Getting ready to sell on Amazon can be demanding - but let's pick this up from where you already placed your first order with your manufacturer or if you're already selling on your own site and answer the question... "what should your 30/60/90 Day Action Plan for Amazon be?"
So I developed this 30/60/90 Day Action Plan for Sunbum, they make sunscreen and sun protection products and I thought maybe companies or sellers who are in the same situation or looking to start out on Seller Central (FBA) might find this useful.
Their scenario may not be where your company is now, but the 30/60/90 day plan should still work for you. So here’s SunBums scenario:
Here is the Amazon strategy that I carved out for them. If you’re an entrepreneur or work for a small company, you might not require the entire 30 days for each of these phases because you’re probably able to move through these a lot quicker.
During this time, we want to find keywords that we want to rank for. Make a list of highly relevant, mid and long tail keywords. Since they have a selling history with Amazon, they were focused on taking market share from other brands.
If you’re like most brands, your average conversion rate is probably sitting around 2-3.5%. It's not your fault, but with some product listing optimization, you should aim for at least 6-9% and incremental improvements if you’re already there.
Why is conversion rate so important? 2 reasons,
If I’m sending paid traffic to my product listing, I want to make sure my money is well spent.
Allow me to illustrate what * 3% a couple of % would mean. If your average selling price is $30 and you have 100,000 clicks a month converting at 3%,
that’s $90,000 in sales each month. Using the same numbers, but converting at 5%, you’re sales increase to $150,000 each month that’s a difference of $60,000 and over the course of the year, $720,000.
I’m sure that can help you meet your year-end goals and make your CEO very happy if you’re not the owner.
It's very important that you set up your campaigns correctly because we want to be aggressive on targeting our keywords and products to take market share from other brands. So this doesn’t mean just creating an auto and manual campaigns... you know who you are.
Since Amazon advertising report does not show ACoS by product, you need to structure it correctly so you can tie the data back to a product and optimize your bids. That is the only way you can scale paid ads on Amazon and if you do it right… your organic sales will increase!
Take a look at this improvement. 29% ACoS that is not awesome or bad, but take a look at the total revenue, increase by 200+%, making the true acos at 5%.
That means I’m trading $5 for $100. I’ll do that all day… every day if I can. As long as you can show those numbers to yourself… your finance department or whoever manages the budget, should have no problem raising your advertising budget. I personally won’t even put a cap on what is working.
There you go, that's the Amazon 30/60/90 day action plan that will help you launch and grow a profitable brand.
If you want to learn more about this and my 3 step optimization process, sign up for my next live webinar by clicking the link on this post.
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Doing this on my own cost me years! Everyone needs a coach, Skywalker has Yoda, the richest man in the world Warren Buffet has Benjamin Graham and Michael Jordan had Coach Smith.