selling on amazon – best practice by joel lentz
TRANSCRIPT
Amazon Marketplace
101:
Selling on AmazonJoel Lentz – Business Development / Account Manager
Amazon’s Mission
To be earth’s most customer-centric
company where people can find
and discover anything
they want to buy online.
Value
Selection
Convenience
What’s Our Secret?
4
Amazon is the
Research shows
America's Most Reputable
Companies
– The Harris Poll 2016#1Most Reputable Company
in the US
– Reputation Institute 2016#1
most trusted brandby American consumers
Amazon Confidential
Reach customers, not users, throughout the shopping journey.
300MM1
Active Customers
Source:
1. www.statista.com
2. www.statista.com
Amazon’s Seller Vision
» Create strategic, long-term seller relationships
enabling our virtuous cycle of value, selection &
convenience
Amazon Marketplace
50 percent of the total
units sold on Amazon are
from sellers. 1
1
Source:
1. Amazon Q2 Press Release, 2016
Amazon Marketplace
Amazon Marketplace
Amazon Marketplace
What is Sponsored Products?
Amazon Sponsored Products is a pay-per-click advertising solution that enables Amazon
Sellers to promote the products they sell on Amazon with keyword-targeted ads.
Decide how much
you want to spend
on your
campaigns
Select your products and
choose your keywords, or
use Amazon’s suggested
keywords through
Automatic Targeting
Your ads may
appear on product
detail pages and
among the top,
alongside and
below search
results
Shoppers who click your
ad are taken to the product
detail page where your
offer is listed, and you pay
only when your ad is
clicked
$
Why Sponsored Products?
4
Only 30%
of Amazon
shoppers
click past
the 1st
page of
search
results*.
Source: Adweek http://www.adweek.com/news/technology/why-its-so-hard-brands-get-noticed-amazon-161429* bloomreach Report, US, Oct. 2015
Why Sponsored Products?
Benefits of using Sponsored Products:
Discoverability: improved visibility with opportunity
to get listings on page 1 of Amazon search results
Increase sales: further along in the purchase cycle
and have a higher intent to buy*
Relevance: deliver highly relevant ads targeted to
customer searches
Program transparency: measure ROI and optimize
ad spend
Source: *Branding Brand Research, January 2013; **Amazon.com, Inc. Press Release January 2016
In 2015, sellers worldwide using
Sponsored Products grew more
than 100 percent, year over
year**
Sellers worldwide garnered more
than $1.5 billion in sales through
Sponsored Products listings.**
$
Tips & Resources
Launch with automatic targeting.
Identify top-performing terms & leverage to
launch manual targeting.
Add negative keywords for terms not meeting
your goals.
Increase budget on top-performing campaigns.
Optimize keywords; increase bids on low volume
terms and top-performers.
1
2
3
4
5
Optimization Tips
Ad Success What is It?
- 8- Week SP Optimization Support for Direct & SSR Sellers
- Each Seller is assigned an Optimizer who will handle direct
communication
Optimization Support Plan
Week No Activity
Week 1 Optimizer sends Introduction with layout plan
Week 2 Provide Metrics - Based on past 60 days performance
Week 3 Optimization Recommendations 1
Week 4 Provide performance metrics
Week 5 Optimization Recommendations 2
Week 6 Provide performance metrics
Week 7 Third and Final Optimization Recommendations
Week 8 Final Metrics
Ad Success What is It? (Req. and Process)
Requirements
• - Must be a 2017 Direct Sales Seller or 2017 Top SSR Seller
- - Agree to use SP for minimum of 8 weeks
- - Minimum Budget
- - Direct: $25/day
- - SSR: $20/day
- Set a target of 10% ACoS
-Agree to implement changes within 48 hours
Process
• - Fill out the form using ‘Direct Sales’ as your team
• - That’s it!
• - Optimizer will handle intro, suggestions, and changes
Bulk Operations - Add New Campaigns & Edit Existing Campaigns
Negative Keywords – Exclude low-performing customer search terms
Keyword Match Types – refine keywords with broad, phrase & exact match
Bid+ – help show ads in Top of search results, when eligible
Reporting –Search Term Report, Campaign Performance Report,
Performance by Placement, Performance over Time, Performance by
SKU, Estimated Page 1 Bid Report, Other ASIN Report
Ad Success (What they do…)
XX
Fact or Fiction
Common Misconceptions
2
0
Fact or Fiction?
Sponsored Products ads only show
when you are winning the buy box.
FACT
Attributed sales show up same day in
your campaign manager.
2
1
Fact or Fiction?
FICTION
Sponsored Products is only for Brand
Owners.
2
2
Fact or Fiction?
FICTION
You can advertise used/refurb items.
2
3
Fact or Fiction?
FICTION
Amazon Marketplace: Where do you fit?
FBA
SFP
Fulfilled by AmazonMerchant Fulfilled
Network
Seller Fulfilled Prime
MFN
Keys to Your Success
Keys
Use FBA to help scale your business and outsource shipping and customer service
Register as a Brand Owner
Apply for Enhanced Brand Content
Consider Amazon Exclusives
Set up Sponsored Products pay per click ads to maximize exposure
Collaboration Supports Both Online and Offline Sales
What does this cost?
» Professional Merchant accounts cost $39.99 per month
Provides access to listing in all categories and reporting tools
» Amazon Revenue Sharing
Ranges from 6%-15% depending on the category your product falls into
» Amazon Services & Solutions
FBA and sponsored products costs depend on your product
Exclusives is an extra 5% added to category revenue share
» No extra fees for using account managers like myself
We are non-commissioned employees of the Amazon Company
Do I qualify?
» Our team has room to onboard a limited number of net
new sellers in 2017. First come first served.
»We will assess your products and potential as a seller on
an individual level to determine your eligibility.
» If you already have an Amazon Merchant account we
cannot provide account management support.
» For those of you here—reach out to me directly at:
Questions?
Disclaimer
Amazon, Amazon.com and Amazon Services are
trademarks or registered trademarks of Amazon.com
or its affiliates. All other trademarks not owned by
Amazon that appear on this presentation are the
property of their respective owners, who may or may
not be affiliated with, connected to, or sponsored by
Amazon.