Podcast: Play in new window | Download (Duration: 21:44 — 15.4MB)
Subscribe: Google Podcasts | Spotify | Stitcher | Email | RSS
Podcast (10k-podcast): Play in new window | Download (Duration: 21:44 — 15.4MB)
Subscribe: Google Podcasts | Spotify | Stitcher | Email | TuneIn | RSS
Amazon metrics are a hotly debated topic. Sellers obsess over a range of KPIs. But which are core metrics and which are a distraction or less important?
What really matters in Amazon Metrics /eCommerce metrics
Conversion rate and traffic are the most important Amazon metrics on the revenue side
Under conversion rate, the key Amazon metrics are: Price point, reviews, images, text.
They have got a product to $1M run rate without any reviews. So That is an example of a seemingly important metric (reviews, average rating) being trumped by other factors.
What other Amazon metrics matter?
On the traffic side:
Organic traffic vs. Paid Traffic
Organic traffic (page views)
Is all about how you’ve set your product up in the “back end”
Don’t move product category – it’s a short-term category – but Amazon can restrict you.
All keyword research is critical.
It all contributes to the Amazon SEO.
The way the algorithm works – it basically works on sales!
There is a ton of speculation – and Amazon is adjusting maybe based on ship speed and location.
Paid traffic
On Amazon: Headline ads, PPC Sponsored product ads, display ads. On Amazon DSP.
Off Amazon traffic also.
Look at the cost of traffic.
Some of the art is balancing the paid and organic traffic. Not spending too much to put into paid – if it’s like that, positioning or backend is broken.
60-80% of traffic should be coming from organic across multiple products.
How do we avoid letting strategy become too abstract or general?
At Amazon, Brad would have to create a strategy and then create the execution side.
For example, for the seller app: the strategy
You have to make a business case first: we can make $x more dollars by creating an app for sellers.
We’ll create 3 essential functions – people use mobile for:
- Location agnostic events
- Emergency notifications (like a phone)
- When bored on the train etc.
So to deal with those, created
- Scanning app on a product – UPC – shows the price on amazon and what you would make
- Urgent notifications – buyer-seller messaging – not in MWS or APIs – only in the mobile app. Trying to drive down the metric of buyer-seller response time.
- Result: average time went from 7-8 hours to three
- Bored – show sales because everyone is obsessed with sales. That’s why the dashboard is there.
These three features are what the users like.
The strategy is a wrap-up of – what’s my opportunity? And what’s my differentiator?
Do designs, build systems etc. – that’s all tactics.
“Strategy=marketing strategy” by Verne Harnish (of Scaling Up) – discuss
Marketing strategy might be a strategy in a growth scenario.
However, a counterexample is that Amazon didn’t do any marketing for 15 years.
Because they built a service based on the needs of consumers.
He started with books because nobody had 100K books as a selection – a book store would have only 10K books.
Product Labs have a framework they use – McKinsey type framework
DOWNLOAD THE PDF FRAMEWORK HERE:
https://www.amazingfba.com/framework
Seeing where gaps are in the market
Is there a market for this?
Is anyone even doing it?
Are they selling premium or cheap products?
Are people getting this?
Examples of Finding Gaps
Mattresses
Mattress sales exploded online because you don’t have to get a truck to grab it.
That was a HUGE market.
What is out there and wasn’t hasn’t been penetrated.
Consider the benefits of ecommerce and/or Amazon for the consumer.
eBay has killed it with cars for example.
Amazon’s rule
You have to put things into something a child will understand.
Some of the best business papers are very simple.
Brad Moss
CEO OF Product Labs, one of the largest Amazon consulting and technology companies in the world.
Former Business Lead of Amazon Seller Central Platform and the creator of the Amazon Seller App.
How to contact Brad Moss and Product Labs
Have people get in touch via
try.productlabs.net
DOWNLOAD THE PDF FRAMEWORK HERE:
https://www.amazingfba.com/framework
Watch my full interview with Brad Moss
[video_page_section type=”youtube” position=”bottom” image=”” btn=”light” heading=”” subheading=”” cta=”” video_width=”1080″ hide_related=”false” hide_logo=”false” hide_controls=”false” hide_title=”false” hide_fullscreen=”false”]https://www.youtube.com/watch?v=pL0vME1OvkA&feature=youtu.be[/video_page_section]
