Tag Archives: Amazon sponsored ads

Amazon Metrics That Affect Product Buyability – Part I

There are numerous factors that eventually end up influencing a particular product’s buyability. We shall deal these in two sections, this article covering the first section.

Fulfillment

Although a seller has a total control over parameters such as efficiency of his services, fulfilment is one factor that highly impacts the buy box share. Sellers have two options for fulfilment:

  1. FBM – fulfilling all products by themselves
  2. FBA – Fulfilment by Amazon, whereby the whole product catalogue is dealt by Amazon

Usually, sellers end up with a mix of these two methods as it provides real strategic management. Fulfilment by Amazon significantly affects your buy box ownership and for those sellers who do not yet have their products in the buy box, it helps them to have a speedy acquisition. But, it is important to identify products that actually show a good improvement in buy box ownership through FBA (some products may perform well through FBM itself).

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Fulfilment latency is also an important factor that impacts the product buy box. Latency is basically the shipping time – time taken for the seller to ship out the product after receiving an order. Sellers are required to enter their estimated shipping time in the product specific feed entry. Remember NOT to leave it blank as Amazon picks up a default value of 1-2 days which might not be realistic for you. If your shipping time does not match with the one entered, it will negatively affect your seller rating. For obvious reasons, lower latency times hike up the chances of buy box ownership.

 Landed Price

Landed price is the total cost that needs to be paid by the customer; the product price and shipping cost added together. Fulfilment and landed price happen to be the most prominent factors for the buy box ownership.

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The lower the landed price, the higher chances of winning the buy box. Amazon strategies highly depend on pricing, so sellers have to be ready for certain amounts of sacrifices or use innovative price listing ideas. Repricing solutions are also available for sellers for a closer monitoring. For example, considering the same product above, other sellers have the following criteria:

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There are two sellers that have a free delivery option but the landed price is high and that is why Amazon gives the buy box to the seller above, who has a lower landed price than others.

There are many Amazon metrics for the buy box that are dependent on the customer but landed price is one factor that is complete control of the seller. One point that may be utilised by sellers is to embed the shipping costs into the product price. Free shipping tends to attract more customers. At the same time, you have to make sure that your landed price is not rising up; it’s a game of optimising for the best solution.

Seller rating

Seller rating is an Amazon automated overall assessment given to sellers based on their performance on the marketplace and it reflects how well you are handling your inventory management, order management, fulfilment and customer service. Here is how the account health looks like in a nutshell:

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This criterion is judged by a number of metrics. We shall look into each one in detail.

  1. Oder defect rate

ODR is the percentage of orders that have been reported with any type of issue divided by the total number of orders for a particular product.

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Amazon recommendation for the above metric is less than 1%. There are three components that constitute the overall ODR:

             i.       Negative Feedback

Negative feedback rate is the number of negative feedbacks that you receive from all the orders you fulfil.

        ii.          A-to-Z claims

This is claim from a customer to receive back funds in case of repeated order defects or likes

       iii.          Service chargebacks

This is similar to A-to-Z claims but in perspective of card payments and bank issues.

  1. Recent Customer Metrics Data

This metric compiles your performance with respect to the customers on Amazon. It is also governed by three components.

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i. Late shipment rate

Failure to send a shipment confirmation through Amazon within 3 days of your expected shipment timeframe adds on a late shipment.

ii. Pre-fulfilment cancel rate

This is the rate at which a cancellation of an order occurs from the seller, before shipment confirmation through Amazon. This usually occurs due to stock issues.

iii. Refund rate

A refunded order is one that you refund for the customer post a shipping confirmation. This does not always end up negative.

  1. On-time delivery score

On-time delivery is a direct and close measure of how well you manage your inventory and efficiency in fulfilment areas. Amazon recommendations for this metric are on the higher side and this is comprises of 2 components.

i. On-time delivery rate

This is the percentage of the orders you have shipped that have been received on or before time.

ii. Tracked delivery rate

This is the percentage of your orders that have the facility of order tracking.

  1. Buyer-seller contact response time

This is one of the metrics that related to customer service quality. A late response is considered as a reply sent to buyer post 24 hours of customer message or inquiry. Amazon research proves that orders that have efficient communication receive 50% less negative feedback. Once a communication has been completed, a seller can mark it as ‘no response needed’ so that he is not penalized for a ‘no response’.

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Seller feedback

Although this metric does not match in weight when it comes to buy box share influence, it is directly related to it. Amazon works on a customer oriented process and therefore sellers with a high positive feedback are likely to win the buy box share.

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 There are 2 factors that are included in this metric:

i. Seller feedback score

The total of your 1 to 5 star rating are translated to calculate the total positive ratings using the following rules:

  • 1 – 2 stars: negative
  • 3 stars: neutral
  • 4 – 5 stars: positive

These details are not displayed on the product page, you need to scroll through all offeres to view this score for the sellers.

