Listing optimization that converts for Amazon’s Algorithm AND prospective shoppers positions your product to be found. Building out a highly effective Amazon advertising strategy pushes your product to the top of search results and sets your brand apart from the competition. 

Both are pivotal guideposts of online selling success. 

Product listing optimization, including compelling copy, high-quality images, and relevant keywords, enhances visibility and conversion rates, making it easier for shoppers to find and purchase products. 

A well-planned advertising strategy further amplifies this by driving targeted traffic to listings, maximizing exposure, and increasing sales. 

This post isn’t about either of those two elements . . .

Instead, it’s about understanding the less sexy, hidden factors that can make the difference between thriving and merely surviving on the platform. 

This post will explore three critical areas that Amazon sellers need to fully understand: 

• Hidden costs of selling on the platform
• The importance of Amazon review management
• How to use external traffic to multiply ecommerce sales

The Less Obvious Costs of Selling on Amazon

Most Amazon sellers are aware of basic fees such as the subscription, referral and FBA (Fulfillment by Amazon) fees. The true costs of operating on Amazon’s marketplace are often more extensive and complex.

These hidden costs can significantly impact profit margins if not carefully managed.

Storage Fees

Amazon charges monthly storage fees for inventory stored in its fulfillment centers. Importantly, these fees increase dramatically during the holiday season (October to December), making it crucial to manage inventory levels efficiently. 

Additionally, long-term storage fees apply to items stored for over 365 days, which can rapidly erode profits if inventory management isn’t optimized. You will want to implement inventory turnover strategies to minimize these costs, such as regular inventory audits and dynamic pricing to move slow-moving products.

It’s 2024, artificial intelligence is your friend. You can use AI-based tools to help manage your overall inventory strategy.

Returns

Amazon returns can significantly impact sellers’ profits through various fees and charges. When an item is returned, sellers face a refund administration fee, which is either $5.00 or 20% of the referral fee, along with losing the original shipping cost. 

Certain fees, like the FBA shipping fee based on product size and weight, are non-refundable. Starting June 1, 2024, Amazon introduced a return processing fee for products with high return rates (excluding apparel and shoes) to cover operational costs. 

Returns can consume up to a third of a seller’s monthly profit, especially if the items returned are damaged or unsellable, resulting in further losses.

Miscellaneous Fees

Other expenses include removal orders (when sellers want Amazon to return or dispose of inventory), labeling services (if sellers don’t label products themselves), and potential account suspension appeal costs.

All these expenses must be considered when calculating the true cost of selling on Amazon. Sellers should regularly review their fee structures and seek ways to minimize unnecessary costs.

The Critical Importance of Review Management

Not all costs are directly translatable to dollars and cents. Product reviews on Amazon play a crucial role in influencing customer purchasing decisions and determining your product’s overall visibility. 

At the end of the day, that’s going to have a lot to do with your search ranking, social proof, and degree of customer engagement. Success – or failure – will be reflected in your sales. 

Here’s why review management is vital:

Search Ranking

Amazon’s algorithm, which determines search rankings, considers both the quantity and quality of reviews. Products with a higher number of positive reviews are more likely to rank well in search results, leading to increased visibility and sales. At the same time, products with few or negative reviews may struggle to gain traction, regardless of their quality or competitive pricing.

Social Proof

Reviews are one the things that Amazon shoppers look at when trying to make a final decision. They have long served as social proof, building trust with potential customers. In the absence of physical interaction with products, customers rely heavily on the experiences of others to make purchasing decisions. A product with numerous positive reviews is much more likely to convert browsers into buyers. 

To make sure you’re compliant with their policies, use Amazon’s Request a Review feature that offers you a safe way to ask customers for product reviews and seller feedback.

Customer Engagement

Review management involves actively engaging with customers, addressing negative reviews promptly and professionally, and continually improving products based on customer feedback. 

This ongoing process of engagement and improvement leads to better products, increased customer satisfaction, and ultimately, more positive reviews. Take advantage of the advances in artificial intelligence to implement a systematic approach to monitor and respond to reviews. This will help you to turn potential negative experiences into positive ones.

The Power of External Traffic

Simply relying on the power of Amazon’s internal traffic and advertising tools is an easy mistake to make. While these are undoubtedly powerful, they overlook a strategy that in-the-know entrepreneurs are using to give their listings the extra boost they need to rise to the top of the rankings. 

External Amazon traffic refers to potential shoppers directed to an Amazon listing from sources outside of the Amazon platform itself. This might include traffic generated through Google ads, social media promotions, blog posts, email marketing, and influencer referrals.

Here’s how this strategy benefits sellers:

Reduced Reliance on Internal Traffic

If you’ve spent money on PPC advertising recently, you know that Amazon’s internal traffic can be highly competitive and expensive to capture through advertising. By diversifying traffic sources, you’re better able to reach potential customers who may not have found their products through Amazon’s search results. This reduces dependence on Amazon’s ecosystem and spreads risk across multiple channels.

Boost Your Organic Ranking

Amazon’s algorithm favors listings that convert well. When external traffic leads to sales, it signals to Amazon that the product is popular and in demand, potentially boosting its organic ranking within Amazon’s search results. By expanding your marketing outreach beyond Amazon, you’re more likely to gain an edge in the competitive marketplace.

Sometimes, a little edge is all you need. 

Brand Building

When you’re selling on Amazon’s marketplace, it’s easy to be overshadowed by many of the 80,000 pound ecommerce gorilla’s own inhouse brands. External marketing allows you to build your brand outside of Amazon, and leads to increased brand recognition and loyalty. 

This can translate into repeat purchases and positive reviews on Amazon. Take the time to invest in creating a strong brand presence across social media, websites, and other online platforms, then watch the sales come in. 

Audience Diversification

Have you experienced suppressed Amazon listings or account suspensions recently? If so, this one might hit close to home. 

By building an audience outside of Amazon, you’re better able to create a valuable asset that can be leveraged across multiple sales channels, reducing dependence on any single platform (I’m talking to you Amazon). 

This diversification provides stability and growth opportunities beyond Amazon’s marketplace.

How to Implement External Traffic Strategies

Driving external traffic requires skill and investment. You need to understand various marketing channels, create compelling content, and continually optimize your campaigns for the best results. Here are some effective strategies:

Social Media Marketing

Utilize platforms like Facebook, Instagram, and Pinterest to promote products and drive traffic to Amazon listings. Engaging content, influencer partnerships, and targeted ads can help reach a broader audience.

Google Ads

Running Google Ads can capture high-intent customers searching for products similar to yours. Effective keyword targeting and ad copy are crucial for driving relevant traffic to Amazon listings.

Influencer Partnerships

Collaborating with influencers – of any size – can amplify your reach and credibility. Influencers can showcase your products to their followers, driving traffic and potential sales.

Email Marketing

Building an email list allows for direct communication with potential customers. Regular newsletters, promotional offers, and product updates can push traffic to Amazon listings and build customer loyalty.

How Canopy Management Can Help

Success on Amazon requires more than just listing products and fulfilling orders. By having a better understanding of these less obvious costs associated with selling on Amazon, you’ll have an easier time creating a sustainable path forward. 

Embracing these strategies not only help you achieve immediate sales goals, they also contribute to building a strong, recognizable brand that can thrive in the ever-changing marketplace.

Want to take advantage of a shortcut that many of Amazon’s top sellers have used to rise to the top? Reach out to the Amazon experts at Canopy Management. 

Ever wonder what adding 67% more organic sales might mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Beyond the Obvious: Uncovering Hidden Amazon Success Factors appeared first on Canopy Management.

In this post, we take a close look at reasons why your products may be sold by others on Amazon, the potential impact on your brand, and steps you can take to address the issue.

Here’s how it might play out. 

How Brand Piracy Impacts Your Brand

Not all brand piracy is of the black hat variety. As detailed later in this post, though certainly not harmless, some eventual sellers might not even realize the brand owners haven’t authorized the sales. Still, there’s a significant component of outright deception going on. 

