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Category : Amazon

Amazon

Amazon Advertising – Return on Ads Spend ( ROAS )

 

ROAS has been introduced to Amazon advertising not long ago to measures the effectiveness of the ads campaigns. Before ROAS was introduced, marketers were using ACoS ( Advertising Cost of Sales) to measure the performance of the ads. Let’s look into a bit more ROAS. 

What is ROAS?

ROAS = Revenue from Ads / Ads Cost 

ROAS is calculated by dividing return from ads with ads cost. So, for example, if you spent £ 100 on advertising and got £ 800 in sales from those ads, your RoAS would be 8. 

8 = Revenue from Ads £800 / £ 100 total ad spend 

The higher the ROAS, the more profitable campaigns you have. If you spent £100 and got £100 back, your ROAS = 1.00, which means the ad campaign is not profitable as you have other Amazon fees apart from your product costs. However, you may consider this OK during the product launch process, aiming for sales irrespective of profitability. 

So, how do you determine a good level of ROAS for your business? 

What is a good ROAS?

A good ROAS is dependent on your profit and your product life cycle. Some companies aim for a 10:1 ratio which means £10 revenue for every £1.00 ad spend. 

In the example below, the ROAS is 1.51, and it is unprofitable. The campaign is a part of a product launch process, and the aim is to generate as many orders as possible. Although ROAS is poor, it is improving gradually. 

In the example below, ROAS is 24.6, and it is highly profitable. This campaign started on February 2021 and has improved over time. 

Why should we measure ROAS? 

ROAS helps to identify whether your ads spend profitable or not. It helps to –

  • discover whether we should invest more in the ads campaigns or not 
  • determine highly profitable campaigns and products

How to improve ROAS?

ROAS can be improved over time by optimising keywords and bids. Some of the key steps are explained below:

1// Select the right keywords

Advertising costs are based on the bidding system so, if we use the high in-demand keywords, the cost per click of the ads will go up, which lowers ROAS. So, target long-tail keywords, which may bring less traffic but increases ROAS.

 2// Experiment with all match bids

When we target keywords, we get to choose between broad, phrase and exact match types. 

Broad match – targets loosely related to the seed keywords

Phrase match – targets keywords in word order into account

Exact match – targets only exact keywords

Once all match types are tested, identify the keywords and match types that have high conversion rates. Then, create campaigns just targeting these keywords, which in turn helps to get a better ROAS.

 3// Consider increasing order value 

Once the product is ranked better and has good reviews, test the performance with a slight increase in the product price. This increases your order value and pushes up our ROAS.

4// Launch single keyword campaign ( SKC )

Single keyword campaigns Once we have a list of high converting campaigns, consider launching single keywords campaigns (SKC) that allow you to adjust bids, placements bids and bid strategy for that particular product and keyword. 

5// Advertise highly converting variations

Not all the product variations convert the same. Therefore, once you have tested, advertise only highly converting variation listings.

If you are looking for some professional help with your ROAS, we can help. With our decade long experience working with Amazon sellers, we can help to improve your advertising performance and maximise your ROAS. So get in touch and find out more about how we can help. 

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Amazon

Amazon Store Advertising

Amazon storefronts are available for sellers with the brand registry. It is accessible via Amazon advertising, and brands can create stores without listing the product on Amazon. The latter works well for brands who want to support sellers on Amazon.

There is no cost for creating a store, and brands can advertise the store within Amazon or externally via social or email. Sending traffic to the storefront help to engage with the customer with a range of products and build loyalty. In addition, once the customer is in your store, there is no comparison with other brands so, you are getting 100% attention to your product pages. 

Besides organic traffic, sponsored brand advertising allows advertisers to send Amazon traffic directly to their store home page or category pages. This post explains how to create storefront advertising and measure its success. 

How to create Amazon storefront advertising?

STEP 1 // Start with choosing target – either the home page or category pages. Category pages work well as they are more targeted to the specific products compared to the home page. 

STEP 2// Work with the creatives – upload logo, choose any three products from the store page, add headline text, and upload a custom image. 

The custom image takes up the entire space on mobile search pages and has higher engagement.

STEP 3//  Targeting Option: Target keywords in all match types or choose one. You may want to use sponsored product ads keywords that generated sales in the past or use suggested ones from Amazon. 

 

STEP 4// Targeting Option: We can choose either keywords or product targets at one time to do A/B testing between two types of targets. 

Targeting products: Target products will surface the store ad when the query is relevant to that particular product. Targeting categories will surface the store ad relevant to the products in that category. 

