4 Amazon Revenue Growth Hacks

Tiffany Milar

July 29, 2021

If you’re building or expanding your brand, you already know the importance of Amazon growth. Amazon is the most important ecommerce marketplace in the U.S., and it’s only growing in prominence. While some brands excel on Amazon, others fall short of their goals and potential, and it can feel intimidating to invest time and resources into Amazon if you’re not sure this investment will pay off.

But what if we told you that ecommerce success isn’t erratic and arbitrary, but something brands can predictably achieve when focusing on a few key goals? At Pattern, working with hundreds of brands on Amazon has shown us that ecommerce success isn’t unattainable or random—it’s a mathematical equation that can be solved. And this equation is fairly straightforward: if you want to accelerate your brand on Amazon, you need to master insights, traffic, content, and protection. Not sure what we mean? We’ll tell you all you need to know below.

1. Insights: Harness the power of data to know where your brand stands in the market

Since selling on ecommerce is still relatively new, many brands lack insight into their brand’s online presence. It’s not uncommon for brands to be unaware of who’s selling their product on ecommerce, what their web listings look like, what’s happening to their prices across marketplaces, or even how much sales revenue is generated through ecommerce platforms.

Although this situation is common, it’s a dangerous pitfall that prevents brands from maximizing their Amazon growth. To fulfill your brand’s potential you must have real-time ecommerce data informing you on your prices across marketplaces, the efficacy of your listing pages, and how you measure up to your competition.

Understand your Digital Shelf

Using data to determine your “digital shelf” is an important step in forming a comprehensive picture of your brand’s ecommerce standing. Just like brick-and-mortar stores place products on a physical shelf alongside competitors, ecommerce products exist on a digital shelf of competitors. On the digital shelf, products compete on a keyword or key phrase level.

Instead of assuming you know who your primary competitors are, rely on data to tell you. Brands are often surprised to find out that their ecommerce competitors aren’t who they thought they were, as ecommerce competitors can vary widely from your brand’s traditional competitors.

“It’s important for brands to understand, ‘Well, who am I competing against? What keywords are they winning? Where’s my opportunity?’” said Pattern Head of Revenue Operations Scott Crandall. “If you don’t know who you’re competing against, it’s tough to really win.”

Find your market share

Once you have a good idea of your competition, you should next gather and analyze data about your market share, both compared to your competitors and over time. Even if you think you’re growing at a solid pace, that pace may not be enough to keep up with competitors who are growing more quickly.

At Pattern, we help brands increase their awareness with a marketplace performance score, which analyzes data on product traffic, conversion, and price to illuminate missed revenue growth opportunities. Some factors that contribute to this score include how your listings look, whether they’re SEO optimized, and your response rate to consumer questions.

No matter how you decide to stay on top of your brand’s ecommerce data, make sure you’re seeing the whole picture—isolated data means very little if it doesn’t tell you about your missed opportunities and how you compare to competitors.

2. Traffic: Focus on advertising as a key lever to increase your organic traffic and build your business

It’s not difficult to see why driving traffic is so important in ecommerce success—if consumers don’t see your product, they’ll never have the opportunity to click “add to cart.” An effective ecommerce advertising strategy will leverage both paid and organic traffic to increase sales and ultimately improve your organic search ranking on Amazon.

Advertise based on the customer experience Funnel

At Pattern, we reference a customer experience funnel while forming advertising strategies for our brands. The first step in any ecommerce advertising strategy, which forms the base of the funnel, should be creating retail and brand readiness by optimizing product listings.

The next goal is to reach shoppers who are most likely to purchase your product through sponsored products, sponsored display, and Amazon Display and Video (DSP.) Once you’ve completed those two goals, you should then start working on standing out in your category with sponsored brands, sponsored products, and sponsored display.

The fourth goal is to build your brand with Amazon DSP, sponsored brands video, and over-the-top. The final step is to expand your reach and build awareness with over-the-top audio ads and Amazon DSP.

Customer Experience Funnel

By crafting an advertising strategy with the help of this framework, you can expand your reach and increase your organic ranking over time. Focusing on ROI as the sole metric to determine advertising success is an outdated strategy.

“We see this all the time,” Morales said. “A brand has a great return on investment, and then we come to find that 80-90% of what they’re doing is branded keywords. In many cases, those are shoppers that would’ve purchased anyway.”

