3-4 minute read time
Developing your ecommerce strategy for platforms like Amazon can quickly become intricate—there’s a lot to think about, such as marketplace SEO, product photography, advertising strategies, distribution logistics, and managing customer feedback.
This complexity can be overwhelming for brands, particularly for smaller teams trying to pinpoint the most impactful actions for maximizing profitability.
The bright side?
The key to revenue success all comes down to data. At BetterBrands, our foundation is a data science approach to ecommerce success.
We identify patterns that drive profitability and implement these insights into strategies, increasing the revenue performance of our brand partners across various ecommerce channels.
A fundamental pattern we adhere to for all brands on digital marketplaces is the ecommerce equation: revenue = traffic x conversions x price x availability.
By focusing on these four elements, brands can streamline and concentrate their efforts, they can focus their efforts to reach truly profitable ecommerce growth…
Here are the 4 levers You Need to Know for Marketplace Revenue:
1. Drive Traffic to Your Product Listings
To generate sales, you must attract people to view your Amazon listings. There are two ways to drive traffic: through organic search and paid search. Finding the right balance is vital to drive the traffic to your products, leading to increased ecommerce revenue.
BetterBrands understands this challenge and provides the necessary resources and technology to drive traffic to your product listings.
Our collaborative efforts among the brand management team, advertising specialists, and SEO technicians ensure a cohesive strategy that enhances your brand’s organic presence and complements it with a tailored paid advertising approach for optimal results on Amazon.
2. Create Converting Content
Getting people to your product pages is just the beginning. The goal is getting them to convert, turning visits into actual purchases and revenue. At BetterBrands, we understand that turning visitors into customers is crucial, and we’re here to help you achieve that.
To drive successful conversions, optimize your product images, descriptions, bulleted details, and customer reviews. Ensure that customers can easily find what they’re looking for when they land on your listing after your efforts to drive traffic.
Building customer trust is crucial for conversions. Strong online reviews matter significantly—studies show that 84% of people trust online reviews as much as recommendations from friends. Positive reviews play a crucial role in increasing conversions on marketplaces.
Here’s the good news…
By delivering a quality product and an excellent marketplace experience, you not only increase customer loyalty but also build brand equity. As your reputation, reviews, and traffic grow positively, marketplace algorithms recognize your popularity and boost your rank.
This elevated rank drives more traffic and conversions, creating a positive cycle for optimizing overall performance. As your brand equity continues to grow, so will your conversions.
3. Control Your Prices
Pricing is a delicate balance between making a profit and staying competitive. At BetterBrands, we don’t just set prices strategically; we help you truly control your pricing story.
We assist brands in managing distribution, identifying unauthorized sellers, and stopping price erosion. This protects your brand’s reputation and profit margins. Our data-driven insights and partnerships have helped brands regain control over their pricing.
Without proper control and with wide distribution, your product might fall into the hands of various sellers who lower your marketplace price to quickly sell their inventory and make profits. When one seller lowers your product price, others follow suit, leading to price erosion and a detrimental Profitability Death Spiral.
This downward spiral harms brand equity, impacts conversions, and can result in Buy Box Suppression on Amazon, hindering traffic. As prices continue to drop, your profit margin diminishes, affecting overall revenue.
Leveraging our data-driven insights and Pattern’s eControl partner, Vorys, we assist brands in implementing controlled distribution, identifying and addressing unauthorized sellers, eliminating price erosion, and maintaining control over their online prices.
4. Optimize Product Availability
The final element of the ecommerce equation is availability. While availability contributes to conversion, it’s crucial enough to warrant individual attention. Even with optimized traffic, conversion, and price, lacking product availability hinders revenue growth for your brand.
Running out of stock can hurt your online success. At BetterBrands, we understand how crucial availability is, and we provide brands with tools and strategies to keep a steady supply of products.
Insufficient availability results in stockouts, lost conversions to competitors, losing control of the buy box, negative customer reviews, reduced traffic, and more.
Top-performing brands on ecommerce digital marketplaces prioritize availability optimization, leveraging advanced technology and strategic management of cash on hand and inventory time to keep the ecommerce equation effectively powering their success.
How BetterBrands Drives Revenue Using the Ecommerce Equation
BetterBrands is dedicated to solving the ecommerce equation. We collaborate with brands, offering access to expertise, resources, and technology essential for driving traffic, crafting converting content, protecting pricing, ensuring availability, and ultimately accelerating ecommerce revenue and fostering profitable growth.
Improve the results of your ecommerce equation with BetterBrands.
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