All the Cost Savings of a Pattern Partnership

John LeBaron

January 12, 2021

Growing an ecommerce business can get pricey. When you’re selling on Amazon as a 1P seller, you have to cover damage and freight allowance fees as well as base accrual fees. Then you have to pay personnel or an agency for advertising and marketing. Even more costs get tacked on when you start expanding into new markets or channels. Soon, you’re spending more money than you have to.

A better solution is a partnership with an exclusive third party seller like Pattern. Pattern provides you with almost every service you need to grow on ecommerce—this includes marketing, SEO, shipping, customer experience, and marketplace expertise to name a few. Rather than make several different payments, the cost of these services are consolidated into one affordable fee (a lower margin when we buy your product), helping you save money and grow your business more quickly in the process.

Here are some important cost savings to consider as you consider a partnership with Pattern.

Immediate savings

Amazon Fees

Selling in a 1P relationship with Amazon can get spendy, because there are lots of different allowances and fees you have to cover. Amazon charges 3-10% of your Amazon sales for damage allowances and returns, and your base fees alone will cost 12-30%. Even in an insourced 3P relationship, where those fees don’t apply, you’ll end up paying 3-30% for FBA.

When you work with Pattern, you pay nothing to Amazon and your FBA fees are included in your partnership fee. We also cover logistical costs you’ll need to address, like inbound shipping, labeling, customer service, and Amazon error reimbursement.

Agency Costs

Most businesses will hire a variety of agencies to grow their business and improve their branding, but for every different agency you work with comes a separate cost you’re having to make upfront for their services. Pattern cuts those costs down or out completely by giving you one source to pay rather than two to five. We also help you save on agency costs because your contractual agreement with us will be for a shorter time period: most Pattern contracts have a sixty day minimum.

Ad Spend

Advertising is a key component of ecommerce success. Most brands either pay a third-party service for advertising support at a high cost, or they hire internal staff to manage ads. A Pattern partnership can eliminate the need and cost for both, as we offer campaign management, proprietary optimization technology (Predict), and robust metrics reporting far beyond what Amazon shows in Seller Central. We also give our partners access to a digital shelf for their products and Laddered Destiny keywords. All of this is included in our partnership at no charge. 

Our partners are responsible for contributing the marketing spend for advertising efforts.

Indirect/long-term savings

Pattern doesn’t just save you on Amazon fees. We also help you grow your profits long-term with data analytics, price control, omni-channel growth, and a team of experts who can help you extend your reach internationally when you’re ready to make that step.

Data Analytics

Amazon doesn’t provide their 1P sellers with data about their conversion rates, which makes it tricky for brands to grow in that space. At Pattern, we eat, sleep, and breathe data, and we use it to help our brands achieve long-term growth.

A partnership with Pattern gets you data about things like what keywords increase your conversion rates and organic ranking and what how your customers feel about your product. We leverage predictive modeling and A/B testing to show you what works for your listings and what doesn’t. That’s all included in your Pattern bundle through our Predict software.

Price Control

Wide distribution of your product can lead to unauthorized sellers in the ecommerce space violating your MAP and eroding your pricing online and offline. This can eat away your margins and long-term profits as well as harm your relationship with your authorized distributors.

Pattern gives you the tools to eliminate bad players, get your pricing under control, and enables you to better enforce your policies so that your long-term growth is both sustainable and protected from bad players. That helps you save both online and in your brick-and-mortar channel, because distributors can sell your product without worrying about their margins being cut.

Omni-channel & International Growth

When the time comes to expand your business, Pattern can help you tackle both domestic fronts and international fronts. While a single agency may only have expertise in one marketplace, Pattern has the ability to help you replicate all categories in multiple marketplaces and countries.

These kinds of services get spendy when you outsource them in a 1P or 3P limited relationship, because you’re paying for a variety of specialized services and personnel. At Pattern, we have feet on the ground in the most lucrative international markets as well as experts familiar with marketplaces across all channels where you can grow your business, like Amazon, Walmart, Amazon.UK, Alibaba, and JD.com.

Opportunity costs

A partnership with Pattern isn’t right for every brand—having more distributors to mitigate risk might be in your best interest, for example—but 97% of the brands we work with continue to work with us beyond their contract date because of what we can do for their business. The opportunity costs of going with a different kind of partnership are simply too great.