 

STEP 5// Add negative keywords which have not converted via sponsored product ads or update this later once you see the search term report. 

Reports

Search Terms: The search terms tabs shows a list of user keywords along with the number of orders and ACoS.

Keywords Placements: The placement report shows how many impressions are showing up at the top of the search and the rest of the page along with sales.

Metrics to Measure

ACoS – shows the proportion of the spend vs sales

ROAS –  shows sales vs your spend 

% of order NTB – shows the % of total orders which are new to brands

Amazon Store advertising helps brands generate incremental sales and organic sales from their store, as shown in the screenshot below. So, get in touch if you are looking for any help with your Amazon storefront advertising.

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Amazon

Amazon Video Advertising Introduction

Amazon Sponsored Brand Video ads work well to get your customers’ attention whilst browsing through the search results. Unlike other ads, it takes an entire length of the space, and it has a higher chance of getting a higher clickthrough rate. In addition, Amazon displays the product title, reviews count, and price with the video ad, which helps make the purchase decision.  

Ads position

Sponsored brand videos appear below the upper fold of the desktop and in the midsection, and at the end of the search results on mobile devices.  

Things to avoid

Amazon has explained the creative guide very well on their help pages, but some of the common rejection reasons are that we have seen are – text at the corners, more than three lines of the text in a single frame, distracting imagery and sound ( for example, flashing, spinning, blinking, pulsating objects or text, or high-contrast transitions or shrill, unexpected or violent, and jarring sounds).

Targeting Options

Amazon video ads allow us to target only one ASIN per ad. So, it makes perfect sense to duplicate ads for similar products. We can also use a common video for multiple ads with different ASINs as long as the video is relevant. For example, a range of headphones.  

Video ad has three targeting options. We have been using all three targeting options:  

1// Keywords targeting with 3-5 top converting keywords from sponsored product ads 

2// Product categories targeting 

3// Product targeting 

ACoS and Clickthrough Rate

  • We have seen similar ACoS in the US but 3 -4 times higher ACoS in the UK for the same product. 
  • We have seen a much higher clickthrough rate, 1.3% with video ads compared to 0.3 % clickthrough in Sponsored Product Ads for the same product.

Video ads are still at a very early stage so, it is an excellent time to start now. We have our own Amazon video specialist team who can help you create a video and build efficient ads campaigns. Schedule a call to discuss your Amazon video campaigns today. 

 

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Amazon

Learn to Advertise on Amazon

 

A recent Amazon case study features Indigo Jamm’ success story. With the use of sponsored ad campaigns, Indigo Jamm’s average monthly Amazon sales increased by 217% compared to those of the previous three months. 

It is a real success story that shows just how powerful Amazon Advertising is. Amazon’s Advertising offers solutions across the complete marketing funnel. Advertising enables you to build your brand and to help you reach a wider audience; and ultimately, increase sales.

For most sellers on Amazon, search marketing offers the first step into the world of Amazon Advertising, so this is where we’re going to keep the focus of this guide. Amazon offers three main types of advertising for both Seller Central and Vendor Central users. 

Sponsored Product Ads (SPAs)

Sponsored Product Ads are usually the initial starting point for an Amazon seller. They’re the ad you see displayed at the top or bottom of a search results page and on a product page.

Sponsored Brands (SBAs)

Formerly known as Headline Search Ads – these ads are displayed across Amazon, but most commonly seen above the search results. Sponsored Brands allows advertisers with the brand registry to display three products and their brand logo, along with some text. This ad type is fantastic to generate brand awareness of your products and it can be used to promote your Amazon Brand Store too. 

Sponsored Display Ads (SDAs)

This ad type targets products, categories and audiences engaged with your products or similar products. This enables you to create cross-sell or upsell opportunities on your product pages, get sales from a competitor product page or position your products with complementary items. 

With this Amazon advertising book, you will:

  • Understand how Amazon Advertising works,
  • How to create your own Amazon Advertising strategy,
  • How to get started with Amazon Advertising and 
  • How to take your campaigns to the next level.

Buy A to Z Guide to Amazon Advertising from Amazon

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Amazon Events

AmafestUK 2020 – Learn about Amazon DSP, Succeeding as a Brand on Amazon, Amazon Data into Sales

Brought to you by Online Seller UK, #AmafestUK is a one-day conference for Amazon Seller Central and Vendor Central users looking to learn, network and grow their businesses. 

