Get ready for Amazon’s Nordic launch
The e-commerce giant Amazon announced in early August their plans to launch their marketplace in Sweden. The launch is expected to change Nordic e-commerce by offering companies numerous opportunities.
– Amazon offers the possibility to reach a wider customer base and increase sales volume, Sebastian Östman, one of the founders and COO of Genero, lists the strengths of Amazon’s dynamic sales platform.
However, success won’t come without careful preparation, and a well-designed strategy as Amazon is significantly different from other online stores.
– To be successful on Amazon, you need to carry out a carefully crafted market and competitor analysis, combined with a detailed pricing and product strategy. Amazon is known for its fast delivery times, which requires agile logistics from companies using their platform, Östman adds.
Amazon’s market entry also includes threats, but according to Östman, those can be solved with Amazon-specific expertise and data-based analytics. He emphasizes that companies need to be where customers make their purchase decisions – and based on statistics, this happens on Amazon.
Preparation and maintenance are keys to success
Rebecca Sutton, the Amazon expert from Genero, highlights that in addition to research and planning, continuous maintenance and optimization together with keyword-rich content creation are required to succeed.
– Simply placing your product on Amazon won’t guarantee results. It’s vital that your product shows up on the first page of search results, she says.
Sutton emphasizes that holding the top position on Amazon’s search results is essential.
– On Amazon, product visibility increases your chances of sales, whilst increased sales boost your product’s ranking. Increased visibility brings more traffic to your product listing and hence increases your chance of sales. Together, these effects improve your product’s organic ranking. Implementing this equation requires an in-depth understanding of Amazon’s algorithm, Sutton explains.
Once owning the data-driven recipe for success, Amazon opens numerous doors and possibilities to grow your business.
Is Amazon a threat or a possibility? That is up to us.
The world’s largest retailer has continued its success story in every country it has landed. However, success comes with a price.
According to Sebastian Östman, Amazon will increase the cost of digital marketing, and Google traffic will move to Amazon.
– As traffic moves to Amazon, competition for the remaining product searches will increase on Google. Companies will particularly compete against Amazon in Google Ads’ bid auction, which will raise the click price for search engine marketing.
Due to Amazon’s competitive pricing, Amazon’s entry will force sellers to lower their product prices.
– In an Amazon-dominated market, maintaining profitability will be a challenge, Östman says.
Despite the challenges, Amazon offers numerous opportunities.
– Amazon offers a “one-stop-shop” online channel, making it easy for consumers to find what they want and hence conversion rates tend to be higher than average on Amazon. At the same time, it provides a relatively easy and inexpensive way for sellers to start selling products internationally – and those who have figured out Amazon’s game rules can enjoy large sales volumes, Östman notes.
To succeed on Amazon, companies need to find the right partner to help them develop a successful Amazon strategy, choose the products with the highest potential in a given marketplace, as well as implement and optimize efficient marketing techniques.
– Once you are ready to explore your business’ potential on Amazon, we at Genero are ready to help. If ever there was a time to do so, this is it, Östman says.
Contact us and we will create a plan for your business on how to start successfully selling and growing your business on Amazon.