Amazon differs from any other retailer, and simply listing products there won’t suffice to generate growth. Amazon is a complex opportunity, with huge potential; you need to make sure you are clear what you are faced with, and what you have to do.
You’ve probably heard of many merchants mentioning ongoing problems including prices out of control, increasing loss of margin, angry distributors, or getting no response from Amazon.
3 reasons why your business could benefit from using an Amazon agency:
1. You forgot to make a plan
How often do we meet companies who have gone on Amazon and nobody really remembers why and what was the initial plan? And that’s a major pitfall. Having a clear plan, in line with the company’s strategy is of paramount importance when addressing Amazon.
If you don’t, Amazon will have a plan for you and your products. So you better be prepared for it, if you don’t want to end up with someone else being in the driver’s seat.
Make sure you understand the different options; how Amazon works and the key success factors. Read, train yourself online and arrange for a 1 to 2 days strategic session with an Amazon expert. You will save a lot of time, and future costs, and you will build a strong and long business on Amazon.
2. You don’t have enough time or resources
On Amazon you need to create unique content, optimize it for SEO, take product pictures (at least 6, right?), make videos, rename pictures, upload them, check the upload, change it again, respond to Amazon, open cases… (Rings a bell?)
The cost of having your product manager, or sales staff to do it can be enormous, even if it is hidden. It can easily take more than half of his time, and stop him from doing important things. When filling in the Amazon 50 columns new product Excel file; your staff is not doing the rest of their job.
Outsourcing this part can provide extra time for your team, and you can have access to specific expertise (like SEO on Amazon). Based on our experience, typically you will save up to 50% in production cost when using an outside team.
3. You have no time to lose
Amazon is a living ecosystem, changing all the time, with some parts totally oblivious of what is happening in others, some linked, some not. Anybody working with Amazon faces new challenges everyday, some easy, some incredibly hard to solve.
Handling an Amazon account can be an overwhelming challenge, and can prove to be a big loss of time. Some brands have impressive targets in a short period of time. Amazon is a big machine that needs time to get used to and you need to make many mistakes before you can learn and improve.
For those who want to go faster, skip the “learning-by-mistake” phase, and achieve quicker results, getting help from an outside consulting team can be a very good idea. The cost of which will be very quickly covered by the benefit of using it.
One major optic consumer brand had started alone on Amazon; once they got external help, they grew 3 times faster, and made more in one year, than the last 3 previous years.
Once you have a proper plan in place, a clear sales target, a planned pricing strategy, it’s easier to factor in the cost of an agency for all or part of the work on Amazon. You can then set a ROI target, and follow carefully each month how are the key metrics evolving (sales, traffic, conversion, etc.) Getting external help will help you maximize sales, minimize costs and time, we observe short payback period for brands with a potential above €250K yearly sales.
Getting external help will help you make the right success plan, you will save up to 50% in costs, and grow faster by a factor of 3.
About the author:
Jérôme de Guigné is an Amazon Growth Consultant, helping brands grow faster on Amazon Globally. Amazon Made Simple provides expertise in the Vendor (B2B) and the seller (B2C) areas, to make sure you make the most of your brand potential on Amazon.