When: 8th October  March 2020

Time: 9:30 – 17:00

Where: UKFast Campus, Birley Fields, Manchester, M15 5QJ

Come and join hundreds of industry experts, sellers and peers at this jam-packed one-day event ideal for brands, retailers and distributors, as well as those who are interested in getting started on the platform. You will hear from 10 industry experts and get the chance to share stories and network with other sellers.

With 10 expert talks, we are confident that you will learn something new. Below are 3 of the experts’ talks taking place on the day:

Matt Anderson, https://marketplaceamp.com/

Accurately Targeting Your Consumer on Mass Using DSP

Now DSP is also available to Sellers as well as Vendors, Matt will be sharing insight into working with brands on DSP. Find out how Display Advertising can leverage the wealth of consumer data on Amazon to re-engage shoppers who researched your brand, reach potential customers likely to buy your products and tailor creative targeted to your consumer brand personas.

 

Duncan Barraclough, https://www.onlinestar.co.uk/

The Why and How of a Brand Succeeding on Amazon

Duncan will be discussing how brands can do better on Amazon, why a brand should feature on Amazon and the role it plays in the overall Marketing mix for a brand online. Covering what brands often miss when selling on Amazon, do’s and don’ts, why ethics and integrity remain fundamental and how Amazon can be an important channel for any brand’s equity.

 

Chris Molzi, http://www.molzi.com/

 

Turning Amazon Data into Sales

Amazon provides huge amounts of data to Vendors and Sellers, but not always in the most convenient ways. Chris is going to talk about ways that you can harness the data that Amazon provides and turn it into actions that help drive sales on the platform. There are many tools and software solutions that can handle the heavy lifting, but Chris will discuss simple Excel formulas that anyone can use.

 

The conference is taking place at The UKFast Campus, which is in close proximity to the city centre. There are limited free tickets left. Once they’re gone, tickets will be £50.00 + VAT, including refreshments and lunch.

To find out more, and to secure your tickets head over to https://amafestuk.com

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Amazon

#BrightonSEO 2020 – Amazon SEO and Marketing Training

Prabhat Shah - Amazon SEO and Marketing Training UK

Amazon has quickly become the go-to place for online shoppers over the last few years, and to back this I have met hundreds of Amazon Sellers who claim their Amazon sales have taken over other marketplaces, significantly.

Amazon’s growth across Europe comes from an increasing product range, customer loyalty and trust, quick delivery and an easy returns system. One report suggests that 47% of consumers in Germany frequently shop with Amazon frequently, 30% of consumers in Italy and 22% of UK consumers considered themselves to be loyal Amazon shoppers. 

Consumer loyalty is the key to Amazon’s success and Amazon Prime is the main driving force. Research suggests that more than half of internet users in Italy, Germany and the UK have a Prime account. 

With all of this in mind, it is clearly important for any online seller to be selling on Amazon. However, it can be difficult to build your presence, if you’re new, on Amazon, as well as increase your presence if you’ve been selling for a while but struggling to grow. It is vital to know exactly how to use the channel, and learn the full aspect of Amazon. This is why we have developed the successful Amazon SEO and Marketing course at BrightonSEO. We have been doing this many few years and our course content is up to date with Amazon changes.  

Find out more and register online >> 

 

In the past, we had a mix of agencies and brands and it is an interesting day packed with strategies to build your Amazon business. Understanding Amazon SEO and its marketing capabilities are a part of the day alongside operational knowledge of Amazon. We will explore both Amazon Seller Central and Amazon Vendor Central during the day. 

Who has attended?

BrightonSEO AmazonSEO Training

Also, just to say thanks for a fantastic training session last Thursday. You broke down all elements of Amazon SEO so well that it was really digestible, easy to understand and most importantly, actionable. I feel much clearer now on how to approach Amazon SEO and look forward to getting my teeth into a few campaigns. I’ll happily recommend you as a trainer and consultant to anyone needing these services!

Petar Jovetic, Head of SEO, Impression

Alongside our core content, during the day we talk through some common challenges shared:

  • Product reviews best practices and tools
  • Creating a progressive advertising plan
  • Some of the best Amazon tools 
  • Enhanced content, A+ best practices
  • How to improve rankings?
  • Dealing with Multiple languages & SEO
  • How to deal with support to get a quicker resolution
  • How to ensure listings are compatible for Alexa
  • Optimising PPC for a low ACoS  
  • Product listing best practices 
  • Moving between vendor and FBA, potential pros and cons
  • Getting focus for an investment: advertising, deals or vine reviews  

This training session is delivered in a small group creating a comfortable environment for you to ask any questions. At the end of the day, we will be working on your Amazon growth plan which you can build on when you are back to your work.  

