Introduktion tilAmazon

Nørgård Mikkelsen Seminar Arhus & Copenhagen June 2019

Who is presenting today

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Andreas Bork

Account Director & Head of Cl ient Consul t ing

10 years+ Amazon exper ience

Prev. Category Lead at Amazon Germany & Head of Dig i ta l

& Onl ine at Sony GSA

What we want to achieve with you today

✓ Overview of the E-Commerce market & trends

✓ Share Amazon knowledges and best practices

✓ Give answers or solutions how to manage business with Amazon

✓ Takeaways & next steps for your company

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Finc3 GroupShaping Digital Excellence

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Monitoring & BI

Advertising Campaign

Management

Operational Account

Excellence

Content & Conversion

Optimization

State of the Art E-Commerce-Consulting

Full Service for yourAmazon success

International Team

Finc3 Commerce is one of the leading

consulting agencies for Amazon and

other marketplaces in Europe

We help vendors as well as huge sellers

to scale their E-Commerce business

profitably

Our client portfolio contains world

leading enterprises as well as mid-cap

companies or pure players with eight-

digit revenues

Finc3 Commerce in a nutshellAbout us

We have a team of 50+ experts with 9 different native languages from 13 countries at two

offices (Hamburg & Bratislava)

We fully understand the Amazon ecosystem. Our clients can leverage our

strategic expertise as well as implementation resources

What makes Finc3 Commerce unique is the way we co-work with our clients

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Strategic Consulting

Operative

Consulting

OperativeImplementation

Fast growth without own resources

Targeted use of own resources under guidance

Building up internal know-how

Ad

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able

to

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Scalable Support

Team of Finc3 Commerce

Our international team of experienced Amazon specialists provides full service for our customers

• Native Speakers DE, EN, FR, IT, ES

• Educational background: performance marketing, business administration, engineering

• 10 employees for AMS only+ further for DSP and othermarketing channels

• Native Speakers DE, EN, FR, IT, ES, TR

• Educational background: marketing, businesspsychology, PR

• 10 employees + network offreelancers

Consultants Advertising Mgmt. Content Marketing Operational Excellence

• Amazon Experts

• Educational background: ecommerce mgmt., marketing, businessadministration / MBA, logistics

• 12 employees

• Account Management, Business Intelligence, CRM

• Educational background: ecommerce mgmt., software developer, datascientists

• 6 employees + freelancers

55 employees with 9 different native languages from 13 countries - Company Language: English

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Finc3 Group

Finc 3 Marketing Services

• Strategy Consulting• CRM• Actionable Analytics /

Business Intelligence

High-EndDigital Marketing

Finc3 Commerce

• Full service ecommerceMarketing

• Focus on Amazon Marketing andinternational marketplace management

BizMut Marketing

• Digital Business Audience Marketing

Finc3 Commerce is part of the independent Finc3 Group, specialized in e-commerce and online-marketing

Company setup and competences

Our international Team supports clients all around the world

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Covered Amazon Marketplaces:

Countr ies of our cl ients

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Sample References

E-Commerce & Amazon by numbers

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The digital landscape in 2020

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eCommerce spending per person in 2017

What is Amazon?

✓ Retailer?

✓ Market place?

✓ Product information platform?

✓ Logistics company?

✓ B2C and B2B?

✓ Innovation driver and enabler?

✓ Tech company?

✓ Cloud provider?

✓ Publishing platform?

✓ Movie studio?

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of all productsearches worldwide

start on Amazon

Products in assortmentin Germany alone

1 00Mio.

Members in customerloyality program

PRIME Billion

55%> 2 5 0

Mio.

Revenue worldwidein USD in 2018

Always expanding: Amazon has 13 active marketplaces, reaching customers in >180 countriesAmazon Marketplaces

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Sources: 1

2

Amazon´s success story continues...

Quelle: Statista;

Amazon invests continuously in innovation and additional business modelsFocus on smart home & mobi l i ty

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Amazon invests continuously in innovation and additional business models

health

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Amazon.de is (still) building its food & FMCG business on these four pillars

Amazon Programme

Core, Pr ime Now, Pantry& Fresh

20Quelle: Amazon

No progress for Amazon Fresh in Europe

Amazon Fresh

21Quelle: Amazon

• So far only three distribution centres operating in Europe (London, Berlin, Munich)

• Forecasted expansion is currently a long time coming (e.g. in Germany Cologne, Düsseldorf, Frankfurt, Hanover, or Paris & Lyon for France etc.)

