Has 2024 brought you profit issues on Amazon? You’re not alone
In fact, many of our new clients have come to us with exactly that problem – and although their challenges are unique to each brand, here’s the basic method we’ll be using to pinpoint what needs plugging, and how we can do it…
There’s no denying that Amazon has become much more profit-focused this year – but hasn’t everyone?
The world’s biggest marketplace tightening the purse strings and wringing margin wherever it can isn’t all that surprising – but, coming hot off the back of a few years of rapid growth and inflation, it’s definitely crept up on a lot of brands.
And so, with easy gains off the table, it’s time to turn inwards and ensure that you’re not leaking profits from your Amazon channel.
How do we do that? We dive deep.
A deep, holistic understanding
To solve a profit issue, you need to dig into the heart of your Amazon operation and gain a complete, holistic understanding of what’s going on.
Why? Because leaky margins can come from lots of areas – and usually it’s lots of areas combined, from Amazon management to channel strategy to back-of-house operations.
You need to look at:
Your market and its opportunities
To identify untapped niches, emerging trends and areas for growth where you can capitalise on new revenue streams.
Your Trading model with Amazon
1P vs 3P vs Hybrid – there’s no “one size fits all” answer and what’s right for you can change.
We covered this in more depth in our recent expert masterclass, “How to supercharge your brand’s Amazon presence in 2024”.
Just follow the link to watch.
Or if you know you need expert guidance? Ask us about our Selling Model Evaluation service.
Your ability to operationally service your current (& future) trading model
Your ability to do this effectively ensures smooth operations, efficient fulfilment, customer satisfaction, minimised costs, a better negotiating stance and more.
Catalogue Efficiency
When was the last time you optimised your product range?
We see so many clients who’ve not done this exercise for far too long that we’ve recently launched a dedicated Product Range Optimisation service, where we review your brand’s range in the context of:
- The market
- Your competition
- Existing sales
- Unit economics
And identifies the right range to take to market for top and bottom-line growth.
Chargeback and Shortage Opportunities
Addressing issues in inventory management, logistics or customer service, preventing revenue loss and improving overall profitability.
Lots of brands are tackling their Amazon profit leakage by using some of the fantastic chargeback and shortage recovery services out there working on a no-win, no-fee basis.
But, while recovered revenues are great news, the truth is that you’re still leaking profits.
And you’re paying a percentage of your money to a third party to get it back, instead of stopping the gap in the first place.
Far better to find the source and prevent future leaks.
If you’d like expert help, get in touch to talk through our profit and recovery service.
With exceptional success rates – £160k recovered for clients already this year – we find lost revenue, recover it quickly and stop it happening again, all at a market-leading rate.
Profitability Analysis down to ASIN level
This kind of in-depth profitability analysis will give you the insights you need into the performance of individual products to make informed decisions on your range, your pricing and more – all with a view to maximising every penny of profit.
When it comes to identifying and plugging profit leaks, it can be hard to see the wood for the trees, and this is especially true when you live and breathe your Amazon business day in, day out.
Plugging profit gaps and driving growth are what we do best – so if your Amazon brand is leaking margin? Let’s talk.
As 52% of shoppers say AI has improved their shopping experiences, what are our 3 favourite easy wins for brands?
With new research showing 80% of shoppers are open to greater integration of AI into retail, it’s clear that the benefits of intelligence technologies are on the table for any brand looking to boost their Amazon success. But, if you’re new to AI, where do you turn first?
New research from SAP Emarsys has put some intriguing data on the table for brands who’ve shied away from integrating AI into their ecommerce offering so far – including:
- More than half (52%) of shoppers surveyed say AI has improved their retail experiences (up from 40% in 2023).
- A third (33%) say AI has made shopping easier (up from 26% in 2023).
- 29% say AI is helping to personalise their shopping experiences.
- 35% say AI helps them to find new products.
There’s no doubt that AI still has its limitations and it needs human input to get the right results.
