3 Keys to Success on Amazon and Other Marketplaces in 2021
Looking back, we know 2020 was a year unlike any other, especially for those in the e-commerce industry. But, just because the calendar has turned over to 2021, that doesn’t mean we’re returning to normal. In fact, e-commerce is projected to grow by 256% this year. With this kind of potential, brands should be excited about what's possible, but simply riding the wave of a growing industry won’t be enough. Here we share three keys to success on Amazon and other marketplaces in 2021. Continue reading to learn how your brand can best prepare for an exciting year ahead.
Prioritize Marketplaces and Assortment
Before committing to a strategy, it's important to know your brand's goal for the year. If there's a specific revenue number you're expected to hit in 2021, start there and work backward to identify what it will take to reach that goal.
With our clients, we often begin by tiering their catalogs by top, middle, and low performing products. Doing so makes it easier to decide how to allocate budget and which marketplaces should be of focus. Not only does this help from an advertising standpoint, but it provides a blueprint that can guide the inventory planning process.
Focus on Budget Allocation and Performance Measurement
Keeping a regular pulse on performance is vital to success on Amazon and other marketplaces. And, if your brand isn't maintaining a healthy pace, being willing to pivot and reallocate budget will be key.
When taking a look at the data, measuring return is helpful. But it's also essential to question whether this is the best metric to gauge performance on a given marketplace. Conversion metrics, total unit sales, page views, and additional metrics will also be important to consider.
Be Open to the Need to Realign Resources
As alluded to above, the ability to be flexible will help brands succeed in 2021. This year will provide opportunities that can't be wasted. And those that are wise in how they delegate responsibility and resources won't have to worry about being held back.
With this, it's important to understand who is accountable for what while giving them the autonomy to execute. Most brands we speak with begin by asking themselves what they can do internally and whether they need to leverage an agency partner. And, sometimes, brands come to find a mixture of both works best. All companies are different, and at the end of the day, what's most important is that no stone is left unturned. Creative, content, catalog management, advertising, and reporting should be supported by extensive knowledge and expertise.
The three considerations included in this blog post are only the tip of the iceberg when it comes to finding success on Amazon this year. The opportunity, competition, and possibilities for e-commerce have never been greater. And our best piece of advice is to ensure your brand has access to top-of-the-line expertise. Whether that’s possible for your brand internally, via an agency partner, or both, the time is now to put your best foot forward.
If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s presence on Amazon and other marketplaces. Finally, should you be interested in learning more about the results our clients experience through a partnership with MPS, check out these resources.
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