The pandemic upended retail and accelerated ecommerce as a key (and sometimes only) channel for all brands. McKinsey estimates that consumer demand for online shopping jumped ahead 10 years during the first three months of the pandemic, and that growth has been sustained. As an executive, it is your job to capitalize on growth opportunities in ecommerce, specifically digital marketplaces, to maintain your brand’s profitability.
At Pattern we hear the same feedback from executives, their fear and trepidation around marketplaces has them questioning, “Should I even bother putting my brand on a marketplace?” This is understandable because the costs and complexity to succeed on marketplaces are higher than expected and progress is slow or stagnant. Once you add on other challenges to success, which include new competitors, rising customer expectations, and lower profit margins–it's easier to ignore than solve for.
But brands really have no choice. They must invest in marketplaces to command their share of an exploding global market. Working with Pattern takes away the fears and anxiety since we will manage dozens of digital channels and global marketplaces while tackling distribution, advertisement, creative teams, pricing, fulfillment, and more.
Limited resources and a lack of technology.
Let’s break it down. Imagine the pressure placed on ecommerce teams–in a given region, they have been tasked with getting products onto every marketplace and channel, keep listings fresh and optimized for conversion, create and manage direct-to-consumer sites and relationships, and guide advertising to drive traffic for all of these channels along with distribution and fulfillment.
To do this for just one region, ecommerce teams often stitch together a set of agencies, partners and software stacks that weren't designed to work together. Now multiply that by 10, 50, 100 different and unique regions who each have cultural and logistical gaps that make scaling difficult to impossible for a brand.
To win on digital marketplaces, you'd need endless resources, but there is another way.
Growing marketplace revenue is one simple equation. Revenue = traffic x conversions x price
By focusing on this equation (and its implied competencies), your brand’s profitability will increase. Each part of the equation is essential to achieving growth, and you probably need more than three or four people on your ecommerce team to do it right. As the industry’s first and leading ecommerce accelerator, everything Pattern does to help brands accelerate is tied to this equation.
Solving the equation is a combination of resources and technology. Pattern is able to fill gaps in resources, execute tangential activities, like enforcing MAP policies, and provides marketplace expertise so your brand can harness the power of influencers, data science, social media platforms, ecommerce acceleration technology, marketing, advertising, creative teams, search engine optimization (SEO), online marketplaces, live chat, price control, shipping logistics and more.
We know it is intimidating, but once you understand the complexity of digital marketplaces and competencies and resourcing necessary on each, your brand will be set up for success. But let’s be honest, even after you solve the equation, succeeding takes time and resources, which smaller teams typically lack. We hear time and again that driving traffic to your direct-to-consumer site alone can take 20 people. How is any brand going to be profitable with hundreds of ecommerce teams exclusively dedicated to each marketplace?
The better solution is to partner with an ecommerce accelerator, like Pattern, who can identify how long and how to get to profitability. In addition, Pattern uses its deep marketplace knowledge, real-time data and insights, proprietary technology and global team to manage every component of the ecommerce equation–driving traffic, increasing conversions, and price control.
Here is the point again: winning on digital marketplaces requires more of the right resources—people and technology—to unlock your brand’s potential.
Executives work with Pattern to crush their fears about digital marketplaces by leveraging the resources and technology from the world’s top ecommerce accelerator. How do you fill the resource gaps? Contact Pattern.
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If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.