Focus on more than branded keywords

By shifting advertising focus to winning keywords and categories, brands may see an initial lower ROI but can feel confident that the incremental revenue driven by ads is hitting the top line for their business. Instead of just reaching the shoppers that would’ve bought your product anyway, you’ll be able to reach new customers and improve your organic rank over time.

The importance of improving organic search rank through advertising is too often ignored considering its implications on Amazon. 80% of all the clicks on Amazon happen on the first page of results. 58% of shoppers don’t scroll past the first 12 listings. 60% of all clicks go to the top 3 products, and 35% of those go to the top organic product. Seven out of 10 shoppers don’t bother going to the second page of search results.

“The ultimate end goal in every marketplace is to improve organic ranking, because that will increase the size of the pie that we’re capturing for the brand or the product at large,” Morales said.

3. Content: Don’t just create content–create content that converts

Mastering content is closely related to mastering traffic. Along with an effective advertising strategy, high conversion rates will also improve your organic search rank. The A9 algorithm rewards brands and products that convert, and content is the key to conversion on Amazon.

Don’t waste your space

Creating content that converts starts with creating content that engages and creating as much as possible. Take advantage of every Amazon opportunity to publish content—in a product listing, for example, fill every image slot available. In these spots, publish only high-quality photography and video. In addition to photos of the product itself, include lifestyle photos, aspirational photos, and photos of the product in use to help consumers envision themselves with your product.

Educate with your content

The next key goal of content creation should be education. When consumers land on a product listing page, answer every question they may have about the product’s features, specifications, and benefits. Use iconography or infographic images to communicate information in an engaging, digestible way, and show the product in use to give consumers a better idea of the product’s size and function. Pull powerful testimonials or reviews to highlight others’ positive experiences with the product. This kind of content both improves conversion rates and decreases the rate of returns.

Keep your content consistent

Finally, your content should connect with consumers consistently. Learn about your demographic so you can connect with them better and keep them in mind always. Focus on maintaining consistent voice, branding, and style. This consistency has the added benefit of decreasing brand erosion across marketplaces.

“Once you have these three things, we see an increase in conversion,” said Pattern Chief Creative Officer Josh Mendenhall. “What I like about ecommerce creative is that it is so measurable. You can’t measure how well a billboard does on the side of a highway. You can tell that when you switch image 2 and 3 placements on Amazon, the conversion rate changes.”

4. Protect: Fiercely protect your brand and price on ecommerce

Once you’ve gathered data to guide your ecommerce decisions, crafted an advertising strategy focused on improving organic search rank, and optimized your listing content, the final hack to maximize your Amazon growth is protecting your price and brand. This brand protection is the only way to avoid price erosion, maintain cross-channel consistency, and preserve relationships with brick-and-mortar sellers.

Catch MAP violators

Having multiple random sellers for a given product is a recipe for MAP policy violations and price erosion. In many cases, brands aren’t even aware of all the vendors who are selling their products on Amazon. These sellers often lower the price below MAP, decreasing your profits and causing suppression on Amazon.

“The more offers that you have on a given listing, the more it drives down the price and vice versa,” said Pattern Head of Revenue Operations Scott Crandall. “We see this consistently across so many brands and channels.”

Manage seller opportunity

If Amazon can find your product cheaper elsewhere, your Buy Box will not be optimized and you’ll see lower conversion rates. This price disparity also introduces cross-channel consistency problems. If one random seller sells your product below MAP, that can impact your relationship with brick-and-mortar sellers. These retail sellers may be following your MAP policies and seeing a decrease in sales since shoppers can find the product for cheaper on Amazon. In response, you lose leverage in your annual negotiations with brick-and-mortar.

The solution? Limiting additional Amazon sellers as much as possible and strictly enforcing your MAP policy. This keeps your prices at MAP, shows you have your brand under control, and gives you leverage in negotiations with brick-and-mortar retailers.

Grow Amazon revenue with Pattern

While ecommerce success may not be easy, it is simple—it just requires you to harness the power of data, advertise to improve organic rank, craft content that converts, and protect your price and brand.

For a small ecommerce team, mastering these four elements may feel overwhelming, but that’s why Pattern is here. We support brands in this acceleration framework at no cost to you. We can step in as little or as much as you need. Interested in learning more?

Get in touch now.

