Amazon Seller Account development and optimization can be a nightmare if you are not an expert. Unless you have a dedicated expert/agency working on your brand optimization and sales improvement the chances of succeeding is almost zero.
PowerHouse Consulting Group comes to support Thai and Southeast Asian brands who want to create a strong brand and a very decent income stream by selling on Amazon in the US, Europe and other markets like Japan, Canada, China, India, and Mexico.
What we usually hear from clients who attempted to manage their Amazon seller account alone is that “it’s a labyrinth”. As with every tech thing. Amazon changes many things very fast and very often, making it impossible to follow.
You should be able to focus on managing your brand, developing your products, improving the customer experience, expanding in new marketing channels, optimizing your logistics and focusing on the bigger picture, instead of worrying about the maze called Amazon.
However, one significant thing you can’t ignore is that Amazon. At the moment, commands almost 70% of global online searches when it comes to product searching and shopping. It means that people nowadays go to Amazon instead of Google for their shopping. If you are not there, you are ignoring this 70% at your peril.
Jewelry Brand Amazon Seller Account Case Study
*** 2019 Case Study Update (click here for the 2018 case study)
*** 2018 Case Study
We started working with a Thai jewelry brand where the owners and staff were trying to develop a seller account and make some sales on Amazon US, last quarter of 2018. After almost one year of struggling and failing to fulfill Amazon requirements as well as not reaching any significant sales numbers, or establishing a decent net profit.
They decided to turn to the experts hiring PowerHouse Consulting Group to help them improve their sales and develop their jewelry brand on Amazon starting with the US marketplace and expanding to Europe marketplace and Japan shortly.
Let’s Dive Into More Details
As expected the Amazon back office situation we found was dramatic and that is a normal phenomenon unless you are an Amazon expert.
Our team started working with product listings that had default low-quality photos, titles were written from a manufacturer point of view (SKU: Abcd-ert…), no bullet points, no descriptions (or very short with Google translated English), no Enhanced Branded Pages, no brand registered at all, no researched keywords, no product specs, no GS1 international EAN/UPC barcodes, and the list goes on…
On Page Optimization
We worked on the product listings from the ground up, explaining to our client exactly how to design the photos, what to include to make them eye appealing, how to shoot the videos and what specs we need from them to add in Amazon product listings. (To upload a video, implies that you have first registered a trademark and hold a brand in Amazon)
Next step was to write new appealing, and optimized titles that would take advantage of the 200 characters space Amazon allows in the jewelry category as well as adding as many keywords as possible.
After that, we had to plan the bullet points. Make them easy to read and straight to the point for mobile users (capital letters and check marks) as well as describing the most critical elements of the jewelry brand or why a visitor should choose this jewelry instead of a competitor one.
Additionally, behind the scenes, we completed extensive keyword research including competitors and Google sources. Then we added those keywords to each listing, and that helped dramatically with organic rankings of the product listings on Amazon. Of course, the keywords are updated frequently according to updated research.
Enhanced Brand Content Pages
At the same time and as our team was working on optimizing the product listings, we collaborated with our client to obtain all the necessary documents to register the brand with a trademark in Amazon. That allowed us to get access to features like Enhanced Brand Content for product listing pages as well as a Brand Store with a brand vanity URL on Amazon.com!!! (how cool is that?)
Additionally, we could upload product videos, access the Amazon Early Reviewer Program and run advertising campaigns sending traffic directly to the Brand Store. After working with Amazon’s Enhanced Brand Page templates and widgets the product listing pages looked a lot more professional and provided more information to the viewers. That part increased sales by at least 30% to 40%.
Focus On Attracting Reviews
When you are selling online, customer reviews are the holy grail of a product’s success. Reviews can lead to tons of sales or destroy your brand name if not seriously taken under consideration. A lot of retail business owners do not understand that an online buyer will judge a product by the reviews and the photos. Period!
At the same time and according to Amazon policies it is illegal to solicit reviews from customers. So this is something you will have to take under consideration before doing any review request actions.
In PowerHouse Consulting Group we use precise tools and email templates that make customers want to leave us feedback before even asking them for a review. That way we can be sure that if any problem arises, we will take care of it before it turns out to a negative review nightmare.
