3 Winning Strategies That You Can Utilize for Amazon Digital Marketing

November 4, 2020
Written by Jayce Broda

Amazon functions as a one-stop online shop for all your needs. In fact, since it has almost everything, buyers can get overwhelmed with the range of options. This is why selling on Amazon entails more than just putting up your listing and waiting for your customers to come. Amazon digital marketing allows you to actively promote your products and brand by increasing brand awareness and page traffic.

But as new spending habits require novel selling strategies, you can expect all businesses to employ all current Amazon digital marketing services available. Ergo, the challenge of making your brand stand out remains the same. It is just a matter of utilizing the best marketing strategies and sending the right message to the right audience.

If you want to learn more about digital marketing for the Amazon marketplace, read on.

Amazon digital marketing and its importance

E-commerce has progressed tremendously over the years. Amazon has done an excellent job at it, making them the market leader in their respective industry and earning the top spot with the highest brand value in the world of business. For more than two decades, Amazon has successfully mastered providing free and fast shipping, and that has played a massive part in building customer loyalty.

In 2018, over 50% of product searches were made on the Amazon platform, beating actual search engines like Google. This is because searching for products on Amazon yields faster results and the platform directs shoppers to the actual product page with fewer clicks, not to mention that the product page offers enough information for potential customers.

Compared to other sites that offer digital marketing opportunities like Facebook, Instagram, and Google (all three sites solely focusing on visibility and engagement), Amazon digital marketing has an additional function to guide the buyers in their decision-making process. They do this by assisting through offering comparisons based on prices, variations, and brands.

These pieces of evidence prove how big of a market Amazon is in itself. Amazon is where the buyers are. For the buyers to find you in this vast marketplace, you must invest in a good Amazon digital marketing strategy.

Understanding digital marketing on Amazon 

To be eligible for Amazon marketing services, you must win the Buy Box and register for different advertising opportunities per kind of account (1P or Vendor Central where you act as a supplier for Amazon, and 3P or Seller Central where you directly sell your products through the marketplace).

However, before heading into advertising, you must first focus on developing your products and brand, as this will determine customer loyalty and the longevity of your sales in the long run.

A 2017 study conducted by Spiegel Research Center revealed that it only takes the first five reviews to increase the likelihood of sales by up to more than 200%. Amazon established a strict policy against fake reviews to give their shop more credibility. In the end, maintaining the trust of your customers and cultivating brand loyalty are the best kinds of marketing that you can invest in.

As mentioned before, selling on Amazon isn't as easy as merely posting your listing. It requires periodic revisions and optimization to keep up with the algorithm. The following are some of the most popular methods to give your listings as much exposure are possible:

1. Buy Box

One thing that attracts a buyer’s attention is the Buy Box. In 2019, more than 80% of Amazon's reported sales came from the Buy Box. Once you've got your hands on the magical Buy Box, generating sales becomes not a matter of “how” but a matter of “how big”.

Unfortunately, not everyone is eligible for this feature. The following are the requirements to be given a fighting chance for the Buy Box:

  • Must be registered as a Professional Seller account;
  • Must have a Fulfilled by Amazon badge which can be done through Fulfilment by Amazon (FBA), Fulfillment by Merchant (FBM), or Seller-Fulfilled Prime (SFP); and
  • Must only sell brand new items.

If you are already eligible, the only thing left to do is to fight your way up to Amazon's ranking system. To have bigger chances of winning the Buy Box, you must:

  • Offer competitive pricing;
  • Keep a healthy account. This includes fast response rate, on-time shipping of items, high star rating and positive reviews, among others; and
  • Always keep a healthy inventory.

2. Pay-per-click advertisements

Pay-per-click (PPC) is Amazon's internal advertising method, where you're able to promote your listings to a targeted audience within a controlled budget. Basically, you are only billed the amount worth the number of clicks that your ad receives. PPC allows you to monitor your spending and performance in real time so you can tweak or improve your campaign according to its performance.

There are three kinds of PPC strategies: Sponsored Products, Sponsored Brands, and Sponsored Display Ads. Each advertisement type is only available for a specific type of seller account; however, all three advertisement types would require a Professional Selling Account and enrollment to Amazon's Brand Registry. 

To further explain, the following are the three PPC advertisements:

Sponsored Products

This advertisement type allows you to promote a single product. Your campaign will appear on the search results or the product details page. This advertisement comes in two categories: automated targeted ads and manually targeted ads. Automated targeted ads are the easiest to run as the system automatically adjusts and updates the optimization based on the performance. Manually targeted ads, on the other hand, would require you to monitor performance by yourself.

Sponsored Brands

This advertisement type (formerly called headline search ads) allows you to promote your whole brand and show your logo and at least three of your products. The advertisement, when clicked, can redirect the buyer to your brand's page on Amazon. These advertisements may be placed above and below the search results. To be eligible to run this, you must have at least three registered products in the Amazon brand registry.

Sponsored Display

Sponsored Display allows you to advertise your products beyond Amazon. Amazon collects the data from people who have visited your listing so it'll be able to show your products on websites like Facebook and Netflix. Unlike Sponsored Brands, which requires at least three registered products, it only takes one registered item to be eligible for Sponsored Display.

3. Deal sites

Selling on Amazon is already tough, but what more if you're a new seller or are launching a new product? Although unknown to some, Amazon has discount sites where you can post your discounted products or giveaways. These sites are useful in driving traffic and increasing your reviews. Although some sites may require a subscription fee, several trustworthy deal sites offer their services for free.

Key Takeaways

Technically, seller account management is categorized under operations, and not marketing. However, fulfilling what your marketing message has promised is a part of selling the brand. Your product is your brand. Your service is your brand.

Effort should be exerted to provide excellent customer service. This involves fast response rates, on-time shipments, and smooth transactions. Of course, making sure that the product is of good quality is a given. Your product and service will earn you positive organic reviews and high ratings needed to obtain client loyalty, and obtain Amazon's Buy Box.
If you need a hand, ask for help from our experts and contact Jenette at [email protected], today!

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