ICYMI, eCommerce sales are booming (and they’re only expected to keep growing). If you’re going to take your fair share of the profit, you have to earn it. At Pattern, we’re experts at helping brands increase their margins and profits without sacrificing quality products and consumer trust in the process. In fact, our partners' revenue grows by an average of 40% in their first year with us.
Here are five things you can do to increase your margins for online sales without cutting corners or spending oodles of money:
1. Drive more traffic to your products
2. Utilize premium content
3. Optimize for Amazon SEO
4. Scale to international marketplaces
5. Control dynamic pricing
This first one may seem obvious. If you’re going to increase your sales, you need more people seeing your products. Using advertising and Amazon marketing services to your advantage can help you quickly see a rise in visitors and, ultimately, conversions.
Create an advertising strategy.
Without a solid advertising strategy, buying ads on Google, Facebook, or Amazon is basically just throwing cash to the wind and hoping for the best.
Either on your own or with a partner like Pattern, identify what customer segments are important and what their behaviors are.
Then create great targeted product pages that are persuasive, concise, and interesting to the consumer. The more information you have about your consumers' behavior in your arsenal, the better. If consumers feel like you know and understand them, they're more likely to stick around and end up purchasing your product.
Let data change and improve your strategy over time.
Next, use A/B testing to see which ads are working well and which aren’t. The key here is to never settle and realize there's always room to grow. Maybe your customer segment could be more dialed in. Maybe one image works better than another. Test, test, test and then let the data inform your strategy over time!
At Pattern, our advertising team uses our proprietary technology Predict to automatically adjust hundreds of thousands of keyword bids to ensure we’re putting money behind keywords that get our partners the highest returns. We’re able to test which words perform best and then optimize advertising strategies (and bids) from there.
Track your success.
Finally, make sure you have a measuring system in place to ensure you can track each advertising campaign. That way, you’ll be even more prepared as you head into the next one.
Learn more about Amazon Sponsored Products, Sponsored Brads, Display Ads, and more on this post about Amazon AMS.
Customers are more likely to purchase products that look legitimate. After all, if one product costs 30 cents and another costs $3, but the images and product descriptions are terrible on the cheap one, consumers are much more likely to choose the latter.
“Premium content is a big way to improve profits,” said Kevin Lamb, Pattern’s Marketplace Insights Specialist. “You have to look way better than the average listing or you’re not going to sell.”
Use on-site content optimization options.
Most eCommerce sites offer options to improve content offerings.
For example, Walmart gives each page a content score that guides retailers to make their product pages more effective. They even offer content audits to help retailers sell and show up more on their site.
Amazon’s version is called Enhanced Brand Content (EBC). EBC helps brands create individualized product pages that increase conversion rates and raise profit margins. By using EBC, you can add extra content to your Amazon product page, make it more mobile friendly, and ultimately keep more customers on your page for longer.
If you’re going to increase your margins, you have to show up on page 1 of Amazon. (Very few customers look beyond the first product page.)
Know that Amazon SEO is different than Google.
Not all search engines are created equal. Amazon uses the A9 ranking algorithm to decide who shows up first on their product pages, and it’s not at all the same as Google.
We recommend putting someone on your team (or partnering with someone) who knows the A9 algorithm and all its nuances inside and out. Otherwise, your SEO optimization isn’t going to take you very far.
Get the basics down.
Pattern’s SEO experts recommend optimizing your product titles, backend search terms, and product descriptions first to include keywords related to your product. However, there’s so much more you can do with Amazon SEO.
Learn more about how to get started with Amazon SEO here.
Finally, a key part of increasing your margins on eCommerce is increasing your audience size. If you’re only selling on Amazon or eBay or Walmart, you’re missing out on huge international markets like China, Europe, and beyond.
Analyze whether or not you’re ready to go international.
It’s true, not everyone is ready to sell on marketplaces like Tmall or Alibaba yet. However, you might be more ready than you think. Pattern’s international eCommerce experts can tell you whether your product is ready to enter new markets.
.Fighting for control over your product pricing may be the most important factor in creating (and maintaining) a high profit margin eCommerce strategy.
Since sellers on Amazon and other marketplaces are constantly in competition, price erosion can often affect brands and cut deeply into their margins as each seller tries to win the Buy Box.
Create a MAP policy.
A Minimum Advertised Price (MAP) policy can help you create fixed price points for your products among your many sellers. By requiring your sellers to advertise at exactly how much your products are worth, you can save yourself many headaches (and shrinking margins) in the future.
Our partner brands' legal counsel helps Pattern partners create MAP policies that are thorough and binding.
Enforce your MAP policy.
Sellers aren’t that great at maintaining price parity. However, if you have a MAP policy in place you won’t be left helpless when the inevitable price dropping war ensues. If unauthorized sellers are disrupting your MAP policy, you can work to get them removed, thereby saving your margin.
We know these four strategies will be helpful for you as you try to improve your eCommerce margins. Learn more about how Pattern can grow your profit margins by reaching out below.
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.