Pattern helps brands get additional revenue by cleaning up their channels and increasing their conversion rates by up to 40%. We also get our brands additional margin by helping them gain control on ecommerce.

The resources we offer brands aren’t just designed to clear up space for them on ecommerce. They help our brands become standouts in crowded channels and give them the brand presence customers love and trust.

To learn more about the cost savings you might experience in a partnership with Pattern, contact us using the form below.

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Amazon's Sponsored Product ads
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What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Utilizing Amazon sponsored ads can be a smart way for a brand to drive greater traffic to a product listing and start increasing sales. While many brands still struggle to manage their advertising strategies, 30% of Amazon brand sellers increased their advertising budgets in 2022. As ecommerce executives (or even on the nose with VPs of ecommerce?)  approve their 2023 advertising budgets, it may be worth it to take a look at Amazon’s advertising products and the benefit they may have on increasing conversions. 

​​Pattern is the premier ecommerce accelerator with all of the expertise, data-driven insights, and technology brands need to gain control on Amazon and maintain their competitive niche. We know the high value of and how to utilize Amazon’s advertising products to drive the most traffic and conversions to benefit and accelerate your brand.

Here are Amazon’s three main advertising products you should know about in order to drive listing traffic to your products and increase conversions: 

For a brand executive who is selling their product on Amazon, you may not already know the differences between campaign type, so we will walk you through the differences and uses for each of these three ad campaigns.

Sponsored Product Ads

Sponsored Products are a mid-funnel advertising strategy that gives visibility to products above the top organic listings (see example below). This strategy uses custom keywords to get products in front of the consumers who are searching for them, however it can be used to capture new audiences as well.These cost-per-click (CPC) ads require no additional copy or images, but usually receive the most interaction of the campaigns and need to be monitored closely.

As you can see, these ads look just like an organic listing, however they say, “Sponsored,” on them. These types of ads can be especially effective forms of advertising because they tend to blend in with the organic results around them. With Sponsored Products, you can get your products in front of qualified customers who are searching for your product in such a way that doesn’t make them feel like they are being served an advertisement.

Sponsored Brand Ads

Sponsored Brand Ads are a top-of-funnel brand awareness tool and function on keywords. This ad format helps show a customer what they may be in need of and where to get it.  Commonly used to promote product lines or best sellers, a Sponsored Brand ad shows up as a banner above the search results (see example below). This type of ad requires that the brand showcase at least three separate products.

Unlike other campaigns used on the Amazon platform, Sponsored Brand ads require ad copy and a unique logo. These ads also can take customers to a custom landing page, or a page on the brand store, that way they get a clear and overall picture about who your brand is, what other products you sell, and why they can trust your brand

Sponsored Display Ads

Sponsored Display ads can be a tactic for top, middle, or bottom of the advertising funnel due to its varying targeting abilities. Although most commonly found under the bullet points of a detail page, these ads can also show in emails, newsletters, and even more locations off platform.

Unlike the previous ad campaigns discussed, sponsored display ads can target shopping behaviors, like repeat purchasers, similar product purchasers, and even people who viewed the detail page but did not buy. Sponsored Display ads help customers discover your brand, drive awareness, and create loyalty. 

The example above shows just one of the many placements Sponsored Display has.

Accelerate Your Sponsored Products With Pattern 

Rather than competing with each other, each of the three sponsored ad products focus on a different section of the sales funnel, allowing you to target your customers and hit your sales numbers, all while edging out possible competitors. When brands use these advertising campaigns, they can better optimize their ad budget to improve ROAS and build revenue. 

At Pattern, we have all the resources to help your brand build successful advertising and digital marketing campaigns on Amazon so you can increase traffic and conversions, which will in turn increase your revenue

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/)

How an Amazon SEO Agency Should Be Serving Your Brand
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How an Amazon SEO Agency Should Be Serving Your Brand

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. 

What is an Amazon SEO Agency?

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:

Prioritize Your Success

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.

Provide Detailed Competitive Insight

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.

Reduce Your Ad Spend Over Time

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.

Amazon SEO Optimization and More

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.