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Listen "Episode 3: Amazon is a Momentum Game"
Episode Synopsis
Amazon is a Momentum Game:
What I mean by the fact that Amazon is a momentum game is that the more you sell on Amazon, the more your organic rankings increase for more and more keywords.
The reason this is so important is because it has major impacts on the overall strategy you should take when approaching selling on Amazon.
For instance, when you launch a new product,you do not want to run out of inventory. This is because running out of inventory makes your organic rank drop.
Instead, what you want to do when you launch a new product is to spend money on advertising to begin to build the momentum of the sales which will then increase your organic rank, which in turn, increase your profitability because you get more sales through more keywords and pay less advertising fees to Amazon.
There are two forms of product listings in the search results. One is from paid advertising, and the other is from free organic ranking. The two go hand in hand.
The paid advertising drives traffic to your product, which increases your sales. And in turn, this also boosts your organic rank, which drives more traffic and increases your sales at an even higher profitability, because you didn’t have to spend money on ads for the people that bought through an organic listing.
The problem comes in when you run out of inventory. And you have to rebuild all of that momentum that you lost. And this can cost you a lot of money on Amazon.
The fact that Amazon is a momentum game also impacts how many products you should launch at a time. Because Amazon is a momentum game, I recommend that it is best to launch just 1 product at a time.
This is primarily because you want to build maximum momentum behind a product to maximize that products profitability for your company. If you have a good product, the amount of sales you can achieve for just one product on Amazon is enormous!
Usually it’s way more than you think. The key to achieving maximum sales on Amazon is to be ranked at the top of page 1 for as many relevant keywords as possible, especially the keywords with the most relevant traffic (don’t neglect the small keywords too though as they can really add up!).
To do this, my recommended strategy is to set up highly optimized listings and then drive traffic to those listings through Amazon advertising. The traffic you get from the ads will hopefully turn into sales (assuming the product and listing are high quality at a good price with positive reviews) which will increase your organic rank for both the keywords that convert to sales and those in your title and product listing.
This will lead to more and more sales and better profitability as a greater percentage of sales over time shift from coming primarily through ads to primarily through organic rankings. To do this process requires that you don’t run out of stock. Otherwise, your rankings will begin to drop and you will begin to waste the momentum you built which will cost you even more money to rebuild it through ads again when you get back into stock.
So … try not to run out of inventory! Usually this process means that you should stick with one product until you are ranking on page 1 organically for your main keywords and many many more smaller ones and you know that you won’t be running out of stock anytime in the future.
Plus, sticking to one product at a time allows you to focus solely on that one product which gives that product the best possibility to succeed. Once a product has full momentum built and it can be sustained it is much easier to maintain, allowing for efforts to be redirected to the next product.
What I mean by the fact that Amazon is a momentum game is that the more you sell on Amazon, the more your organic rankings increase for more and more keywords.
The reason this is so important is because it has major impacts on the overall strategy you should take when approaching selling on Amazon.
For instance, when you launch a new product,you do not want to run out of inventory. This is because running out of inventory makes your organic rank drop.
Instead, what you want to do when you launch a new product is to spend money on advertising to begin to build the momentum of the sales which will then increase your organic rank, which in turn, increase your profitability because you get more sales through more keywords and pay less advertising fees to Amazon.
There are two forms of product listings in the search results. One is from paid advertising, and the other is from free organic ranking. The two go hand in hand.
The paid advertising drives traffic to your product, which increases your sales. And in turn, this also boosts your organic rank, which drives more traffic and increases your sales at an even higher profitability, because you didn’t have to spend money on ads for the people that bought through an organic listing.
The problem comes in when you run out of inventory. And you have to rebuild all of that momentum that you lost. And this can cost you a lot of money on Amazon.
The fact that Amazon is a momentum game also impacts how many products you should launch at a time. Because Amazon is a momentum game, I recommend that it is best to launch just 1 product at a time.
This is primarily because you want to build maximum momentum behind a product to maximize that products profitability for your company. If you have a good product, the amount of sales you can achieve for just one product on Amazon is enormous!
Usually it’s way more than you think. The key to achieving maximum sales on Amazon is to be ranked at the top of page 1 for as many relevant keywords as possible, especially the keywords with the most relevant traffic (don’t neglect the small keywords too though as they can really add up!).
To do this, my recommended strategy is to set up highly optimized listings and then drive traffic to those listings through Amazon advertising. The traffic you get from the ads will hopefully turn into sales (assuming the product and listing are high quality at a good price with positive reviews) which will increase your organic rank for both the keywords that convert to sales and those in your title and product listing.
This will lead to more and more sales and better profitability as a greater percentage of sales over time shift from coming primarily through ads to primarily through organic rankings. To do this process requires that you don’t run out of stock. Otherwise, your rankings will begin to drop and you will begin to waste the momentum you built which will cost you even more money to rebuild it through ads again when you get back into stock.
So … try not to run out of inventory! Usually this process means that you should stick with one product until you are ranking on page 1 organically for your main keywords and many many more smaller ones and you know that you won’t be running out of stock anytime in the future.
Plus, sticking to one product at a time allows you to focus solely on that one product which gives that product the best possibility to succeed. Once a product has full momentum built and it can be sustained it is much easier to maintain, allowing for efforts to be redirected to the next product.
In God we trust