In a recent study made, it was found out that in July 2020, Amazon reported one increase of around 43.4% in North American sales. Not only that, but it has reported a further 33.5% of global revenue growth within the second quarter of 2020. Because of the coronavirus pandemic, people have resorted to the online sector in large number for purchasing food, which has tripled online grocery sales.
Amazon worked hard to increase the grocery delivery capacity by around 160%! So, it is not hard to state that Amazon and its brilliant marketing strategy is doing wonderfully, even during the pandemic scenario!
If you are a startup business or a small business, or even a larger international business, you always have to learn about their focus on the customer, mainly during this time. You can always test marketing opportunities, which are made available with the help of digital technology. The focus remains on testing and also analyzing for improving results well.
The Four Pillars of Success
From the research made, it has been found out that Amazon’s marketing strategy relies heavily on the four major pillars. Learning about those pillars beforehand will actually help you understand Amazon’s marketing strategy a bit more.
- Exploit Affiliate Products and the Resources:
Right up to date, the tech giant has taken complete advantage of the affiliate resources and the products for contributing to the bottom line of said business. You can follow the same norm on your own for better growth as you asked for.
- Scale Easily Right from the Smaller to the Larger Version
This cloud computing and e-commerce firm have this experience along with the competency in scaling right from the smaller to the larger scale. This factor will play one major role when trying to explore some of the new business segments out there.
- Use the Customer-centric Interface
Amazon is one noted tech giant, which has one advanced interface. It will integrate the personalized recommendations and even some of the recent browsing history, among other options.
- Present the Wide Range of Items
Amazon is noted to be the latest online retailer globally. Its revenue will offer millions of items, and the majority of them, around 58%, will be offered from third-party sellers.
The annual global marketing expense from Amazon has always been towards the increasing side, mainly for the past seven years. It was noted to have exceeded the $13.8 billion mark in 2018, and the growth never ceases to stop. This form of service will include advertising along with some of the other promotional costs, which will amount to around USD 5.0 billion, USD 6.3 billion, and USD 8.2 billion in 2016, 2017, and 2018.
To top it all, it is not hard to state that the marketing strategy from Amazon will integrate various targeted online marketing channels. Some of those are online and social advertising, sponsored search, Associates program, television advertising, and some of the other initiatives.
The Principles Amazon Follows
It is not that difficult to follow Amazon’s marketing strategies once you are aware of the ways they are made. The marketing strategy is basically focused on some of the major principles, and learning about those beforehand will be of great help.
- When it comes to Amazon’s marketing communication, it will mix up integrated print and media advertising along with events and experiences, sales promotions, direct marketing, and public relations. The company, over here, will place one major focus on the media and print advertising and even on sales promotions elements associated with marketing communication channels.
- You need to focus on the unique selling proposition from the house of Amazon. It will add the wide choices of services and products available at competitive prices. Not only that, but the services come in handy with exceptional customer service and fast delivery notion. This amazing platform will place such unique selling propositions at the core of marketing communicating messages.
- Then you have Amazon segmentation targeting and its current positioning practices. These are all associated with targeting the present widest customer segment. The retail giant over here will do this with the application of multi-segment, anticipatory and adaptive positioning techniques.
- You need to be aware of the 7ps of marketing while targeting Amazon. Here, the focus will remain on the product and will place elements of the current marketing mix. Amazon has already noted to offer millions of items just in the USA alone. So, you can easily state it to be one of the widest names among offline and online retailers. On the other hand, the firm is able to offer items at competitive rates because of massive cost savings. It solely depends on its online business operations.
Targeting the Value of RACE
Amazon is noted to use digital marketing in an effective manner across all customer communication touchpoints. You could do the same. For that, following the RACE marketing planning strategy might work brilliantly and in your favor.
Reach
The initial business growth of Amazon depends on a detailed approach to AdWords and SEO targeting keywords, and in millions.
Act
Then, it is time to create simple and clear experiences through learning and testing.
Convert
The third stage is to use personalization for making some relevant recommendations. It will be followed by a clear checkout process that business imitates these days.
Engage
Then you have the customer-centric culture from Amazon, which will delight the customers and attract them to come back and make more purchases.
The primary focus will always be on customer experience and ways to make it more promising than before. According to Amazon, it is called “Customer Obsession,” and they are going to outperform retailers in a consistent way by using the ACSI customer satisfaction rating.