What is true is that the effects of brand piracy can snowball. 

According to research from Michigan State University, nearly seven in 10 people were deceived into buying counterfeit products online at least once in the past year.   

Accounting for up to 2.5% of world trade, counterfeiting is one of the most pervasive and troublesome forms of brand abuse for large brands. It’s not just a temporary loss of revenue. It ultimately results in damages to the brand’s reputation and overall value. 

Social Media Helps Fuel the Fire

For brands with a social presence – particularly larger brands – the proliferation of social media and online marketplaces has intensified the challenges posed by brand piracy. These platforms provide counterfeiters with unprecedented access to global audiences, making it easier to sell fake products, spread misinformation, and impersonate legitimate brands. 

The rapid spread of content on social media can quickly amplify the damage caused by brand abuse, diluting brand messaging and eroding consumer trust. 

Brands of all sizes face significant difficulties in monitoring and addressing these issues across multiple platforms, struggling to maintain control over their online reputation and protect their intellectual property. 

Monitoring the incendiary potential of hijacked social media has become a full time job. This has created a complex environment where managing brand integrity requires constant vigilance, sophisticated monitoring tools, and proactive strategies to educate consumers and combat unauthorized use of brand assets.

Why Your Brand Might Already Be On Amazon

Finding your brand on Amazon (without your prior knowledge) can be a shock, and can happen for a number of reasons and through various channels including unauthorized resellers, legitimate distribution networks, and gray market sales. 

Let’s begin by addressing three reasons why you might find your own brand already sold on Amazon’s busy marketplace. 

1. Unauthorized Resellers

This is every entrepreneur’s nightmare and one of the primary reasons your products might appear on Amazon without your knowledge. Unauthorized resellers operate independently and often acquire products through various means including: 

Retail arbitrage: Some sellers purchase products at retail stores, often during sales or clearance events, and then resell them on Amazon at a markup. This practice, known as retail arbitrage, can lead to your products being sold by multiple unknown parties.

Liquidation sales: Liquidators often list surplus products on Amazon, often at prices below your recommended retail price. Sometimes this involves massive companies reeling from retailer bankruptcy such as the recent case of Bed Bath & Beyond. 

Counterfeit or knockoff products: In some cases, black hat sellers may offer counterfeit versions of your products, claiming them to be authentic. This not only impacts your sales but can also damage your brand’s reputation if customers receive inferior imitations of your own product.

2. Authorized Distribution Channels

Sometimes, it’s not out-and-out black hat sellers causing the problems. Your products may appear on Amazon through legitimate channels that you may not be fully aware of. 

Wholesalers or distributors: If you sell your products to wholesalers or distributors, they may choose to list these items on Amazon as part of their own sales strategy. This may be within their rights, but it can lead to unexpected competition and pricing issues.

Retail partners: Do you sell your products through brick-and-mortar retailers? If so, those that carry your products might choose to expand their operations to include online marketplaces like Amazon. 

Affiliate or dropshipping programs: If you have an affiliate program or allow dropshipping, some participants may use Amazon as part of their sales channel. That can easily lead to multiple listings of your products.

3. Gray Market Sales

Gray market sales occur when products intended for one market are sold in another, often at different prices.

Regional imports: Products manufactured for sale in other countries may be imported and resold on Amazon in your primary market. This can lead to pricing discrepancies and potential warranty issues.

Discontinued or older versions: Amazon sellers can sometimes acquire older versions of your products or items you’ve discontinued and continue to sell them on Amazon’s marketplace, potentially confusing customers and competing with your current offerings.

First Steps to Address the Issue

To regain control over your product listings on Amazon, consider implementing the following strategies:

Implement stricter distribution agreements: Revise your contracts with distributors and retailers to explicitly prohibit unauthorized Amazon sales or to control how your products are sold online.

Use unique product identifiers: Implement serialization or other tracking methods to identify the source of products being sold on Amazon.

Monitor and report unauthorized sellers: Regularly search for your products on Amazon and report any listings that violate your policies or Amazon’s rules.

Consider becoming an official Amazon seller: By selling directly on Amazon, you can have more control over your product listings and pricing. 

That leads us to . . . 

Selling On Amazon as a Defensive Strategy

Even if you haven’t discovered evidence of your brand on Amazon, in many cases it’s just a matter of time before the constantly increasing competition on Amazon brings a pirate to your doorstep. 

The best time to defend your brand on Amazon is BEFORE someone hijacks your product. That’s why it may be worth establishing an official presence on the platform RIGHT NOW!. 

This approach allows you to manage your brand’s representation directly, ensure consistent pricing, and provide the level of customer service that aligns with your brand values.

Enrolling in Amazon’s Brand Registry is a great first move. The robust program gives you more control over your product listings and to combat potential intellectual property infringements.

Having a controlled presence on Amazon can offer several advantages:

Direct management of product listings and pricing: As an official seller, you can ensure that your product information is accurate and pricing aligns with your strategy.

Ability to provide authentic customer service: By managing your own listings, you can respond directly to customer inquiries and concerns, maintaining your brand’s reputation for quality service.

Protection against unauthorized sellers: Amazon often gives preference to brand owners in disputes with unauthorized sellers, helping you maintain control over your listings.

Amazon’s Transparency Program creates brand guardrails: Amazon’s Transparency program protects your brand and customers using secure, unique codes that identify individual units. This stops counterfeits from reaching customers and helps ensure that every unit shipped is authentic. 

And, last but not least . . . 

Access to Amazon’s large customer base: Why not take advantage of Amazon’s massive user base to reach new customers and increase sales? There’s a good chance you’ll make enough money that the headaches of defending your brand turf might recede into the background. 

About Canopy Management

Finding your products sold by others on Amazon can be a disconcerting, but unfortunately common challenge in today’s ecommerce landscape. By understanding the various ways your products can end up on the platform – and perhaps building your own Amazon store – you might surprise yourself with a previously unexplored revenue stream. 

Addressing unauthorized sales on Amazon is an ongoing process. Stay vigilant by regularly monitoring the platform for unauthorized listings and be prepared to take action when necessary. By maintaining control over your brand’s presence on Amazon, you can protect your reputation, maintain pricing integrity, and potentially tap into a valuable sales channel.

If you’d like to take a shortcut that increasing numbers of Amazon’s top sellers have used to get to where they are now, reach out to the team at Canopy Management. 

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Don’t Want to Sell on Amazon? Here’s Why Your Brand Might Be There Already  appeared first on Canopy Management.

With the allure of passive income, many are drawn to a variety of different get-rich-quick schemes that are going to be present whenever there’s a lot of money to be made. Still, there’s  one big reason why the idea of “Amazon automation” rings true. 

That’s the fact that automation is at the heart of many of the practices that Amazon – and sellers on its platform – use to be successful. 

For example, let’s take the Fulfillment by Amazon (FBA) platform. Anyone who’s ever taken the (closely monitored) Amazon warehouse tour knows that it’s ground zero for the majority of Amazon sellers and a big part of their ecommerce success. 

It’s also home to a lot of diligent robot workers. 

FBA allows sellers to outsource order fulfillment to Amazon. When a customer makes a purchase, Amazon fulfillment specialists can pick, pack, and ship the order. Amazon also provides customer service and process returns for those orders.

What’s not to like?

Then there’s the automated processes that allow the Amazon advertising platform to systematically optimize bids for the new placements in order to improve conversion.

However, after looking closer at the search results, we quickly realized that there was something else going on, and it wasn’t all good.

Understanding (this Version of) Amazon Automation

Yes, this was something else altogether. In simple terms, it’s a hands-off approach to selling on Amazon. A third-party company manages every aspect of your store – from product research, sourcing, and listings to shipment and customer service. 

In return for this service, these companies typically demand an upfront fee and a share in the profits.

The promise? Sit back, relax, and watch the profits roll in. 

But can it be that easy?

