Here’s a scenario you may find all too familiar: You’re losing money on ecommerce. You’ve got a talented team of experts, but you’re pouring too many dollars into your online presence with very little results to show for it. In fact, you might be experiencing negative results—your prices are eroding or your marketing doesn’t seem to be working or your D2C doesn’t seem to be performing well enough for you.
Soon you’re having to invest not only in your team, but in ancillary platforms and software, agencies, temp workers, and contractors to do the work your ecommerce team seems unable to do. When your D2C is pulling about 3% of your overall revenue, these costs feel excessive. Why wouldn’t you just focus on retail instead? Or marketplaces? Most of the money found in ecommerce is coming through marketplaces like Amazon, Walmart, and Alibaba, but you may find that steering your ecommerce team towards marketplaces only amplifies problems.
Your ecommerce team will start asking you for more help and more resources. When you’re not seeing that big of a return on ecommerce and are suspicious that it’s actually messing up your other channels because distributors keep coming to you complaining about online prices, you might start to wonder if your team is any good at all. If they were good at their jobs and working hard, you’d be killing the ecommerce game, not losing money over it, right?
This is what we call the Executive Dilemma. It’s that rock and a hard place of needing to be in the ecommerce space to capitalize on growth opportunities but finding ecommerce is turning into a money pit for your brand, and the team you’ve hired to conquer it seems to be the problem.
The good news is that your ecommerce team is probably doing much better than you think they are. They’re just woefully over-tasked and under-resourced.
In order to thrive in ecommerce, your brand needs to be dialed in on three particular areas. We call it the ecommerce equation:
Traffic x Conversion x Price = Revenue
You need to market and advertise your product so you have significant traffic flowing to your online channels, you need to have listings that turn views into clicks, and you have to be competitive on price so that consumers will give your product a second glance.
To do justice for any of these areas, you need to have more than three people on your ecommerce team. And that’s the kicker: most ecommerce teams don’t.
A D2C is one thing—that may be totally manageable for your team—but marketplaces are far different. They operate by their own set of rules, and they can get very complex to manage.
On Amazon alone, you have to advertise on the right keywords, win the Buy Box, capitalize on promotion periods, clean up your listings and image stack so customers will be interested in your product, enforce MAP across all of your distributors so they aren’t eroding your prices, sort out shipping and packaging logistics, and pay platform fees.
To get a powerful and expansive omni-channel presence as well as control your brand online, you have to repeat a similar process with a different set of rules for marketplaces like Walmart and eBay. You have to do all these things again when you decide to move into international marketplaces like Alibaba, and those can get even more complicated with entirely different rules.
When you only have three people on ecommerce, and they’re already doing plenty of grunt work on your D2C, your social media presence, your marketing (you name it), the demands of moving into more marketplaces and areas outside of their expertise can spiral completely out of control. Without control and dedicated expertise in these areas, you open the door wide open for unauthorized sellers to erode your prices, for market share to be lost simply because of time and bandwidth, and ecommerce ultimately costs you even more on margins and revenue as you try to make up those gaps.
Your ecommerce team is good at what they do—really good, that’s why you hired them—but even a really good team can’t do everything. Without proper support, your brand will lose out on massive potential revenue growth because you’ve tasked an ecommerce team with managing a platform that is too complex to optimize with the limited resources, expertise, and data they have.
Throwing resources like agencies and more software at your team is a band-aid solution that makes sense, but only leads to more costs in the long-term. On average, brands use around 19 different software solutions to solve their ecommerce problems. Pattern offers a different approach for brands, one that lasts.
At Pattern, we remove excessive and unnecessary burdens from the shoulders of your ecommerce team by managing those extra areas they just don’t have the time, energy, resources, or expertise to manage. Unlike most agencies, which typically have narrow specialities, we offer specialized support across a wide variety of ecommerce tools and platforms: SEO, pricing control, data analysis across all channels, marketing and advertising, product innovation, shipping and packaging, D2C software, marketplace expertise for channels like Amazon and Walmart, international expertise for channels like Alibaba, and more.
With an agency, you’ll pay thousands of dollars a month and may get locked into a contract that ends up not being very beneficial to your business. At Pattern, we pay you first and offer short and flexible contract terms. Most contract terms are a maximum of only 60 days, and 97% of our clients keep working with us after the first two months based on the results they see for their brand. That’s because we put you first in every way.
What all of this means for your business is that you have support for putting out the fires that your ecommerce team would otherwise have to manage on top of all of the other invaluable things they do. That Executive Dilemma we talked about? Gone. While we take care of the housekeeping, your ecommerce team can get back to doing the things you hired them to do and the things they love, and you can get back to killing it in ecommerce.
Reach out to Pattern today to schedule a free demo of our services here.
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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.