Maintain The Account Health
Your Amazon Seller account has to follow many requirements, due to Amazon’s focus on excellent customer support and satisfaction. For that reason, every seller account has an Account Health dashboard and has to main excellent ratings there.
Our client’s Account Health is one of the most critical aspects of our service quality. Imaging working with a marketing consulting agency that got your Amazon Seller account penalized…not good. All of our decisions and discussions with our clients start with the Amazon Seller Account Health in mind.
Improve Inventory Performance Index
The Inventory Performance Index is based on how well you keep popular products in stock. How well you maintain healthy inventory levels and fix listing problems. The index tells you everything you need to know about the performance of your inventory, and it increases or decreases, dramatically slow, week by week.
It took us more than six months to increase by 60 points. That should give you an indication of how important the Inventory Performance Index is about your inventory.
Another important inventory index is the Excess Inventory Percentage that tracks the percentage of excess inventory you maintain in Amazon’s warehouses about the total stock. (i.e., in the above photo 44.94% is the excess inventory from the 100% of the entire inventory)
Following the recommended actions will help you to improve profitability and save on storage fees. With this client, we received an inventory that was more than 65% in excess and unsellable.
Since then we worked methodically, using all kinds of different coupons and promotions Amazon provides. In order to decrease the excess inventory by more than 20% WITHOUT removing any SKU and without losing money for the client.
FBA In Stock Rate Performance
Here’s another essential index that affects your inventory performance. The FBA In Stock Rate Performance measures your inventory stock rate. In this photo, you can see that it kind of works as a proof of our successful results.
Due to a lot more sales than expected our client went out of stock for the first time (even for a few days) for some of the best-sellers SKU’s. The ball is at our client’s factory, to manufacture and ship products, faster than Amazon can sell them.
The last of the inventory performance indexes is the Strander Inventory Performance Index. This index tracks listings with issues that are unavailable for purchase on Amazon.
Most people don’t know that Amazon accepts feedback and recommendations from everywhere. That means that a competitor could claim incorrect details or flag one of your products. Automatically that product would become stranded and unsellable costings you potentially thousands of dollars daily.
Keep Control Of Advertising Costs
Advertising is one of the most critical sources of viewers for your products. If done correctly, it can build you a steady and predictable sales rate. However, even without sales, advertising is still aiding in brand awareness and authority in your brand name.
If you are a brand that controls the manufacturing process and operates on high margin, then advertising on Amazon can literally “print money.” Take the case in the photo above, if our client’s net margin is 50% and they have a 22% ACoS (Average Cost of Sale). It means that the client earns a net 28% per sale.
Advertising on Amazon is slowly reaching Google AdWords levels in depth of details and data to work with, and it’s something that you need an expert to manage.
Evaluate Sales Results
As a businessman or woman, you need to know and evaluate your brand’s growth on Amazon. Here you see an example of a Year-to-Year sales graph with the exact sales numbers every month for the running year and the previous year.
A whopping +369% increase in sales for February 2019 (compared to February 2018) is pretty impressive.
Here you can see a comparison between the peak season of 2017 and 2018. The numbers are dramatically different. With seven units sold on the best day of 2017 and 53 units sold the best day of 2018.
Just a mere 600% increase in sales between an optimized and a self-managed Amazon Seller account.
Keep An Eye On The Net Profit
Last but not least, the most crucial part of your business. Unfortunately, Amazon does not give a direct way to calculate a client’s net profit so we are using third-party software. Where we can input all the client’s expenses like product cost, shipping cost, import tax, packaging, etc.
The software then will use data from Amazon’s API to present us with the correct data like total net profit and net profit per product AFTER all expenses. A significant number to track for your business and overhead.
Thai Jewelry Brand Amazon Seller Account Case Study
According to public data and our experience, brands usually double, triple or quadruple in sales and revenue after a successful year with fully optimized Amazon Seller accounts. Going strong for year two, with a hefty goal in sales.
Our specialized team in PowerHouse Consulting Group manages tens of clients Amazon Seller accounts, helping them sell almost globally from the US, Canada, Mexico, European countries to Japan and more. We also work in collaboration with Amazon Global Selling team Thailand on some of our accounts which allow us to get extra support and to apply for special deals and seasonal events which can grow revenue for our clients even further.
Would you like to build a successful brand on Amazon and build additional revenue streams?