How to Create a Profitable Amazon Marketing Strategy for 2022
Since 2020, e-commerce has had a remarkable boom. Amazon has seen 169% growth in two years during the pandemic, rising to 470.7 billion USD in revenue in 2021 from 280 billion USD in 2019.
One may have predicted that e-commerce would take a toll once “life” began to open back up after the end of the lockdowns. However, the data tells a different story.
Has E-Commerce Stopped Growing?
From data collected by WolframAlpha, one can note a sharp increase in Amazon sales right around the start of the worldwide lockdowns during mid-2020.
However, there is another interesting thing to note.
Though businesses worldwide have opened back up, including offline stores considered a rival of Amazon, their sales have not slowed.
In fact, they keep growing.
The Reason for Amazon’s Growth Beyond 2022
The key explanation for this is that everyone has gotten used to e-commerce. It is an experience that is:
It is also interesting to note that 75% of consumers now use e-wallets and a vast majority of the population prefers digital currency to cash. This change is in alignment with the ideology of e-commerce.
Striking While the Iron is Hot
It can be argued that the best time to really gear up e-commerce marketing was 2020. However, that ship has not sailed. In fact, it is just picking up the pace.
As an example, revenue from retail e-commerce in the United States is projected to have a sharp increase in the coming years.
Smaller Businesses Can Grow Even Faster Through Amazon
Over 700 small and medium-sized enterprises in the UK reached sales of £1 million or more for the first time, according to an Amazon report in 2022.
Amazon also supports global e-commerce in a way that it is feasible for small businesses to export their products.
Indian exporters are set to surpass 5 Billion USD in sales via Amazon.
How to Create an Effective Amazon Marketing Strategy?
It’s essential to understand your target audience to a tee.
Exactly understanding your audience also helps you in the marketing process besides simply letting you improve on your own product.
Why Do People Buy From You?
It is important to note the exact reason people opt for you over your competitors. It is also important to know why the customers are willing to meet your price, whether it’s lower or higher than the customer.
- Does your brand appeal to their personality?
- Do you sell a particular feeling in addition to the material product, for example, a feeling of luxuriousness
- Ask yourself, “Why select you over your competitor(s)?”
Amazon does not limit one to selling retail products. Artisans can sell handcrafted goods via Amazon. Artists can publish novels for Kindle, a product of Amazon, or publish videos on Prime Video Direct. Even Twitch is a subsidiary company of Amazon, which enables many to earn a living by streaming videos of various genres.
Once you are clear on all of the above questions, creating a streamlined marketing strategy would not only come easily but also naturally.
Marketing for Amazon
The following methods are most often used to market one’s products on Amazon. Here is how to perfectly execute these strategies.
#1 Using SEO and Content Marketing to Level Up Your Visibility
SEO optimization can create drastic changes.
Increase the Number of New Users
SEO optimization enables you to create a difference in new users. Once used in tandem with content marketing, SEO enables you to stand above your immediate competitors when it comes to visibility to new viewers.
It is important to note that Google, the world’s most used search engine, highly values it when you stay within your niche in writing content.
If you sell DIY tools, for example, resist the urge to create a webpage about sports. Use a different domain to share your thoughts about your other interests. Google rates expertise in a niche highly.
Increasing User Experience and Trust in Brand
Did you know that more than half of modern customers research online before buying?
High visibility within your niche creates a sense of trust and reliability around the brand. Besides increasing immediate sales, SEO optimization can also help in brand-building.
Creating SEO-friendly websites is also synonymous with creating fast and streamlined websites. For example, a three-second delay in loading time leads to a 7.9% drop in the number of articles a user may read.
Target a Global Audience
Since Amazon is a global e-commerce platform, the same should reflect in your SEO and content strategy.
As an example, take a look at how we created 50% revenue growth in a client through a multilingual SEO campaign.
#2 PPC Marketing Gives You an Edge
Keep the following things in mind while creating a PPC campaign for your products on Amazon.
- Use buyer-intent keywords. This means that target what the intent of the buyer is in addition to specifying your product.
For example, a user may look for “rain gear” though their specific needs may be “rain jackets”.
- Target long-tail keywords. These are keywords that are highly specific in nature. Bidding for these allows you to create cost-effective PPC campaigns as general keywords are highly sought-after.
For example, target “mens waterproof rain jacket” instead of “waterproof jacked”.
#3 Social Media is All the Rage
Did you know that the average order value for customers that arrive from Instagram is 65 USD? This comes from a report from Shopify, who also reveal that Facebook, Twitter, and YouTube provide a customer order value of 55 USD, 46 USD, and 38 USD respectively.
Since Instagram stands clear above the rest in this regard, let’s ask ourselves why?
Instagram users are expected to grow at a steady rate, projected to be 1.44 billion in 2025. This is a hugely engaged user base that logs into the application frequently throughout the day.
Instagram Helps Build a Connection With Your Audience
Instagram can let you present your brand in a way that connects with your niche target audience. They must feel that the brand is an extension of their own personality.
It’s the nature of social media to encourage users to log in frequently. Users want to know what is the latest that is happening with people and things they care about.
Instagram Helps Boost Sales
Many social media sites let you plug in products and services directly to your posts.
Instagram allows this in both posts and stories. This can be an effective way of reaching younger audiences, who are interested in social media e-commerce far more than previous generations.
Here is how we help businesses connect with their target audience on social media effectively.
#4 Use Twitch to Connect With Younger People
In 2021, Twitch recorded an average of 2.78 million concurrent viewers.
YouTube may boast a larger audience, but Twitch takes the cake when it comes to audience engagement.
The audience of Twitch is comprised of mainly younger people who are more connected with the content creators on the website than the audience on YouTube. They invest more of their time in viewing a person on Twitch than the average YouTube viewer. This means that marketing your brand on Twitch, either with paid advertisements or with influencer deals lets you:
- Reach a younger audience in a way that is relevant to them
- Market to your specific niche highly effectively
- Come across as a more authentic brand
#5 Use Coupons and Gift Cards
Who doesn’t love a good deal?
In fact, the deal need not necessarily even be “good” financially for it to create a positive feeling in the customer. All that is important is that your coupon or gift card makes the customer feel good about the purchase.
There’s an age-old marketing strategy of raising one’s prices by 2 bucks and giving a discount of 1 to keep customers happy.
Note: This strategy can be used in tandem with influencer marketing effectively. That way, customers can feel as if they are a part of an “exclusive” group that gets to avail of a brilliant deal.
#6 Use Intelligent Email Marketing
Retargeting beats other methods of advertising with an incredible 1,046% efficiency rate!
This means that if you know a user’s past history and market to them, you can market highly effectively.
For example, email marketing to a user that has arrived on your website and looked for a specific product can be great.
In addition, always follow up with an email after cart abandonment. If you do so within three hours, the emails have a high open-rate with a 20% click-through rate.
#7 Focus on Prime Day
Prime Day is an annual sales event on Amazon.
In 2022, Prime Day sales broke global record sales in Amazon’s history by registering 12 Billion USD worldwide.
This was an incredible rise from previous years, for example, 1.52 billion USD in 2016.
Focus on a special campaign for Prime Day to reap great rewards.
#8 Partner With Someone
Considering a partnership for digital growth is an excellent option to drive sales up.
As an example, take a look at how we created almost a 100% increase in orders through the Amazon seller campaign for a client.
Also, get to know our conversion-driven Amazon Marketplace Services.
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