After listening to just a few videos promoting “Amazon automation” services, here are some of the catchy ways that this program is presented:

• “Done for you” Amazon management 
• Data driven Amazon selling software
• Amazon FBA automation model
• Easily generated “passive income”

To be fair, let’s look at why more than a few would-be entrepreneurs have opened their wallets and tried this path to a passive income. There’s got to be something that’s driving all of this interest on the internet.

Why Amazon Automation is Trending On the Internet

There are four big reasons why Amazon automation has proven tempting to entrepreneurs: 

Passive income potential: Many of us are attracted to the idea of generating income with minimal ongoing effort. Amazon automation promises to set up and manage an online store, allowing owners to earn money without daily involvement.

Low barrier to entry: Compared to traditional brick-and-mortar businesses, starting an Amazon store requires less capital and infrastructure. In that way, a high upfront fee might be easily overlooked. 

Expert marketing: Companies offering Amazon automation services often use aggressive marketing tactics and success stories to promote their services, capturing the attention of potential clients.

Outsourcing appeal: The idea of having experts handle complex aspects like product sourcing, inventory management, and customer service is attractive to those who lack experience or time to run an online business.

For novices, Amazon’s ecosystem can be intimidating. Automation services promise to bring experts to your table. They claim to know the ins and outs of the platform, and theoretically, their experience should give you an edge.

Amazon automation also claims to speed up the process and free up significant time, allowing investors to focus on other ventures and carry on with their everyday life.

Big Amazon Automation Red Flags

Many promising ventures include associated risks. With done-for-you Amazon FBA business automation, the risks can be significant. 

Here’s a partial list:

High up-front fees: Amazon automation agencies charge high upfront fees. This can range from $10,000 to $30,000 or more. For sellers, this is a steep price to pay, especially with no guaranteed returns.

Lack of control: By outsourcing the entire operation, store owners have limited control over day-to-day decisions, product selection, and customer service. This can be problematic if the automation company makes poor choices.

Dependency on third parties: The success of the business relies heavily on the competence and integrity of the automation company. If they underperform or act unethically, the store owner bears the consequences.

Market saturation: As more people invest in automated Amazon stores – often targeting the same niche (or products) – competition increases, potentially leading to lower profit margins and difficulty in standing out.

Amazon policy changes: Amazon frequently updates its policies and algorithms. Automation companies may struggle to adapt quickly, risking account suspensions or reduced visibility.

Unrealistic expectations: Many automation companies promise high returns with minimal effort, which often doesn’t align with reality. 

Legal and tax implications: Store owners are still responsible for legal compliance and tax obligations, which can be complex, especially for those new to ecommerce.

Limited transferable skills: This is a big one. If the automated business fails, the owner may be left with little practical knowledge or skills in ecommerce to apply elsewhere. Many Amazon sellers celebrate early failures as pivotal lessons that made possible their ultimate success.

How You Can Strategically Automate Your Ecommerce Business Today

In recent years, the term “Amazon automation” has come to mean another thing altogether. It now represents a broader range of services and technologies, everything from AI-driven content creation and A/B split testing, to full-service account management offered by top Amazon agencies. 

These new automations can be game-changers for sellers, streamlining operations and optimizing sales. The continual advancements to artificial intelligence and machine learning have allowed Amazon sellers and agencies alike to save time, and boost profits by tailoring content to precise ecommerce niches. 

For example, AI can help sellers analyze enormous amounts of data in order to find out the search terms really driving sales and use that information to determine how to best appeal to a specific target niche. 

That results in a highly optimized, effective Amazon product listing.

Selling on Amazon – or on any marketplace – isn’t a static, set-it-and-forget-it exercise. It’s constantly changing. AI – particularly in the hands of a top Amazon agency – can continuously monitor listing performance and make adjustments to react to changing market dynamics or customer preferences.

As long as the machine (AI) serves the human, and not the other way around, automation can be a very good thing!

Choosing the Right Kind of Amazon Automation

Not every seller will benefit equally from AI-driven content creation or agency management. It’s essential to assess where automation can add the most value. For some, it might be optimizing listings, while for others, it could be comprehensive account management.

Automation doesn’t mean disengagement. To have the highest level of success, sellers should remain involved in order to understand what the AI or agency is doing and why, and then to regularly monitor the performance metrics.

Modern Amazon automation, whether through AI-driven tools or specialized agency management, offers sellers exciting opportunities to scale and optimize their operations.

Top Amazon Agencies Offer Accountable Automation

The increased popularity of Full Service Amazon Management has to do with the bespoke, or carefully handcrafted “personal” attention that individual Amazon sellers receive. 

After all, if success on Amazon’s marketplace was as easy as automating everything, there should be a leveling out of success on Amazon’s marketplace. 

But we’re not seeing that. Instead, individual Amazon experts – like Canopy Management – are strategically implementing automation in order to free up bandwidth so that they can hand craft individual strategies not just for individual Amazon sellers, but sometimes for micro events within an interlinked online sales and marketing strategy. 

The need to understand the Amazon platform’s constantly changing algorithms, policies, and recommended practices has never been greater. 

Artificial intelligence can only do so much. 

The heavy lifting will continue to be done by human experts with the Amazon IQ to leverage AI to stay in front of the mercurial changes endemic to ecommerce.

Looking for More Organic Sales on Amazon? 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Is Amazon Automation a Scam? A Seller’s Guide to the Latest Amazon Craze appeared first on Canopy Management.

By grouping complementary products together, you can offer added value and convenience, leading to higher conversion rates and increased order values. 

What are Amazon Virtual Bundles? 

Amazon Virtual Bundles are a feature of the Amazon marketplace that allows you to create a unique product offering by combining multiple related items into a single listing without physically packaging them together. Unlike traditional Amazon product bundling where products are grouped and shipped together, virtual product bundles are managed within Amazon’s system, offering flexibility and ease of implementation. 

Amazon’s eligibility requirements are:

• You must be the brand owner of the ASINs in Brand Registry
• The ASINs must have active FBA inventory in New condition (sorry, no Used or Renewed!)
• Although the bundle is virtual, the ASINs must be physical (no electronically delivered products like digital music, videos, and books)
• Gift cards cannot be part of Virtual Bundles
• Virtual Bundles can only be created in the US Amazon store

Key Features of Amazon Virtual Bundles

1. Digital Packaging: A virtual product bundle exists as a digital product offering, where the individual items are listed together on a single product page. Customers can see the combined value and purchase the bundle with a single click.
2. Individual Shipping: Each item in the bundle is shipped separately from your existing inventory. This means there is no need to repackage or reconfigure your products, making it easier to manage stock and logistics.
3. Complementary Products: Virtual bundles typically include complementary products that enhance the primary item. For example, a virtual bundle for running shoes might include a heart rate watch, and a training diary, providing a complete solution for an athlete preparing for an event.
4. Single ASIN: The bundle is assigned a unique Amazon Standard Identification Number (ASIN), which helps in tracking sales and managing inventory. This simplifies the listing process and makes it easier for customers to find the bundle.
5. Custom Pricing: With virtual product bundling, You can set a custom price that is often lower than the total price of purchasing each item separately. This creates an attractive value proposition for customers looking for a good deal.

Benefits of Amazon Virtual Bundles

• Enhanced Shopping Experience: Virtual bundling provide a convenient shopping experience by offering a curated selection of products that meet specific needs, saving customers time and effort in finding related items.
• Increased Sales and Average Order Value: By bundling complementary products, you can encourage customers to purchase more items in one transaction, increasing the overall order value.
• Better Inventory Management: Amazon bundles can help you move slow-selling items by pairing them with popular products, effectively managing inventory levels and reducing overstock.
• Improved Visibility: A bundled product will often rank well in search results and can attract more traffic due to their combined keywords and appealing value propositions.
• Competitive Advantage: Offering unique and thoughtfully curated bundles can help you differentiate your brand from competitors, attracting customers looking for comprehensive solutions and good deals.

