Why Amazon Is Important For An Ecommerce Brand | Natasha Courtenay-Smith
Articles,  Blog

Why Amazon Is Important For An Ecommerce Brand | Natasha Courtenay-Smith


– I’m sitting here with Mark Greening, who is our Amazon Pro, and we are just looking at, this is what I typically do for Mark, graphs, where things are (bleep) and then they get really good. So, Mark– – [Man] We like those kind of graphs. – We like this kind of graph. – Going in the right direction. – So this is a brand Mark’s
working with right now, and they were losing really large sums of money on Amazon, and Mark’s turned them around. So, Mark is an absolute Amazon pro, we’ve had in terms of some of
the stuff we’ve done together, you have taken some products and launched them through
a well-known brand to make a name for them, and now they’re best-selling products. – That’s right, yep. Generally, I do trouble-shooting
for other brands, it isn’t just about turning them around, it’s about finding where the problem is. Often, people will come to me and say, here’s the problem, and
then what they’re describing is the symptoms, not the root cause. And what I can often do is to go in, do all the analysis on their business, or particularly their products, and I can then work out
what the root cause is. – So we hear, when we’re
out talking to brands all the time now, they’re talking about, they wanna go direct-to-consumer via Facebook and via Amazon. Why is Amazon important
for an ecommerce brand? – Well, it’s important because
it’s got the most eyeballs in the world, in terms
of an ecommerce platform. And it’s also to do with buyer intent. When you’re selling on
something like Facebook, or other platforms, you’re interrupting their entertainment or whatever they’re on there for. With Amazon, the intent of
the buyer is to buy something, they go on Amazon to purchase things. So, therefore, we see, we’ll typically see 15% conversion rates on Amazon, whereas you’d see fractions of a percent on selling via other
channels, like Shopify, things like that. So, in terms of driving the traffic– – We aim for, like, 2.5%.
– All right. – Can I just say minimum, sure, like, fractions of a
percent, what’s he on about? – The point is, is that the
cost of driving that traffic results in much higher level of sales, providing you understand
what leads to good ranking and good selling on Amazon. It’s a particular skill
that’s unique to Amazon, and there are skills obviously
unique to other platforms. – So can we just talk
about that for a moment, because one of the things,
when we’re talking about D-to-C, and we’re driving
traffic from Facebook and Google, which, you know, is one
discipline, why is Amazon, ’cause it’s a whole different world, I know PR, I know why it is, but can you explain, why is Amazon, it’s a world in its own right, that requires its own specialty skills, just as Google does,
just as Facebook does. What’s the situation? – Because in order to achieve
rank, you need to understand how the underlying Amazon algorithm works. A lot of people profess to understand, no one really understands,
but you can understand how it behaves on the Amazon environment. And what achieves ranking, there’s all sorts of other factors, like indexing and keyword relevancy, and how to set up listings,
and the importance of images, which are unique to Amazon, and the way they interpret them on Amazon, and when it’s obviously a
way, from this environment to have keywords and images
and things like that, but you need to understand those, and how to use them, obviously,
to leverage your product, and how you can get it
in front of customers, the largest volume of customers. – So how does the Amazon algorithm work? – It’s all to do with ranking. You need to understand how to
do proper keyword research, to put keywords in your listing. Relevancy is really important, how to also interpret the numbers, and that’s where I see a lot of problems when I work with ecommerce
brands, particularly on Amazon. These, they don’t
understand what the numbers are telling them. I often say to people, Amazon numbers, or numbers in particular,
will tell a story. And that story comes out in
the terms of those numbers. If you can interpret those numbers and understand where to
focus your attention, then that’s how you can
lead to success on Amazon. It’s all to do with
understanding things like traffic and conversion
in Amazon’s unique way. Things called sessions, and
unique session percentages, they have different terminology and they treat them in a
slightly different way, and different things lead to those numbers being important or not. – Can I just say, that Mark is actually getting more
technical than I do, isn’t he? – I am, actually! – I get told off for being
technical, look at Mark! – I’m a numbers guy, I’m a technical guy! – Amazon used to be a place where you’d go to buy
things like adapter plugs, and practical stuff. Now in the U.S., it’s very
consumer product brand-based, much more than in the UK,
there’s more big brands there. What is happening in the
UK, and Amazon in general, what’s Amazon want to
do with their platform (background noise drowns out speaker)? – Well, long-term, they want
to attract bigger brands. And bigger brands that use
Amazon as their main platform to fulfil their products,
and to sell their products. We used to say, when I
started working on Amazon, a few years ago, that brands
weren’t important on Amazon because people searched by product. I want a plug adapter, I want a lead. – Even in a space like beauty,
which we know really well, you’d think, then, people
are searching for eye serum, they’re not searching
for L’Oreal eye serum. But what’s the change been? – The change is that, now,
people are starting to use Amazon as the starting point for their search. We always used to say
people started on Google or other platforms, and then
found their way onto Amazon. Now, people are using
Amazon as a search engine, and there you are putting in terms that aren’t just products. What they’re doing is they’re putting in, they’re trying to find
solutions to problems, they’re putting in much
more longer phrases and different ways of describing things. Most importantly, they’re
putting in brands now. – [Woman] Right. – The latest brand, actually,
this one I’m working with– – [Woman] The one with the good chart. – One of the things that
was unique about that, which was different to
how we’ve worked before, is that they make a large
percentage of their sales off of their brand name. – [Woman] Right, that’s
really different, right? – That is very different, and it was something that surprised me. – Versus what they actually
do, you know, face cream. – Yes. – [Woman] People are
searching for their brand. – Searching for their
brand, and they’re searching for their brand plus product
names and things like that. So they’re using their brand name to try and find what
other products they do. It’s the way the trend on Amazon is going, they’re starting to attract bigger brands, they’re starting to make, with
things like brand registry, improvements around brand registry, improvements around targeting. So recently, Amazon have introduced a number of changes to
their PPC algorithms, where now you can target brands, and you can target particular products, ASINs as we call them, in order
to sell your own products. We’re getting technical, here. With these changes underway, at Amazon, they’re beginning to sell their products, beginning to attract bigger brands. – So when we’re out talking
to all the beauty brands and health brands and
fashion brands we talk to, and they’re saying,
should we be on Amazon? What’s the answer? – Absolutely! Absolutely, it’s a must these days. What we’re also finding is that, from other brands that we work with that have, say, Shopify
sites, what we’re finding also is that when you boost your
traffic to your Shopify site, your Amazon sales begin to increase. What happens, we believe,
is that people looking to find your brand off of Amazon
because of Prime membership and free delivery and all
of that kind of stuff, and the credibility that Amazon has, is that people then go to Amazon to see whether you’re on there. And they might make a purchase– – And then we’ve had, on our ads for a beauty brand where they say, great ad, I’m gonna buy
this product on Amazon, and I’m like, don’t buy on Amazon, we need you to buy it through the ad so that we get the credit for it. – Yeah, and that’s what happens a lot. – And that’s actually what people say, they say, love it, off
to Amazon to buy it. I mean, that’s just the
multi-channel, be everywhere. – But if you’re not on Amazon, and suddenly, and you put
in the name of your brand, then what you can do on Amazon is you can bid on advertising,
you can bid on other brands, so if you’re not on there,
people type in your brand name, then what will come up? It’s all your competitors. And then people will make a purchase from one of your competitors on Amazon, so being represented
on Amazon is important. – Essential! – Is essential. – [Woman] Okay.

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