As much as 2020 has seemed like the year that will never end, we're finally wrapping up Q4. Now it's time to think ahead about 2021. Amazon has undergone some massive changes this past year. Some will influence how brand owners should approach the new year. We want to make sure that as an entrepreneur selling on Amazon, you are ready to hit the ground running in Q1.
Follow these tips to make 2021 your best year yet!
Amazon advertising is expanding and opening up new opportunities. Think video, display ads, retargeting ads, and different sponsored brand ads. Sellers must stay on top of these updates and start to test out these new opportunities. Various ad types work better for different products. So, start testing and collecting data on what works in your product niche.
Bonus Pro Tip: Keep your eyes peeled for the ads your competitors are running.
You may have already heard about DSP (demand side platform) ads in this past year. But if not, this is the year to not just think about running these ads but to test them out for your products. In case you aren't familiar, DSP ads will allow you to advertise to past Amazon customers off of Amazon and even steal your competitor's traffic. The tricky thing with DSP is that not just anyone can run them. It would be best if you had an approved agency to manage these ads for you. If you go directly through Amazon, they have a massive ad requirement, which disqualifies many sellers. But if you find an approved agency, this is a tactic you'll want to use. By the way, TurnKey Product Management is crushing the DSP game. We can not only properly manage these ads for you but can do so at a fraction of the cost that Amazon offers.
For DSP in particular, repeat purchase products are king if you're selling on Amazon. That's because we can target customers who have purchased your products in the past and can hit them with an ad when it's time to reorder. In the supplement niche, for example, DSP is a total game changer! We had a client doing $300k/month in sales. In 90-days, with listing optimization, proper PPC management, and the addition of DSP ads, they were raking in $1M/month in sales. That could be you!
Amazon Attribution is now an option anyone selling on Amazon should consider. You'll be able to provide tags on external marketing experts like Facebook ads, email marketing, and other external options. By using attribution, you can track how successful external marketing efforts are doing like never before.
If Amazon attribution isn't your thing, the use of Amazon storefront source tags is another great option to track external success. The more data you can gather on your sales, traffic, customers, etc., the more you can make intentional decisions in your game plan.
With the updates to the A10 algorithm this past year, external advertising is even more critical. According to experts, this tactic is 3X stronger than PPC ads when ranking on Amazon. So you're definitely going to want to expand your advertising this coming year.
Videos have always been an important factor when it comes to listing conversions. But since the changes in the A10 algorithm, videos are even more critical. We are seeing companies invest way more in professional videos. Their revenue numbers show the power of video. Wondering whether a video will make a difference in your sales? Our team has seen conversion rates increase by more than 5% by adding video to the listing.
A professional video might seem like a costly investment (and it can be). But think of all the different ways you can utilize the video to gain more credibility. Also, you can repurpose the content in multiple ways.
You can even chop up a longer video into short segments and use them for social media.
Bonus Pro Tip: Include as many of your products as possible in the video. That way, you can use it across the board in all your listings. Plus, it's an easy way to familiarize your customers with other product options. By cross-promoting your other products, you can increase your customer's lifetime value.
You can even make a video for free using certain video editing software like animoto.com. Plus, you can hire a video editor on places like Upwork for under $100! You usually get what you pay for, so if you are a business doing over $100,000 per year, I recommend investing at least $500 into videos.
So there you have it. Three tips to help you focus on strategies that will really move the needle for your Amazon business in 2021.
Amazon success doesn't happen by accident anymore. It really does come down to executing on the fundamentals at a high level and paying attention to and utilizing the changes Amazon is making, so your brand is always on the cutting edge. If that feels daunting, TurnKey Product Management is always a phone call away. We can help you identify the next steps to take in your Amazon business to take your sales to the next level.
Online shopping is bigger than ever before. Don't miss the opportunity to get in front of your new customers and close the sale. Stick to doing the fundamentals the right way. Following the three tips we shared will get you off to a great start in 2021. Happy New Year!
Jeff Lieber and his team from TurnKey Product Management provided this article. TurnKey is an Amazon consulting company that sells over 8-figures in revenue for its clients each year. Whether you're just starting or are an Amazon expert, TurnKey can help take your sales to the next level. Click here to visit TurnKey's website, where you'll find free resources and training on how to scale to 7+ figures on Amazon. Plus, you can contact TurnKey there to help scale your business.