Best Practices for Amazon Virtual Bundles

Implementing Amazon Virtual Bundles effectively requires a strategic approach. Here are some best practices to ensure your bundles attract customers and drive sales:

Choose Complementary Products Wisely

Selecting the right items for your bundle is crucial. Choose products that naturally go together and enhance each other’s value. Think about how the items can provide a comprehensive solution or fulfill a specific need for your customers. 

• Research Customer Preferences: Use customer reviews and feedback to understand what products are often bought together.
• Analyze Sales Data: Look at past sales data to identify popular combinations of products.
• Consider Seasonal Relevance: Create bundles that cater to seasonal needs or trends, such as back-to-school or holiday gift bundles.

Price Strategically

Pricing is a key factor in the success of your virtual bundle. Offer a discount compared to buying the items separately, but be mindful of your profit margins. The discount should be enticing enough to encourage purchases but not so steep that it cuts into your profits.

• Calculate Bundle Savings: Clearly display the savings customers will get by purchasing the bundle instead of individual items.
• Monitor Competitors: Keep an eye on similar bundles offered by competitors and adjust your pricing to stay competitive.
• Dynamic Pricing: Be prepared to adjust prices based on demand, inventory levels, and market trends.

Craft Compelling Descriptions

Strategic listing optimization and Amazon SEO can make a significant difference in attracting customers to your bundle. Highlight the benefits of buying the Amazon product bundle, focusing on convenience, savings, and added value. Use clear, concise language and bullet points to outline what’s included and any exclusive or limited-time offers.

• Emphasize Value: Explain how the bundle provides a complete solution or enhances the primary product.
• Use Keywords: Incorporate relevant keywords to improve search visibility.
• Highlight Unique Selling Points: Mention any exclusive features, such as limited-edition items or special discounts.

Use High-Quality Images

Visual appeal is critical for online shopping. Use high-resolution images to showcase all items in the bundle. Consider including lifestyle photos that show the bundled products in use, helping customers visualize the benefits.

• Consistency in Images: Ensure all images have a consistent style and background to maintain a professional appearance.
• Detailed Product Photos: Include close-up shots of individual items and the entire bundle.
• Contextual Images: Show the products in real-life scenarios to illustrate their use and value.

Promote Your Bundles

In addition to optimizing your bundle listings, actively promote them through various channels.

• Amazon Advertising: Use Sponsored Product, Sponsored Brand, and Sponsored Display ads to drive traffic to your bundle listings.
• Social Media: Share your bundles on social media platforms to reach a broader audience.
• Email Marketing: Include bundles in your email campaigns to engage existing customers and encourage repeat purchases.

How Canopy Management Can Help

For an Amazon seller, the key to success with an Amazon Virtual Product bundle lies in understanding customers’ needs and crafting offers that truly resonate with them. It’s about finding that sweet spot where customer value meets business growth.

Understanding the needs of our partners has been one of the reasons why Canopy Management has become the fastest growing Amazon agency in America. If you’d like to get a head start with your brand and take advantage of strategies that have fueled many of the top Amazon brands, you can find out more here.

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Amazon Virtual Bundles: An Ecommerce Seller’s Secret Weapon  appeared first on Canopy Management.

Sometimes, with all the focus on bidding tactics and granular placement settings, that big picture can get lost pretty fast.

We recently took the time to look more closely at 10 of Google’s top-ranked articles on PPC strategies for 2024. In doing so, we noticed a few critical optimization opportunities that even experts seem to consistently miss.

1. Purchases, Not Clicks

If you randomly picked ten paid search articles talking strategy, how many do you think would have headlines focused on “increasing clicks” or “improving click through rate (CTR)?”

I’d bet most if not all. 

A platform-wide focus on click-based metrics dominates the Amazon advertising space.

And it’s not necessarily bad advice. Clicks indicate interest levels, allow tracking customer journeys, and factor into your quality score. Highly-relevant, attractively displayed ads are designed specifically to draw clicks. But ultimately, clicks themselves don’t define campaign success or failure.

At the end of the day, what truly matters are purchases and conversion rate. Did your Amazon ad spend drive sales? When you have multiple options for how to bid or target, a significant part of your focus should be on purchases first.  

Keep a close eye on your return on ad spend (ROAS). On Amazon, your RoAS can be found under the Advertising tab. Here, you’ll find information about impressions, clicks, and your overall cost per sale. 

If you’re using an Amazon Sponsored Products ad, rule-based bidding can help take the guesswork out of adjusting bids to achieve your target ROAS. For any existing campaign running for at least 10 days, you can apply a rule with a guardrail of ROAS and Amazon Ads will be able to adjust your base bids up and down to increase conversions while maintaining your guardrails.

Consider viewing optimizations through the lens of whether it will drive more revenue, rather than getting stuck chasing click volume.

Design ads to get attention without being misleading. Then, adjust your bids and matching strategies based on conversion behaviors. This shift from clicks to purchases is overlooked more often than it should be.

2. Amazon Automation (The Good Kind)

Winning the Amazon Buy Box – and the PPC advertising needed to do it – is becoming more challenging every day. When it comes time to scale an Amazon brand, individual sellers simply cannot manage bids, ads, keywords, and settings across thousands of product listings or locations. 

Best practices like close variant matching, flexible bid strategies, and custom bids by segments are nearly impossible for a human alone when you hit a few hundred or thousand products.

If you’re not fortunate enough to have an Amazon agency doing this for you, this is where automation and advanced algorithms enter the game. Leveraging artificial intelligence, machine learning, and automation can help overwhelmed advertisers keep up.

For an Amazon agency, automation of standard practices is particularly impactful because it frees up the humans to attend to the volatile situations that require years of specific ecommerce experience to untangle.

We’d argue that automation alone isn’t enough to help you scale. That’s where advanced advertising management comes in. 

Sure, an AI program might help you to manage a few dozen product bids and produce just-ok performance. But it’s when the best Amazon agencies strategically combine cutting-edge, closely monitored automation with the latest advances in artificial intelligence that we really see exponential growth.

3. Amazon Ad Segmentation

The vast majority of paid search targeting still comes down to picking products, keywords, and match types. But there is a much wider world of options to precision-target the right potential customers. Variables like demographics, user intent, behaviors, and devices used allow customization at a person-by-person level. 

For example, “Similar to advertised products” product targeting for Sponsored Display is a dynamic Amazon ad segmentation option that allows advertisers to leverage machine learning to help reach hyper-relevant audiences.  

Advertisers can use dynamic segments through the Amazon Ads API by creating a contextual targeting clause of type “similarProduct”.

Using dynamic segments, advertisers can target additional products that are similar to those being advertised and help sellers reach relevant audiences most likely to click and help drive traffic to advertised products. 

Imagine you find mobile phone buyers from higher incomes households have exceptionally high conversion rates. You can create a specific ad group and set aggressive mobile bids just for this audience.

Here are three ways to boost segmentation for even better campaign results:

Leverage multiple data signals  

Combining variables like income and mobile users is more powerful than a single trait. It creates exponential benefits. You can build segments using site analytics, CRM data, and third party sources.

Test new variants frequently 

Customer data and behaviors evolve rapidly. Routinely build and experiment with new segments to catch trends. Take advantage of the rapid advances in artificial intelligence to move quickly. 

Assign dedicated budgets 

Rather than evenly spreading funds, dynamically shift budgets to your best performing segments to maximize ROI. Again, AI can help you filter through multiple accounts and ad campaigns to make changes quickly enough to affect your ROAS and ultimately, your bottom line.

4. Focus a Microscope On Your Ad Campaign With Dayparting

There are many aspects of everyday life that have been dramatically affected by the recent advancements to artificial intelligence. Ecommerce is at the forefront of that trend, with AI making quick work of the data-heavy complexities of Amazon ad campaigns.

Dayparting is an advanced PPC optimization technique where ads are scheduled to run only during specific times of the day or week. This strategy takes into account that consumer behavior and purchasing patterns can vary dramatically throughout a relatively short period of time. 

To implement a dayparting strategy:

1. Analyze Sales Data: Identify peak shopping hours for your products.
2. Review PPC Performance: Determine when your ads are most effective.
3. Set Up Custom Ad Schedules: Focus your budget on high-performing times in your Amazon PPC campaigns.

