How do you rank on Amazon? Find out now.
For far too long, brands have lacked a data-driven methodology to gauge the health of their ecommerce presence relative to their competitors. As the top ecommerce accelerator, Pattern knew its proprietary technology and data could solve this for brands, so we leveraged our AI, rich Amazon seller information, and millions of cross-category data-driven insights to provide all brands with the information they need to succeed on Amazon and beyond.
The result—the Amazon Revenue Scorecard. The scorecard provides a powerful way for leaders to simply and transparently assess how their ecommerce strategies are performing relative to their competition and where they can optimize to maximize their brand’s ecommerce revenue potential.
The Amazon Revenue Scorecard was developed by Pattern’s data scientists to holistically measure the ecommerce performance of a brand’s top products across three key drivers—traffic, conversion, and price—and 18 dimensions that impact a brand’s ecommerce revenue growth. The result is a score from 1-10 that helps brands in an ever-increasing array of industries measure their performance relative to their competitors. Strategically, an Amazon Revenue Scorecard is a rating index that provides real-time data to highlight missed revenue growth opportunities.
An Amazon Revenue Scorecard analyzes your top 25 ASINs to identify strengths, weaknesses, and gaps in revenue growth potential on ecommerce marketplaces. With a rank score of 1-10 in each revenue performance metric, it helps you understand the full picture—identify problem areas quickly and lean in on strengths. The higher the score, the more revenue you’ll generate on an ecommerce marketplace.
The key levers in the score are traffic, conversion, and price, which are the key variables in the ecommerce equation for all brands. As the top ecommerce accelerator, Pattern knows that the ecommerce equation (traffic x conversion x availability x price = revenue) is essential for brands to succeed on ecommerce. Therefore, it is imperative that brands continue to monitor the health of each input in order to have long term success.
Here we breakdown the three key drivers of a brand’s scorecard:
Traffic is the first strategic lever to drive revenue on marketplaces. Without generating more ecommerce traffic to your listings, you don’t have a hope of increasing marketplace revenue. A traffic score breaks down and rates your ecommerce traffic in the following key areas:
Paid Traffic — the effectiveness of a brand’s advertising efforts, including keyword strategy, ad programs, and ad tactics
Organic Traffic — how well a brand is capturing organic traffic within its category
Marketplace Coverage — how many global marketplaces (Amazon, eBay, Walmart, etc.) a brand’s products are being sold in
Conversion is the second strategic lever to drive revenue on marketplaces. Once potential buyers interact with your product, they have to be compelled to convert on the listing. The conversion score breaks down and rates your marketplace conversion into five key areas:
Listing Titles, Bullets, and Description — the degree to which a brand is utilizing best practices for titles, bullet points, and descriptions
Listing Images and Videos — how well a brand is using high-quality and optimized multimedia to convey product features and benefits
Content — how well a brand is conveying its voice and branding across the marketplace
Ratings & Reviews — how well a brand’s products are being accepted by marketplace shoppers according to ratings and reviews
Competitiveness — the degree to which a brand effectively utilizes promotional elements on its product pages
Pricing is the third strategic lever to drive revenue on marketplaces. Without consistent pricing across marketplaces and sellers, your profits will steadily erode and you’ll have a hard time winning the Buy Box on Amazon and other marketplaces. The price score breaks down and rates your ecommerce price into four key areas:
Channel Conflict — the likelihood that an online marketplace will undercut a brand’s brick and mortar retail partners on other platforms and channels
Number of Sellers— the number of unique entities selling a brand’s products on a given marketplace
Product Compliance — a measure of the stability of the price of a brand’s products on a given marketplace
Cross-Channel Consistency — an assessment of the price consistency of a brand’s products across ecommerce marketplaces and D2C websites
Don’t leave your share of the global ecommerce market to chance—analyze ASIN and competitor performance now.