Our next session is in April 2020 and get your ticket here >>

#BrightonSEO 2020 - Amazon SEO and Marketing Training

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Amazon

Webinar: Taking Amazon Advertising to the Next Level

Webinar: Taking Amazon Advertising to the Next Level

Amazon is a great platform to help small companies that no one has heard of, and create a space for them to compete with more established brands. This is why many SMEs choose Amazon as their go-to place to start launching their products. At the same time, established brands also see the power of Amazon and have started to create more of a presence via Amazon’s Vendor program.

Whatever stage you are at with Amazon, advertising plays a very significant role in generating brand awareness and initial/additional sales.

So, once you have started with advertising, and you’ve seen some sales, how do you take your campaigns to the next level? In this webinar, we will discuss:

  • Optimising your keywords,
  • Optimising your ACOS,
  • Structuring your campaigns for success,
  • Organising your campaigns into portfolios,
  • Getting the best out of Sponsored Brand Ads (SBAs) and Sponsored Display Ads (SDAs), and much more.

Register for this webinar >>

 

 

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Amazon Amazon Strategies

#BrightonSEO talk: Amazon Advertising Campaigns without Targeting Any Keywords

So, it was another exciting #BrightonSEO with 4,000 digital marketers all in one place! I have been attending this conference for the last 4 years or so and every time I learn something new. I can understand a lot of blood and sweat must have gone into organising a conference of this size, so hats off to all the #BrightonSEO team, I have felt welcome every time.    

If you have never attended BrightonSEO before, you can get super early bird ticket here for the April 2020 conference https://www.brightonseo.com/ 

 

Image

 

I had the privilege of presenting this year with wonderful friends, Danny and Katherine, on the topic “Amazon  Advertising without Keywords”. Having extensive experience working with Amazon Advertising over the past few years, Amazon’s Advertising without keywords has certainly been an interesting one. It has enabled me, as an advertiser and agency, to target competing products and complementary products to increase my market share, while helping me to defend myself by targeting my own products. When I  was a little stuck with Amazon Germany Keyword ads it helped me to generate incremental sales.  

Check out these slides below to see how it works and if you have any questions please feel free to get in touch. 

 

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Amazon Amazon Training

Amazon Vendor Central: Costs & Challenges

Recently, news about Amazon pushing Vendors towards Seller Central took many by surprise; but there are a few sellers that are already working with both Vendor and Seller Central. Rather than expanding on speculation, it is the right time to re-think whether to continue with Vendor only or use a hybrid strategy for your business. 

One of the important factors to consider when deciding is the fee structure. A Vendor sells at a wholesale price and there are additional fees with Vendor agreements which include: 

  • MDF/COOP Terms: 10.0% of Net Receipts (i.e. total Receipts fewer returns and taxes) based on Cost Price.  COOP Fees are charged as a way to get back some of their operating costs. Most vendors are required to pay the Market Development Fund (MDF). Usually, there is no clear explanation of how these marketing costs are handled. 
  • 2% Damage Allowance – Allowance applicable instead of returning damaged goods to the vendor
  • 1.0% Markdown – This is related to a claim for reducing the price 
  • Chargebacks include mislabeling, improper packing, late arrival, late PO acceptance etc. There is a lot of evidence of incorrect fees charged by Amazon and they need to be contested with Amazon, which can be a time-consuming process.

By comparison, the main Seller Central fees include:

  • Referral fee – charged as a percentage of the retail price, or at least the price paid by a customer less any discounts. The percentage depends on the category (15% for most categories).
  • Fulfilled By Amazon (FBA) – includes pick and pack fee, and monthly storage fee, depending on product size and weight. Full details >>

Getting the figures correct is often difficult, and more often than not sellers may not actually know if they’re making money. We tend to see the money coming in at the time and forget about fees. 

Recently, we spoke with many Vendor sellers who raised lots of serious questions, which you can find below with our answers.

Some of the common issues raised by Vendors in our contacts were: 

#1 Moving between Vendor and FBA – potential pros and cons?

