If I searched for something like \u2018carabiner made in the usa\u2019 I\u2019m going to have a hard time finding what I\u2019m looking for amidst all of the Chinese 3P product results that are available. Amazon even struggles to return relevant results when I search in this manner – showing me everything from weightlifting tape to american flags alongside the carabiners.\u00a0<\/p>\n\n\n\nFlipping the perspective to think about this from the point of view of a brand – Amazon is often criticized for its use of marketplace data to prop up it\u2019s private label brands like Amazon Basics. With the exception of a few specific categories this threat is way overblown relative to the bigger threat that enough Consumer Brand executives are paying attention to. Amazon has become the gateway by which overseas factories cut out the intermediaries and go direct to global consumers with lower prices. An internal Amazon note from 2015 released as part of a House Judiciary investigation that describes the beginning of this trend with stunning clarity:<\/p>\n\n\n\nNow consider that more than 40% of Amazon US GMV comes from these Chinese \u2018factory brands\u2019 today and that more than 50% of all new seller sign-ups in the Amazon marketplace are Chinese suppliers. Not very amusing at all.<\/p>\n\n\n\n
In many categories, the biggest competitive threat on Amazon is not your traditional competitors but instead these factories in China who can make a better margin selling directly on Amazon\u2019s marketplace than to you. So how do you defend against this type of competition to reach consumers that are looking for a good product that meets their needs? <\/p>\n\n\n\n
Brand Name<\/strong> – you\u2019re often playing against unrecognizable brand names like \u2018sprookber\u2019 or \u2018ou peng\u2019. Making sure your brand name is at the start of the product title may be enough to give your product enough credibility to get a click. <\/li><\/ol>\n\n\n\nCreative Assets<\/strong> – Make sure you give your potential customer something pretty to look at that accurately portrays your product in real world situations. In other words, make sure your product photography doesn\u2019t look like you photoshopped it on to stock images.This is either the world largest gravity-defying water bottle imaginable that applies zero tension to the strap it\u2019s attached to, or it\u2019s a bad photoshop. <\/em><\/p>\n\n\n\nCustomer Support<\/strong> – your customers are going to ask you questions about your products. Make sure you have a plan for how to respond to them. If you don\u2019t respond to these they\u2019re going to assume you don\u2019t care or can\u2019t respond, and you also miss an important opportunity to understand what might be unclear about your product detail information on the page, or how you can improve the product.<\/li><\/ol>\n\n\n\nReviews and Ratings<\/strong> – this is a tough game to play, and there are many grey areas that I prefer to avoid. My advice here is typically to focus on providing a high quality product, and making it clear in the description what customers will be getting if they decide to purchase it from you. Most poor reviews come from mismatched expectations. Stay above a 4.3 average rating. <\/li><\/ol>\n\n\n\nRetail Media Execution<\/strong> – Your brand likely demands a higher price point than manufacturers going direct to Amazon shoppers. Use this pricing the margin dollars to attack and defend paid placements where you can make a difference. Gold Lion is doing a great job of this in SB and SB Video. Would love to see more of their products in the SP placements, but there is likely a CPC challenge. Adapt to new ad types if you can\u2019t keep affording the most generic category search terms in SP. <\/li><\/ol>\n\n\n\nAmazon Brand Store Design<\/strong> – This is simple. Have a brand store. If I\u2019m on your PDP and I see \u2018Brand: sprookber\u2019 that takes me to a search page with all of the sprookber products I\u2019m immediately skeptical. If at the top of your PDP I\u2019m encouraged to \u2018Visit the Gold Lion Gear Store\u2019 and it\u2019s well designed, then I know I\u2019m at least shopping from a brand that has put a small amount of effort into creating a meaningful presence on Amazon, and that likely means they have put at least a small amount of effort into creating a quality product.<\/li><\/ol>\n\n\n\nGood:<\/strong><\/p>\n\n\n\n<\/p>\n\n\n\n
Bad:<\/strong><\/p>\n\n\n\nBadging<\/strong> – I\u2019m not going to talk about Best Seller\/Amazon\u2019s Choice badges. Instead – the\u00a0 Climate Pledge badge is something I\u2019m starting to see show up in Search Results pages. It\u2019s not necessarily open strictly to US based manufacturer brands, but I would be willing to bet you’re going to be more willing and capable of navigating the process<\/a> to qualify for the badge. This will appeal to climate-conscious consumers, and most likely comes with a CTR\/CR boost to get shoppers on your PDP and converting.<\/li><\/ol>\n\n\n\nDTC.com Presence to Reinforce Brand<\/strong> – This is also simple. Make sure you have a website and that it has your products on it. If I want to check to see if you\u2019re a real brand I\u2019m going to search for you outside of Amazon. If I can\u2019t find it easily I\u2019m going to assume you\u2019re just an overseas factory that has shipped containers into a fulfilment center and the quality of your product is a complete dice roll.<\/li><\/ol>\n\n\n\nRetailer diversification<\/strong> – don’t get stuck focusing solely on Amazon. Other retailers – Target.com is front and center of my mind when I say this – do a better job of controlling who can sell products on their site. If you can get listed on Target.com, or really any other major retailer, you\u2019re likely going to see overall ecomm growth and you\u2019re less likely to face the competition from these manufacturers-turned-brands from overseas.<\/li><\/ol>\n\n\n\nKnow your market <\/strong>– Overseas factory brands going to struggle with the above 9 items – exploit those advantages. But these suggestions are a snapshot in time – the world will change. If your market has this type of competitive force it\u2019s important to understand what these competitors are doing so you can respond as their tactics evolve. These factory brands are likely going to try to compete with you with very low prices and large multipacks. They\u2019re going to try to imitate your features. They will likely try to advertise on the same terms you\u2019re already advertising on. They will adapt. Take the time to \u2018walk the store\u2019 – yes, go in and search on amazon the same way your customer might – and regularly observe how products are priced, who is a new player on a new ad type like SB Video, and where the quality of your listings may no longer be sufficiently above your competition. Knowing what\u2019s going on in your market will be the most powerful tool available to you – and will tell you what to do next when these suggestions are no longer enough.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"I recently tried to buy a carabiner – you know, one of those funny little clip things that mountain climbers reportedly use. I wanted to be able to easily clip my golf towel to my golf bag and the normal S-hooks kept bending – resulting in me buying too many golf towels. So, I started […]<\/p>\n","protected":false},"author":9,"featured_media":355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail-strategy"],"acf":[],"yoast_head":"\n
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<\/figure>\n\n\n\n![\"\"](\"https:\/\/dev.codegreene.com\/momentum\/wp-content\/uploads\/2021\/04\/purell-1024x710.png\")
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