Increasing Amazon Sales Through Data Analytics

1. Increasing Amazon Sales Through Data Analytics

2. Having a competitive advantage entails doing things that your rivals aren’t. How can your Amazon company forge its route to expansion rather than following the crowd? It all comes down to data insights you can utilize to guide your marketing, inventory management, and other processes, as well as your Amazon product catalog. Establish a framework to expand Amazon enterprises by using data and Amazon analytics. Make data the foundation of your company: Making data a fundamental component of your organization’s ethos and utilizing it to ask questions, identify problems, and investigate new opportunities is essential to using Amazon metrics from the amazon marketplace analytics tool to grow your Amazon business. Every decision, strategy, marketing effort, website optimization, and other processes should be driven by data. Key areas to emphasize your Amazon analytics efforts: Recognize your actual profitability: Even though you excel at getting merchandise off (virtual) shelves, you might not be as profitable as you could be. Understanding how much money remains after fulfillment expenses, shipping expenses, and Amazon fees is crucial. Brands can concentrate on advertising more profitable items and possibly sunsetting underperforming ones by channel when they know each product’s contribution margin. They use profitability diagnostics to identify the items and distribution channels that are enhancing (or decreasing) the total profitability of their clients.

3. Since doing so, tracking contribution margins have given them access to many new insights. They should be aware of the profitable SKUs on Amazon, for instance, as some products may be more profitable than others. This explains what to sell. Recognize customer value and cost of customer acquisition: To attract new clients, you must invest in marketing and promotion. How much, exactly, is the query? First, figure out how much cash you have left over after completing an order. You are in the red if the customer acquisition cost (CAC) exceeds the contribution margin of the order. Depending on how much a customer is worth to you throughout their lifetime, you can estimate how much they will spend with you. You may calculate how much you can spend to add more high-value customers by knowing your most valuable customers and the average amount of income they generate over time. A comprehensive understanding of your budget ensures that your firm will be successful and sustainable. Do you profit monthly from acquiring new clients, or is your CAC too high? Your CAC will appear lower than it is if you don’t account for recurring clients, which is quite harmful to your company. Segmenting new versus recurrent consumers might help you see your true customer acquisition expenses more clearly. You may believe you have the go-ahead to boost your budget for client acquisition if your CAC appears to be lower than it is. However, you may wind up spending so much that you lose money—and you may not realize this until you’ve lost quite a little.

4. Knowledge of bundle dynamics: Your best-selling cross-sell products aren’t always what you believe they are. The secret to raising the average order value is to use bundles (AOV). Bundles are treated as a single SKU by Amazon. As a result, you don’t learn which product combinations are most successful. Instead, look at what individual products are purchased together for insights into what your best-selling cross-sell products are. Then, you may utilize this data to inform your Amazon Virtual Bundles. Improve your Amazon product inventory and catalog: Approach Amazon as an eCommerce channel to be optimized rather than a retail outlet. Selling something on Amazon merely because you can is not a wise move. The best advice for optimizing your Amazon product catalog is to find from the statistics what sells the most. How much merchandise, for instance, should you send to Amazon for storage? It is advised to start with 100 units of a product and gauge how quickly it sells out to establish Amazon inventory utilizing data. Putting in more goods will provide you with a realistic approximation of the sales velocity you may anticipate. Sending inventory to Amazon 60 to 90 days before it is required is advised because it may take some time to go from your brand’s warehouse to the Fulfilled By Amazon (FBA) warehouse. Additionally, your product will be more likely to be offered for 1-day or 2-day shipping if Amazon has more inventory in their fulfillment centers, increasing conversions. Boost marketing performance:

5. Utilize all the marketplace marketing options since you pay to sell on Amazon. According to them, investing in excellent SEO would help your products get high organic rankings on Amazon.com. Amazon is now one of the first places shoppers go to study things, so ranking highly in search is beneficial for brand recognition even if they decide not to make a purchase. Second, you should preferably set a target for your product(s) to appear on Amazon’s Best Sellers List for a particular category. The Best Sellers List is promoted by Amazon’s algorithm, which benefits you by providing free marketing, SEO, and advertising on these products. However, it gets better: being on Amazon’s Best Sellers List has a positive ripple impact on your entire brand. Therefore, having even one extremely good item on Amazon will pay off. To choose which keywords to target on Amazon to most significantly enhance your overall revenue, you can use data from the Amazon Marketplace Analytics tool to see which products convert more frequently and are more profitable.

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