For example, if you sell office supplies, your ads might perform best during weekday business hours. If you sell entertainment products, evenings and weekends might be your prime time.

Benefits of Dayparting:

• More efficient use of your ad budget.
• Improved click-through rates (CTR) and conversion rates.
• Reduced ad spend during less profitable hours. 

5. Seasonal Keyword Strategies

Amazon sellers spend a lot of time preparing for seasonal events like Prime Day. That’s why it’s a little bit strange that most of the top posts don’t mention the required seasonal ad campaign adjustments necessary to be successful. 

Adjusting PPC strategies for seasonal trends and holiday shopping periods is crucial for maximizing sales during peak times. This involves creating separate campaigns and adjusting bids and budgets for seasonal keywords during high-traffic periods like Black Friday, Cyber Monday, or Christmas.

To implement a seasonal keyword strategy:

1. Identify Relevant Seasonal Events: Determine which holidays or events are relevant for your products.
2. Research Seasonal Keywords: Compile a list of keywords related to these events.
3. Create Separate Campaigns: Set up individual campaigns for each major seasonal event.
4. Adjust Bids and Budgets: Account for increased competition during these periods.
5. Optimize Listings: Use seasonal keywords and imagery in your product listings.
6. Plan Ahead: Schedule these campaigns well in advance of the seasonal event.

Key Considerations for Seasonal Campaigns:

• Start early to capture early shoppers and build campaign history.
• Gradually increase bids as the seasonal event approaches.
• Prepare for higher CPCs during peak shopping periods.
• Monitor inventory closely to avoid stockouts during high-demand periods.
• Adjust your main campaigns to account for seasonal shifts in search behavior.

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post The Top Posts on Amazon PPC Strategy All Missed These 5 Hacks appeared first on Canopy Management.

This post explores the top concerns that might be giving you nightmares and offers strategic solutions to help you not just survive, but thrive in this ever-changing landscape.

To begin with, first and foremost there’s the . . . 

1. Increased Competition On Amazon 

With the Amazon seller count skyrocketing past 9.7 million, competition in 2024 is fiercer than ever. Standing out in this crowded marketplace isn’t just a nice-to-have – it’s essential for survival.

The Solution:

Make Your Products Pop with Unique Features, Benefits, or Packaging

You know what selling on Amazon can be like. In a sea of sameness, you need to be the brand that stands out. To differentiate your products, focus on developing innovative features that address specific customer needs and pain points. 

Highlight unique benefits that set your products apart from the competition. For instance, if your product has superior functionality or is made from sustainable materials, make sure these points are prominently featured in your listings. 

Additionally, invest in eye-catching packaging that not only protects your product but also tells a compelling brand story. Packaging that reflects your brand values and creates a memorable unboxing experience can significantly enhance customer perception and loyalty.

Don’t Put All Your Eggs in One Amazon Basket

Diversify your sales channels to mitigate risks and expand your market reach. Yes, Amazon is a powerful platform, but relying solely on it can put you – and your brand – in a dangerous position. Explore other ecommerce platforms like eBay, Walmart, or Shopify to reach different customer segments. 

Embrace Social Commerce

Potential customers are already spending significant time on social commerce platforms like Facebook, Instagram, and TikTok. By integrating your products into these social networks, you can tap into organic reach and paid advertising options to create a seamless shopping experience that encourages impulse buying and customer interaction. 

Additionally, social commerce makes it possible for you to leverage user-generated content, reviews, and influencer partnerships to build trust and authenticity around your products. This diversified approach not only helps mitigate the intense competition within Amazon’s marketplace but also ensures a broader and more resilient customer base.

Prioritize Customer Engagement and Loyalty

Building strong relationships with your customers can set you apart in a competitive market. Provide exceptional customer service by promptly addressing inquiries and resolving issues. Encourage customer feedback and use it to improve your products and services. Implement loyalty programs or offer exclusive deals to repeat customers to drive long-term loyalty. 

Engaging with your customers on social media and through personalized email marketing can also strengthen your brand connection and encourage repeat business.

Stay Agile and Adaptable

The ecommerce landscape is constantly changing, and staying agile is crucial for maintaining a competitive edge. Keep a close eye on industry trends, competitor movements, and shifts in customer behavior. Be willing to pivot your strategies and adapt to new opportunities or challenges. Continuous learning and flexibility will help you stay ahead in a crowded marketplace.

2. How to Deal With Artificial Intelligence (AI) 

AI isn’t just coming – it’s here, and it’s reshaping the Amazon landscape. If you’re not leveraging AI for product research, marketing, or optimization, you risk being left in the digital dust. Embracing AI can significantly enhance your business operations and keep you ahead of the competition.

The Solution:

Put AI to Work Digging Through Data 

Use AI-powered tools to spot market trends, analyze customer preferences, and identify products with serious potential. AI can sift through massive amounts of data to uncover emerging trends and forecast future demand, giving you a competitive edge in selecting the right products. 

It’s like having a crystal ball for your product line, helping you make informed decisions and reducing the risk associated with new product launches. AI can also identify gaps in the market by analyzing competitor products, ensuring your offerings meet customer needs and stand out.

Automate and Personalize Your Marketing with AI

AI-driven platforms are able to create laser-targeted campaigns based on customer behavior. Personalization of your marketing is a great way to differentiate your brand. AI can also segment your audience with incredible precision, delivering personalized content that resonates with each customer. 

This level of personalization increases engagement and conversion rates. AI can also manage and optimize your PPC campaigns in real-time, adjusting bids and targeting strategies to maximize ROI. 

Get Your Pricing Right with AI

Repricing tools can adjust your prices in real-time based on market conditions, competitor pricing, and demand fluctuations. AI can ensure that you are always offering the right price at the right time, maintaining your competitive edge while optimizing your profit margins. 

Dynamic pricing strategies powered by AI can respond to changes instantly, helping you attract more buyers and increase sales volume. By balancing competitiveness with profitability, AI repricing tools can significantly enhance your pricing strategy.

Enhance Inventory Management with AI

Expert entrepreneurs always say that poor inventory management is a quiet killer of ecommerce brands. AI can revolutionize your inventory management by predicting stock needs and preventing overstocking or stockouts. 

By analyzing sales data, seasonal trends, and market demands, AI provides accurate forecasts, ensuring you have the right amount of stock at all times. This not only saves storage costs but also keeps your products available when customers are ready to buy. AI can optimize your supply chain by identifying the most efficient shipping routes and schedules, reducing delivery times and costs.

3. Am I Missing Out On Mobile Sales? 

By the end of 2024, it’s predicted that 190 million U.S. shoppers will make a purchase on mobile. Because of that, your listings need to look as good on a smartphone as they do on a desktop – maybe even better. The mobile shopping experience is critical, as it significantly impacts customer engagement and conversion rates.

The Solution:

Optimize Your Amazon Listing for Mobile 

Everything happens faster on mobile. That’s why you need to craft easy-to-read storylines that resonate with your audience, and make them stop scrolling and start buying. 

Here’s how:

Mobile-Friendly Product Titles: On mobile platforms, only the first 70-80 characters of a title are typically visible before truncation occurs. To maximize impact, place your most crucial keywords and product information at the beginning of the title. Incorporate key elements such as the brand name, product type, and primary features within those initial 70-80 characters. 

High-Quality, Mobile-Optimized Images: In the mobile shopping experience, images play a pivotal role as they often create the first impression. Use high-resolution photographs that clearly showcase your product against a clean, white background. Your main image should be particularly striking and easily discernible on smaller screens. 

Streamlined Product Descriptions and Bullet Points: The mobile layout differs from desktop, with the product description appearing above the bullet points. Craft your description to be concise and easily scannable. Remember that only the first three bullet points are immediately visible on mobile devices without scrolling. 

Amazon A+ Content is Critical: To optimize Amazon A+ content for mobile, create a dedicated mobile version with a strong, concise product description at the top. Use square images with captions instead of wide banners, and ensure high-resolution visuals with contrasting colors for text readability. 

