Take Amazon Seriously
A lot of brands are selling only on their own DTC sites and haven’t taken the time to branch out onto Amazon. Many others have opened an Amazon seller account, but aren’t investing much into optimizing for the marketplace.
It’s a good idea for every brand to take Amazon seriously as a possible sales outlet for a lot of reasons. A major one is the fact that diversifying your business makes it more resilient to hiccups or changes in the infrastructure, or to changes in buying trends.
Amazon also has the advantage of being a platform for discovery. People need to know they want to shop your brand to go to your site, whereas people only need to know they’re shopping for a particular product type on Amazon to find your products. (Okay, it’s a little more complicated than that. More on that later…)
Studies have found that as many as 63% of shoppers begin their buying journey at Amazon. You want to be everywhere your potential customers shop, and to have a better chance of reaching those 63% of shoppers it follows that you’d want your brand on Amazon.
If you’re new to Amazon, it makes sense to at least make your best sellers available there initially. SKUs that are performing well on your DTC site are good candidates for you to focus your attention on within the Amazon marketplace.
Keep Branding Consistent
Make sure your branding is consistent across all sites and marketplaces you sell on. In order to build brand awareness, you need to provide a good brand experience. Shoppers could discover your brand on Amazon and then look for more and find your DTC site — or vice versa. You want shoppers to have a seamless experience of your brand wherever they encounter it.
So focus on using consistent branding – from the text you use on product detail pages to the images or videos you use to depict your products. Speak the customer’s (rather than marketing’s) language, and do so across marketplaces.
If you’re a brand owner, get your brand registered on Amazon. This will give you access to an array of Amazon brand-building programs both paid (eg. Sponsored Brands) and free (eg. Amazon Stores, enhanced brand content, Amazon’s social selling features).
This is not to underplay the value of the brand-building you can do on your own DTC site. While Amazon has a lot of brand-building opportunities, nothing can be as flexible and powerful as the site you fully control yourself.
Invest Ad Budget On Amazon
A product may be a best seller on your DTC site, but if you’re offering it for the first time on Amazon, think of it as a new product launch. After all, you’re introducing it to a new market. Launch means you’re establishing the product on the marketplace, and you’ll need to invest more heavily in advertising in this stage than at other stages of a product’s lifecycle.
With the enormous number of possible results for any given search term on Amazon, it’s essential to utilize advertising to get your products seen and discovered. Sponsored Products and Sponsored Brands are keyword-based targeting ad types. Using them makes it easier for shoppers who are searching for keywords relevant to your products to discover those products. Once a product is performing on Amazon, you can let up the gas on advertising and focus on profitability.
Using software like Teikametrics Flywheel to manage your campaigns can help you identify products that are performing well specifically on the Amazon marketplace, and adjust your advertising to focus on those products.
Remember, when shoppers are on your DTC site there’s no competition or other choices to consider. On Amazon you need to differentiate your products from other brands. For shoppers to even find your product you’ll need to spend on advertising.
How To Know What To Advertise
The spaghetti on the wall tactic for advertising is very inefficient. You might grow sales, but you’re also sure to waste ad spend as you do it. Choose the right products to advertise to get the best return on your advertising spend.
But which products should you advertise? The cost of ads eats into your margins, so pick products that you can advertise while remaining profitable or near-profitable.
You’ll also want to pick well-stocked products so you can readily replenish as needed. It might not make sense to advertise if you’ll rapidly sell through your stock and experience a gap in the ability to fulfill orders.
Finally, pick products with well fleshed-out product detail pages (PDPs). They should have plenty of thoughtfully chosen images, bullet points, A+ content, and importantly, lots of good ratings and reviews. If you’ve already got image and video content on your DTC site, much of it can be used on Amazon.
Don’t just stick to Sponsored Products for your Amazon ads. Consider brand building plays like Sponsored Brands that allow you to use creative assets in the sponsored search results. For larger, more enterprise-scale brands, also utilize the brand-building power of Amazon DSP.
Synergy Between DTC and Amazon Marketplace
Following this advice will give you the advantage against competitors that may already be experiencing omnichannel success. To recap, we recommend that you do the following:
Make Amazon’s marketplace a deliberate element of your diversified business strategy
Keep branding consistent across sites and take advantage of brand-building opportunities
Invest in advertising to claim your place at the Amazon table
Make data-backed decisions about which products to advertise and how aggressively to bid
The payout in terms of conversions and profit on Amazon is a direct result of the investment you put into Amazon. And the synergy between your Amazon offerings, your DTC site, and any other marketplaces you sell on, will have reverberating effects throughout your business.
Teikametrics provides an ecommerce platform + managed services to ensure every advertising dollar spent on Amazon & Walmart goes to what matters most: growing your business and increasing profits. Start your free trial.