Share of voice on Amazon is of course very important. If you're not getting the sale, who is? The connection most larger brands have figured out is to link paid share of voice with organic. That is, spend more on paid ads to increase sales, which in turn increases your organic ranking for associated keywords. This assumes of course outside variables including product reviews stay positive, and your products in stock.
- Startup Boomerang Commerce is helping brands sell products on Amazon with a new platform called CommerceIQ.
- The platform uses machine-learning to scrape data signals and unify sales, marketing, operations and competitor data to automate recommendations.
- Companies like Kimberly-Clark, Bayer Healthcare, Kellogg’s, Mars, Kraft Heinz and Nestlé are already using the platform.
Brands are feeling the pinch because Amazon now has a 49% share of the US e-commerce market, which will only get larger given its 29% growth rate (source). Three primary factors make life hard for Brands on Amazon:
Losing the Buy Box on their product pages is one of the biggest problems on Amazon for our durable goods brand customers, such as Logitech and Goodbaby. Our studies have shown that revenue leakage from losing the Buy Box to unauthorized 3P sellers can result in a loss of up to 1-2% of total Amazon revenues.
CRaP – that insidious situation where Amazon Can’t Realize a Profit on your ASIN – can easily lead to your product being suppressed in search results or shown as unavailable; Amazon may even stop ordering the product, even with an unfilled PO, meaning you are not generating revenue from it. Addressing this issue is a twofold problem: first, you have to know that it is happening, next, you need to be able to do something about it.
You Can’t Sell What You Don’t Have: The Importance of Avoiding Out-of-Stock and Product Unavailable Situations
One of the most common – and costly – problems our customers have on Amazon is going out of stock or having products made unavailable, even if there is inventory on hand. We have found that these two issues alone can cost you between 3.5% and 7% of your Amazon revenue – in other words, a big deal!
If there is one thing that anyone who works with or sells on Amazon knows, it’s that the landscape is vast and ever changing. Amazon is constantly creating new ways to put their customer first and to enhance the customer experience of finding and buying goods online. The same is true on the technical backend for technology providers like Boomerang Commerce.
- Our research has shown that the presence of 3P variants on your PDP pages leeches an average of 1.85% of your revenue from those pages
- This is a recurring problem, so you can’t just fix it once and forget it
- Automation is critical to success
We know that the last thing the world needs is yet another rumination on the e-commerce implications of the stretch of days from Thanksgiving through Cyber Monday, replete with statistics and predictions and insights into the deeper cultural meaning of the changing nature of consumer spending. So this isn’t that.