How Poor Product Listings Damage Your Brand on Amazon

Rachel Olsen

August 2, 2022

Since most brands only sell about 20% of their products online, it’s common for executives to turn a blind eye to their poor ecommerce performance—issues there are probably a small problem, right? But if you can pinpoint the lackluster ecommerce profitability to poorly-performing listings, then you can take care of issues now that would snowball to greater losses as your brand grows.

As an expert in ecommerce and the world’s foremost ecommerce accelerator, Pattern has unparalleled expertise in managing brands across global marketplaces. Partnering with Pattern gives you access to data, technology, and top teams across multiple disciplines that help you prioritize great product listings in your overall ecommerce strategy and provides the resources to improve underperforming listings. 

We've highlighted three ways poor listings impact your Amazon marketplace performance.

Negatively Impacts Your Discoverability

If your listings aren’t optimized for SEO and strategic ad placement, they will not be found by customers. And if your products aren’t found, your traffic, conversions, and overall profitability drop significantly. Pattern’s Amazon data and trends suggest that only the top four products listed in an Amazon search result drive more engagement with a brand's listing. So, optimizing your products for organic discoverability needs to be a priority for your ecommerce efforts.

Typically brands find it tempting to underestimate the power of SEO and paid ads, but the stakes are too high to ignore their impact for long. To put it into perspective, Amazon’s ads are clicked 42% more often than Google ads. And, the data shows when people search for products, 74% of them search Amazon first. 

Another reason Amazon search is so valuable is because of where your consumers are in their buying journey. Ads on social media and Google can be valuable, but on Amazon, you have the advantage of knowing your audience’s search intent. Appearing in front of consumers wanting and ready to buy a product that aligns with their search query is a huge opportunity that you can’t miss.

So, you need to be putting the right resources into creating and testing your listing titles, product descriptions, search filters, and backend search terms. (We’ve listed some of the best practices for brands here.) As you find what works, Amazon’s algorithm will be able to better identify your products and serve them in front of consumers ready to buy.

Pattern’s expert SEO teams know the best practices and how to optimize your product listings for the right audiences to improve your rankings for better traffic and conversion wherever you sell your products online.

Misrepresents Your Brand

It’s hard to overestimate the importance of brand affinity on ecommerce marketplaces. One of the key reasons you should be establishing a strong brand presence is to build a consumer base of loyal, repeat customers. 

Repeat purchases from repeat customers are a true sign of a healthy, thriving brand. And when you can establish a great relationship and deep trust with the people you’re selling to, you’ll naturally build positive momentum with their reviews and word of mouth endorsements. In short, it’s easier to reduce buying friction, the cost of conversion, and the cost of acquisition with people who already have an enthusiastic opinion of your products, leading to more conversions and overall success for your brand.

Clearly, it’s valuable to find your brand advocates, but how do your listings help you do that? The first is by claiming the buy box

Many brands struggle with disjointed sellers—3P sellers who have acquired your products, (for example—after buying them on deep discount) and now “pose” as your brand to sell those products to consumers. They often sell your products below their MAP price in order to claim the buy box, attracting more traffic and conversions.

As those customers are drawn to those listings instead of yours, they experience a disconnect in what they normally associate with your brand—often, the copy, media, and even the grammar are ignored for profitability for unauthorized sellers. They often focus on keyword stuffing and quick turnaround to capture traffic and end up poorly representing your brand.

Issues like losing the buy box can hurt your brand long-term, especially if 3P sellers are selling returned, damaged, or fake products in your name. When you have a true understanding of how to optimize your product listings to outperform your competition, you can win the buy box and reclaim your brand presence for your repeat and future customers to ensure better long-term success.

Pattern knows the dangers of disjointed sellers leading to poor brand representation. We have both legal partnerships and listing optimization strategies at our disposal that are proven to help you get ahead of disingenuous sellers and reclaim your brand’s presence wherever you sell online.

Lowers Your Conversion Rates

In order to achieve long-term profitability and growth on ecommerce marketplaces, it’s important to keep your conversion rates as high as possible. Pattern’s experts have found that a low conversion rate signals to Amazon your products aren’t worth showing to customers, significantly lowering your sales potential. But a great conversion rate helps improve your organic rankings and raises your ROI for paid ads—making it easier and less expensive to sell your products in the long run.

So, how do listings affect your conversion rates? Consumers searching for products on Amazon are more likely to purchase from a brand they trust. And without being able to physically sample your product, they have a short window with limited information to decide whether or not they’ll purchase from you. 

We know from extensive data analysis and research there are a few key components of your listing that help in building trust with your consumers. One of those components is the quality of your images.