Keep copy brief with compelling subheaders, and utilize mobile-friendly modules like videos, interactive hotspots, and navigation carousels for Premium A+ content. Design images for mobile ratios, use larger text, and balance visuals with information. 

This is where the help of an Amazon agency can make a big difference. When you only have a moment to make a first impression, this separates winners from the rest. 

4. What Happens if My Amazon Listing Gets Suspended?

Amazon is still number one. If you want to sell online, the path to success passes right through Amazon’s front gate. However, with its vast reach and influence comes a complex web of rules and regulations that you need to navigate.

Staying compliant with Amazon’s policies is not just a matter of good practice—it’s essential for the survival and growth of your business. Here’s why it’s crucial and some best practices to keep your account in good standing.

The Solution

Regularly Review Amazon’s Policies

Amazon frequently updates its policies. Make it a habit to review the Amazon Seller Central dashboard for any policy changes and updates. Subscribe to Amazon’s newsletters and updates to stay informed about new regulations.

Maintain High Product Quality and Customer Service

High product quality and excellent customer service are cornerstones of maintaining good standing on Amazon. Ensure that your products meet Amazon’s quality standards and that you respond to customer inquiries and issues promptly and professionally. Resolve any negative feedback swiftly.

Monitor Performance Metrics

Keep a close eye on key performance metrics such as Order Defect Rate (ODR), Late Shipment Rate (LSR), and Valid Tracking Rate (VTR). Regularly review your Account Health Dashboard and take proactive steps to address any areas of concern.

Use Automated Tools

Consider using automated tools to help manage your compliance efforts. Tools that monitor feedback, manage inventory, and track performance metrics can help you stay on top of Amazon’s requirements more efficiently.

Understand and Follow Category-Specific Guidelines

Different product categories may have specific guidelines and restrictions. Ensure that you understand and comply with the rules relevant to the categories you sell in. This includes knowing the restricted products list and adhering to product listing standards.

Handle Policy Violations Promptly

If you receive a notification of a policy violation, address it immediately. Understand the nature of the violation, correct it, and communicate with Amazon to resolve the issue. A proactive approach can help mitigate the impact of any infractions.

Canopy Management Can Help

As we navigate the twists and turns of the 2024 Amazon marketplace, addressing these top concerns isn’t just about survival – it’s about setting yourself up for long-term success. 

Increasingly, top Amazon sellers are taking an additional step; reaching out to an Amazon agency for help. It’s a little like the progression of pay-per-click advertising. In the beginning, it was just one of the ways to launch a product. Now, it’s almost a requirement to get ahead. 

Very quietly, Canopy Management has gained a reputation as the secret ingredient behind some of the top brands in ecommerce. 

Ever wonder what adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post What’s Keeping Amazon Sellers Up at Night in 2024? appeared first on Canopy Management.

This pivotal move is seen by many as Amazon’s response to the growing competition from Chinese ecommerce platforms like Temu and Shein, which have significantly increased their footprint in the U.S. market by offering a wide range of low-priced products.

Amazon detailed the specifics in a recent closed-door meeting with Chinese sellers, according to The Information, which first reported the news, supported later by CNBC. 

The strategic initiative indicates a shift in Amazon’s approach, as the company has previously avoided direct comparisons with their Chinese rivals. However, faced with increasing pressure on its home turf, it appears that Amazon is intensifying its efforts to attract Chinese vendors and offer similar services.

Three main points that Amazon sellers might find particularly interesting are:

Direct shipping from China

Amazon’s Fulfillment by Amazon (FBA) program has been an important component of their ecommerce success. This new section will allow Chinese sellers to ship products directly from warehouses in China to U.S. customers, bypassing FBA. 

Though experts have said that consumers are less concerned with shipping speed if the products are heavily discounted, this change could lead to longer delivery times (estimated at 9-11 days). 

Product testing opportunities

Sellers might be able to use this platform to test small batches of products before launching larger quantities, similar to Shein’s model for minimizing unsold inventory. This approach allows for more agile product development and market testing, potentially reducing the risk of overstock situations.

Pricing and product control

It appears that Chinese sellers will have the ability to determine pricing and product selection for this new bargain section, giving them more control over their offerings. This increased autonomy could lead to a more diverse and competitive product range on the platform.

How This Move Could Affect Global Ecommerce 

It’s worth noting that this new initiative could have significant implications for the ecommerce landscape:

• The move could serve to boost Chinese sellers’ presence on Amazon’s platform, potentially increasing competition for American resellers of low-cost unbranded goods.
• It could also impact Amazon’s reputation for fast shipping, as the direct-from-China model may result in longer delivery times compared to Prime-eligible products.
• The new section might help Amazon capture a share of the growing market for ultra-low-priced goods, which Salesforce estimates could command 21% of Western spending in the upcoming holiday season.

While an exact launch date for this new storefront has not been announced, reports suggest that Amazon will begin accepting inventory from sellers in the fall. This timeline indicates that the new section will likely be operational after this year’s Prime Day event in July, potentially positioning it as a key player in the holiday shopping season.

As the ecommerce landscape continues to evolve, this move by Amazon demonstrates the company’s adaptability and willingness to compete directly with emerging players in the market. If this comes to pass as predicted, it’s going to be interesting to see how Amazon’s new platform affects both sellers and consumers in the coming months.

Want to keep up with the latest news? The team at Canopy Management has our ears to the ground and will continue to report on the facets of entrepreneurship and ecommerce that affect online sellers. You can always read more of our trending reports here.

The post Amazon’s Bold New Program: Embracing Chinese Imports to Outshine Temu and Shein appeared first on Canopy Management.

Canopy’s rapid success highlights the transformative power of expert Amazon advertising management and the critical role it plays in driving growth and success on an increasingly complicated platform.

THE BRAND

Selling in the Amazon books and school supplies category, this recent Canopy partner had a number of SKUs and was making intermittent sales. Unfortunately, and despite their top quality, high value products, they simply weren’t moving enough volume to be sustainable. This was particularly evident with their top seller, a simple, traditional component of everyday student life. 

THE PROBLEM

So, what was the problem? 

As it turns out, it’s not that they weren’t using Amazon advertising. The problem was that their in-house ad campaign for their main Amazon product was knocking it out of the park . . . until it wasn’t.

Canopy Management had been working with a few of their peripheral SKUs and had created ad campaigns that were thriving. Their tent pole SKU had been doing fine, then, the wheels fell off. 

Their in-house ad campaigns stopped working. 

Over the last few years, the level of skill required to succeed with Amazon advertising has risen to the point that thriving entrepreneurs with above-average ecommerce experience are seeing their strategies fall short. 

To be honest, there wasn’t really one big thing that their in-house team was doing wrong. It was more the accumulation of little mistakes. In that way it was like death by 1000 cuts. Their main SKU was bleeding Amazon sales. 

THE SOLUTION

Most Amazon advertisers are using the same building blocks to assemble their campaigns. Success – or failure – comes from the way that the campaign is structured. Online sellers on Amazon’s platform all have the same ad pieces to move around the board; Sponsored Products, Sponsored Brands, Sponsored Display, and Demand Side Platform. 

What the very best Amazon ad experts are able to do is adjust the layering and sequencing of the individual ad groups to increase visibility, and drive sales velocity. 

The Canopy Management PPC Ads team create bespoke, specifically constructed Amazon campaigns that take advantage of the latest advances in artificial intelligence and dayparting strategies. More importantly, all of that technology and cutting-edge strategy is backstopped by dedicated account managers responsible for that account alone.

THE RESULTS

Four months ago in January of 2024, when Canopy’s PPC Ad team began working with the partner, the year-over-year organic sales growth had been relatively flat. 

The bulk of their SKUs are affected by seasonality, still, from the screenshot below, it’s clear that something special was beginning to happen – just 30 days later – in February, 2024. 

By March of 2024, sales of their main SKU were skyrocketing. 

