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Amazon Q2 Earnings: Opinion
There has been a lot of talk about Amazon’s Q2 Earnings. Some of the common responses have been that Andy Jassy is a good CEO (quite the shift), stronger margins than anticipated, shipping speeds getting better and continued investing in advertising, happy shareholders.
What is True Hero strategy?
– Focus on our brands’ profitability at the sku/ASIN level
– Review budgets each week to see where there is opportunity to push full price revenue using PPC vs promotio
– Evaluate pricing on all new products
– Identify opportunities for line extensions/new variations at updated pricing
– Focus on creative content to increase conversion
– Diversify across the Amazon platform (Direct Import, in-Network, Dropship, 1P, 3P, Hybrid)
– On skus/ASINs that are costing a brand to do business with Amazon, recommend dropping the sku from the assortment
As Amazon continues to focus on its own profitability, it is essential that we focus on our brands’ margin. The goal is to enhance brand equity, awareness, and profitably.
Holidays are right around the corner. Is your content ready?
We cleaned up Prime Day and then turned around to see Halloween décor in stores (in July). Yes, the time to prepare for the holidays is upon us. Here are some simple tips to help optimize your pages for Q4 and get ready for Santa.
- Keywords: Update your backend keywords to the season. Is your product a giftable item? Do customers use your product for certain winter activities? You can start searching for those seasonal search terms that apply to your product.
- The imagery tells the story: Add lifestyles in Fall or a snowy winter to show the seasonal shift? Include red and green accents to an image to get a Christmas feel? Wrapped presents or bows can be overlayed for a subliminal hint at the gift-giving season.
- Brand Store: Create a Gift Guide, Last-Minute Gifts, or Gifts for Mom, page on your Brand Store. Show your customers where to find the gift they need quickly. Make it look festive.
Create a content strategy for not just Christmas but all the opportunities for sales throughout Q4. We have PEAS (Prime Day 2), Black Friday, Cyber Monday, Last Minute Gift, and New Year New You. Utilize Posts and engagement emails to give the consumer gift ideas. Ready or not, Q4 is coming in fast!
-Cori Lawrence, Lead Content Manager
Welcome to the True Hero Monthly Newsletter
Brought to you by our founder – Wendi Mathis Held
There are all these do this “Stop doing this” lists going around – I decided to make up my own list!
Stop doing this with your Amazon business:
- Putting a hard goal in place for ROAS. Guardrails are fine but when you force your marketing team to hit a $5 ROAS they can and will, but you may be losing sales, new customers, not protecting your own page and more.
- Treating Amazon like a flea market. It is not a discount website, do not expect to sell through 10k units of an item that is not selling anywhere else. It will not sell on Amazon either.
- Ignoring or not understanding your margin with Amazon. Do not look at only gross invoices/sales. What does it cost your warehouse (labor, packaging, space), chargebacks, shortages, damages, returns, marketing, sales team, cost of product (landed cost), make sure you really understand all the costs of doing business with Amazon at a SKU level (Listen to the most recent episode of BL&F for more info)
- Saying “Yes” to whatever Amazon VMs ask for – AVS, margin guarantees, no to price increases. Read #3 if you are paying to do business with Amazon, it is not a good business. You don’t know what you don’t know. Do not assume because they ask for something, if you do not say yes, you can no longer sell on Amazon. Ask an expert!
- Assuming that 1P or 3P is better, more profitable, more control. Run the numbers, review your business plan and objectives, do not assume, do the research
- Relying solely on Amazon’s inventory restock suggestions for your inventory plan on 3P or demand planning on 1P
- Putting your entire brand assortment on Amazon. Maybe that is a good idea but most likely you can and should diversify your product line across retailers and channels.
- Making Amazon the only place to buy your product. Amazon can be a part of your retail strategy but not the only strategy. Invest in your own direct to consumer site as well.
- Not paying attention to returns – what is your return rate? Is it high? Why? How much are the returns really costing you (and the environment?)
- Ignoring the importance of supporting lifestyle imagery and informative videos