Brands are facing more pressure than ever to grow revenue at the same time as profit
The standard playbook of investing more and more in paid advertising to scale revenue doesn’t work anymore
Because paid ads provide diminishing returns at scale
The solution is to find ways to drive traffic without paying or at a lower cost AND convert that traffic
Essentially, you want to drive incremental revenue to improve profitability
And you want that incremental revenue to grow at a higher rate that your ad spend
That can come from existing customers ordering more or ordering more frequently
It can also come from net new customers
One great way to drive incremental revenue from both groups is to invest in your Amazon brand store
An optimized brand store can drive at least 10% of your total revenue
Yet lot of brands are only driving 1-5% of their revenue through their brand store
In addition, Amazon's own data shows that consumers have a higher average order value and units per order when shopping on the brand store
(as opposed to PDPs)
So this is relatively low hanging fruit
Here are some tips to analyze whether you can do a better job with your store:
-Are you featuring at least a few of your top-10 best selling products on your homepage?
-Do you have design elements on your homepage and subpages?
-Are all your subpages getting sales and meaningful traffic?
-Are you minimizing similarly priced options on your store to reduce friction in the path to purchase?
This is just the start, candidly
If you're doing $5 million or more a year on Amazon, it's almost a no brainer to put this on the roadmap for 2025
If you need help or want to chat about whether you can improve your store, don't hesitate to reach out
P.S. The below store hompages are ones the Nectar team created recently for Shark, Earth Rated, Hero Cosmetics, Souper Cubes, Vibes, Crazy Muscle, and Gotham Steel