Amazon Marketplace Archives

Strategic Insights from ROI Swift’s CEO Carolyn Lowe for Mastering the Amazon Marketplace

January 7, 2025January 7, 2025 Brent W. Peterson

In this episode of Talk Commerce, host Brent Peterson engaged in an enlightening conversation with Carolyn Lowe, CEO and founder of ROI Swift, about maximizing success on Amazon’s marketplace. The discussion revealed crucial insights for brands considering Amazon as a sales channel, along with practical strategies for optimizing their presence on the platform.

Key Takeaways

Brands should conduct thorough P&L analysis before entering Amazon
Products priced under $15 rarely generate profit after Amazon fees
60-70% of Amazon searches are non-branded
Video content is increasingly important for product listings
FBA can increase conversion rates by 30-80%
Proper product page optimization should precede advertising efforts

About Carolyn Lowe

Carolyn Lowe’s journey to becoming an Amazon expert began at Dell Computer, where she worked in consumer marketing for six years. Her transition to entrepreneurship came through her experience helping a mom and baby company grow from a modest $10,000 monthly Amazon revenue to an impressive $400,000-$500,000. In 2015, she founded ROI Swift with the ambitious goal of helping 500 brands achieve profitable growth.

Detailed Episode Summary

The conversation began with Carolyn sharing her background in e-commerce, dating back 25 years when she moved from Boston to Austin for a role at Dell. Her expertise in digital marketing evolved through various positions, ultimately leading to the foundation of ROI Swift.

On the topic of Amazon presence, Carolyn emphasized the importance of strategic decision-making. She outlined specific scenarios where brands should consider Amazon:

“If you’re in retail or you’re sold through retail partners or other online partners, you’re going to end up on Amazon anyway, so you might as well make it the best experience,” Carolyn advised. However, she cautioned that brands with exclusive direct-to-consumer models might want to maintain their independence.

Regarding product pricing, Lowe shared crucial insights about margin considerations. She explained that successful Amazon products typically require:

60-80% gross margins
Ability to absorb 15% Amazon fees
Additional 10% for shipping costs
10-15% advertising budget

The discussion turned to product optimization, where Carolyn stressed the importance of proper page setup before advertising: “Don’t spend any more money on ads until you’ve got the best product page,” she emphasized, noting that conversion rates below 10-15% indicate need for improvement.

Personal Commentary and Analysis

The podcast reveals the complexity of Amazon marketplace success, highlighting how proper preparation and strategy are crucial for brands entering the platform. Carolyn’s emphasis on data-driven decision-making and thorough economic analysis before Amazon entry demonstrates the platform’s evolution from a simple marketplace to a sophisticated e-commerce ecosystem requiring expert navigation.

Memorable Quotes

“Amazon is the devil we know.” – Carolyn Lowe, discussing the predictability of Amazon compared to other platforms

“If your product needs a lot of education and it’s a disruptor, it will be difficult on Amazon.” – Carolyn Lowe, on product-market fit

“You don’t want to send good traffic to a bad web page.” – Carolyn Lowe, emphasizing the importance of product page optimization

Engaging the Audience

To learn more about optimizing your brand’s Amazon presence, connect with Carolyn Lowe on LinkedIn or visit ROI Swift’s website at roiswift.com. The full episode offers additional insights and practical tips for brands considering or currently selling on Amazon.

Final Thoughts

Amazon marketplace continues to evolve, requiring brands to maintain agility and strategic focus. Success on the platform demands more than just listing products – it requires careful planning, proper pricing strategy, and ongoing optimization efforts.

Find more conversations about optimizing for Amazon Marketplace here

From Amazon to Everywhere: Navigating the Multichannel Landscape with Jamin Arvig

January 29, 2024October 3, 2023 Brent W. Peterson

In a recent podcast episode, I welcomed Jamin Arvig, the co-founder of aiC Brands, a company that owns, operates, builds, and buys e-commerce brands. Jamin is also a co-founder of AIcommerce, a service company that provides multichannel marketing and growth benefits to brands. He is also involved in the Junior Presidents organization, which aims to teach kids about entrepreneurship and starting businesses.

The Importance of Multichannel Strategies for E-commerce Brands

Our conversation quickly shifted to the importance of multichannel strategies for e-commerce brands. Jamin explained that diversification is crucial for business stability and higher valuations. With the increasing competition and costs on platforms like Amazon, having a presence on multiple channels becomes even more important. Additionally, being present across various channels increases brand value and awareness.

Amazon’s Expansion Beyond Its Platform

We also discussed how Amazon is expanding beyond its platform through initiatives like Buy with Prime. Jamin explained that Amazon wants to capture customers who start their product searches elsewhere, and they are partnering with e-commerce platforms like Shopify to grow their infrastructure. Buy with Prime allows brands to leverage Amazon’s fulfillment network and benefit from quick delivery and lower shipping costs.

The Importance of Customer Experience and Branding Strategy

We addressed the misconception that Amazon is a soulless marketplace with limited opportunities for brand differentiation. Jamin explained that Amazon has added various features over the years that allow sellers to tell their brand story, such as branded pages, plus content, ads, comparable products, matrices, and videos. However, he acknowledged that there are still limitations to fully expressing a brand’s story on the Amazon platform.

We emphasized the benefits of creating a customer experience on your own website, where the possibilities are limitless. By leveraging the “Buy with Prime” button, sellers can combine the advantages of Amazon’s two-day shipping and name recognition with the ability to tell their brand story in any way they want on their own site.

The Need for Differentiation

We discussed how having a generic product on Amazon can make it difficult to stand out among the competition. Jamin highlighted the need for differentiation, including a strong supply chain, intellectual property (IP) protection, and a unique customer experience or community. He mentioned that having patents, trademarks, and even an app can make it more challenging for others to copy your product.

Choosing a Platform for Direct Sales

We discussed the considerations that bigger brands must make when choosing a platform for their direct sales. One advantage of using Amazon Prime is the happy feeling that comes with knowing your order will be delivered. However, Shopify Plus charges an additional fee for using an external gateway, and it’s unclear if Prime is even available for Shopify yet. Shopify has limited payment options compared to BigCommerce, which allows more flexibility.

Jamin agreed and added that regardless of the platform, there are costs involved in fulfillment, shipping, and labor. The difference lies in the commission charged by Amazon. He explained that deciding which platform to choose depends on factors like conversion rate increase and overall cost-effectiveness.

Expanding into New Channels

When expanding into new channels, Jamin explained that companies can either invest in building the capability internally, acquire a company with the desired capability, or partner with someone who already has it. He suggests that partnering with a fractional team can be more effective and cost-efficient, especially when resources are limited.

We mentioned aiCommerce as a potential partner, and Jamin agreed, stating that their reason for existing is to serve brands as they explore new channels. He mentioned that many brands achieve success by partnering with them.

Our conversation with Jamin provided valuable insights into the world of e-commerce, the importance of multichannel strategies, and the role of branding in differentiating products on platforms like Amazon. It’s clear that the future of e-commerce lies in diversification, customer experience, and strategic partnerships.

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