If your images are blurry or you only post 1 or 2, customers will have a hard time understanding what your product is and its potential value to them. So, they’ll keep searching instead of purchasing your product. Things like the images’ lighting, background, the quality of your equipment, and your editing process shouldn’t be left up to chance. 

Partnering with an ecommerce product photography expert is a way to make sure you get the best photography for your products, and your images are optimized for both your brand and your marketplace.

Pattern Boosts Your Product Listing Performance 

When it comes to optimizing your ecommerce strategy, Pattern has all of the resources you need to achieve long-term profitability. Not only do we have the data and technology to analyze a brand's current performance and opportunity on marketplaces, Pattern has all of the necessary teams to optimize your success from end to end. As the world’s top ecommerce accelerator, Pattern knows the key drivers for boosting listings, conversions, and profitability for brands.

Ready to improve your product listings? Contact us.

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Aug 9, 2022

The Ecommerce Equation: 4 Levers CEOs Use to Drive Marketplace Revenue

Developing your ecommerce strategy for digital marketplaces like Amazon, Walmart, Tmall, and Alibaba gets complicated fast—there’s a lot to think about, including marketplace SEO, product photography, advertising tactics, disjointed sellers, distribution logistics, managing ratings and reviews, and more. It can be overwhelming for brands, especially those with small teams, to know which behaviors to optimize for for the highest gains in profitability.

The good news? Revenue performance all comes down to data. Pattern was built on a data science approach to ecommerce success. We find the patterns that drive profitability, then apply them to boost our brand partners’ revenue on ecommerce channels.

And a key pattern we follow for all brands on digital marketplaces is the ecommerce equation: revenue = traffic x conversions x price x availability. As brands zero in on these four pieces of the equation, they can simplify and focus their efforts to reach truly profitable ecommerce growth. 

1. Drive Traffic to Products

The first part of the equation is traffic—you need to get people to see your listings if you want to generate sales. There are two ways to drive traffic to your products: through organic search and paid search. Striking the right balance between both for your brands is crucial to driving enough of the right traffic to your products, ultimately increasing your ecommerce revenue.

Knowing this, Pattern provides the resources and technology needed to drive traffic to your product listings. Our brand management team, advertising specialists, and SEO technicians work in harmony to create a unified strategy to boost your brand’s organic profile and balance that with a paid advertising approach that works for your brand and listings.

Using this method, we took Feetures socks from ranking on longer-tail terms like “no show athletic socks black” to driving traffic on parent keywords like “no show socks.”

2. Create Content that Converts

Getting customers to your product listing is only half the battle. Once on your listing, you need customers to convert. Conversion is key to the ecommerce equation because it leads to real product purchases and revenue. Traffic without conversion leads to more time and ad spend without the ROI.

Optimizing your images, product description, bulleted details, customer reviews, and buy box performance is key to successful conversion. If you’re going to spend time and effort driving traffic, you should make sure customers can easily and clearly find what they’re looking for when they arrive at your listing.

While your imagery and descriptions are important, you also need to build customer trust to drive conversions. Studies show that your customer service efforts matter too—84% of people trust online reviews as much as friends, making strong reviews an important factor of conversion on marketplaces.

The good news is as you provide a quality product and a great marketplace experience, you’ll build brand equity, increasing your customer loyalty. Then, as your reputation, reviews, and traffic grow positively, marketplace algorithms will recognize your popularity and improve your rank accordingly. Rank drives both traffic and conversions, helping you to optimize your performance further. As your brand equity grows, your conversions will continue to grow with it.

3. Control Your Price

While setting a strategic price is an important step in your ecommerce strategy, it takes more than that to truly control your price on marketplaces. 

Without proper control and with wide distribution, your product could end up in the hands of disjointed sellers who lower your marketplace price to sell their inventory and make quick profits. With one seller lowering price online, other authorized sellers and retail partners are forced to lower their price to compete, creating price erosion and sending your brand down the profitability death spiral.

This Death Spiral damages brand equity, hurts conversions, and can lead to Buy Box Suppression on Amazon, hindering traffic as well. And as prices get lower and lower, your profit margin withers away, decreasing your overall revenue.

Using our data-driven insights and Pattern’s eControl partner Vorys, we help brands implement narrow distribution, identify and take-down unauthorized sellers, eliminate price erosion, and control their price online. Focusing on price control, Pattern helped LifeSeasons, a premium supplement company, take back 91% control of the Buy Box on Amazon.

Download the LifeSeasons 1-Page Case Study Here

4. Optimize Your Product Availability

The last piece of the ecommerce equation is availability. It makes sense to think of availability as a contributing factor in conversion, but we felt that it’s important enough to call out on its own—you can fully optimize your traffic, conversion, and price, but without availability, you can’t grow revenue for your brand.