The Amazon Revenue Scorecard has been an integral and exclusive part of Pattern’s offering to its partners and is now available for all brands to assess their success on ecommerce marketplaces like Amazon. The standard is a measurement of the key drivers that impact revenue growth and it matters to brands since you need to see where your missed opportunities are and where your competition is outranking you.
Pattern can break down your brand’s revenue score on Amazon so you can command the maximum share of the exploding $6 trillion ecommerce market.
Executives interested in receiving your brand’s Scorecard can do so here.
Surprised by your score? Contact Pattern today and we will dive into the data.
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Walmart.com has announced important changes regarding the “Was Price” and promotions on the digital marketplace. These updates make it more important than ever to optimize your price through implementing proper strategies, controlling your distribution channels, and being intentional about your pricing strategy.
And, as with all digital marketplaces, succeeding on Walmart.com requires performing well in all areas of The Ecommerce Equation. Which means as you optimize your listings’ pricing, as well as traffic, conversions, and availability, your revenue increases.
Pattern has the resources ecommerce brands need to optimize on marketplaces for each factor in the ecommerce equation. We have the technology and strategists to help you improve your traffic, the brand dedication and passion to help you achieve greater conversions, connections to econtrol specialists who help brands regain marketplace control, and the data you need to be able to make smart forecasting decisions for better product availability.
Below, we’ll cover how Walmart.com’s recent platform changes impact ecommerce brands’ ability to drive traffic and conversions for their products and how to strategize around them to work best in your brand’s favor. But first, let’s go over the changes themselves.
Walmart.com’s newest changes reflect their mission to be the leader in low, everyday pricing. Therefore, Walmart’s customers come to the platform and expect low prices no matter what. Overall, these updates give consumers more visibility into the value they’re experiencing and hold brands more accountable in the pricing information they display.
Due to Walmart’s updates, in order for your products to qualify for a strikethrough and show “Reduced Price” or “Clearance” flags on Walmart.com, your product’s promotion must be at least 10% off the “Was Price.” (Note: “Reduced Price” is the most common type of badging. Your teams can request this badge when filling out promotion upload files.)
To specifically qualify for “Clearance,” the product needs to be discontinued and no longer replenished after selling through the remaining inventory.
Although “Rollback” is sometimes seen on site, it is a form of 1P-only badging.
Walmart now prohibits promotions lasting longer than 365 days.
Walmart’s “Was Price” was previously loosely defined and manually inputted on Walmart.com as an MSRP. Now, stricter rules are in place with regulations in the broader market to encourage enforcement and protect consumers.
The “Was Price” is now defined by these terms on Walmart:
Either the 90-day median price paid by customers for the item on Walmart.com (excluding special promotions like holiday campaigns, limited time deals, rollbacks, and clearance);
Or the median price offered by Walmart or Marketplace sellers for the item on Walmart.com for at least 28 out of the last 90 days (excluding special promotions like holiday campaigns, limited time deals, rollbacks, and clearance).
To protect your “Was Price” from price erosion, be intentional when planning promotions. To be most effective in your promotion, you’ll want to be able to give your customers a large enough discount to qualify for the slash-through and reduced price badging.
Without the right pricing strategy in place, your products are in danger of falling into deeper and deeper discounting as you chase the ability to achieve slash-throughs and proper badging. Without the slash-throughs and badging, you’ll lose the ability to easily communicate the increased value of your product and the traffic and conversions you’re trying to earn by running the promotion in the first place.
It’s important to keep your products’ prices as steady as possible to protect your promotion periods. As you prevent high-low price fluctuations, you’ll be able to use slash-through prices and promotional badges like “Reduced Price” and “Clearance” to your advantage in driving better traffic and conversions for your listings.
Without the ability to display badging, a promotion falls flat even if the price has been dropped. With steady pricing over time, you’ll be able to keep a stable “Was Price” and ultimately enjoy more rewarding promotional periods long-term.
It’s important to remember that the “Was Price” policy also applies to 1P and other 3P sellers representing your products on Walmart.com. Unfortunately, your other strategies will be ineffective if other sellers are breaking your MAP policy or playing the high-low price game. So, it’s more important than ever for brands to be conscious of their distribution channels and keep rogue and unauthorized sellers in check.
