Lots of brands are struggling to grow profitably. Brands have to invest more and more in paid advertising. That eats at their margins. The solution is to find ways to drive traffic without paying or at a lower cost AND convert that traffic. Essentially, you want to drive incremental revenue to improve profitability. And you want that incremental revenue to grow at a higher rate than your ad spend. That can come from existing customers ordering more or ordering more frequently. It can also come from net new customers.
One great way to drive incremental revenue from both groups is to invest in your Amazon brand store. An optimized brand store can drive at least 10% of your total revenue. Yet, a lot of brands are only driving 1-5% of their revenue through their brand store. In addition, Amazon's own data shows that consumers have a higher average order value and units per order when shopping on the brand store (as opposed to PDPs). So this is relatively low hanging fruit.
Here are some tips to analyze whether you can do a better job with your store:
- Are you featuring at least a few of your top-10 best selling products on your homepage?
- Do you have design elements on your homepage and subpages?
- Are all your subpages getting sales and meaningful traffic?
This is just the start, candidly. If you're doing $5 million or more a year on Amazon, it's almost a no-brainer to put this on the roadmap for 2024. If you need help or want to chat about whether you can improve your store, don't hesitate to reach out.
P.S. The below store pages are from the Waterdrop which the Nectar team created recently. #amazonadvertising #amazonsellers #amazonvendor