eBOOK
Winning Amazon in 2023 and Beyond
Want to succeed on Amazon? Start with the basics. Read up on how to ace the fundamentals and optimize your results with our expert guide.
Introduction
The pandemic drove up demand for products and supplies that Amazon was poised to source and deliver fast and reliably. Ready eCommerce Sellers caught the wave and profited accordingly, and those without their strategies and tactics firmly in place fell behind.
The year 2020 was as much a pivotal year for the world experiencing an unprecedented pandemic as it was for Amazon. This eCommerce giant delivered over 4 billion packages that year, nearly double the volume from 2019.
Retail competitors like Walmart and Target ramped up their infrastructure efforts to emulate some of Amazon’s winning formula of getting products to consumers quickly and reliably. Still, Amazon remained the clear brand leader in eCommerce. Moreover, even with economic concerns at the end of 2022, this upward trend is projected to continue into 2023 and beyond.
During the pandemic, while many consumers hunkered down, often the only sight on the empty streets was a lone box truck going to its next destination. As of late 2022, the streets are bustling again with distractions, options, and competition.
Success Starts With Search
Amazon is currently the third largest search engine worldwide, behind Google and YouTube, respectively. However, for product research, Amazon is number one. According to Insider Intelligence, in 2022, over 61% of US online shoppers started their product searches on Amazon.com. At the same time, Google and other search engines accounted for nearly half of product searches online.
A successful Amazon sales strategy always starts with a profitable and in‑demand product. However, those attributes are meaningless without winning the search. Getting the search “wrong” is perhaps why only about half of sellers are profitable with their first product launch.
Only about one‑third of consumers scroll past the first page on their phones or desktop computers when looking for the solution to their problem on Amazon. This habit means that only the top 6‑8 products out of hundreds or thousands will win over the competition.
Product pages that win search are:
Descriptive: The best product pages answer questions fast about what the product is and how it will add value and/or solve a pressing problem
Visually pleasing: The product images capture the attention of the customer and the captions reinforce exactly why they should buy this product.
Informative: Once you have captured the customer’s attention, they may go another step to learn more about the attributes of your product. They might even scroll to the question and answer section before learning more through customer reviews
Highly regarded: A page with at least 10 ratings and reviews that average above 4.8 will earn instant trust and start to see higher conversions
Bottom Line:
Delivering a positive customer experience through winning product pages is essential to building a successful and profitable business on Amazon.
Voice Search
Martin Heubel, an eCommerce Strategy Consultant, reported in 2022 that the number of digital voice assistants worldwide is estimated to reach 8.4 billion by 2024 (Statista). That number is double what it was in 2020.
Currently, 22% of voice assistant users purchase a product, and 17% reorder items (Voicebot). Theoretically, this trend could translate to nearly 2 billion purchases in 2024 made through an Alexa‑activated device.
The use of Alexa for ordering products is incredibly expansive among millennials and GenXers, the earliest adopters of the new technology.
In understanding how voice assistants relate to success on Amazon, it is essential to recognize that of all the voice assistants available, Alexa is the only one that can place orders.
If a seller wants to grow revenue and not get left out, paying attention to voice‑activated orders is imperative. Amazon Choice is the designation Amazon gives products that are eligible for ordering through Alexa.
Amazon’s explanation of how to get selected for this coveted designation reveals what they always look for in a product to recommend over another. They take into account the following:
Bottom Line:
All of these factors are within your control. Even positive ratings rely on your ability to optimize your product pages for success, so take charge of your destiny and make sure to include Amazon Choice as one of your strategic goals.
Ratings
Price
Popularity
Availability
Fast Delivery
Decoding Algorithms
The algorithm is the famous “thinker” inside Amazon that decides what items to show a customer based on the search box query or words called out to Alexa. Learning how keywords relate and making predictive assumptions about what the customer wants are all critical aspects of this adaptive process. As people change and trends shift, the algorithms follow.
By virtue of their design, algorithms rely on repetitive patterns to learn and adapt. Although the behind‑the‑scenes workings of Amazon are always top secret, we do know that the A9 or A10 algorithms or some combination decide the search results.
Since the algorithms are constantly upgrading themselves based on their “self‑driven” learning, it is more important for sellers to master the fundamentals of an optimized product page rather than overanalyze how the search engine works behind the scenes. Unfortunately, there is no fully figuring out a system designed always to adapt and change.
Through experience with hundreds of eCommerce clients, we have observed that the algorithm emphasizes different priorities over time as it learns what is most profitable for Amazon. Whereas the most popular products ranked highest first, the algorithm now seeks to deliver the closest match to the user’s query, regardless of past sales, brand recognition, or advertisements.
