Amazon’s market power in Germany’s e-commerce environment
In 1995, it started in a garage at America’s west coast as mail-order business for books and today, it is today one of the leading international online retailers with a worldwide trading volume of 277 billion US-dollar. We are, of course, talking about Amazon. According to a survey of the German Trade Association (Handelsverband Deutschland (HDE)) Amazon meanwhile dominates almost half of the German online business. A quarter of the total German e-commerce-revenue is generated through Amazon marketplace.
Considering online sales neither manufacturers nor retailers can ignore this market power: If seller or vendor – many retailers rely on the support of an Amazon agency to present their products optimally on Amazon.
Your product: Just a needle in a haystack?
Considering the ever-increasing customer numbers and sales figures the number of sellers and offered products on Amazon increases: Amazon Germany currently offers approximately 160 million products. Of course, the more sellers and products, the greater the competition.
If you wouldn’t happen to be the producer of revolutionary time machines or sell a vegan, CO2-neutral, hand-made bobbin lace, and fluorescent flying carpet – it is difficult to attract attention among the multitude of sellers. Hardly any customer clicks through several hundred pages of search results: About 90 % of revenue on Amazon is being generated on the first three pages. The objective is therefore that your products will be found with/for the most relevant keywords and to be placed as far in front as possible on the first three pages.
For this purpose, the products need to achieve the best possible results – in other words: to be optimized for Amazon-SEO.
Amazon-SEO is the basis for a better ranking
What is the best way to achieve this? It is obvious that Amazon-SEO differs significantly from Google-SEO. One of the most important characteristics is the different priority of the keywords. E.g.: While the keyword density is still important for Google-search it doesn’t matter for the Amazon-search. Furthermore, the various intentions for search are essential for the keyword-research: Since search requests at Amazon are much more product specific the definition of keywords is more or less limited to product features and synonyms.
Conversion Rate = KPI at Amazon ranking
But there is much more about Amazon-SEO-optimization than onetime research and optimization of backend-keywords. There are additional factors which are important for Amazon’s ranking-algorithm: Besides the optimization (also with relevant keywords) of product title, bullet points/highlights and product description the customer reviews are an important criterion, too. The product ratings can affect the purchase decision – if thus the number of purchases increase, automatically the conversion rate increases, the most significant factor to achieve a good Amazon-ranking. Moreover, the conversion-rate can be maximized through targeted Amazon marketing measures.
Top-optimized content: But the purchase decision is made by humans
Besides all Amazon-optimization you should bear in mind that optimization concerns two sides: on the one hand the Amazon-algorithm, but on the other hand the potential buyers. Even the best Amazon-SEO-keyword-optimized text is worth nothing if the potential customer does not feel addressed by wording and tenor of the content and decides against the purchase. With this in mind it is therefore the responsibility of the Amazon agency to coordinate and optimize the entire content to that effect. High quality pictures and detailed product information arouse the consumers’ interest. Combined with an emotional, appealing text this can be the decisive factor for the purchase.
All contents optimized: mission completed?
Furthermore, it should be taken into consideration that the task is not completed with a one-time optimization. The Amazon marketplace is subject to ongoing changes: Competition is growing, competitors optimize their content, too, and seasonal trends cause varying demand. Last but not least there are continuous updates concerning Amazon’s guidelines (summarized in the Amazon styleguide) and regular adaptations in the search algorithm.
Professional presentation on Amazon … something you do just in passing …
Ongoing monitoring, maintenance and optimizing the product portfolio does not only require a lot of time but, in addition to expertise, also continuous training: The Amazon agency employees do not only have practical experience but also know the characteristic features of the various product categories. And what’s more, they are always up-to-date in terms of the Amazon guidelines.
Continuous Optimization = long-term success
With ongoing content optimization, the Amazon agency ensures long-term success. Every day the Amazon-ranking is being monitored with different Amazon-analysis-tools and optimized if necessary. The strategy will be adjusted individually for each product, adapted to the product’s specific requirements and the product life cycle.
According to the basic content, individual, additional sales-promoting A+ Content will be created. Unlike to the more functional and informative designed basic content, the A+ content shows more detailed product information, besides that emotional pictures and individual design create additional purchasing incentive.
Further measures such as Amazon PPC can also be part of the targeted Amazon marketing strategy.
The importance of other relevance and performance factors
The Amazon search algorithm is regarded as one of the most intelligent and target-oriented in the world. Certain relevance and performance factors, with many interacting factors influence a better ranking. The Amazon agency is responsible for the relevance and performance factors with content optimization through Amazon-SEO. However, the best SEO-optimized content is not enough if other performance factors do not match. One of the most important ones is the conversion rate we already mentioned above: It will be also affected by delivery time, delivery charges, ratings and, of course, the price – all criteria that can influence potential customers’ purchasing decisions.
Hand in hand for success
At this point the retailer can make a decisive contribution to success through appropriate collaboration with Amazon: FBA (Fulfillment by Amazon) = Short delivery times (assuming adequate inventory level) as well as free shipping are often decisive purchase incentives not only for prime customers. In such a highly competitive marketplace as Amazon, this can be even more crucial for customers than maybe a possibly marginal higher price. In the further optimization process, close collaboration between the retailer and the Amazon agency in charge is therefore important in order to keep an eye on all ranking factors.