Amazon Digital Shelf Data: Answers from Jim
Diagnosing the Digital Shelf
Every brand wants to win share of shelf when it comes to advertising and ROI, especially on Amazon.com. So, how can brands win the digital shelf?
Brands need to ensure their products are discoverable through search on eCommerce channels. The goal is to create a smooth path to purchase for your consumer, and optimizing your presence on the digital shelf will be essential to your brand strategy.
Brands will outpace their competition if they are easily discoverable through search.
James Horey (Jim) our founder and CEO, took some time out of his day to provide insight on what he sees working for brands on Amazon.com.
One thing is clear, improved data allows for a better diagnosis and actions that will improve visibility in the marketplace.
Here's some insight on the digital shelf from Jim:
How do you recommend that brands measure their Share of Voice (Shelf)?Every day, it's becoming more important to be familiar with this phrase. You want to first look at the percentage of page 1 search results that you own from a category or brand point of view. We like to use this data for three reasons:
- It's relatively easy to understand
- It's easy to measure directly at any given point
- It's indicative of future behavior, vs. looking at overall market share, which is a past-behavior view of your business.
Share of Shelf can be an indicator of future performance in terms of conversions and sales. We've updated our language here from Share of Voice to Share of Shelf, which is a more accurate description of digital sales and digital market penetration.
What content strategies have the biggest search rank impact, so that brands can maximize the Amazon A9 algorithm?There are a couple of ways of looking at the A9 algorithm, but I think a beneficial way to analyze your data on Amazon is:
- Discover how well your brand is performing in search without paid advertisements on Amazon. Look at organic results for your keywords-- there may be less pressure to ramp up the sponsored ads. Understanding your customer base is super critical, and then really thinking through your strategy.
- Think through the goals of sponsored products to increase your organic ranking over time. Think of these things in tandem when you look at your product content and keywords.
Other things to be aware of regarding the A9 search algorithm on Amazon
- When we analyze data across well-trending keywords and categories, the top-ranking items have more A+ content compared to lower-ranking items on page 2 and beyond.
- Much of your organic ranking isn't only based on the content on the product page you are pushing out on Amazon. You also need to look at your ratings and reviews, customer questions, sales rank (i.e. how well something is selling), and the return rate or sales performance of the item. These also impact your ranking on Amazon.
With regard to A+ content, it's not necessarily the specific content on the page, it's simply the presence of enhanced content. Internally Amazon gives a score of retail readiness at the ASIN level, the higher the retail readiness score the better you will do on organic ranking.
One experiment we have done at Reviewbox is this: We looked across the top 1000 items for multiple categories and then divided them into 1p and 3p available items. What we noticed was the content strategy was very different between the 1p and 3p items.
- For 3P, many sellers use a maximum bullet point strategy, whereas 1p brands used a nuanced strategy of content.
- The effects on conversion and sales here were subtle, so I think it helps to understand this on the brand side of the business. This can indicate you don't have to maximize everything on the content side.
Your Brand Needs to Run Frequent Data Analysis
Digital shelf management software can provide you with much more data, and in a more useable form, than what Amazon makes available to vendors and brands.
Merchandising your digital shelf to enhance your share of shelf requires a holistic approach for eCommerce brands. Brands should focus on creating a smooth path to purchase for their consumers online and using data to support it.
By creating a data-driven approach, you can methodically measure what is working across different teams within your organization.
Remember - communication between customer support, marketing, and eCommerce managers is imperative to win the digital shelf.
Click here to learn how Reviewbox can help.