A lack of availability leads to stock outs, losing conversions to competitors, losing possession of the buy box, poor customer reviews, a decrease in traffic…the list goes on. The best-performing brands on ecommerce digital marketplaces optimize their availability with high-end technology, optimize their cash on hand, and inventory time on hand to keep the ecommerce equation powered and optimized in their favor.

How Pattern Drives Revenue Using the Ecommerce Equation

Pattern is committed to  solving the ecommerce equation. We partner with brands to provide the expertise, resources, and technology needed to drive traffic, create content that converts, protect price, maintain availability, and ultimately accelerate ecommerce revenue and profitable growth. 

Interested in improving the results of your ecommerce equation? Schedule a call.

Aug 8, 2022

Global Insights: Spotlight on Amazon in Emerging Markets

We have analyzed Amazon in emerging markets compared to countries where it has already achieved dominance, following its reported growth of 22% between [2020](https://www.marketplacepulse.com/articles/amazon-gmv-in-2020) and [2021](https://www.marketplacepulse.com/articles/amazon-gmv-reached-600-billion-in-2021). Pattern’s [Amazon Consumer Insights Report 2022](https://info.pattern.com/amazon-consumer-insights-report-2022) has highlighted some interesting insights into the similarities and differences in the ways Amazon is used across 17 different countries. We carried out research on various macroeconomic indicators and data related to Amazon usage in each country to better understand the key factors that determine the suitability of the markets. In this blog we outline the most interesting Amazon global insights that will be of interest to brands determining where they should have a presence on the marketplace, particularly Amazon in emerging markets. Population, urbanization, and GDP per capita are all factors which have a large effect on ecommerce and marketplace strategy in a country. These factors need to be taken into consideration when understanding the potential a brand has when entering a new market. Notable takeaways from the report are highlighted below. Price of Amazon Prime The monthly cost of Amazon Prime varies greatly depending on how developed the Amazon market is in the country. We noticed that in countries with a higher GDP per capita and a more dominant Amazon presence, the price of Prime is substantially higher, for example, in the US ($14.99) and in the UK ($10.08). The monthly cost of Prime in the UK has [recently increased by $1.26](https://www.bbc.co.uk/news/business-62297014) due to higher operating costs, but we believe that UK consumers will accept this increase. As a comparison, less developed markets with lower GDP per capita figures, such as Poland ($2.56) and Brazil ($3.12), have significantly lower monthly Prime prices. Amazon purposely prices Prime to be very cost-effective for customers in emerging markets as a customer acquisition strategy and to help grow its market share more quickly. Desktop vs. Mobile India, Japan and Mexico were found to have higher percentages of traffic from mobile devices compared to other markets. This is in line with data which looks at the [leading countries based on retail mobile commerce sales growth](https://www.statista.com/statistics/1261743/leading-countries-mobile-commerce-sales-growth/), and shows how particular countries spend more time online using mobiles rather than desktops. App Downloads & Ranking In this year’s report, we made the decision to include data on the Amazon App (Android), as more consumers are shopping online on mobile devices. This is reflected in the average monthly downloads and category rank of the app. Mexico sees an average of 1.2 million monthly downloads of the Amazon (Android) App. This is expected, as Mexico is one of the regions that has a higher percentage of traffic from mobile devices compared to desktops. In terms of average monthly Amazon web traffic, Mexico is the 9th largest out of the 17 countries analyzed, but after the US and Brazil, is the 3rd largest in terms of monthly downloads of the Android App, highlighting the country’s preference for using the Amazon App. Visit Duration & Page Views In markets where Amazon is robust and well developed, like the USA, UK and Germany, consumers tend to spend more time on the platform and view more pages per visit, as there is more choice from a wider range of products to explore. On the other hand, in markets where Amazon is still either at its early implementation or growth phase, like the Netherlands, Poland, and Brazil, there is less on offer and a far smaller selection or products. Inevitably, we noticed consumers have a lower average visit duration and view fewer pages in these markets. We would expect to see these metrics increase as Amazon’s product selection increases in these markets. Top Selling Categories There are many similarities between the different markets in terms of the top selling categories in each country. Out of 17 countries, 12 had Home & Kitchen and 11 had Electronics in their top 3 categories. Regional differences can be seen with Sports & Outdoors only ranking as a top category in the UK, Video Games only in Japan, and Hardware only in Germany. It is important for brands to acknowledge that not all categories will sell successfully across all markets. Just because the category is popular in one or more markets, does not mean that it will work across all 17 instances that we analyzed. Our Amazon consumer insights report shows that although the online marketplace dominates online retail in the USA and several other Western European countries, the company is aiming to build that position in countries where it is newer in the market by taking into account the regional differences in consumer behavior and expectations within its proposition. [Download the full report here](https://info.pattern.com/amazon-consumer-insights-report-2022), and [contact us here](https://info.pattern.com/contact-us/) to learn how we could support your global marketplace strategy or for more information on how we partner with brands to represent them on Amazon.
Aug 4, 2022