By allowing Pattern to be the authorized seller of your brand’s products and working with Vorys eControl law firm to eliminate rogue sellers, you can be confident in creating and executing a powerful selling strategy on Walmart.com and other digital marketplaces. As a 3P seller partner, Pattern is truly invested in our partners’ success, we’ll help you to create and execute a strategy that truly prioritizes the long-term performance of your products on digital marketplaces.
Contact us today to learn more about the changes on Walmart.com and how you can optimize your performance.
Pattern’s Accelerate22 event, the global ecommerce acceleration summit, provided a way for participants to learn from each other and leading experts about building a successful ecommerce presence. During our Brand Control and Compliance track, Leslie Hensell, co-founder of Riverbend Consulting and an Amazon expert, spoke to attendees about “Bezophobia”—the fear of losing brand control on Amazon. She talked about the importance of having a clear strategy to help you perform your best on the digital marketplace and the fact that achieving that is much harder to do in a 1P Amazon relationship.
With better control, which is more achievable in a 3P relationship, brands can let go of their fears and more richly enjoy the inherent benefits of selling on Amazon. If you think you could have a case of Bezophobia, read below for three important areas every brand should have control over when selling on Amazon.
Pricing is a huge concern for brands selling on Amazon—in most cases, Amazon prioritizes their customers’ happiness and providing a great experience for them on the platform over brands’ best interests. So, they want to offer their customers the best price available at all times.
This seems harmless enough until a rogue or unauthorized seller enters the ecommerce space. They’d like to capture your consumers’ interest as well, and often list your products at a lower price than you’d authorize. When Amazon notices the change, whether on its platform or on another, they drop your listing price to match.
Many brands seriously struggle to raise their prices after events like this occur, leading to what we call the Profitability Death Spiral. As your product prices fall, it’ll be harder and harder to raise them again, especially if you’re operating with Amazon as a 1P seller.
At Pattern, we know brands can’t achieve marketplace acceleration without brand control. So, we partner with econtrol firm VORYs to allow all brand partners to better understand their distribution channels and how to address control problems that ultimately lead to pricing issues.
The next key area of control brands should be focused on is their product selection on Amazon. Leslie spoke about this being a common issue for brands—as mentioned above, Amazon doesn’t see your brand as its top priority.
Many brands provide a certain assortment of their products to Amazon to sell, then find that their expectations don’t match Amazon’s efforts. Leslie has worked with many brands that have believed that Amazon will list, market, and move product the way a brand would if they were managing their Amazon presence themselves.
But, in a 1P relationship, it’s difficult to get true visibility into what’s really going on. If Amazon buys your products without putting the effort in to represent your product selection in the way you think, it can cause big, long-term issues that are very difficult for brands to reconcile.
In Leslie’s experience, this is a brand’s most important area to have control over on Amazon. Your ability to sell products is completely dependent on how you’re able to showcase those products through your content. And, in a 1P relationship, brands lose the ability to have the final say over how their products appear to consumers.
Leslie has seen many cases of brands’ sales dropping inexplicably, only for them to discover that their vendor has made significant changes to product detail pages and other marketing materials, such that they no longer reflect the brand.
Pattern understands how important your brand representation is on digital marketplaces like Amazon. So, when we agree to partner with brands, we provide a suite of creative services to help your products look their best, including a studio team for fully-optimized pictures and videos and an expert advertising team that knows how to write descriptions and copy that really help your products stand out among the competition.
If you’re able to get ahead and get in control of your Amazon strategy, especially in your pricing, selection, and marketing efforts, you have no need to fear the digital marketplace. As an Amazon expert and ecommerce accelerator, Pattern knows what it takes for brands to truly succeed, and is committed to helping all brands take charge of their strategy to achieve long-term success.
Set up a call to talk more about Amazon and ways Pattern can help you make the platform work better for you.