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ii. Seller feedback volume

This refers to your total customer feedback received in the past 12 months. The final score is calculated as the total number of positive feedbacks divided by the total number of feedbacks. Having large volumes of feedback increases customer confident in buying from you and thus accelerates the purchase decision. The general score in this category is 7 – 9 %, and not usually less than this.

Product discoverability and buyability are the key concepts of increasing sales on the Amazon marketplace. Some of the factors that are related to these concepts have been described above herewith. There are other factors also that affect the buyability which will be discussed in part II of this topic. For further information, you may log on to www.bmconsulting.co.

An Overview of improving sales probability on Amazon

Selling, maintaining and advertising on the Amazon platform demands a distinctive approach to success. Ranging from the application of varied resources to sophisticated strategies; it necessitates a holistic approach towards upholding a prosperous position on this marketplace. Adding on to the stress and strain, the marketplace is absolutely competitive, resulting in the optimization to be a complete challenge. Central concepts of contesting these challenges happen to be Product dicoverability and Product Buyability.

Let’s start off by defining these concepts:

Discoverability – A product’s discoverability is its ability to be found on the Amazon platform from the consumer’s point of view. It is important to remember that Amazon SERPs are product oriented and sellers have limited entitlement of increasing product sessions. Therefore, overall it is the product which needs to be focussed on. Increasing the discoverability can be related to driving traffic in terms of traditional marketing.

The following is an example of an Amazon SERP for the keywords ‘chandeliers for living room’:Untitled

As seen from the results, the product ‘Prop It Up Antique Design Brass Chandelier – 5 Lamps’ is listed among the best sellers and is also the first product on the result page. Amazon shows the product price range and the number of other offers (other sellers) on the SERP itself, which further promotes the purchase decision in any consumer. In a product like chandeliers, the product design plays an extremely vital role and probably that is the reason why the display of the SERP is in the tiled format clearly showing all designs. Motivating discoverability is dependent on many factors that are portrayed on the SERP including:

  • Image quality
  • Discount rates and offers
  • Reviews rating
  • Any tags that have been achieved (e.g. best seller)
  • Payment information

All these factors together can be well dealt with in the optimization process and as we will see later on, all marketing activities eventually form a cycle whereby each process is inter-dependent and linked with the others.

Buyability – Product buyability is based on two metrics:

  1. A seller’s percentage of total buy box ownership
  2. Traffic conversion on a product page

To better understand this, let’s take an example of a corner table. Suppose this corner table received a total of 100 orders in a month. The first metric of buyability focusses on having the highest share of the total 100 orders. The second metric of buyability is highly driven by discoverability and and overall optimization practices.

Taking a closer look at the SERP for chandeliers:

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The SERP itself shows options for other sellers as well, but at this point, the buy box is with Prop it up. Looking from the perspective of this seller, buyability will be to continue having the buy box.

Discoverability is directly related to Amazon SERPs and buyability is most relevant on the product detail pages. Both these concepts are inter-related and form a cycle – sustaining a high position of sales for a particular product.

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The major goal of all marketing optimizations on the Amazon platform is to increase the conversions from all the sessions on a product i.e. receiving a higher conversion fraction from total number of sessions. Two prime ways to do so are based on the metrics of product buyability.

  1. Buy box ownership: Getting a higher number of orders is directly related to your buy box share. The higher your buy box ownership percentage, the more orders you get and as a result more revenue is generated.
  2. Product Page Optimization: Conversion rate optimization (CRO) needs to be brushed up with minute practices and best strategies such that once a customer has landed on the product page, nothing convinces him/her to leave without ordering. Robust tactics should be implemented in describing the product page content – title, description, image quality and placement, etc. Take a look at the product page of the best seller for the chandeliers:

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 Each aspect of the product detail page has been well explained on this product. Images have been provided in good resolution from various angles. The title of the page is complete including the brand name, product name, product type and product size. Good number of reviews and ratings are highlighted. The price and delivery details are also appropriately listed. Bullet points have been all utilised giving all the information that would answer the questions arising in any consumer’s mind regarding purchase. Detailed information on designing a product page can be found here.

Before investing ample time and resources on product page design and optimisation, it makes absolute sense to first grab a good share of the buy box ownership. Otherwise all these efforts will be directed towards a competitor’s offer. The question is when to start strategizing buyability according to metric 2 – conversion rate optimisation?

To start off the process, you must first dig into your sales performance reports and pick up your top performing products based on the following criteria:

  • Number of orders: Identify the products that have got the highest number of orders and then analyse on the reasons – which may include high number of sessions/page views or a higher buy box share.
  • Sessions: Look at the ASINs that have been receiving the highest number of sessions and analyse the buy box share for them. Marginal changes in the buy box share for ASINs with high sessions can result in a good number of orders.
  • Revenue: Again, working on minute changes for the buy box with products generating revenue in the higher range make pay off with significant results.