How Disjointed Sellers Take Away Brand Control on Ecommerce Marketplaces

A top issue we see with brands struggling on ecommerce marketplaces is a loss of brand control due to disjointed sellers—those that aren't following your brand policies and guidelines when selling your products online. Disjointed sellers can be gray market, unauthorized, and rogue sellers, as well as 3P and other sellers that are noncompliant with your branding, pricing, and other forms of representation online.

It can be very easy for brands to lose control of their ecommerce strategy when they can’t get a handle on disjointed sellers. Typically, these brands are either stuck in a game of whack-a-mole or just ignoring the warning signs of bigger issues and hoping for the best. But, when disjointed selling isn't handled right, the consequences can be devastating to profitability. A loss of brand control doesn’t happen overnight, and the factors that contribute to it are long-standing. 

Erode Consumer Trust

Before the advent of ecommerce, brands favored a wide distribution. It was the easiest way to get products to as many distributors as possible. But wide distribution, when left unchecked, leads to leaky distribution—allowing your excess products to end up in the hands of unwanted sellers.

So brands that continue to operate with a wide distribution strategy are losing brand control and are damaging their brand equity and product performance. Why? You’re unable to monitor your products’ pricing, performance, or quality. You can’t dictate how you’re represented by each seller, creating an inconsistent and false representation of your brand to your new and existing consumers. These issues often lead to poor reviews and erode opportunities to build trust with future customers.

Wear Away Brand Equity

In today’s ecommerce landscape, marketplaces and digital platforms connect people and sellers to make online shopping simple and seamless. They also provide customers complete price transparency. Google, for instance, allows consumers to access any of your products on virtually every ecommerce channel and retail location and posts them side-by-side for you to comparison shop.

Now, everyone from your D2C distributors to large marketplace sellers, legitimate 3P sellers, and rogue and unauthorized sellers are on a level playing field—they’re all presented to the searching consumer, and that consumer has the purchase power.

Disjointed sellers have just as much power and authority to represent your brand as you do, without the same quality, pricing strategy, and customer focus as you.

Cause Competition and Price Matching Issues 

In most shopping scenarios, consumers will choose to purchase a product from whichever seller offers the lowest price. Marketplaces like Amazon and Walmart know this, and optimize their product selection based on all retail offers to serve consumers the lowest price for the same item.

This means that as one seller drops the price of your product, the next will follow, and then the next, etc. Everyone gains access to the product at or below MSRP. This opens the door for unauthorized sellers to purchase inventory during promotions or at discounted prices and then turn around and sell the same product slightly below competing sellers’ prices—for profit.  

As customers search for your product, they notice the cheaper price and purchase from the unauthorized seller, rather than paying the price you’ve established with your retail teams. Simultaneously, as Amazon monitors their product listing against other available channels, they notice they don’t have the lowest price. So Amazon, and other marketplaces, in service of the consumer, drop their price to match the lower price offered by an unauthorized seller. To stay competitive, your other channels follow suit. The cycle, also know as the profitability death spiral, continues to drive down the price of your product, grinding away your margins and profitability.

This doesn’t sound like much of a problem if your brand isn’t actively selling on ecommerce marketplaces, right? Unfortunately, it causes big issues for your brick-and-mortar sales, too. Large retail chains like Best Buy and Macy’s noticed this potential loss of sales from ecommerce and needed to defend and protect their profit. Retailers started telling brands that, in order to keep their products in-store (which accounts for 80% of most brands’ sales) they would need to lower their prices to match online prices. Which led to the concept of price matching. If a customer could prove the price of a product was lower somewhere else, Best Buy would match the lower price and charge the brand for the difference.

As other brick-and-mortar retailers jumped on the trend, brands started to see large losses in their margins.

Gain Ecommerce Control with Pattern

The danger that disjointed sellers pose to brands is enormous—without a way to control all of a brand’s distribution points on ecommerce, your brand spins farther and farther down the profitability death spiral. Using custom technology and data-driven insights, Pattern can identify disjointed and unauthorized sellers for your brand and develop a custom strategy tailored to your specific needs to address these big issues as soon as possible. Then, Pattern partners with the econtrol law firm, VORYs, to enforce take downs and save brands who find themselves caught on any stage of the death spiral.

With the right resources and expert help, we’ve helped hundreds of brands to regain their footing and control on ecommerce, win the buy box, and grow their sales. 

Contact us today to regain your brand control.