Profitero kicked off our autumn EMEA webinar series, Building Your Digital Acceleration Engine, on September 13th. In our first session, The State of Amazon, Martin Heubel, Strategy & Amazon Consultant at Consulterce and Simon Johnson, head of eCommerce at Iovate joined myself and my colleague Becky Carruthers to share their insights for navigating profitability and operations challenges at Amazon. They also shared tips for navigating the upcoming 2024 vendor negotiation cycles.
There’s much more to a successful Amazon strategy than trying to accelerate sales through driving traffic. As Amazon scales in importance and complexity for businesses, it’s more essential than ever for brands to proactively work towards advantageous trade terms. For brands, profitability should be the first step in their growth plan. Once profitability is achieved, maximising operational efficiency becomes the foundation for accelerated growth through media and sponsorship investment.
Profitero’s recent consumer survey shows that up to 4 in 10 shoppers research products on Amazon before deciding what to purchase. To create a successful Amazon strategy, brands should think of Amazon not just as an online shopping conversion tool but as a top of funnel research & brand engagement tool.
The price pack strategies that work for brick & mortar retailers won’t necessarily perform as well on Amazon. Optimising price pack architecture as well as testing virtual bundles that align with existing shopper bundling tendencies can boost profitability.
With Amazon shrinking its retail workforce over the past year, brands must take a more active role in creating processes to resolve catalog errors and financial disputes. Brands may be able to leverage unresolved disputes as part of a proactive vendor negotiation approach that underscores their importance for Amazon’s profitability goals in the coming year.
Hybrid 1P & 3P selling models can help some brands boost profitability, but they should consider all the implications of a hybrid model for managing their advertising campaigns and ability to win the buy box.
Brand stores are an excellent resource for optimising promotional campaigns. Brands can direct shoppers to their store from social media or external search, helping them browse special promotions and offerings. This not only helps brands avoid the extra step of modifying the content on each PDP, it builds engagement with today’s digitally influenced shoppers.
Profitero has your Amazon growth strategy covered. Watch our video to hear how our product ecosystem provides an end-to-end approach to optimizing Amazon performance.