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26.02.21

Improving revenue with Amazon

Looking to grow your revenue? Simple. Start selling on Amazon

There are four core strategies behind growing your revenue. Instead of treating each of them in isolation, why not achieve them all through Amazon?

“How do I grow my revenue?”

It’s a question every business owner will ask themselves at some point. Whether it’s because you’re struggling with sales or you’re looking to build upon recent success, growing revenue is part and parcel of running a business.

So, how exactly do you do it?

A quick Google search will cough up a host of tips, guides and blogs (and sometimes even books), all promising the answers to this age old question, and all sharing the same four key themes:

1 – Increase number of customers

2 – Increase frequency of transactions per customer

3 – Increase average transaction size

4 – Improve online presence & marketing

Now, you could do this by increasing your product range and prices. You could pin your hopes on an ambitious marketing campaign. You could, if you really wanted to make life difficult for yourself, invest in reinvigorating your sales channel in the hope of attracting entirely new customers.

Or you could start selling on Amazon, and do all four at once.

1 – Increase number of customers

This is a bit of a no brainer. If you want to increase your customer base, then selling on Amazon can grant that wish almost instantly. With 2.9 billion annual visits, Amazon is the world’s 13th most visited website, and the big numbers don’t end there:

The point is clear… selling on Amazon has the potential to put your products front and centre of one of the largest customer bases in the world. Not to mention a customer base which is continuing to grow rapidly, expanding into new territories and acquiring new customers every day.

2 – Increase frequency of transactions per customer

The benefits of opening your doors to millions more customers will only go so far if they only shop with you once, so cultivating brand loyalty is crucial. But if you’re worried about weakening your brand by selling on Amazon, you shouldn’t be.

Amazon Brand Stores provide you with a central hub to showcase your entire product catalogue. And while the majority of search terms on Amazon are unbranded, 22% of searches on Amazon include a brand name. By combining a stylish brand store with effective brand-term advertising, you can ensure that the people who are looking for you, find you.

For a more direct approach, Amazon also offers a Subscribe & Save model, where customers can sign up to receive repeat deliveries of their favourite products. Practically guaranteeing repeat sales, the impact of the COVID-19 pandemic has seen more people take advantage of the service.

3 – Increase average transaction size

There are a number of techniques you can use to increase your average order value on Amazon, the most obvious of which is making the most out of recommended products.

Amazon has absolutely mastered the art of upselling, and there’s no reason you can’t master it as well. The trick isn’t to nudge customers towards your more expensive products, but to broaden your product range with items which complement each other. For instance, if someone’s purchased a brand new guitar, it makes sense that they may be on the lookout for a new guitar case to go with it.

When you have numerous variations of the same product (for example, the same phone case in 50 different colours), be sure to combine all those products together in a listing variation. That way, customers can get the full picture, and potentially buy more than just the one item they were looking for.

And, if you really want to give them an offer they can’t refuse, why not present the products as part of a discounted bundle?

4 – Improve online presence & marketing

Amazon is more than just another channel to reach new customers. By selling on Amazon, you’re actually giving yourself access to an emerging advertising powerhouse.

There are a number of PPC strategies available online, but the introduction of sponsored ads, headline search ads, display and video adverts has made targeting audiences on Amazon extremely powerful. Plus, the very fact that Amazon is investing so heavily in these capabilities suggests that its advertising potential is only going to continue growing.

There’s a reason so many customers are flocking to Amazon, and so many businesses are following in their footsteps. Amazon has been purpose built to make selling online as streamlined as possible.

So, the next time you ask yourself how you can grow your revenue, remember that Amazon can do it all for you. And, if you need help getting started, remember that the team at Shift Marketplace is always here to set you in the right direction.

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