Beyond the Bottomline: 4 Smart Strategies to Build a Stronger FBA Brand
April 8, 2022 Michael Smith
To strengthen the health of your FBA brand, it can pay to look beyond the bottom line. Have you grown a solid base of happy repeat customers? Or earned an avalanche of 5-star Amazon reviews for your products? These are the kind of success markers that don’t directly appear on a profit and loss statement — but they can translate into higher customer lifetime value and a stronger FBA brand. In other words, to build an FBA brand with staying power, it helps to consider the big picture of your business.
Here are 4 strategies to think about.
1. Focus on high profit-dollar products
If you’re used to thinking only about profit margin, you may want to start thinking about profit-dollars as well. Your goal should be to improve conversion rates and sales velocity on the products that provide the most bang for the buck in profit-dollars.
For example, if your FBA brand sells products for wine enthusiasts, the 50% profit margin you make on a simple wine opener priced at $10 is less valuable per unit than the $20 profit you make on a wine decanter priced at $50. (Find more pricing-strategy tips here.)
2. Improve keyword conversion share
Conversion share is the number of times customers bought your product after searching with a given keyword, divided by the total number of times customers bought any product after searching with that same keyword. You want this number to grow over time. It shows you’re capturing a bigger slice of the pie linked to keywords associated with your product.
Improving your conversion share may be as simple as adding keywords to the listing copy. Your listing title is especially important: make sure it’s concise, keyword-optimized, and compliant with Amazon’s guidelines. To improve your keyword performance, start by digging into your Amazon Search Terms report, which is part of the FBA Brand Analytics module. The report is a gold mine of insights about your category and your FBA business.
3. And while you’re at it, optimize your FBA Brand listings in every way you can
Think like a potential customer – both how they browse and how they buy. Your FBA brand product listings should be quick to scan and optimized for mobile viewing and purchase. Test your main listing photos with a tool like Pickfu to see which images perform best.
And yes, go for the video. A lot of people don’t incorporate video because it seems too hard or complex. Think of this: we’ve made very professional marketing videos with celebrities that have cost tens of thousands of dollars – and in some scenarios, those convert less than something made in 20 minutes on an iPhone. The lesson? It doesn’t have to be an insane production to be successful. It just needs to connect with customers.
4. Accelerate review velocity for your FBA brand
Reviews are the lifeblood of an Amazon ecommerce business. You know this. When faced with an array of similar products, customers often default to the one with the most positive reviews. High-quality reviews start with a high-quality product, of course, but after that, you’ll need to do a little more work to earn your stars.
The work is well worth it. You want to create a moat of positive reviews around your products – an unbridgeable gap between your well-loved products and those of your closest competitors. And to increase your volume of positive reviews, you’ll need to increase your volume of sales. This may mean selling at a loss via a temporary price cut, running Amazon Deals, or increasing ad spending to boost traffic.
Interested in hands-on recommendations to take your Amazon FBA brand management game to the next level? Check out our new ebook, Getting Your Ecommerce Business Ready for Sale.
About the Author
Michael Smith is Thrasio’s vice president of brand management with over 12 years’ experience in growing ecommerce companies. He’s an expert in Amazon FBA, marketing automation, SEO, and social marketing – all skills he put to good use for 2 of his own ecommerce businesses, which he grew to over $10 million in sales in under 5 years.