In today's ecommerce landscape, there is growing competition on marketplaces, making it harder for brands to standout on marketplaces like Amazon. So, every advantage you can gain to set you apart from any other listing is crucial to help you win clicks and grow your sales.
At Pattern, we know that brand profitability is influenced by four aspects of the ecommerce equation: price, availability, conversion, and traffic. When you optimize for these areas, your product sales will most likely grow on any marketplace. Partnering with hundreds of global brands, we know an advantage worth pursuing on Amazon that directly connects to the ecommerce equation is the Best Seller badge.
Amazon’s Best Seller badge is a designation given to a product ranked as the #1 seller in its category. And although the exact formula used to calculate the winner remains a mystery, we know that pricing changes, promotions, and competitive products influence Best Seller Rank (BSR) and your ability to achieve the Best Seller badge. And BSR’s biggest influence is customer sales trends and historical sales volume.
It’s also good to know that BSR is updated hourly. But, because it’s calculated using both sales trends and historical volume, BSR can stay fairly static. For example, just because a product has 10 units of sales in one hour and drops to 1 unit of sales in the next, it doesn’t mean the BSR will automatically fall. Winning the badge takes consistent effort in optimizing your sales volume, but it’s worth it for success in your long-term strategy.
The best thing about the Best Seller badge is that there’s one for every category and subcategory on Amazon. This is impactful because there’s much more room to compete for the badge and succeed than many brands think. If the badge was only available for Amazon’s 36 main categories, the sheer number of available products compared with the vastly lower number of badges would make attaining the #1 spot for a product’s category a daunting task for most brands.
But, with the many more opportunities available to win, the badge is much more achievable. Competing products that share a category can both possess the Best Seller badge if they’re winning under different subcategories, helping brands gain leverage over competitors and momentum in winning sales.
One of Pattern’s key advantages for brands is our data-driven approach to ecommerce success. Our proprietary technology is specially tailored to find key niches for products to gain ground on Amazon and across global marketplaces. For things like achieving Best Seller badge, we help brands analyze subcategory options, determine products’ competitive ability, and then identify the best opportunities for them to start growing their rankings and stand out to consumers.
Amazon’s Best Seller badge is important to your brand and products because it drives more traffic to your listings, a key component of the ecommerce equation that drives profitability. Best Seller badge products not only show up higher on search pages, they increase your glance views by an average of 45%.
There’s a reason Amazon issues a Best Seller badge in the first place—your sales make them more successful. And showing consumers top products for their searches with an eye-catching graphic helps to draw eyes and communicate value fast. As you funnel more traffic to your listings, you’ll increase momentum for your products’ success in the ecommerce equation.
We also know that the Best Seller badge increases conversions, though not as dramatically as it does traffic. Products with the badge tend to experience a 3% increase. And every win in conversions strengthens your products’ profitability.
It’s also worth keeping in mind, too, that ecommerce conversions are a difficult win to come by—it’s hard to convince a person that they should purchase something they can’t feel with their own hands or try before buying. Users have limited ways of developing trust with your product in their short decision-making period, and having the Best Seller badge, like having mostly positive reviews and great creative assets, is a valuable way to reinforce the message that your product really is worth buying.
At Pattern, we know what it takes to achieve your potential profitability. We have the historical success with hundreds of global brands and true expertise to be able to say with certainty that when you optimize your traffic, conversion, price, and availability for your products, you can grow your performance on any ecommerce marketplace.
And, partnered with our data insights, proprietary technology, and seasoned teams, we can help you succeed wherever your ecommerce strategy takes you.
Contact us to optimize your success on Amazon and achieve your Best Seller badge.
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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.