When the search results yield what the customer wants, there is less resistance to the final sale. This “streamlining” effect along the sales funnel is the ultimate endorsement of the algorithm’s ability to deliver desired results. It also gives sellers, even new ones, a chance to win the Amazon battles.
Bottom Line:
Instead of obsessing over what the algorithm wants, obsess over the fundamentals of delivering an optimized product page that helps match customers with what they want.
Product Titles Hold the Key
No matter how many advanced tools there are on the Internet for conducting in‑depth SEO keyword research to construct the most winning product titles, only some Amazon sellers get this most crucial assignment right.
Either the titles are sparsely worded without anything for the algorithm to identify as a match for the search, or they are too packed with nonsensical and repetitive keywords. Well‑written, descriptive titles with relevant keywords should be at least 80 characters and no longer than 200.
Keyword stuffing often detracts from the overall experience, making the product unmemorable or forgettable — even to the algorithm. If the goal is to cultivate strong repeat sales from loyal customers, then the product title must include the right balance of SEO keywords and well‑written copy.
Although Amazon search tools don’t always consider this human readability factor, understanding the hidden psychology of why someone would buy your product is something to contemplate when composing the best product titles.
In choosing those top products, the consumer will likely select the listing that best explains what they are buying, such as seen here for the top-selling Keurig coffee maker.
In choosing those top products, the consumer will likely select the listing that best explains what they are buying, such as seen here for the top‑selling Keurig coffee maker.
A NOTE ABOUT KEYWORD VOLUMES:
It’s often tempting to insert SEO keywords into a product title with the most search volume, but those high numbers can backfire. If 500,000 searches are coming in for an apple peeler each month, standing out and getting a conversion gets all the more challenging (and expensive over the loss of traffic). If the apple peeler is for making grandma’s apple pie recipe, however, you have a longer tail keyword with a greater chance of connecting with your customer.
If you’re unsure how to think like a consumer, start by going to Amazon and let the predictive text guide you in the search window. “Apple peeler for Apple Pie” is what comes up naturally.
Recap:
Learn keywords and phrases on Amazon through predictive text.
Conduct in‑depth research to find highly relevant keywords using a sophisticated app like Helium10.
Invest in more advanced tools like DataDive, where you can test titles in your category and predict how they will rank next to the competition.
Bottom Line:
Well‑written, descriptive titles with relevant keywords should be no less than 80 characters and no longer than 200.
Never Skip the Bullets
If sellers struggle with product titles, the next big battle is often with the bullets, the five key points beneath “About this item.” Some read like novellas, while others follow a more minimalist approach OR do not exist. The most important thing to know is that the bullets matter greatly and can make all the difference to your conversion rates.
THE GOOD NEWS:
The good news is that Amazon offers some advice. They recommend clear and concise bullets with a total character count of under 1,000 for improved discoverability. They encourage well‑written copy that helps a customer’s journey from consideration to click.
If your bullets are cluttered, hard to read, or full of errors, chances are high that customers will have second thoughts and click away. If the average attention span of a visitor is ten seconds, then it’s essential to communicate with precision what you are selling and its benefits immediately.
The bullets in Amazon’s example are clean and easy to read, but remember that they are for an electric kettle that most consumers already know boils water for tea. A shopper will likely skip down to the reviews to make sure others loved this version of that product before making a final decision. In other words, some brands and products are either new to the market or more complex and will demand more explanation.
THE NOT‑SO‑GOOD NEWS:
The not‑so‑good news from Amazon is that their algorithm does not reliably index the bullets, so there is a possibility that any hard work you do to optimize your bullets with high‑performing keywords will make zero difference in driving traffic to your product page.
The most crucial factor is to make your points convincing to your customers after they land on your product page through the success of your title and hidden keywords. It may seem obvious, but even if the algorithm does drive the traffic, the customer is always in control of the final decision.
Bottom Line:
Find the best tools or experts to help you conduct in‑depth keyword research that takes relevancy, sales history, and conversions into account more than search volume alone.
Five general rules for better bullets:
Let the truth speak for itself. Instead of inserting flowery adjectives to describe what you are selling, clarify how your product will solve a problem. (We make a yummy snack versus the 3 grams of protein in this snack will satisfy your hunger).
Be authentic. Raw, authentic content converts. It’s why TikTok, YouTube, Instagram, and Facebook are leaning so hard into videos and reels, where original content from friends and neighbors is what gets the most attention. Authenticity doesn’t translate to mean writing in slang; write your copy naturally and conversationally.