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Global Ecommerce Weekly News: 27th September 2022
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Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)

Global Ecommerce: Weekly News (20th September 2022)
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Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/amazon-to-raise-delivery-drivers-pay-and-add-more-work-benefits/) Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/amazon-to-give-away-shipping-software-to-merchants/) --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/walmart-launches-virtual-fitting-rooms-to-drive-clothing-sales/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2da7f0f8f8-EMAILCAMPAIGN202209150742&utmmedium=email&utmterm=0d23e2768b6-2da7f0f8f8-61040615) THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/thg-slashes-forecast-as-cost-of-living-crisis-hits-consumers-wallets/) --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/post-office-partners-with-dhl-express-to-provide-click-and-collect-services/) US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/us-consumer-watchdog-to-start-regulating-bnpl-sector/) Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/13/japan-ecommerce-market-to-grow-by-6-9-in-2022/) Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](https://searchengineland.com/ecommerce-brands-spent-60-more-on-tiktok-ads-in-q2-387876)

Global Ecommerce: Weekly News (13th September 2022)
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Global Ecommerce Weekly News: 13th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon scales back on US warehouse facilities Amazon is shutting down two facilities with 300 employees, discarding plans for 42 facilities, and delaying plans to open a further 21 buildings across the US. The ecommerce giant is scaling back on hiring as well as the expansion of its vast delivery network, as it was left with an excess of space following its rapid expansion during the pandemic. [Read more on Business Insider](https://www.businessinsider.com/amazon-closes-2-facilities-scraps-plans-42-new-buildings-report-2022-9?r=US&IR=T) --- Other Marketplace News --- JD.com is ‘betting’ on ecommerce grocery market Amidst a slowing economy and a decline in ecommerce, Chinese ecommerce giant JD.com has increased its urgency to seek new growth engines. The company is looking to boost its online grocery business through offline partnerships and expansion into lower-tier cities, where it may be able to unleash more consumption power. [Read more on The Star](https://www.thestar.com.my/tech/tech-news/2022/09/08/chinese-ecommerce-giant-jdcom-bets-big-on-online-grocery-lower-tier-markets-amid-slowing-economy) Shopee shuts operations in Argentina, Chile, Colombia, and Mexico Sea’s ecommerce arm, Shopee, has shut local operations in some LATAM countries but will continue to maintain cross-border operations in a few markets. Latin America is Sea’s most important region following South-east Asia, accounting for close to 19% of its revenue in 2021. The move away from these countries is largely due to increased levels of macro uncertainty and rising interest and inflation rates, and rather putting a focus on its core operations. [Read more on Straits Times](https://www.straitstimes.com/business/companies-markets/seas-shopee-shuts-operations-in-argentina-chile-colombia-mexico-sources) --- Other Ecommerce News --- Instagram scales back in-stream shopping elements Instagram is re-examining its approach as it hasn’t been able to make ‘fetch’ happen. ‘Fetch’ in this context being the online shopping trends which have become all-consuming in China, and what Western social platforms have been hoping to add into their apps to make them more addictive and revenue-generating. Consumers have not been swayed by the latest shopping tools on TikTok and Instagram, leading to Instagram scaling back its in-stream shopping program. [Read more on SocialMediaToday](https://www.socialmediatoday.com/news/instagram-scales-back-in-stream-shopping-elements-as-it-re-examines-its-app/631276/) FedEx Express supporting the growth of cross border ecommerce FedEx express has expanded its international commerce shipping service to four more markets across the Asia Pacific, Middle East and Africa (AMEA) region in an effort to support the strong development of ecommerce in this region. Three of the fastest growing markets, the Philippines, Indonesia and Vietnam are leading Southeast Asia’s ecommerce sales, which is set to reach $100 billion by 2023. [Read more on Post & Parcel](https://postandparcel.info/149889/news/e-commerce/fedex-express-supports-the-growth-of-cross-border-e-commerce-within-the-amea-region/) India ramps up hiring as companies prepare for shoppers Ecommerce companies are getting ready for the festive season by rapidly expanding their temporary workforce. As ecommerce in India grows, the country is predicted to have 372 million online shoppers by the end of 2022. The festive season this year, running from October to December, is expected to see a two-fold increase in logistics and delivery alone. During this period, companies are predicted to add 20% more to their existing workforce base, with a 8-10% higher pay scale compared to last year. [Read more on Business Insider India](https://www.businessinsider.in/business/ecommerce/news/the-great-indian-festival-of-hiring-e-commerce-companies-gear-up-for-indias-shoppers/articleshow/94000346.cms)