Like a lot Amazon seller business, we are heavily (90%) dependent on Amazon and our top priority is to diversify our revenue mix. Here is our game plan.
Here are our 10 themes to growing our business off of Amazon
1 - have great products. This sounds obvious, but we spend 6 months making some changes to packaging, product inputs and finding new manufacturing partners. This is critical as our mktg model is heavily LTV dependent and a shitty items tanks repeat rates.
2 - there is no channel more valuable than our Shopify store. This needs to be the center of the universe for our brand.
3 - get as much distribution as possible. Some brands curate and are super selective where they go (think cpg brand architecture), we have the opposite strategy. We don’t have the money to do a ‘win with capital’ approach so these impressions are huge for us.
4 - Find a big retail partner to give us credibility in the market. We got lucky and were able to sell into a major retailer in Q2, already a game changer.
5 - focus our advertising on story telling and not promotions. For us we are telling a quality story and will have a promo from time to time, but it’s thematic and relevant and not an everyday discount.
6 - grow through innovation. Both new product development and marketing innovations (trying audio as we speak).
7 - Use ambassadors and social proof to drive our creative. We don’t need an agency and our customers are great creators, white list the content and let’s go.
8 - within our marketing, focus on LTV to CAC ratio and not roas. We want customer growth above all.
9. - point of purchase experience is our most critical area. Being a new brand means that we need build trust and this is the place to do it.
10 - over invest in the post purchase experience. Fast shipping + being generous with refunds, cash back guarantee and digital guides and content will be a driver of continued success.
Think of an Amazon listing as a limitless bazaar with merchants all selling the same item. With a few exceptions, anyone can plug into any the listing and sell that item so Amazon developed a tool to decide who gets to fulfill the sale. This tool is called the Buy Box.
The general rule to win the BB is whoever has the best combination of full landed price (price + shipping cost) and who can get the product to the customer fastest wins. Here is an example from Vital Proteins.
There are 10 other sellers trying to sell their inventory, but can't because someone else (in this case, Vital Protein themselves) has the buy box. Want a fun fact? You can't advertise in sponsored products unless you have the buy box.