How to Keep Your Brand Competitive on Amazon in 2020
Amazon sells more than 12 million products and half of these sales come from third-party sellers. The platform has become crowded and increasingly competitive. As a result, brands need to step up their game to ensure they’re in a position to compete and succeed. Continue reading for ideas and suggestions to keep your brand competitive on Amazon in 2020.
Focus on Strategic Design
We often discuss the importance of design, as it's a strategic discipline at Marketplace Strategy. And the impact it has on a brand’s Amazon presence is as strong as ever. To remain competitive on Amazon brands need to focus on design across the ecosystem.
There is more to the practice than simply having good-looking images. It's a tactic capable of increasing conversion rates and lessening negative reviews. Applying best practices is also critical to leveraging consumer behavior. For example, 63% of consumers say a product’s images resonate more than the description. Below we include a few high-level tips to keep in mind.
- Include a variety of image types in your product’s library that focus on converting the consumer
- Focus on A+ Pages and make sure they’re captivating and actionable
- Become brand registered and create an Amazon store for your brand
For more on this, we dive into how strategic design improves user experience on our blog.
Diversify Your Advertising Strategy
In 2019, Amazon continued to pave its way to becoming a leader in the advertising industry. In fact, the long-standing duopoly of Facebook and Google is now a triopoly with the addition of Amazon.
Brands that sell on Amazon invest in advertising to drive traffic, awareness, and conversions. Both search and programmatic help advertisers achieve different goals. So, it’s important for brands to understand the difference between them on the channel.
Amazon's search advertising model is referred to as Amazon Advertising. It's designed to help brands increase product page views and drive sales velocity. On the other hand, Amazon DSP is Amazon’s programmatic display advertising option. Brands use DSP to reach shoppers across the entire funnel, as well as on and off of Amazon.
We recommend DSP to brands already using search advertising. But for those with limited budgets, search advertising can help capitalize on bottom-funnel demand. At the end of the day, a healthy mix of both search and programmatic advertising drives the best results.
Tap into Human Expertise Backed by Technology
In the world of e-commerce, it can be tempting to search for an automated solution to manage your brand’s Amazon Advertising presence. But, we’ve found brands succeed with the support of a strategic partner that knows how to implement using a variety of technology along with a strong foundation of hands-on expertise.
Keep in mind, technology can’t understand your brand’s pain-points, budget, or goals like a human can. Technology helps humans save time, adhere to a budget, and track progress toward goals. But, optimal results are found when a human expert drives this technology.
Brands will continue to face challenges and need to shift to rival competitors on Amazon in 2020. Remember these suggestions when developing your brand’s strategy for the coming year and beyond.
If your brand could use the support of a strategic partner as we enter the new year, schedule a free consultation. As always, we’re here to answer any questions.
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