The Growth and Ultimate Business Model Evolution as Follows
In 2019, amazon earned total revenue of around $280.5 billion. It grew to a large extend in 2020 because of the pandemic scenario, where people got to purchase everything online. Amazon was noted to perform exceptionally well against revenue per visitor, which is one measure for any commercial website.
It can be anyone, whether the search engine or a media site, transactional retailer or social network or some other financial or travel services. Now, the profit per user is likely to be quite different because of the lower cost of some other sites like Google and Facebook.
Optimising Amazon SEO
It is time to optimise products for Amazon SEO. It will help customers to find your items well whenever they search for the relevant search terms. This search engine, specifically defined for Amazon, will prioritise some of the well-described product searches. It will pin them to be placed right on top of the recommended searches. So, you have to pay attention to this point now.
Q&A
Always remember that customers want information. By adding that Q&A section, you can answer the common questions mostly asked and keep customers informed.
Images
Amazon has a clear set of guidelines when it comes to images. The product images need to be clear and also easy to understand. It has to be attractive and information-rich.
Descriptions
Remember that your perfect description will actually set you apart from the competition. So, make sure to use bullet points to outline the important features of products and increase the conversions.
Titles
While creating any title, think about your customers first and then make a decision. You can add relevant keywords, which will boost up sales by increasing the click-through rate.
Keywords
Amazon will allow you to add 250 characters on the backend for keywords, to influence the current product discoverability. These options will remain invisible to the customers and will further allow you to associate your items with some phrases and keywords. Be sure that the keyword research needs to compete with the e-commerce giant here.
The Power of Affiliate Marketing
Amazon is here to present you with the Amazon Affiliate program. It will allow the web owners to advertise their items from Amazon and right on their websites.
- Whenever people get to click on these links and purchase a product, they end up earning a commission.
- It is targeted to be one major Amazon marketing strategy as it will direct some new traffic to the Amazon page.
- Featuring items on different websites will help you to get new customers all the time, which are hard to get otherwise.
Dealing with Amazon Advertising
If you want your product to stay right at the front of users, then Amazon advertising is one goal to consider. It will help customers to find your brand name and items, which they haven’t heard of before. You will come across three major types of Amazon ads to consider.
Display Ads
Amazon houses display ads, which are called Cost Per Click or CPC ads. These are displayed not just on amazon’s site and app but also on those apps and websites not owned by Amazon. You can also get the chance to customize ads for taking users to the product page, Amazon store, or even customized optimized landing page.
Sponsored Brand Ads
These sponsored brand ads will feature a logo, headline, and around three of your main items. You can found those on the search page and will drive up your brand awareness like nothing before.
Product Display Ads
PPC or Pay Per Click Ads from Amazon are targeted as product display ads. They are quite popular among businesses and even customers alike. You can see these PPC ads virtually everywhere and with a higher conversion rate of around 10%.
Going Hand in Hand with the Third-Party Ads
There are times when you might be selling on Amazon, but that will not mean that advertising is kind of limited to the platform. Third-party ads will help to increase the conversion and click through rates. Be sure to optimize the ads always by utilizing data. Automated data reporting will help you with this point tremendously.
Facebook Ads
Facebook always plays a major role in the field of social media. You can easily utilize their paid ads platform to gain a completely new set of customers to come and visit your Amazon store and the necessary products included within.
Google Ads
On a recent count, it was found out that in every second, Google receives more than 63,000 searches. So, it is one valuable marketing channel, to say the least. With the help of Google Ads, you can always take advantage of some major features like email marketing and retargeting.
Going in With the Customer Reviews
Amazon is highly noted for its review system. Whenever any potential buyer gets to read the description of the product, the next step to address is to verify the items and ensuring that they are of high quality. For that, checking out the top product reviews is the main goal to consider. By focusing on getting positive reviews, you get to boost the popularity level of the product organically. Amazon will further offer some incentives like lowering the prices for a temporary time or sending out a few products. The main goal is to encourage customers to leave some positive reviews out there.
Some Great Tips for the Amazon Listings to Follow
Following some simple tips can actually help you to improve your Amazon listing. So, in the end, you get to boost the ranking well.
- Everyone is in love with free shipping. So, trying to add that will encourage more customers to make a purchase.
- On the other hand, don’t forget to offer fast shipping. Amazon follows the 2-day shipping run.
- With the content creator, don’t forget to do a giveaway. Free gifts will encourage more people to come and join your brands.
Following such simple tricks can go a long way while trying to create an Amazon marketing strategy for 2021. Make sure to follow the norms to the core for proper results.