But, with measures in place to counter those issues, it’s definitely time for Sellers and Vendors to dip their toe into the AI world.
Where better to begin than with some easy wins? Here are our 3 favourite starting points.
Smart Ad Tech
Smart Amazon Ads automation is a simple stepping stone into AI that can reap massive benefits – something we can confirm from first-hand experience.
Here at Venture Forge, we use our very own exclusive intelligent Ads automation to manage our clients’ spend at scale on Amazon.
Giving us automated recommendations, AI-powered and rules-based flexible bid management, competitor insights and unbeatable performance, it’s one of the secrets to how we can grow Amazon sales faster and more efficiently than our competition!
Intrigued to see how we could boost your Ads performance? Speak to the team
Content Optimisation
Natural language processing (NLP) tools like ChatGPT can be useful aids when it comes to enhancing your Amazon content.
AI can suggest changes to make your listings more engaging to improve conversions, refine product descriptions, titles and keywords to improve search visibility and generate ideas for product bundles to increase customer satisfaction.
And, though brands will surely want to tweak what’s produced to keep it unique and preserve their own tone, the AI’s output is a great starting point to build on.
Data Analysis
With lots of information to sift through, AI is a simple way to get to the crux of data and unlock the insights you need to refine your Amazon strategy.
What sort of data could it look through? Well, anything – from product sales figures to competitor research and market trends.
Want our expert guidance on incorporating AI into your Amazon strategy? Get in touch today
4 extra reasons to love the Search Query Performance dashboard…
When it comes to Brand Analytics, the Search Query Performance dashboard has one clear and unbelievably valuable benefit – it lets us identify what customers are searching for that leads them to your brand. But there’s more to this tool than that alone…
It’s no secret that we love data here at Venture Forge, the whole team being avid champions of a timely, fully informed, insight-driven approach.
One of the stats sources Becca Woollin, our brilliant Amazon Account Director, turns to most frequently for our clients is the Search Query Performance dashboard.
Offering a comprehensive overview of customer search behaviour and the pathways to sale for our clients, the dashboard would be invaluable anyway – giving us key information to optimise listings and ads, boost conversion rates and enhance discoverability.
But, as Becca says, you can use it for so much more…
Here are 4 extra reasons your brand should fall for the Search Query Performance dashboard too.
It helps you identify areas for growth
By letting you determine your impression brand share for key search queries.
It helps you track the customer journey
From click-throughs and add-to-carts to completed purchases, here is where you can spot purchase patterns and pathways.
It helps you find new keywords for SEO and advertising
If your customers have a way of searching for your products that you never thought about? Here’s where you can uncover it.
It helps you stay on top of the success of your key search terms
With regular review, it’s easy to see how your key search terms are performing against previous periods.
So, if you’re not making full use of the dashboard, make a deeper dive into this vital tool one of your next Amazon priorities.
Want some expert guidance? Connect with Becca on LinkedIn here – or drop us a line to book time with the team.
Chargebacks are an ongoing challenge! These vital webinar insights will help you fortify your defenses…
Navigating Amazon’s chargeback landscape can feel overwhelming, but with the right preparation, you can effectively manage and even reduce these occurrences. We have an essential webinar that you won’t want to miss…
Save the date – Thursday 30th of May at 10 AM
Don’t miss our next expert-led session, Chargeback Insights: Protecting Your Amazon Revenue, where our panel of experienced specialists will share all the insights you need to secure your earnings against chargebacks.
This is a fantastic opportunity to learn everything from dispute resolution to proactive prevention—covering key strategies to enhance your financial security on Amazon.
Prime Day is coming! These golden webinar nuggets will help your planning…
It’s always useful to recap strategies that were successful in the past, so taking the time to rewatch our 2023 Prime Day dissection is a brilliant starting point.
Pulling back the curtain on 2023’s results, our webinar revealed key stats, top-performing categories and emerging trends, alongside real success stories full of actionable inspiration from those who achieved extraordinary results.
Looking to maximise any of these opportunities for your marketplace business?