This case study helps illustrate the critical role of expert ad management. Canopy Management’s custom built, data-driven approach to PPC advertising transformed a struggling product into a sales powerhouse. By focusing on strategic ad structuring and leveraging advanced AI tools, Canopy Management delivered remarkable results. 

For businesses looking to optimize their Amazon advertising and achieve sustainable growth, Canopy Management offers comprehensive services, including Strategic Growth Planning, Advertising Management, and more.

Visit Canopy Management to learn how we can elevate your Amazon business.

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post A Canopy Management Case Study: The Power of Strategic Amazon Advertising appeared first on Canopy Management.

One of the most effective ways to do that is through product listing variations. 

By leveraging Amazon listing variations, you can significantly improve the customer experience, increase product discoverability, and optimize your business operations. Here are five ways Amazon product variations can help succeed in what’s become a very competitive marketplace.

1. Improve Your Overall Customer Experience

It’s important to always keep in mind how much the customer experience matters to Amazon – and their vigilant algorithm. By allowing customers to easily view and compare different options such as size, color, or style on a single listing, you can make the shopping process much more convenient and enjoyable. Making Amazon’s shoppers happy should be job one. 

Easier Comparisons

When customers can see multiple variations of a product on one page, they can quickly compare the different options available. This is especially important for products that come in many sizes or colors. For example, a customer looking for a t-shirt can easily see all the available sizes and colors without having to navigate away from the listing. 

Reduced Navigation Struggles

By consolidating variations into a single listing, you can reduce the need for customers to navigate between multiple listings. This not only saves time for customers but also keeps them engaged on your Amazon page, solidifying your brand image and increasing the likelihood of a purchase.

2. Increase Your Product Discoverability

We all know that Amazon’s search algorithm favors listings that have higher engagement, better reviews, and more sales. Product variations’ ability to boost a product’s visibility and discoverability is all important. 

Consolidate Reviews and Ratings

Amazon reviews and ratings are becoming more important every year. With newer listings, it’s become one of the most impactful elements of a successful product launch. 

When all variations of a product are combined under a single parent listing, the reviews, ratings, and sales metrics are also consolidated. This can enhance the overall ranking of the product in Amazon’s search results, making it more visible to potential customers. 

A listing with numerous positive reviews and high ratings is more likely to catch the attention of shoppers, increasing the chances of a sale.

Improve Your Search Rankings

Because Amazon’s algorithm takes into account the aggregated sales and review data, a well-optimized parent listing with multiple variations tends to rank higher in search results. This increased visibility means that more customers will see the product when searching for related items, leading to higher traffic and potentially more sales.

With more variations available, there are more opportunities to match customer search queries with relevant products. For instance, if a customer is searching for a “blue small t-shirt,” having that specific variation under a well-ranked parent listing increases the chances of the product appearing in search results. That’s going to capture a broader audience.

3. Boost Your Conversion Rates

It’s not exactly rocket science. Making it easier for customers to find and purchase the right product means that product variations will almost certainly impact conversion rates. 

Create More Options on a Single Page

When shoppers are presented with multiple options on a single page, they are more likely to make a purchase. Because they do not need to leave the listing to explore other options, there’s much less risk of them getting distracted or losing interest.

Review Build Trust

As mentioned above, having all reviews and ratings consolidated under one parent listing builds trust and confidence in the product. Customers are more likely to purchase a product that has numerous positive reviews, as it signals reliability and quality. This trust factor can significantly enhance conversion rates.

4. Streamline Your Listing Management

Inventory management is well known amongst veteran Amazon sellers as a quiet killer. It’s responsible for the demise of many otherwise profitable ecommerce brands. 

Managing inventory and listings efficiently is crucial for any business. Product variations can simplify these processes, saving time and reducing the risk of errors.

Make Inventory Management Easier

With product variations, sellers can manage multiple SKUs under one parent listing. This simplifies inventory tracking and listing management, making it easier to monitor stock levels and make updates across all variations.

Save Time

Creating and maintaining separate listings for each product variation can be time-consuming and complex. By using product variations, sellers can reduce the need for multiple listings, simplifying their overall management process. This also ensures a more organized and cohesive presentation of their product catalog.

5. Simplify Testing of New Products

Amazon product variations can also serve as a valuable tool for testing new products and understanding market preferences without the need for a full-scale product launch. This strategic advantage can help you to minimize risks and maximize your return on investment.

Market Testing

By introducing a new variation under an existing, well-performing parent listing, you can gauge customer interest and demand without committing a bunch of money. This allows for real-time feedback and insights into whether a new product variation is likely to succeed. For example, if you already sell a popular black t-shirt, adding a new color like red or green as a variation can help you see how well these colors perform compared to the original. 

Customer Insights

Product variations provide a wealth of data on customer preferences and behavior. By analyzing which variations are most popular, sellers can make informed decisions about expanding their product lines or discontinuing less popular options. This data-driven approach ensures that inventory investments are focused on products with the highest potential for sales

Cost-Effective Launches

Launching new variations under an existing listing is more cost-effective than creating entirely new listings. It reduces the need for additional advertising and promotional efforts since the parent listing already has visibility, reviews, and sales momentum. This strategy allows for a more efficient use of marketing budgets while still expanding the product range. Instead of starting from scratch, you leverage the existing reputation and customer base of your main product. 

Enhanced Product Development

Feedback from variations can guide future product development. By understanding what features or characteristics customers prefer, you can tailor your new product designs to meet these demands. For example, if customers consistently praise the comfort and fit of a particular variation, you can incorporate these elements into future products.

Competitive Advantage

Staying ahead of the competition is crucial in the highly competitive Amazon marketplace. Utilizing product variations to test new ideas and gather insights gives you a competitive edge. You can quickly adapt to changing market trends and customer preferences, ensuring that your product offerings remain relevant and appealing. This agility can set you apart from competitors who may be slower to innovate or respond to market changes.

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Why You Should Make Amazon Product Variations Your Superpower   appeared first on Canopy Management.

That’s why forward-thinking retailers are constantly searching for new ways to grow their ecommerce sales and engage customers across multiple platforms. 

Fulfillment by Amazon Gets All the Attention

While the Fulfillment by Amazon (FBA) program offers tremendous benefits, smart ecommerce brands know that overreliance on a single platform introduces risk.

Some entrepreneurs are expanding to other online marketplaces like Walmart.com. Others are building out their own websites and sales channels.

While FBA may drive the largest portion of your ecommerce revenue today, it’s a good idea to employ diversification strategies to mitigate risks and possibly unlock additional growth opportunities elsewhere.

But, there’s no reason that you absolutely HAVE to leave Amazon to do that. 

As Amazon continues to grow, the options for diversifying your ecommerce strategy have grown right along with it. So, without further delay, here’s a list of seven great new ways to make money on Amazon in 2024.

1. Subscription Boxes 

Subscription boxes offer convenience and just enough surprise by delivering a selection of curated products matched to each customer’s interests and needs. Subscribers save time and effort from not having to shop for those items themselves. 

For businesses, subscription boxes provide a way to reach new customers and generate recurring revenue from subscriptions.

 In 2023 subscription boxes were a $32.9 billion business. By 2027, they are expected to hit $65 billion. 

As usual, Amazon has been paying attention. Amazon Subscription Boxes enables qualified sellers to list, sell, and manage their subscription box products on Amazon.com. This is a perfect way to engage new customers, and boost Amazon sales. 

You can list and manage all of your Amazon business from a single Professional Amazon seller account. Because of that, the likelihood is high that – in addition to increased sales from the subscription boxes – you’ll be able to drive additional revenue through individual item sales.

Amazon says that, “Amazon Subscription Box sellers must be able to offer a fully-assembled curated subscription box with the ability to support free shipping directly to customers in all 50 states, Guam and Puerto Rico.

Sellers must also have an active Professional seller account on Amazon.com in order to start selling, although it is not required to apply to the program. With recent successes such as Dollar Shave Club, Hello Fresh, and Birchbox, it’s clear that this invite-only program is worth jumping through a few hoops to make happen!