Stay consistent. If applicable, the language of your bullets should closely match the branding from your website, so it doesn’t feel like two companies are selling different products. Keep in mind that if the language on your website isn’t converting visitors to customers, you may also want to consider updating the language there also.
Show you care. Keep your list of items short but not so brief that they seem rushed and thoughtless. Well‑written bullets communicate your product’s benefits and convince a customer of your brand’s credibility.
Don’t over‑promise. If you guarantee results or specific outcomes, those promises could come back to haunt you with negative reviews that will never go away. “Underpromise and overdeliver” is what we recommend to keep your customers buying and repeating their orders.
Product Images 101
Amazon lists the various image requirements sellers must adhere to when providing photos, drawings, or illustrations with their marketing content. Most are technical information regarding file size, file naming, the need for professional images, and other company standards. But there are five main areas of focus to ensure the pictures you use are optimal for both Amazon and, ultimately – the consumer.
MAIN IMAGE:
Remember, no one gets a second chance for a great first impression. Therefore, the first image of an online selling listing is always straightforward, with the product displayed against a white background, such as in the example below.
If you need help with the designs, you can hire a marketing firm or use cloud‑based apps like Canva, which have easy templates and millions of stock photos to help you look like a pro.
In choosing those top products, the consumer will likely select the listing that best explains what they are buying, such as seen here for the top-selling Keurig coffee maker.
Here are a few main image guidelines to strictly follow:
No use of text or numbers
No people
No bright or colorful backdrops, borders, or highlighted areas
No use of a company logo
These guidelines allow both Amazon and the consumer to see what is for sale and may even be the only image used to make a buying decision. If your image meets the standard, the listing is accepted, and ultimately potential sales are recovered. Here are some final guidelines for handling the remaining product images, making for at least six:
Specs and features: Use 2‑3 images to call out your product’s unique details and features.
Lifestyle images: Use images that show humans using your product to make it relatable. Pair with short but relevant captions.
Consistency: Make sure all your images match and look like they came from the same designer.
Mobile device friendly: Captions that look large on a computer may not read well on your phone; always double‑check to ensure everything you create is readable across all devices.
Bottom Line:
Don’t forget to make the product images the best they can be in a collection that fits the look and feel of the brand or product you are trying to sell. And always make sure the first image follows Amazon’s strict guidelines, so you avoid rejection and delays.
A+ Content Ups Conversions
A+ Content, formerly Enhanced Brand Content (EBC), is where you can tell more of your brand story while optimizing your product listings.
With in‑depth descriptions, comparison charts, images, and more, A+ Content, such as in the example below, encourages customers to browse your page for longer, and if you earn their trust with compelling and convincing content, you may see higher conversion rates.
Also, note that Google will index A+ Content containing HTML‑readable text. Therefore, copy here can help further improve your external search engine rankings and increase traffic to your product pages.
Amazon provides several templates and modules to choose from when creating A+ Content. Browse other popular product listings to understand your preferred ones better. Review the content options inside Seller Central, then choose the right design to reach your goals. Layout options include:
In choosing those top products, the consumer will likely select the listing that best explains what they are buying, such as seen here for the top-selling Keurig coffee maker.
Banners: Consider an attention‑getting banner at the top of your page if running a sale or promotion.
Columns: Have too much text? Try multiple columns to make it easy to scan.
Galleries: Select a gallery layout to showcase numerous images.
Carousels: These displays include a full‑screen background on desktop and mobile devices.
Links: Links help customers connect to other products and your Amazon brand store.
Bottom Line:
A+ Content is what can really set your product page apart from the rest. Unleash your creativity in this section while remaining clear about the benefits of your product.
Advertising & Metrics
According to Amazon, nearly one in five marketers struggle to measure the effectiveness of their marketing efforts. They also report that one‑third of CMOs need help to link marketing investments to business objectives.
The key to a successful advertising and marketing strategy on Amazon always begins with the fundamentals. Sellers should always ensure that product listings are well‑optimized with researched, top‑performing keywords relative to competitors and that there is a baseline of at least ten reviews. These efforts ensure you are not throwing valuable money away to acquire customers who will likely click off before they buy.
Avoid random spending “just to see what happens.” Investments must always support well‑defined goals, such as increasing sales, improving the rank in a specific category, or boosting brand awareness. After setting the goals, the budget should get allocated to the appropriate tactics to achieve those aims, such as Sponsored Products, Display, or Brand Ad.
Keep in mind the first phase of any ad campaign involves learning. That is what good marketing is all about: figuring out what is or is not working and scaling up or down based on the findings. So never fall asleep on your ad campaigns; make optimization an ongoing effort, and you will see results.