Pros:

a/ Increased profit – you sell at retail price

b/ Price control – you can sell at a price of your choice 

c/ Inventory control – send stock in a small number 

d/ Faster payment of 15 days

e/ Don’t have to wait for Amazon to generate PO during product launch

f/ Reduced time wastage in dealing with chargebacks

Con:

a/ Sales volume is less as is it B2C

b/ Support team required to communicate with customers

#2 Amazon Vendor direct fulfilment – how to get this to work smoothly

It is a lot of work to process orders one by one via the Vendor Central platform, so the best way to solve this is to take advantage of an EDI (Electronic Data Interchange) integrator that allows sellers to process orders in bulk, print shipping labels in bulk etc. If you use a system like Logicbroker they can connect with your ship station to enable easy processing of orders.

Other solution providers are:

#3 Amazon Vendor – Is it possible to limit the number of fulfilment centres serviced to reduce costs? (Amazon support understandably say no)

No.

 

#4 Seller Support is rubbish they often get back to you with queries you always have to answer amazon messages promptly. Also, we haven’t done Vendor Central as our carrier was cancelled – lost sales!

Amazon Vendor has a different level of support system in place. Most of the Vendors don’t have Amazon’s direct support and is usually managed via their case log system. If you prefer to have a direct email contact you’d have to pay an annual fee which is generally affordable for high sellers only.

#5. Amazon Vendor – Frustration-free packaging – Does it really HAVE to be certified if we know it meets requirements?

Certification is part of the process. Please find out more about the process and certification here. 

 

#6. 3P vendors adding poor content and the lack of support from Amazon to remove or update

This is a very common issue we see every day. The best way to work around these issues is to register your brand with Amazon and ask Amazon to gate your brand so if anyone tries to list your product they would need approval. 

Another way to proactively check changes is via the tool https://getreviewbox.com/ which alerts you when there are content changes. Once we have a list it makes it a bit easier to contact support systematically. 

You may have realised by now Amazon is a complex platform and brands need to understand the full ecosystem of Amazon to get the best out of it. Our vendor session gives you an overall understanding of managing the account and its advertising opportunities. It is a practical session, allowing members of your team to create a clear Amazon Growth Plan. 

Find out more about this training session available to Amazon Vendors based in midlands and throughout the UK. 

 

 

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Amazon

Amazon SEO checklist for marketers

Amazon isn’t just a shopping platform, but a search engine also for product research, with 56% of shoppers starting their shopping journey on Amazon. This makes it important to ensure your product listings are well optimised on Amazon.

This is where Amazon SEO and listing optimisation helps.

Just simply uploading content isn’t going to get you far. Amazon is just like Google, content needs to be optimised. The Amazon SEO and listing optimisation process involves a step by step method to create highly engaging, keyword-focused content. 

Check out the checklist below to ensure you have completed all steps to having fully optimised content:

Use this checklist to edit your content:   

  • Create content for the consumer rather than a search engine. Invest time on how the product would benefit the buyer and any USPs.
  • Follow the strict Amazon Style Guidelines, if Amazon enforces these you want to ensure you won’t get penalised.
  • Product titles: Include information about the product, USPs, whilst including SEO keywords – Stay within Amazon’s recommended limits.
  • Bullet Points: stay within Amazon’s limits and include features that help customers make that purchase decision almost instantly.
  • Product Description: elaborate more on the key product features, and make it more of a story, talk about the brand too. This is an additional opportunity for your keywords to rank. Use simple HTML code to separate paragraph, bold or bullet point. A free HTML tool will be handy here.
  • More Detail Information: Fill in as much relevant information as possible – features, materials, audience. These are all indexed!
  • Main Image: Images need to be 1000x1000px with a white background for the main image. The main image should be of the product only and no models, except for clothing. Use a free tool to remove the background.
  • Additional images: Use the text on images to explain more about the product as on this example. This helps mobile customers make a purchase decision without scrolling through the content.  Include lifestyle images. 
  • A+ pages / Enhanced Content: This is available for registered brands with a Seller Central or Vendor Central account. Text here is not currently indexed but has been found to improve conversion rate. Check out different A+ modules here.
  • Keywords: 250 bytes are allowed here, use this space to add additional keywords which are not present in any other part of the content.
  • For English 1 byte = 1 character but non-English characters (ä, ü, ö, é, etc) = 2 or more bytes.  Amazon does not allow more than 250 bytes anyway so you’d automatically avoid adding more than the limits allowed.  Check out this byte calculator tool.
  • Avoid repetition: No need to repeat words, e.g. ‘table for dining room kitchen’ instead of ‘table for the dining room table for a kitchen’
  • Include only singular or plural.
  • Compound words are  automatically indexed ie. flipchart vs flip chart; hi-waist vs hi waist

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