example, ads purchased via Amazon DSP can appear on Amazon Prime videos or Amazon-owned websites such as IMBd or Twitch. In addition, Amazon devices like Amazon Fire TV and other third-party websites also offer placements as part of the Amazon DSP network. 

As a leader in DSP, Amazon can also provide better protection for your brand when participating in programmatic advertising. The company emphasizes ensuring that the ad space inventory is limited to high-quality streaming content that won’t put its advertisers’ brands at risk with questionable content or flawed traffic. You can also expect a similar commitment regarding ad viewability and dashboard reliability. 

In addition, Amazon OTT provides deep data reporting to its advertisers. These metrics can be used to manually or automatically adjust campaigns and optimize their performance. The insights can reveal ways to refine targeting, improve creative designs and tweak bid strategies to maximize budgets. In addition, the data can be a valuable path to upgrading other areas of a brand’s marketing efforts thanks to the details about customers that it can reveal.

Finally, as part of Amazon DSP, OTT advertising offers incredible targeting options. Due to the popularity of the Amazon marketplace, the company can collect a vast amount of data on the characteristics and habits of its millions of users. They can then use this information to help brands target prospective customers that match a particular profile. Amazon OTT campaigns can be targeted with countless combinations of demographics, geographic location, lifestyle interests, product interests, actions taken on Amazon and more.

Targeting Capabilities

One of the most significant advantages of Amazon OTT over other types of digital marketing lies in the ability to target the ads to specific audiences. Custom segments can be built using Amazon’s demographic and user activity data. The primary ways that a potential customer can be targeted include:

• Contextual Targeting: Identifies shoppers who are actively viewing specified products that are related to your brand.

• In-Market Targeting: Segments shoppers who have recently purchased or considered purchasing an Amazon product within one of the platform’s specified product categories.

• Lifestyle Targeting: Uses search and purchasing habits to identify shoppers who fall into certain lifestyle groups, such as outdoor enthusiasts or foodies. 

• Remarketing: A popular method of displaying ads promoting a product to people who have recently searched for, viewed or purchased that product. 

• Audience Lookalike Targeting: Focuses on prospects who share demographic characteristics and online behaviors with a brand’s existing customers.

• Advertiser Audience Targeting: Amazon DSP advertisers can upload a list of customers they want to target, such as those who have opted into communications with the company or otherwise provided their contact information. 

Amazon OTT Challenges

Brands that opt to pursue an Amazon OTT advertising through the company’s Demand Side Platform have two options. One is to begin a Managed-Service relationship with Amazon and let the company handle the strategy, execution and optimization. However, this path comes with a 15 percent management fee, along with the $35,000 minimum ad spend. Brands that choose this option may also have limited access to the reporting capabilities in the form of a final report on the campaign rather than real-time reporting. 

Alternatively, Amazon offers a Self-Service option to those who can spend up to $100,000 per month on the platform. Due to its high budget requirements, most sellers that pursue this route do so via an authorized Amazon marketing agency that meets the minimum spend by working with multiple advertisers. In some cases, these agencies may charge a management fee below Amazon’s 15 percent option, adding to their value. In addition, accessing the self-service option through an agency or a hefty ad commitment puts brands in complete control of their Amazon DSP campaigns.

In addition to the high costs associated with Amazon OTT, maximizing the results of a streaming advertising campaign is not for advertising novices. While it’s not all that different from evaluating and adjusting other forms of digital advertising, it’s critical to know which audiences you are reaching and how to enhance the campaign with other marketing efforts. 

Amazon OTT advertising can be much more data-driven than traditional television advertising. Rather than relying on viewer metrics from the cable or satellite provider, advertisers can take advantage of more comprehensive insights about who is viewing ads and the activity that preceded or followed their interaction with the pitch. 

Since OTT advertising appears alongside the prospective customer’s primary content, it’s also important to target streaming content that supports the company’s brand rather than only focusing solely on insights into the viewers. Finally, streaming TV ads should make the most of the fact that much of the audience will have instant internet access from the streaming device. A clear call to action, such as a push to a website, that capitalizes on these circumstances is an effective but overlooked strategy. 

Maximize your reach with Amify

OTT video advertising is just one of many ways to get your product in front of the right audience. Boosting your Amazon sales requires a comprehensive plan for optimization, marketing and fulfillment. Start building a winning strategy for your brand with help from the experts at Amify. Contact us today to learn more.