From £4m to £13.6m – the data insight that transformed an Amazon Brand
It’s no secret that commercial clarity and rigour are two of our driving forces here at Venture Forge – and the story we’re about to share is the perfect illustration of exactly why they’re so important to your success…
We love good data – accurate, real-time, deep dive data.
And, when it comes to building a successful, sustainable Amazon brand, this information is not just useful – it’s critical.
Let’s take a recent tale shared by our CEO, Andrew Banks, over on LinkedIn.
The Story…
Recently, we had the opportunity to work with a brand to grow their sales – they believed they had a £4 million Amazon business.
Before the meeting, we conducted our own data analysis.
It revealed sales of £13.6 million – some difference!
The discrepancy was that we were coming at the figures from two very different perspectives – but their numbers meant they couldn’t see a massive growth opportunity that’s been right in front of them all along.
The Data Insight…
The brand’s £4 million represented their sales to Amazon through their Vendor account.
In contrast, our £13.6 million figure reflected the total purchases made by consumers of their brand’s products on Amazon.
And this distinction is crucial, because the consumer sales give the holistic view of the market demand for the brand’s products.
“Whether you’re a vendor or seller, everything starts with the consumer,” explains Andrew.
“Get the consumer to buy more and you turn more stock.”
The Opportunity…
Our rigorous deep dive into the data revealed a significant growth opportunity that the client had missed.
The consumer was already buying more, it just wasn’t all going through their Vendor account.
In fact, over 50% of their products were being sold by other vendors or third-party sellers, all at a lower margin for our client…
… a leakage in sales which meant that the brand was losing out on potential profits that could easily have been theirs.
Our Solution…
Now, with this gap identified, the client can get strategic:
- Taking better control of Amazon
- Tightening their distribution channels
- And prioritising selling directly to Amazon at a higher margin rate
This way, they’re not just enhancing their profitability, but also strengthening their presence and control on the marketplace.
The Bottom Line…
This story underscores the non-negotiable importance of understanding your numbers – but it also reveals something really key about Amazon growth.
When your brand is looking to grow on Amazon, it’s so tempting to put all your effort into increasing your topline.
But, without an accurate and complete grasp of what that topline truly is, you risk missing out on broader growth opportunities – some of which could be dangling right in front of you, ripe for the picking.
So, if you want to unlock the full potential of your Amazon business, start by always knowing your data.
This rigorous approach to commercial clarity won’t just reveal immediate opportunities for growth – it will also give you the solid foundation you need for long-term success.
Ready to transform how you do Amazon? Speak to our team to discover how we can help unlock hidden growth opportunities and boost your profitability.
Useful Links
- Follow our CEO, Andrew Banks, on LinkedIn
- Read more on the Critical Importance of Accurate, Real-Time Data
How might Fresh Prime perks bring benefits for your Brand?
Does your brand sell products through Amazon Fresh? Here’s how the brand-new Prime Member Deals initiatives can give your sales a boost…
What’s happening?
Amazon has expanded its grocery delivery service to customers in over 100 towns and cities across the UK, providing a new frontier for brands selling on Amazon…
…And they’ve launched a first-ever initiative for Prime members, who can now enjoy even more savings through a new “Prime Member Deals” programme that offers hundreds of exclusive promotions and benefits.
What sort of deals are available?
Prime members are set to gain significant advantages from the new ‘Prime Member Deals’ programme, with exclusive promotions on hundreds of grocery products both online through Amazon Fresh and in the 20 Amazon Fresh stores located in London and the southeast.
Promotions will include:
- 10% Off Price Cut Products – Prime members receive an additional 10% off on already discounted Price Cut items in-store.
- Weekly Specials – Prime members will have access to special deals with up to 50% off on a rotating selection of products, both in-store and online.
- First-Time Shopper Incentives – To attract new customers to Amazon Fresh, Amazon is offering discounts on their first three orders (over a set spend) to encourage trial and repeat purchases.
- Enhanced Delivery Options for Prime members.
And what are the benefits for Brands selling through Amazon Fresh?
This push to bring more customers to Amazon Fresh brings benefits for all brands selling through the platform, not just those participating in the promotions.
How?
- Increased Customer Traffic – meaning higher visibility and potential sales for all brands.
- Enhanced Customer Loyalty – deals and discounts will drive more customers to become Prime members or renew their memberships, increasing the potential for loyal, repeat shoppers to use Amazon Fresh.
- Increased Customer Satisfaction – a better customer experience benefits everyone.
- Spillover Effects from Promotions – just like on Events Days, traffic generated by Prime Member Deals can create a spillover effect as shoppers browse and purchase additional products.
- Data Insights and Analytics – more input = more data. Amazon Fresh brands will be able to leverage the platform’s analytics tools to gain more informed insights into shopping trends and customer preferences, helping optimise product offerings, pricing strategies and marketing efforts.
- Cross-Selling Opportunities – well-optimised brands can benefit from increased exposure through Amazon’s recommendation algorithms.
Want to see how you can best turn these benefits to your brand’s advantage? (note – optimisation will be key!) Speak to our award-winning experts
Amazon’s new Generative AI Tool and your Listings – how a human touch is the key to success
As Amazon introduces two new cutting-edge generative AI tools aimed at SME brands, we explore the benefits, and how best to unlock their capabilities for your brand…
These two new AI tools – one designed to simplify the listings creation process and one designed to enrich existing listings – are now available for sellers across the UK and EU.
