George Meressa and Ronald Katamba were invited to Amazon’s headquarters in London on Friday the 1st of November along with a few agencies and large Amazon Vendors. This event talked through the following 4 areas.
Amazon shared some interesting statistics on the growth seen by Amazon sellers in the last 3 months of the year compared to the previous period and the numbers were astonishing, to say the least. From the data gathered by Amazon, the average sales increase was 2.9% in the last quarter compared to July, August and September. It is in fact advised by Amazon to increase advertising activities from the 1st of November as this is when a lot of shoppers begin their research for Christmas. Amazo suggested that advertising spends should be increased by 200% which we take with a pinch of salt and advise caution when doing so.
In the past, Black Friday and Cyber Monday were two very anticipated days where vendores can almost certainly expect to see spikes in sales. From what was presented, it now looks as though the increase in purchases on Amazon increased throughout the entire Black Friday/Cyber Monday weekend. So instead of having two days of increased sales, it drags through the weekend. This was backed by several case studies.
New to brand buyers increases in Q4 by over 240% which is another reason to ensure that exposure of your products on Sponsored Product Ads are turned up in this crucial time to win new business. Amazon advised that bids are increased by 2x or 3x to guarantee exposure above the fold on the search result pages. We advise doing this with only the best performing campaigns/products and watched very carefully to ensure budget waste is minimised.
One of the Amazon DSP specialists spoke about the capabilities of this form of programmatic advertising and gave everyone in the room a basic understanding of Amazon’s platforms. George and Ronald were the only two people in the room to have any experience on Amazon DSP. It was refreshing to get answers from a DSP specialist on the difference between lifestyle and In-Market segments and how to utilise these two forms of targeting to maximise your return through DSP on Amazon O&O (Owned & Operated).
We were also told that contextual targeting is a feature that can be done within Amazon O&O as well as the open exchange. The date in which it will be made available to Amazon DSP self-serve has not been made clear.
According to Amazon, 80% of shoppers who visit Amazon buy a product from a brand they have never purchased from in the past. Storefronts are therefore important to build out so you can showcase the variety of products you sell better and also share your brand story to engage with this captive audience.
Here are just a few updates made to the Amazon Storefront
Brands can choose to create a list of deals on the deals widget by uploading a specific list of ASINS they want to show when those have a deal. This allows brands to create a deal widget specific to a category/subcategory and decide which order the deals are shown.
In the past, shoppers needed to click on “show more” to load up more products but now you are able to see a never-ending list of ASINS. This allows shoppers to see the full selection of products in a single grid when it contains a large list of ASINS.
Using manual product grids, brands can choose to hide ASIN’s that have gone out of stock automatically. This was a huge pain point for brands that have a wide variety of products as products would go out of stock on a regular basis. This new feature brought up the question, how long would it take for Amazon to realise a product is out of stock and have it back up on the Storefront.
You now have the ability to schedule the exact date in which your new storefront or any updates are published.
There are now three options with store scheduling:
The Pantry Program and Subscribe & Save have now been permitted in Amazon Stores worldwide.
The main themed question to come from the subject of storefronts was guidance on how best to optimise your storefront so it organically ranks better on Google. As Storefronts seem to be outranking individual products on the organic Google search results it was something everyone was interested in. This is a question that kept flying around with no clear answer. Amazon did confirm that they have not produced any guidelines on this.
Transparency is an item-level authentication service founded by Amazon that helps vendors protect their brand and customers from counterfeits. This is a program that was rolled out in the US 3 years ago and will be available in the UK from the start of November 2019. Stefanie Knauer who is the partner manager at Transparency by Amazon flew in from Munich to talk through the benefits of this program for sellers.
This service checks to proactively prevent counterfeits of transparency enabled products from reaching customers and allows customers to authenticate any transparency enabled products.
Since this program has been put in place, there have been 0 incidences of counterfeiting.