2. Retail Arbitrage

Retail arbitrage is a business model where individuals buy products from retail stores at a lower price and resell them on other platforms like Walmart or Amazon for a profit. The profit is made by taking advantage of price differences between different markets.

It’s traditionally been a great way to get started selling on Amazon with low upfront costs and minimal risk.

To do retail arbitrage, sellers research products to check price variability, sales ranks, fees, and potential profitability. The trick is purchasing products with a high enough price difference to make a profit after Amazon’s fees. Once you receive the inventory, you create an Amazon listing and ship the products to an Amazon fulfillment center.

The key advantages of retail arbitrage are the low barrier to entry, fast start-up time, ease of sourcing products, and no need to launch your own product. The downsides include it being time-consuming to constantly source inventory, a lack of consistency in inventory supply, price wars with other resellers, and potential issues with inauthentic claims from brands.

However, retail arbitrage can provide a steady income stream, especially when combined with other Amazon business models like wholesale or private label. Proper use of product research tools and understanding pricing, sales history, and profit margins are critical for success.

Because there’s very little business infrastructure involved, it’s a quick way to scale up quickly. No overseas shipping challenges and limited storage requirements means that more of your money can be spent on inventory and building your business. 

Like its close relative, online arbitrage (that takes advantage of the same model, albeit online instead of in retail stores) it does require a good instinct for trends, and software tools to make it easier to quickly identify low-hanging product opportunities.

3. Sell Handmade Goods

Here’s another path towards the Amazon Buy Box. 

Amazon Handmade is a distinct artisan-only marketplace on Amazon that allows artists and crafters to sell their one-of-a-kind, handcrafted products to Amazon’s massive customer base. Because of the strong, creator-based model, it also offers a great opportunity to use social commerce to connect with a particularly niched-down audience.

To sell on Handmade, makers apply and go through an approval process to verify their products are truly handmade. Approved sellers can then create custom storefronts and list unlimited handmade products across 14 categories like jewelry, home goods, artwork and more.

The key benefits include no listing fees (just a 15% referral fee), optional Fulfillment by Amazon, and exposure to Amazon’s billions of shoppers.

When considering whether to sell on Amazon Handmade versus Etsy or other platforms, factors to evaluate include fees, product categories, seller requirements, advertising options, payment schedules, competition levels and customer bases.

To get started on Amazon Handmade, makers submit an application with details on their handmade process, upload product images, choose a category, and must pass Amazon’s verification of their handmade claims.

4. Merch by Amazon

Do you have an artistic streak? Maybe it’s time to become a Merch on Demand content creator. 

Merch on Demand’s print-on-demand platform allows artists, designers, and creators to upload their custom designs and sell merchandise like t-shirts, hoodies, phone cases, and more on Amazon without needing any inventory.

Here’s the amazing part, there are ZERO upfront costs! 

The key benefits include instant access to Amazon’s massive customer base, potential for passive income from royalties, and bypassing logistical headaches of traditional merchandising. However, it is an invitation-only program with requirements around intellectual property, design standards, and tax information.

To succeed on Merch on Demand, quality original designs aligned with popular trends and niches are crucial, as is effective marketing through optimized listings, promotions, social media, and building an audience. Researching demand, defining a pricing strategy, encouraging reviews, diversifying products, and adherence to Amazon’s policies are also important factors.

While competition exists, the platform offers a relatively low-risk avenue for entrepreneurs and creators to monetize their artwork and ideas by selling customized merchandise worldwide through Amazon’s powerful selling platform.

5. Kindle Direct Publishing

Have a good book idea or a great AI GPT prompt sequence? Amazon’s Kindle Direct Publishing might be the best way to get it printed!

Amazon Kindle Direct Publishing (KDP) enables authors to self-publish eBooks, paperbacks, and hardcover books directly on Amazon’s massive online marketplace for free. 

It offers several attractive benefits such as fast publishing within 48 hours, higher royalties up to 70%, complete control over rights and pricing, unlimited free publishing across formats and pen names, and the ability to leverage Amazon’s advertising platform.

KDP provides authors two royalty options based on pricing requirements, and authors can enroll in KDP Select for additional benefits like inclusion in Kindle Unlimited and promotional tools in exchange for exclusivity on Amazon.

To succeed with KDP, optimizing book listings with compelling titles, descriptions, cover images and relevant keywords is crucial for visibility on Amazon’s search rankings. Advertising through Amazon’s sponsored product ads targeting appropriate keywords can also drive discoverability and sales.

The sign-up process is simple, involving creating an Amazon seller account and uploading book content/details. Amazon advertising agencies like Canopy Management can further assist KDP authors with expertise in areas like sponsored ads, creative services, listing optimization and overall strategy to maximize visibility and royalties from their self-published books on Amazon’s massive retail platform.

6. Become an Influencer

There’s no denying that influencer marketing has become a very lucrative platform. In just five years social media marketing grew from $1.7 billion in 2016 to $21.1 billion in 2023.

The rapid growth of influencer marketing has been directly linked to the rising popularity of short-format video on social media platforms such as TikTok, Facebook, and YouTube. 

While big brands were the first to get on the influencer trend, there has been a proliferation of smaller, niche-influencers for brands with a more modest footprint.

A study by Lego showed that one-third of 8-12 year-olds aspire to become influencers. Why let the kids have all the fun (and make all the money)?

Once again, Amazon has put their stamp on the process. 

The Amazon Influencer Program allows social media influencers, bloggers, and content creators to earn commissions by promoting and driving sales of Amazon products to their target audience. 

Influencers apply to the program, create their own custom Amazon storefront filled with products they recommend, and earn a commission (ranging from 1% to 10% based on category) whenever their audience purchases through their influencer campaign links or storefronts.

To become an Amazon Influencer, applicants need an active social media account with a significant follower base of roughly 20,000. The application process involves registering, linking social accounts, creating an Amazon store, and meeting Amazon’s criteria.

Influencer campaigns are promoted through channels like social posts, vlogs, blog content, and leverage tactics like stories, descriptions, and call-to-actions to drive potential customers to their Amazon recommendations. 

Tracking results focuses on content metrics like clicks, views and promo code usage. The program provides a lucrative way for influencers to monetize the reach of their ecommerce businesses.

Do you have a social media following? Maybe it’s time to monetize it!

7. Dropshipping

Dropshipping is an ecommerce fulfillment method where the seller partners with a third-party supplier who handles product sourcing, packaging, and shipping orders directly to customers.

You can run your dropshipping business from anywhere with an internet connection. All you need to do is make sure to align with your suppliers and follow up with customers. It’s legal and can be profitable if done correctly by following guidelines and best practices.

To stay on the right side of Amazon’s legal team, a dropshipping business must first set up an Amazon seller account, then be sure to carefully vet and partner with a legitimate dropshipping supplier. 

Suppliers should identify the seller as the seller of record, provide proof of authorization to sell products, and handle returns per Amazon’s policies. Sellers remain responsible for customer service, listings optimization, and tracking profitability.

Key tips for dropshipping success include selecting suitable non-perishable products, never giving suppliers account access, calculating all costs for healthy margins, utilizing tools like sales estimators, and considering combining dropshipping with FBA for certain products.

While low startup costs appeal to new sellers, comprehensive planning is still required – researching products, vetting suppliers, understanding policies, handling customer service, and monitoring performance. 

When done diligently, dropshipping can be a relatively inexpensive, scalable way to build an ecommerce business by leveraging Amazon’s vast customer base without the overhead of inventory storage.

How Canopy Management Can Help 

At Canopy Management, we believe you should be the hero of your own brand story and under the Canopy, you will be! Take a moment to read the success stories of real sellers we’ve helped. 

Then, consider one of these strategies, or take a closer look at the Amazon FBA selling platform. Over the last few years, it’s allowed a large number of entrepreneurs to quit their primary job and sell full time. 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post 7 (Different) Ways to Make Money On Amazon In 2024 appeared first on Canopy Management.