On performing this analysis, you might find quite a number of your products overlapping in all the above categories. These are the products that you should focus on performing the maximum CRO techniques, followed by the products falling individually on the top of each category. Select these products for optimisation processes.

The overall process can be summarised as a two stage process:

  1. Win the buy box
  2. Improve conversion rate

Elaborated work on these two basics are sure to drive your sales at good speeds and heights!

Designing A Product Page That Will Enhance Sales on an Online Marketplace

Design is not only about graphics, colours and visuals. Content can also be designed, fabricated and created in ways that appeal to the reader. Online marketplaces are very much dependent on content. The absence of physical presence and feel of the product make it necessary to have correct content – placed and created appropriately.

Considering the Amazon platform, the following example shows the different sections of a product page.

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  1. Title – The title is not only the first thing that the buyer sees but also acts a great deal in generating traffic. It is essential to make sure that the title is filled with all the major keywords related to the product. The following components should be present in the title description of your product:
    • Brand name – The brand name should be either the first or second word in the title. A significant fraction of customers buy using the brand name. This also helps in creating awareness for your brand. The above example starts the description with the brand name ‘IIK Collection”.
    • Category – Inserting the category in the title helps in targeting the correct audience by getting rid of unwanted traffic. In the above example the word ‘Men’s watch’ automatically narrows down the searches to only males. In case of clothing and accessories, the gender/age suffices, for furniture one may add the area e.g. kitchen, bedroom etc and for gardening one can add terms such as indoor/outdoor. Thus, depending on the product, a specific category helps in narrowing the traffic to the most relevant ones.
    • Product name – Don’t forget this one! Otherwise you will be lost in the marketplace and probably invisible to all buyers.
    • Product description – A short description (one to two words) of the product helps in generating results from a search term. In the above example, the word analogue has been aptly used together with the colour of the product.  For clothing, you may add the type of print/colour/size, for furniture the colour and size should be added and similar processes should be applied to various groups of products.
  2. Price details – Adding the price details immediately after the title further induces a purchasing aspiration in the buyer. One should add all the discounts and offers that are ongoing in the product, clearly showing the difference in the prices. Customers are trend to be aligned with discounts more than any other factor.
  3. Delivery and payment details – Mentioning the types of payments accepted gives a wider chance of purchase for any product. Prima facie, anyone would also like to know the estimated time that will be taken for the delivery. Opposed to physical buying processes, the buyer does not get an immediate access to his/her purchased item, and therefore assuring him/her about a quick delivery will increase likelihoods of buying.
  4. Bullet Points – These are quick and complete description points of the product. Every seller should make efficient use of the maximum number of bullet points available on every product page. Bullet points are used to highlight the product details in combination with its utility. In these points as well keywords should be included in good numbers so that search of the product is much easier.

The above guidelines to the product page make a product more vulnerable to search terms and automate the purchase need in the buyer’s thought process. There are many other factors such as number of clicks, ad eligibility, customer satisfaction and account suspension that significantly affect your presence on an online marketplace. You may visit our website www.bmconsulting.co or contact us on info@bmconsulting.in for further insights from experts.

Generating More Sales Through Customers on Amazon

Generating sales is a hurdle on its own – whichever sector your business is in, whichever platform you are working on whichever marketing strategy you are using. The core of business generation has been based on customers from the ancient times of business. Some things never lose integrity and customer satisfaction is one such thing when it comes to any business. This method is arguably the most efficient and reliable sales generation technique till date today.

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It is said that “To gain something we have to lose something” But the question is “can we gain everything without losing single thing?”  Yes we can. But for that we must have comprehensive knowledge of what to do and what not do? This same strategy implies for Amazon. There are certain aspects usually sellers do not pay attention to them but these are the real game changers. These aspects are as follows:

  1. Delivery/ Shipping – It is this aspect which finalizes the order on Amazon. Always try to deliver the product in allocated time. Keeping minimum delivery time will help to enhance the interest index of customer. To outdo the existing delivery/shipping facility Amazon instigated the service named as “Amazon fulfilled”. Under Amazon fulfilled service delivery/shipping is the responsibility of Amazon. Seller does not need to perform any obligation related to delivery/shipping. It gives assurance for on time delivery which is very significant for the healthy relationship with customer to generate good reviews about the product and seller.
  2. Packaging – Packaging plays crucial role in the process. As we know “the goods which look better sell better” is the thumb rule. So the product must be well packed. Also packaging is responsible for the safety of the product during shipping. Any damages leads to chaos so keep in mind the packaging should be safe.
  3. Reply to messages: this point is gaining ground day by day. Nowadays besides reviews, customers rely on how sellers respond to their queries. So, vendors should revert to customers well in time and appropriately. Once a customer gets required information he/she can make a decision on the product.
  4. Customer Feedback– Customer feedback is a marketing term that describes the process of obtaining a customer’s opinion about a business, product or service. Customer feedback is so important because it provides marketers and business owners with insight that they can use to improve their business, products and/or overall customer experience.
  5. Understanding Customer Demographics – Think of demographics as the ultimate categorization tool. Grouping consumers based upon characteristics allows organizations to better serve the needs of their ideal customers. In terms of marketing, it means selling a product or service to the person most likely to buy it based on their unique needs and preferences.The most important function of demographics in marketing is obviously to increase sales. By understanding consumers, any business can increase marketing efforts to target those most likely to buy.

