Navigating Amazon Search: A Dual-Approach Strategy for Brands
In the bustling marketplace of Amazon, standing out among over 310 million active users offers a lucrative opportunity for brands looking to expand their online presence. The decision to launch on Amazon is often a no-brainer for brands with an established customer base, given its status as the most popular e-commerce platform in the U.S. However, venturing into Amazon’s vast marketplace without a clear strategy can lead to missed opportunities and potential losses to competitors.
Navigating Amazon Search: A Dual-Approach Strategy for Brands
In the bustling marketplace of Amazon, standing out among over 310 million active users offers a lucrative opportunity for brands looking to expand their online presence. The decision to launch on Amazon is often a no-brainer for brands with an established customer base, given its status as the most popular e-commerce platform in the U.S. However, venturing into Amazon’s vast marketplace without a clear strategy can lead to missed opportunities and potential losses to competitors.
The Dilemma of Presence vs. Absence on Amazon
When potential customers search for your products on Amazon and come up empty-handed, two outcomes are likely:
- They might return to your direct-to-consumer (DTC) website to complete their purchase.
- Or, in a less favorable scenario, they could end up buying from a competitor available on Amazon.
To counteract these possibilities, brands often adopt one of two strategies when establishing their Amazon storefront, as advised by the Pilothouse Amazon team.
Strategy 1: Focusing on Branded Keywords
Many DTC brands opt for a straightforward approach: create an Amazon storefront, target branded keywords in their ad campaigns, and then maintain a basic presence. This strategy involves building an optimized Amazon listing, stocking some inventory, and investing in ads that prioritize branded keywords, ensuring that your existing customers can find you easily.
However, while this method may safeguard your existing customer base from competitors, it inherently limits growth potential to the size of your brand’s current awareness. By focusing solely on customers already familiar with your brand, you miss out on the chance to attract new ones.
Strategy 2: Expanding Reach with Generic Keywords
The second approach involves targeting generic, non-branded keywords. This strategy aims to capture the attention of new customers actively searching for products in your category without prior brand loyalty. Success in ranking for generic keywords signifies a significant victory in customer acquisition, with two distinct paths to growth:
- Slow Profitable Growth: This method balances branded campaigns with a cautious expansion into generic keywords, focusing on long-tail, low-volume keywords that maintain a profitable Advertising Cost of Sale (ACOS). It requires minimal budget allocation towards high-volume generic terms to sustain a target ACOS beneficial to the brand.
- Fast Unprofitable Growth: Alternatively, brands may choose to invest heavily in campaigns aimed at rapid rank improvement, coupled with aggressive discounting and pricing strategies to enhance conversion rates. This approach accepts short-term losses in Total Advertising Cost of Sale for swift sales volume growth, transitioning to profitability as the brand’s Amazon presence solidifies.
Choosing the Right Path for Your Brand
The decision to focus on branded versus generic keywords on Amazon should align with your brand’s current objectives, financial situation, and long-term goals for the Amazon channel. Whether you aim for steady, profitable growth or are prepared to invest in rapid expansion, understanding the nuances of each approach is crucial for success on Amazon’s competitive platform.
In the dynamic world of e-commerce, navigating Amazon’s marketplace with a well-informed strategy can unlock new avenues for growth and customer engagement, ensuring your brand not only shows up in search results but also stands out.
— -
For a deeper dive into maximizing your brand’s presence on Amazon, explore how our team at Domin8 Commerce may be able to help scale your business here.