• Manufacturers complain that purchases are made below their minimum order quantities

But the invest in Whole Foods UK shows that there is a strong believe in the food & FMCG category

A strategic guideline for your Amazon Business

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Amazon FlyWheel Jeff Bezos´ successformula

strategic framework

23Source: http://www.samseely.com/blog/2016/5/2/the-amazon-flywheel-part-1 / modified by F3C

Control capabilities for brands

- great control

- medium control

- little or no control

LOWER COST STRUCTURE LOWERPRICES

TRAFFIC

SELLERS

SELECTION

Brands selling on Amazon need to adapt tobusiness logic to achieve their goals

strategic framework applied to a perspective

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CUSTOMEREXPERIENCELeverage Amazon

for your owngoals

✓ SEO✓ Media Campaigns

(Retail, AMG, AMS, AAP)

✓ 3rd Parties✓ Wholesaler

✓ Exclusive SKUs✓ Bundles

✓ Content (A+, Video)✓ Review Management

✓ Higher Profitability✓ Stable Market-Prices

✓ Real Time Monitoring✓ Data Driven Decisions

✓ InfrastructureInvestments

✓ Improved Efficiency

Your Brand

Content & Conversion Optimization• Goal: Increase relevance and visibility of products as

well as reputation and conversion-rate

Advertising Campaign Management• Goal: Increase awareness and sales by buying

profitable traffic

Operational Excellence• Goal: Optimization of framework conditions and

processes for a successful Amazon business

Business intelligence & Analytics• Goal: Continuous monitoring and data analysis to

make better decisions and set wisely the priorities

Content & Conversion

Success on Amazon depends on the effective concertation of four fields of action

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AdvertisingOperational Excellence

Monitoring & Analytics

+

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Content & Conversion

Amazon is marketplace and search engine at the same time

with hundreds of mill ions of products.

Optimize your product data and content in order to increase

relevance and visibil ity of clients products

and to boost conversion rate.

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Titel

Reviews

Variants

Attributes

Images

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Product Description

A+ Content

A+ Content

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Advertising

Amazon offers a whole range of advertising options.

Choose the right ones, leverage them to drive reach and

generate profitable sales.

Covering Sponsored Ads, Amazon DSP and Amazon

Advertising.

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Online advertising spend

Amazon will be the next big, scalable advertising ecosystem

Intention Profile Buyer Data

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Online marketing trends

Press and experts are confident that Amazon will catch up to Facebook and Google´s Ad business

Quellen: WallStreetJournal, W&V, OMR, Horizont

Why should you care?

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Competition on Amazon is tough

It is more and more challenging for brands to getvisibility for their products...

...as number of suppliers is growing- and so is the assortment - WORLDWIDE

Competition on Amazon is tough

35Sources: ExportX, Statista

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Competition on Amazon

It becomes increasingly difficult to achieve visibility and reach for your products

You have to know all marketing levers to tailor the right media mix for brands´ goals

Amazon marketing landscape

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Marketing-Options on Amazon

Inside Amazon

Outside Amazon

Paid Media Promotions

SponsoredProducts

SponsoredBrands

ProductDisplay Ads

AMS

Subscribe & Save

Brand Stores

DSP

AdBlock-Traffic

Fire Tablet Wakescreen

Fire TV Ad

ConnectedDevices

Display Ads

EcommerceAds

Sponsorings

Desktop & Mobile

Custom Solutions

AdvertisingSearch

Optimization

ProductTexts & Data

A+Content/EBC

OnPage

Review Mgmt.

