What is Amazon Retail and how does it work? Francesca Rossetti, Senior Retail Manager at Next14, tells us about the main features of the sales channel through which the largest Internet Company in the world buys products from its suppliers and resells them “personally” on its website.
What does it mean to be a Retail Manager at Amazon?
Being a Retail Manager means helping and supporting brands to sell their products in an online marketplace, Amazon, which allows sellers around the world to offer their products to a wide customer base. The product categories available are among the most varied, including food, alcohol, clothing, accessories, technology, home and garden, toys and much more. Amazon offers a number of services and tools to help brands sell their products, and our job is to manage 360% of their online store.
What are the biggest challenges of managing an amazon account?
The biggest challenges you face managing an Amazon account are:
- Competition: Amazon is a very competitive market, with millions of sellers offering a wide range of products. It is important to find a way to stand out from the competition and attract the attention of customers.
- Amazon Rules: Amazon has a set of rules and guidelines that sellers must adhere to. It is important to be aware of these rules and guidelines to avoid being suspended or penalized.
- Order management: Amazon handles most inventory and logistics on behalf of sellers. However, sellers are responsible for managing orders and customer support. It is important to have an efficient process for managing orders and customer support.
- Visibility and promotion: Amazon offers a number of tools and services to help sellers promote their products. However, it is important to invest in marketing and promotion to increase product visibility and generate sales.
What are the key KPIs to monitor to manage a marketplace?
The main KPIs to monitor to manage a marketplace are:
- Traffic: measure the number of visitors on a Product Detail Page (PDP) or in the online store (Brand Store);
- Conversion Rate: measures the number of visitors making a purchase;
- Sales: the turnover of a brand;
- Rate of new buyers: how many new users purchased a product;
- Buy-back rate: how many users are loyal to the brand and make more than one purchase in a given period;
- Positive reviews;
In addition to these KPIs, you can also monitor other specific indicators, based on the objectives of the marketplace. For example, a marketplace that focuses on selling consumer products could track the number of products sold at a discounted price.
KPI tracking is critical to managing a marketplace effectively. It allows you to evaluate the performance of the marketplace and identify areas for improvement and efficiency of sales strategies.
What strategies can be implemented to increase the conversion rate of a product?
Conversion Rate (CR) is the ratio of the number of visitors who take a desired action, such as a purchase, to the total number of visitors. A high CR indicates that a website or web page is effectively converting visitors into customers.
There are several strategies that can be implemented to increase the conversion rate of a product. Some of these strategies include:
- Improving the user experience
- Optimize product pages: Product pages are the most important web page for the CR as they must provide all the necessary information to customers to make a purchase decision. It is important to include high-quality images, a detailed description of the product, customer reviews and price information.
- Use effective call to action: Call to action (CTA) are the instructions that customers must follow to complete a desired action. It is important to use clear and concise CTAs that are in line with the conversion goal.
- Activate targeted marketing campaigns: they can help reach the target audience and increase a company’s brand awareness. It is important to use effective marketing channels and create personalized marketing messages.
What advice would you give to have a successful online store on Amazon?
Do a thorough market research: Before you start selling on Amazon, it’s important to do market research to identify market opportunities and challenges.
Create a high-quality product catalog: the catalog is the first point of contact with customers. It is important to create a catalog with accurate images and descriptions, optimized in SEO (Search Engine Optimization);
Set competitive prices: prices are an important factor in customers’ purchase decision. It is important to set competitive prices to attract the attention of customers.
With proper preparation and ongoing commitment, you can overcome these challenges and manage a successful Amazon account.