how to leverage your amazon holiday sales for a profitable 2015
DESCRIPTION
The selling potential for Amazon sellers is massive over the Holiday Season. But what happens once Christmas ends? How do you carry over your Christmas success? Did you know that you can use your Christmas sales to advance your sales figures in the New Year? Join Feedvisor’s Director of Marketing, Shmuli Goldberg, and SellerLabs’ Co-Founder, Brandon Checketts, for expert advice on the strategies you can implement today to ensure your 2014 Holiday momentum carries forward into 2015. They’ll be discussing advanced tactics to increase sales and improve your bottom line. Webinar Highlights: - Amazon revenue forecasts for 2015 and what this means for you - The Amazon Buy Box and its impact on sales - How to use the Feedback and Pricing metrics to your advantage - Tactics you can implement today to make more profitTRANSCRIPT
How to Leverage your Amazon Holiday Sales for a Profitable 2015
Brandon CheckettsSellerLabs
Shmuli GoldbergFeedvisor
Who are we?
Shmuli GoldbergFeedvisor
Buy Box Expert
Brandon CheckettsSeller Labs
Feedback Expert
Todays Webinar
● How the Buy Box works● The main variables that affect the Buy Box● Using feedback to improve Buy Box chances● Practical steps to improve feedback● Open Q&A
Why Win the Buy Box?● $82bn of sales go through the Buy Box● Responsible for 95% of seller’s revenues● Pays back sellers for great customer service● Sellers compete on their merits, not marketing
The Buy Box Fundamentals
To put it very simply…
The Amazon Buy Box is an algorithm that tries to give the customer the
best possible value for money
The Buy Box Fundamentals
To put it very simply…
It does this by determining which product offerings promise the best balance of high seller performance
and low cost price.
Buy Box RotationsIf there are several merchants offering similar value for money, the Buy Box winner changes during the day, these changes are called “rotations”.
For Example:● 10 equal sellers will each get 10% of the Buy Box● A relatively high performing seller could have 70% of the Buy
Box against a lower performing seller, who could have 30%
Buy Box RequirementsIn order to be considered for the Buy Box, you will need:
● Professional Seller account● (Featured Merchant Status) Buy Box Eligibility● New items● Items in stock
Buy Box RequirementsThere are 4 levels of impact that variables can have on the Buy Box:
● Very High -The Mother of all Metrics● High -The Big 3● Medium –The Differentiators● Low – Meh…
Very High Impact VariableFulfilment Method
● Choosing FBA is the quickest and easiest way to drastically improve the chances of winning the Buy Box.
● If all else is equal, an FBA seller will always have a higher share of the Buy Box then an FBM seller.
● This should be a business decision, not a Buy Box one.
High Impact VariablesShipping Time
● These are divided into brackets:• 0-2 days
• 3-7 days
• 8-13 days
• 14 or more days
● Jumping between brackets is more effective than moving within them
High Impact VariablesLanded Price
● The easiest variable to manipulate
● The only metrics that the seller can directly control and change instantly.
● No brackets here, the lower the landed price, the higher the Buy Box share.
High Impact VariablesLanded Price
● The higher the seller’s relative metrics, the higher the seller can raise their price.
● This can be seen as the “dollar value” of improving customer experience.
High Impact VariablesSeller Rating
● Amazon gives a score for every sale you make, the average of these is called your “Seller Rating”:○ Perfect: 110○ No problems: 100○ Minor problems: 0○ Moderate problems: -100○ Major problems: -500
High Impact VariablesSeller Rating
● These scores are then divided into 6 brackets:○ 100-98%○ 97-95%○ 94-90%○ 89-80%○ 79-70%○ Less than 70%
High Impact VariablesSeller Rating
● The higher your bracket, the higher your Buy Box share.
● Jumping from one bracket to another will have a stronger effect than moving within the brackets themselves.
Medium Impact VariablesThese Include:
● Order Defect Rate● Feedback Score● Delivery History● Customer Response Time● Feedback Count● Inventory Depth and Sales Volume● Cancellation and Refund Rate
Medium Impact Variables
Negative Feedback MonitoringHow are you notified of negative feedback?
1. Review daily in Seller Central 2. Negative Feedback Report3. Use a monitoring service
a. Emailb. Text Message
Negative Feedback Removal● Work directly with Amazon
○ Product review○ FBA issue○ Profanity
● Work with the customer○ Address the problem as quickly as possible○ Apologize / Empathize○ Ask buyer to remove
Pay attention, but don’t stress over perfection
● Some people will never be satisfied – let it go.● Some people are liars – move on.● Some people are confused – help them if you can.● Some people are absolutely right – pay attention.
Understanding Ratings
What is the value of a review?● 4- and 5-stars are positive● 3-stars is neutral but still counts against you.● 1- and 2-stars are negative
2-stars and below count negative 500 points against your Seller Rating
Two Medium Impact VariablesFeedback Score and Feedback Count
Use the peak Holiday sales to increase both your Positive Rating and your Overall Count.
Amazon Feedback RequestsHow it works?
● Occasional emails to request feedback on a past purchase.● Seller has no control over content or timing● Response rate for Amazon-originated feedback requests is 2-
3%
Asking for FeedbackHow to:
● Timing is important● Focus on customer service first● Be polite and convey your brand● Soft ask for feedback
Increase orders with feedback to 6-8% (or more)
Do’s and Don’ts of Feedback Management
✓ You may request feedback from a buyer.⃠ You many not offer pay or any incentive for providing
feedback.✓ You may provide a link to your feedback page.
⃠ You may not offer a link to any page outside of the Amazon ecosystem.
Do’s and Don’ts of Feedback Management
✓ You may provide links back to your seller page on Amazon.⃠ You may not offer a link to a company webpage.
✓ You may communicate with your customer about their order.⃠ You may not contact them about your newsletter or
other specials.
Dos and Don’ts of Feedback Management
✓ You may contact customers through the Amazon email messaging system.⃠ You may not contact them directly via phone or mail,
or ask for their direct email address.
Feedback Count
Why it Matters?
● Social Proof● Helps you absorb a negative review● Slight advantage with buybox percentage● Should be relative to your competition
Do-It-Yourself vs 3rd Party
Do-it-Yourself Feedback Management
Your options:
Two manual ways to solicit feedback:
1. Messages on your packing slip2. Use the “Contact Buyers” link in Manage Your Order.
i. Orders => Manage Ordersii. Click on buyer name next to “Contact Buyer”
Send A Message Through Seller Central
3rd Party Feedback Management SystemWhy consider?
● Leverage automation to save time and customize your message
● Ensure you are following the rules● Filter messages to target customer and increase
response rate● Always be asking for feedback in a timely manner● Free up your time to focus on your business
Tip for Success ● Setup messages to be sent based on actual delivery, not
shipped date● Customize by SKU, ASIN, Condition or Channel to improve
likelihood of success● User variables to personalize your message● Eliminate orders/products that have a bad history of reviews● Remove orders that were delivered late● Respond to negative feedback as soon as possible● Work within the Amazon guidelines