And, already used by more than 30,000 selling partners, they seem to be going down a storm.
7 out of 10 small business owners using generative AI reported already experiencing tangible benefits, including time savings and improved content quality.
And a May 2024 survey by Censuswide got the following feedback from early adopters in the UK:
- Users agreed AI could or had benefited their business by:
- Saving time – 79%
- Improving content – 73%
- Improving profitability – 73%
- Enhancing customer service – 72%; and
- Reaching more international customers – 71%
- They also felt that AI could help reduce the time spent writing product descriptions from eight hours to one hour per month, on average…
- And reduce time updating product descriptions from seven hours to one hour per month, on average.
- With participants saying their key challenge was attracting new customers, around a third (32%) thought that AI-generated content could increase a product’s discoverability.
Sounds good, right?
There’s no doubt that good AI automations help streamline processes, giving back valuable time and allowing brands to turn their focus to other critical aspects of their businesses.
But, as with all AI offerings, their powerful capabilities are still best used in combination with a human touch – human input being essential for differentiation and maintaining a brand’s unique voice.
More detail on those two new Generative AI Tools
- Product Listings Tool (for new listings)
Designed to “make listing new products easier than ever”, this AI tool generates high-quality and engaging product titles, descriptions and other listings details from just a few descriptive words and/or a product image.
- Enriched Product Listings Tool (for existing listings)
Designed to help optimise existing listings, this AI tool analyses and enriches existing product information, automatically completing missing details and improving overall content quality to provide richer, more comprehensive product information that enhances the customer experience.
The Essential Human Touch
But, while generative AI tools offer brilliant benefits, our opinion is that they don’t eliminate the need for human input.
A lot of AI content is very similar in terms of how it feels and reads – not great to help differentiate your brand and products against your competition.
Instead, the true power of these tools is unlocked when they’re combined with human creativity and strategic input.
A little extra effort allows you to introduce your own creative spin, ensure the brand tone of voice is consistent and avoid just being another generic listing.
The result is a best of both worlds – a time-saving, data-driven, AI-generated framework that you can tweak to be more engaging, unique and resonant.
Want expert help to elevate your Amazon listings? Our team can help – get in touch today.
Shopify vs Amazon Pay – the lowdown (and what we think it means)
For those merchants across Europe affected by the announcement that Shopify is removing the Amazon Pay function from 6 August 2024, here’s what we know and what we think…
This is what we know
On 27 June 2024, Shopify emailed its European merchants with this surprising and not-very-welcome announcement:
Beginning August 6, 2024, Amazon Pay will no longer be available on Shopify shops in your region. Amazon Pay will be deactivated from your shop and past order information for Amazon Pay will be available on Amazon Seller Central.
For questions related to the discontinuation of support or managing your Amazon Pay transactions after August 6, please contact Amazon Support.
We know this may be an inconvenience and we’re here to help. You can still offer your customers other payment methods available in your region
– Shopify email to merchants
TL;DR?
It says that, from 6 August 2024, Shopify merchants in Europe will no longer be able to offer Amazon Pay as a payment option and encourages merchants to explore other payment options.
Shortly after, Amazon responded with this statement:
Following the recent email update you received from Shopify, we want to make you aware that the deactivation of Amazon Pay, effective from August 06, 2024, may require an additional reserve amount from your Amazon Pay account.
Beginning June 27, 2024, you may see an additional reserve amount to your account based upon your refund and disputes rate over the past 30 days. This reserve ensures your account is sufficiently funded to deliver a seamless post-order experience for customers for any outstanding claims and refunds, and is in accordance with our User Agreement.
For any enquiries, including requests for additional assistance, please contact Amazon Pay Merchant Support.
– Amazon email to merchants
Meaning?
So merchants don’t just stand to lose Amazon Pay as an option, they could also face higher reserves on their accounts because of the anticipated decrease in transaction volume – a logical business move from Amazon (to protect against final refunds without further income to cover them), but a double-whammy blow for merchants.
This is what we think
Like our friends at Channel X, we see this as a classic standoff situation between two major players – each calling the other’s bluff and holding out for a better deal.
Though these disputes can be incredibly frustrating for merchants, we’d be surprised if the two don’t come to an eventual agreement – that “Buy with Prime” feature on Shopify is too huge for either to just walk away.
And Shopify’s suggestion that merchants contact Amazon Support for help smacks of a strategic move – directing merchants to lobby Amazon directly and putting extra pressure on the retail giant that way.
What should you do?
Whatever happens, this is a “don’t put all your eggs in one basket” situation.
We strongly suggest you:
- Explore Other Payment Methods – ensure you have alternative payment options ready to go live by August 6.
- Communicate with your Customers – inform your customers about the upcoming changes and any new payment options you’ll be introducing. Transparency helps maintain customer trust.
- Monitor Communications – keep an eye on further announcements from both Shopify and Amazon. The situation could evolve, and staying informed will help you adapt quickly.
- Consider Lobbying – if Amazon Pay is crucial for your business, don’t hesitate to contact Amazon Support. Your feedback might contribute to a resolution.
