A company that started selling only books is the largest Internet retailer in the world today. In 2014, businesses utilizing Amazon’s marketplace sold a record-breaking 2 billion items, and the company continues to grow. A large part of that is third-party sales. Retired CFO Tom Szkutak stated in one earnings call that third-party sales were growing by 40 percent each year.
With any successful enterprise, myths are only to be expected. This is especially true when working in the virtual world. Companies looking to get into online sales will probably focus their attention on Amazon first, but is it really that easy? The answer is yes, if you know what you’re doing. Yet so few businesses have a grasp on what it takes to earn via this online giant. That’s one reason companies look to Digital Brandworks for their Amazon channel management.
We offer a three-part channel management system optimized to fit each client’s needs. It’s that combination of services that makes our agency stand out, even as Amazon continues to expand its reach. Consider five myths about the Amazon marketplace and how working with our team can dispel them and drive increased revenue and visibility for your brand.
1. If you are not already established on Amazon, it’s too late. It is still possible to become a top seller with the right strategy. Digital Brandworks sits down with each client to assess your e-commerce goals and create a viable approach to get there. We will identify the products most likely to sell on their own, figure out which ones will benefit from paid placement, and develop a marketing plan to fit each client’s budget. Each campaign is carefully monitored and adjusted to improve efficiency and ROI.
Advertising initiatives drive traffic to your products and should be part of your overall ecommerce strategy. Digital Brandworks knows how to leverage the high-traffic areas on Amazon and analyze ad data effectively to enhance sales.
2. Amazon is just one more online marketplace. There are a number of worthy online marketplaces, but Amazon has the most impact. The drawback of this e-commerce giant is its availability to unauthorized third-party sellers. Most companies will find their products for sale there, even if they don’t list them. Unauthorized sellers turn to Amazon because they are welcome, which is why it is more than just another marketplace.
Companies that want to protect themselves need a comprehensive brand-defense strategy. We believe that strategic brand management requires:
- Seller identification — we use proprietary software to identify all sellers and communicates with them to resolve the issue.
- Distribution policies — we work with manufacturers and resellers to create policies to protect their brand while optimizing profits.
- Brand protection — we implement the Amazon tools that provide safeguards and help ensure each brand is represented fairly while monitoring and removing those who don’t align with your brand message
We also believe in a multichannel approach to brand promotion and sales, and in looking beyond Amazon to increase sales and find the marketplaces that best complement your Amazon platform.
3. It’s hard to sell on Amazon. This is one of the great Amazon marketplace myths because the opposite is true for many retailers: Amazon does much of the legwork for you. The trick is figuring out how to navigate the options offered there, including the various advertising and marketing tools and the shipping and fulfillment programs.
Customized channel management solutions can be designed to seamlessly streamline the management and fulfillment process. Digital Brandworks uses in-house analytics tools to predict inventory needs based on data trends. We also find the most cost-effective shipping options and work with the Amazon platform to offer buyers the best choices for getting their merchandise — including leveraging marketplace tools such as Prime.
4. All you really need to do is list your product on Amazon. Amazon is an effective e-commerce channel, but there is a lot of competition. It’s crucial to know how to optimize ads and listings to make your brand stand out to customers, as well as how to defend your brand to ensure you are protecting your brand from fraudulent sellers and you are benefiting most from sales of your products.
It’s also important to effectively manage your logistics and account administration to prevent or resolve account issues that can harm your bottom line. This type of management includes:
- Account oversight
- Case management
5. There are too many retailers on Amazon now. Amazon is a competitive field, but for a reason: It averages 95 million unique viewers each month. The trick isn’t to stay out of the marketplace but to streamline your usage and find ways to drive your sales, despite the competition. Digital Brandworks creates a tiered strategy to build revenue, which includes:
- Listing optimization
- Brand defense
- Advertising initiatives
Digital Brandworks also uses data analytics and other revenue-building strategies to track and keep clients informed of progress, and to make changes when necessary to enhance marketing campaigns as trends shift. This ongoing analysis helps improve sales on Amazon and beyond.
Is Amazon the right e-commerce channel for every business? The answer is almost always yes! As leaders in that field and specialists in customized solutions, we cater to every kind of seller and have extensive experience in a broad range of categories. Give us a call today to find out how to succeed in the world’s biggest marketplace.