INSIGHT: RETAIL STRATEGY


IS AMAZON REALLY WORKING FOR YOUR BUSINESS? NO? WELL IT SHOULD BE?


Everyone knows the name of this online marketplace powerhouse which is now a well-established retailer with over 100 own brands and a wide supplier network. But do you really know how to make Amazon work for your business? The Daley Hub team offer some tips and advice for DIY retailers.


Y


ou upload your product catalogue, display it to the world, and Amazon works its magic. Right? Wrong! On a


very basic level, maybe, but it won’t dramatically change your business if you do no more than this. The true success of your Amazon strategy for growth is only as good as your understanding of the platform.


Birth of a marketplace powerhouse


In the early days of Amazon, Jeff Bezos advertised a job description seeking developers to “help pioneer commerce on the Internet.” Fast forward a couple of decades and it’s fair to say it was an accurate description. Amazon is estimated to account for 40% of commerce sales in the United States alone and reached revenue for the twelve months ending 30 June 2023 of $538.046 billion. It is one of only two companies currently averaging $1 billion in daily net sales revenue, the other, which you may be reading this article on a device from, is Apple.


It is the gateway to worldwide expansion for businesses across the globe and can catapult your potential for growth into a completely different league. Only having a general grasp of its inner workings all but guarantees your strategy for growth will be leaving money on the table and potentially low profits. Understanding how to utilise it effectively is essential.


Inner workings Your customer has added what they want to the cart, paid for their purchase and the item is quickly delivered. It’s seamless. But there’s a world of intricacy going on behind the scenes, we would refer to it as the Amazon black box!


www.diyweek.net


“The true success of your Amazon strategy for growth is only as good as your understanding of the platform.”


Amazon has 9.7 million sellers worldwide, with 1.9 million actively selling on the marketplace. An enormous fulfilment and logistics network is used to complete orders and meet the delivery expectations of more than 110 million Prime members. More than 175 fulfilment centres across the world and approximately 500 warehouses near cities globally. But are you putting this marketplace titan to work for your brand effectively?


Brand building


Seeing your brand become a household name as your product conquers the marketplaces of the world is so often the vision, and brand recognition is without a doubt important. But, focusing too heavily on it overlooks the fact that only 22 per cent of Amazon searches even include a brand name in the first place.


Developing content that is optimised for customer search behaviour is critical to getting your product noticed. Amazon themselves say that nearly 50 per cent of the purchasing decision is influenced by content and images, and only 20 per cent by price.


Social proof One of the greatest benefits of Amazon shopping is being able to read customer reviews before you buy. Research has found that over 90 per cent of customers read reviews before making a purchase, and influences the purchasing decision more than price. And nearly 80 per cent of consumers say that they trust online reviews as much as a personal recommendation from friends or family.


Quality reviews help customers gain transparency and confidence when making purchase decisions.


Growth beyond expectation But how does this surface level knowledge help you? It serves to highlight the scale of what Amazon truly is and how much there is to understand before creating your plan. But growth far beyond your expectations isn’t just a possibility for those new to the platform or beginning their Amazon journey. So what to do now? To efficiently grow your brand


there must be a clear vision of what you want to achieve and where you need to focus. We put all our partner brands through comprehensive audit and forecast process. Analyse both your brand and your competition on Amazon marketplace. Then implement a proven growth framework to get your business where it wants to be.


Taking action


“Algorithms and growth levers.” “Conversion optimisation and range expansion.” “Launch and velocity.” These aren’t deliberately complicated jargon terms; they are part of the growth framework you get when a full-service Amazon partner handles your strategy for growth. To grow your brand and succeed


on Amazon, you need a specialist agency that knows and understands it inside and out. See where specialist market knowledge can take your business by contacting the Daley Hub team.


Reach out if you need support


With so many areas to focus on, you may be overwhelmed and asking yourself where to start. Daley Hub – supporting leaders, customers and colleagues to drive business forward. Visit www.daleyhub.com for more information and details of how to get in touch.


MARCH 2024 DIY WEEK 11


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40