Making Sense of the Metrics
As a seller on Amazon, each of Amazon’s advertising cost metrics helps understand how the advertising dollars spent helped generate revenue against a specific campaign.
The metrics allow you to see beyond whether the sales needle has moved by giving detailed hard numbers relating to the return on your advertising investments. The results provide an understanding of sales impact, the overall business’s next steps, and making changes to how to allocate future advertising dollars.
Here is an overview of the metrics that CMOs examine most:
KEY METRICS
| ACoS Advertising Cost of Sales |
A percentage metric used to measure Amazon pay‑per‑click (PPC) ad campaigns. It helps determine if your band generated campaigns that were cost‑efficient. | ACoS = (Ad Spend ÷ Ad Revenue) X 100 |
| RoAS Return on Ad Spend |
The inverse of Amazon ACoS; calculated by dividing ad revenue by ad spend. | RoAS = Ad Revenue ÷ Ad Spend |
| TACoS Total Advertising Cost of Sales |
This percentage metric examines all goods sold, including those that were not advertised, to evaluate how your ad spend compares to total sales. | TACoS = Ad Spend ÷ Total Sales X 100 |
KEY METRICS
ACoS A percentage metric used to measure Amazon pay-per-click (PPC) ad campaigns. It helps determine if your band generated campaigns that were cost-efficient. ACoS = (Ad Spend ÷ Ad Revenue) X 100 |
RoAS The inverse of Amazon ACoS; calculated by dividing ad revenue by ad spend. RoAS = Ad Revenue ÷ Ad Spend |
TACoS This percentage metric examines all goods sold, including those that were not advertised, to evaluate how your ad spend compares to total sales. TACoS = Ad Spend ÷ Total Sales X 100 |
Knowing the main formulas is simply not enough to make a final determination to gauge the effectiveness of your efforts. Other metrics to take into consideration are the Amazon Pay‑per‑Click (PPC) metrics.
| TERM | DESCRIPTION |
| Bid | The maximum amount paid when a keyword leads too your ad. |
| Impressions | The number of actual clicks on an ad. |
| Clicks | The number of actual clicks on one ad. |
| Click Through Rate | The percentage of customers who saw the ad and took the action to click on the associated link; calculated by clicks divided by impressions. |
| Cost Per Click | The dollar amount cost of each click, calculated by the total ad spent divided by the number of clicks. |
| Conversion Rate | The average number of sales conversions per ad interaction, shown as a percentage. |
Term & Description
| Bid The maximum amount paid when a keyword leads too your ad. |
| Impressions The number of actual clicks on an ad. |
| Clicks The number of actual clicks on one ad. |
| Click Through Rate The percentage of customers who saw the ad and took the action to click on the associated link; calculated by clicks divided by impressions. |
| Cost Per Click The dollar amount cost of each click, calculated by the total ad spent divided by the number of clicks. |
| Conversion Rate The average number of sales conversions per ad interaction, shown as a percentage. |
These data points also contribute to your ability to evaluate the impact and value of advertising costs confidently.
While it is tempting to measure success on the immediately available data for the weekly or monthly sales, according to Amazon, marketers should always consider the customer lifetime value (CLV) versus the customer acquisition cost (CAC). If your acquisition costs are high and lifetime value is low, that is an indicator that your marketing strategy needs adjustment. You may need to develop new creative strategies for retaining customers over time to make your advertising dollars more effective in the long run.
If you want to dive deeper into the advertising concepts, which is helpful even when working with a marketing expert, Amazon created a continuing education platform with courses, webinars, and certifications to teach even a total beginner how to navigate Amazon ads like a pro.
Bottom Line:
With so few marketers understanding how their advertising efforts are paying off, hiring a marketing expert can often help you achieve your goals faster.
Conclusion
Ace the Fundamentals, Win Amazon
With business getting back to its usual competitive landscape in 2023 and beyond, where anything is possible, it is now more imperative than ever for Amazon sellers to solidify their strategies and sharpen their tactics to stay relevant on search and keep their conversion rates high for maximum profitability.
According to JungleScout’s State of the Amazon Seller Report 2022, only 52% of sellers turned a profit with their first product launch, which is why acing the fundamentals is the key to navigating the way ahead to success. It is the basics that most sellers overlook, to their detriment.
With Amazon reporting nearly 3 billion site visits per month and 150 million households in the United States alone serving as a steady customer base through Amazon Prime, there is no more significant opportunity for success in eCommerce than through a well‑planned Amazon sales strategy.
Learn more at witzgroup.com.
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Winning Amazon in 2023 and Beyond
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