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 (6th September 2022)
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Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)

Global Ecommerce: Weekly News (30th August 2022)
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Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)

Global Ecommerce: Weekly News (23rd August 2022)
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Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)