Vine

OffPage

Images(Product

Tests)

Vendor only Seller only

ParcelSupplement

OfflineMedia

Display Ads

EcommerceAds

Managed Services Self-Service

PPC (e.g. Facebook)

Deal-Plattforms

Email-Marketing

Deals

Coupons

PromotionsPrinted Bags & Parcels

Amazon SEA

Sponsored Ads

Three different ad-types for Amazon Sponsored Ads

Sponsored Ads

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Sponsored Products SPA

Vendor &

Seller (in Buybox)

Sponsored Brands (former Headline Display Ad)

Vendor &

Seller (with brand registry)

Product Display PDA

Only Vendor

Sponsored Products are displayed above, between and below the organic search results

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...and on product detail pages

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Headline Search Ads are placed on the SERP directly below the header

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*SERP =Search Engine Results Page

Product Display Ads are placed on the product detail page

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The user will be linked to the product page or a dedicated landing page on Amazon

Landingpages

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Sponsored Products

Product Detail Page

Headline Search

Amazon Landingpage(Custom SERP / Brand Store)

Product Display

Product Detail Page

AMS Brand Stores can be used for brand building and to drive conversion

AMS Brand Stores

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Amazon Demand Side

Plattform (DSP)

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owned or operated Plattforms

DSP is Amazon's display advertising network with targeting on buyer data

Amazon-Plattform (International)

Associated Plattforms (e.g. IMDB)

Amazon-Devices (e.g. Kindl)

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´s buyer data

DSP is Amazon's display advertising network with targeting on buyer data

External Websites and Mobile-Platforms via Ad-Networks (Open Exchange, Private Deals)

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Targeting Retargeting

Campaign types

DSP offers two campaign options

Reach known usersCampaigns are aimed at maintaining contact with

known users and convincing them of your own

brand/products.

Acquire new customers

Campaigns aim to draw the attention of new buyer

groups to your own products.

Amazon Advertising

(former AMG)

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Managed Service via Amazon Advertising Expert (AE) on CPM-Basis or fix fee

Display- & Newsletter-Campaignes

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Managed Service via Amazon AE

Custom Solutions: Here as example - US Theatrical Release

Customized Homepage

“Boxvertising“

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Managed Service via Amazon AE

Connected Devices covers campaigns on Amazons Kindle Fire, or Fire TV

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Managed Service via Amazon AE

Parcel Supplement as offline-option based on CPM pricing

The media strategy needs to be dynamic and adaptable along the complete sales funnel

Recommended Media Channels

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Awareness Consideration Purchase Loyality

E x t e r n a l M e d i a C h a n n e l s

A m a z o n M e d i a C h a n n e l s

Sponsored Ads (SEA on Amazon)

AMG/Retail (Sponsorings & Display)

Promotions (Deals, Coupons)

ATL (TV, Print, Online...)

External Ad Channels

Amazon SEO

Amazon DSP (Display Targeting & Retargeting)

Mar

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Stand alone Paid Media actions do not unfold their full potential.

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You need to have all ecommerce success factors under control

to scale campaigns to the max.

Campaigns will be ineffective in terms of reach, spends will be inefficient.

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Operational Excellence

The daily account management in Vendor accounts can be a

tough challenge for brands.

You need to monitor the most important KPIs and deduct actions

to leverage growth potential .

Take action beyond campaign management

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Advertising Campaign

Performance

Relevance factors that increase Visibility Performance factors that drive Conversion

Text-Content

Keywords

Stock

Price

Reviews

Variants / Bundles

Images, Videos

Promotions

Badges

Campaign-performance is stronglydependent on non-campaign-factors

A+Content

Sales Programs

Efficent day-to-day marketing and sales processes are mandatory to be successfulNon-paid act ions

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SEO/Content

Title, Attributes, Backend Keywords

ConversionOptimization

Product Images, A+ Content, Brand Store

Reviews

Building & Management

Bundling

Variations, Bundles, Samples

Customer Service

FAQs, Comment on questions

Stock Management

Buy Box Rate, Never Out OfStock

Take Aways

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What is important to know tomorrow as well▪ With Amazon´s worldwide growth, competition on the marketplace is also increasing at the

same time

▪ Amazon will be the next major advertising platform alongside Google and Facebook and has the "hardest currency": user´s purchase data

▪ The Amazon Ecosystem already includes a multitude of advertising options, more and more of which are self-services

▪ Advertising on Amazon should not be viewed in isolation, but as part of an overall strategy to ensure sustainable success

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Today´s takeaways for your business

Potential next steps

1. Define your Amazon marketing strategy

2. Set yourself SMART Goals for the next 3, 6 & 15 months

3. Make or buy? Decide whether you will achieve these goals with internal

resources or with external know-how and manpower

Questions?

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andreas .bork@finc3.de

www.f inc3.de

Mönkedamm 11 , 20457 Hamburg

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