How to Transform Your Amazon Strategy to Maximize Sales
Among many platforms, Amazon’s status as a worldwide giant in the e-commerce industry is indisputable, scoring the highest market cap of $857 billion in December 2022 and accounting for 37.8% of e-commerce sales. But marketing on Amazon goes beyond simply selling the best products on Amazon. Making yourself visible involves a top-notch ad strategy to reach your target audience and boost sales.
Consumers interact with Amazon at the end of the customer journey funnel, making effective performance marketing pivotal. Performance marketing done right at this stage likely leads to sales conversion, compared to marketing on social media or search engines where direct purchases may not be available.
While social media marketing pushes ads to an audience that we think might be interested in your product or brand, a keyword search means we can target an audience who is specifically looking for your product. It follows, then, that sales conversions are higher on Amazon. “Usually, when we’re running ads on social media platforms, it will lead them to their home websites [...but this will usually lead to] high bounce rate,” says Phoebe Lam, Performance Marketer at BorderX. Thus, the all-important Amazon ad strategy. Lam shares the secrets to how to capture audiences at this crucial stage of the consumer journey.
While the spectrum of ads on Amazon is wide, we will discuss 2 main types that, strategically executed, stand to support your sales goals.
If a consumer is looking for a product without a particular brand in mind, there is less hesitation for them to buy on Amazon. Even without much background on the brand, Amazon users already trust Amazon, making it more likely to purchase from a brand with which they are unfamiliar. This, along with a thoughtful branded ad, make sales all the more likely. With targeted search terms, better reach, and a “Brands You Might Like” feature, Amazon holds plenty of potential for great conversion rates.
While it’s possible to reap big benefits with Amazon, it’s not without due effort and attention. Here are a few ways to ensure that you achieve the best results when marketing on Amazon.
When you put all this together, you can achieve surprising results, like the results we saw with K-beauty brand FaceTory. BorderX offered Amazon paid ads to boost up sales, ultimately helping the client rank #6 in the Amazon Face Mask category as of December 2022. We saw exponential growth during our 3 years of management, resulting in a 428% growth in ad sales.
Because Amazon ads offer a diverse array of formats for their ads that many other platforms don’t offer, it opens up more opportunities with the caveat of having more factors to consider. Due to the need for constant monitoring and adjusting, marketing on Amazon takes constant attention, with the potential for great reward. “With millions of sellers on Amazon, utilizing Amazon marketing is essential to making your presence known to customers and communicating the value of your product,” says Lam.
If this sounds like an extensive task, we’re here to help. We support:
If you’re ready to boost your sales through Amazon ads, you can say hello here.