Harness the power of Amazon MWS data to grow sales
Amazon drives more than 40% of the online sales worldwide (50% in some countries like the US), making it a crucial platform for e-commerce business. As a result, it is not surprising that many retailers (from big brands to SMBs) compete to grab their share of the pie. But merely being present on this platform does not guarantee sales. One should understand that Amazon is a marketplace driven by product visibility, price, and customer service. Only a pro seller who keeps up with the changing trends and adapts accordingly would succeed in this marketplace. And as a known fact, data is one crucial thing that can help these sellers optimize their listings and stay on top of the game.
Whether the sellers realize it or not, their selling generates a vast amount of data on Amazon. They can use Amazon MWS data to understand many nuances about their listings – best/least performing listings, active/inactive listings, buy-box status, inventory information, customer reviews, and many more. Armed with this information, sellers can gain an edge over their competitors and grow their sales.
Here are a few cases where sellers can use Amazon MWS data:
Winning Buy Box:
Most of the visitors on Amazon tend to see only those products that appear in the Buy Box and it constitutes about 82% of the sales. Buy Box guarantees high visibility and higher sales numbers. Hence, winning it is essential for sellers. And to achieve that, sellers should track the below metrics regularly and take necessary measures:
- Pricing – Product price is one of the crucial factors. But setting lower prices does not guarantee winning Buy Box. Even if a seller wins, it might not be a profitable sale. Hence, sellers should give competitive prices and adjust as necessary to stay profitable.
- Order Defect Rate (ODR) – Amazon considers negative signals like negative feedback, chargebacks, and A-Z claims to calculate ODR. Sellers should track all these negative signals to discover what is causing them – late shipments, cancellations, or mismatched expectations and try to minimize them.
- Shipping Time – It is simple: the faster items are shipped, the better the chances of winning the Amazon Buy Box. But promising faster shipments and not delivering it earns the wrath of Amazon. Hence, sellers should monitor their delivery timelines and ensure that the on-time delivery rate is above 97%.
Resolving Inactive Listings:
There are three types of inactive listings on Amazon namely closed listings (by the seller itself), blocked listings (due to infringements), and out-of-stock listings. Amazon will not promote products if a seller is often low on inventory and may also de-list the seller.
Sellers can avoid out-of-stock listings by keeping a close eye on the changes in product demand, such as seasonality, changes due to promotions, changes in the overall trend. This information helps them maintain sufficient stock levels for top-selling products and meet any potential increase in demand.
Monitoring Negative Reviews:
Reviews are the lifeline of Amazon sales. Even one negative review can lower the product’s visibility and dissuade customers from buying the product. Hence, understanding and acting on negative reviews is essential for sellers.
Sellers can continuously monitor the negative reviews (with ratings less than or equal to 3) and take necessary actions.
Using Proper Keywords:
Just like on Google, buyers on Amazon enter a search term to find what they are looking for. And Amazon filters out all the products that are not relevant for a search query by looking at the keywords given by the seller. Hence, the keywords on Amazon are the most crucial success factors for sellers.
Sellers can use keyword research tools to get a list of various keywords and key phrases by providing a single keyword, such as product type. They can also use the Amazon search bar to get suggestions.
Brands can use Sponsored Products ads’ reports to see the exact keywords that connect to Amazon customers buying their products.
Identifying Most and Least Selling Products:
Amazon Sponsored Products PPC advertising provides a great opportunity for brands to drive revenue. But to do that, brands need to find products that offer the best opportunity for additional profitable sales. Usually, products with low views but a high conversion rate are a great prospect for PPC advertising. Brands can identify such products by looking at detailed page sales and traffic by ASIN.
On the other hand, there can be products that generate plenty of views but very few sales. One reason can be poor product pages. Brands can identify such products by looking at detailed page sales, traffic by ASIN and improve the product information.
Tracking Product Returns:
Returns handling is one of the toughest jobs for most sellers. They do it at the end of the month when they have time, rather than managing strategically through analytics and continuous improvement.
Sellers can track the return rate, the recovery rate of each SKU (i.e., what proportion of expected new-condition revenue they recover from each SKU), and which products are most likely to be returned damaged by customers. This information helps them in identifying those products that need to be removed from the active catalog.
When it comes to selling on marketplaces like Amazon, the concept “list it and forget it” does not work anymore. To sustain the immense competition, sellers and brands need to improve their listings continuously. And to do that, they need to adopt a data-driven approach that uses marketplace insights to identify and address weaknesses and opportunities as mentioned above.
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