Work on these aspects to literally note a significant boost in your sales and increase your market share at amazon. You may visit http://www.bmconsulting.co for further insights by experts.

(Compiled by Nikhil Patil)

Amazon Suspension Get Back by BM Consulting

We all know Amazon from a consumer’s perspective and are absolutely familiar with all transactions and attributes available and/or required.

There is a whole lot of difference from the seller’s perspective!

All those amenities that we simply click or tap on have a bulk of activities behind the screens. A seller on a platform such as Amazon has to go through a lot of careful maintenance for those products to be displayed appropriately and efficiently. If you need any information on the highlighting points that may hinder your Amazon presence and sales, this article is a sure read for you.

Despite a thorough checking process, some errors may be continuously happening for sellers. Under these situations, a seller’s services are likely to be suspended by Amazon resulting in temporary payment blocks for up to 3 months. In such scenarios, retailers end up facing significant loss amounts.

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Firstly, we will list down the metrics which are more likely to lead to suspension.

  1. Order defect rate – purchases being damaged
  2. Response time – should be a maximum time of 24 hours to consumers
  3. Negative feedback rate – negative responses regarding product
  4. Cancellation rate – order cancellation statistics
  5. Late dispatch rate – late delivery of orders to customers
  6. Policy violation – manufacturer’s complains and product mismatch

If your seller platform continuously signals any of the above metrics, it is very expected to have a suspension.

Now, this is where BM Consulting assists. Errors occur – it’s human. And errors can be corrected – it’s also human! And that is the base of BM Consulting’s service – Amazon Suspension Get Back.

Upon receiving a suspension requirement, BM Consulting takes the necessary steps in order to facilitate the quick re-sale of the retailer. Firstly, a problem understanding is built up whereby the situation and its actual faults and causes are derived from advertisement and campaign analysis. Then, a guidance and possible solution is structured for the seller. The final stage – Plan of Action is the most important. A layout of an action plan is described which elaborates the steps that are needed and will be taken by the seller to achieve back the selling status.

This service was launched by BM Consulting on the 5th of May 2016 and ever since then, quite a number of suspended sellers have regained their services. This service is of great help to all retailers on ecommerce platforms. For further information, please log on to http://bmconsulting.co/

AMAZON PRODUCT SPONSORED ADS: CASE STUDY BY BM CONSULTING

Amazon sponsored product ad campaigns are a quite effective section of Amazon services through which sellers can benefit at large. Significant increment in sales and reduction in Amazon/Advertisement cost of sales are achieved by accurate and appropriate campaign management. This service of Amazon expands the visibility of products on the marketplace and provides for special placements for products such as page 1 of search results, thus resulting in sales increment. Below elaborated are two sellers whose campaign management was undertaken by BM Consulting.

  1. BENISON INDIA – Dealer for sewing machines
  2. DHARMAYA – Cosmetics Dealer

Client Requirement:

All sellers who are connected with a marketplace such as Amazon have similar issues as listed below:

  • High ACoS values. Advertisement cost is the percentage of total cost on advertisement. The lesser this value, the more profit one saves.
  • Not enough sales
  • No significant numbers of impressions and clicks

Approach:

Being a Google partner company, BM Consulting has the privilege of a strong background and a lot of experience with keywords. Correct keyword research together with accurate optimization techniques are applied to the Amazon seller campaigns such that the glitches faced by sellers are greatly reduced and sales are increased.

Results:

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Noted increments in the number of impressions, clicks and sales are observed for the clients after execution of campaigns accurately. ACoS values are seen to reduce over 50% of previous values.

Client Speak:

“It has been a priviledge to have your Team BM Consulting as my Advertisement Consultant.

1. Because of them my Sales has increased by 200% in amazon.in.

2. No doubt to promote sales we need advertisement. Their management team was able to give me maximum benefit by increasing Sales whereby my Advertisement Cost On Sales (Acos) is very less.

3. My advertisement Budget is used by BM Consulting and proper allocation of my Budget is done. I can also review their work in Amazon.in”

 – Dharmaaya Enterprises