Improve your Amazon Marketplace skills
Digital sales channels are hot topics these days, and online marketplaces such as Amazon are an important part of the e-commerce ecosystem.
In this webinar, Maze-One gives you a basic introduction to the possibilities and challenges you might find on Amazon.
You'll also get hands-on experiences on how to work with Amazon as an ecommerce specialist and inspiration from other successful cases.
- Christian Beer gives an introduction to the Ecommerce eco system and why marketplaces are important
- Amazon w/ Michael Chabert, Maze-One
- Why Amazon is a relevant sales platform for your business
- How to sell on Amazon
- Successful customer case
- Orchestra and automate data for Amazon.
- How to create an automated setup for delivering the right data to Amazon and other marketplaces, by using Dynamicweb and Channable.
- Q&A session
Maze-one is a marketplace agency that specializes in helping brands to get their business on global online marketplaces. Maze-one has offices in Copenhagen, Amsterdam, London and Oslo. Maze-one employs more than 25 employees who help over 90 brands, including Urtekram, Hummel, Phillips, Unilever, etc.
Looking for more content about Amazon marketplaces?
We have gathered the most relevant content for you below. One of the most important tools you need before making it to Amazon marketplaces is a Product Information Management system so that you push the relevant data to Amazon.
- Webinar: Reach 2500+ marketplaces with Dynamicweb PIM
- Amazon readiness test - check if your company should be operating on Amazon
Christian Beer: Okay. So good afternoon, everybody. And welcome to this webinar about how you can improve your Amazon marketplace skills. My name is Christian, and I'll be the host today. And I've been, I'm being accompanied by Michael, who is a managing partner and co-founder of our partner maze one. And is true Amazon specialists.
We will be guiding you through some of the opportunities and pitfalls and that Amazon brings for the next approximately 40, 45 minutes. And the agenda for today will be that a short introduction here. Then we'll be looking into Amazon as a platform. Why is it relevant, how you can sell. And of course also take into customer cases where you might can compare yourself with.
After that we would just show a brief demo on how we can automate and getting data from one of them, one of your platforms and into Amazon. And of course we will have time for Q and a. If any of you during the webinar who have questions, you're very welcome to type them into the question pane. And if we can find time during the webinar, we will answer them right away.
Otherwise we will have a Q and a session at the end of the webinar. Once again, a warm welcome and we will be digging into to this subject now. Since you are invited by dynamicweb to participate, we'll just give a brief introduction about our company and what we do dynamicweb is a Danish spaced but international software company, we are approximately 125 people where the majority is working out of Aarhus Denmark, but. Our second largest market is the us. We help around 4,000 customers together with our partners in becoming digital and delivering digital experiences to their customers.
Our offering is is what you see here on the left. Basically a software platform. And as I will show you later on today, it can. via, our PIM system and integration layer easily connect to marketplaces like Amazon, but we also do offer e-commerce content management and marketing automation capabilities.
And we do that for customers that are typically mid and large size businesses. And you see a couple here on the right. That was that was it about dynamicweb. Today it's all about marketplaces and just to warm up here some statistics that we got from Forrester and what on the first part and the left part of the screen, how how big the global commerce spaces and how many of those transactions are basically.
It's done through a marketplace. It's a quite substantial business area. And we know from our American colleagues that this has been huge in the States for a long time. And obviously also some markets in Europe but it's starting to gain more and more traction and a platform like Amazon is being more aggressive on the European market.
Now. So it's really relevant to speak about it. And we will talk about it today. And we will also talk about which goods that are basically suitable for Amazon. And we have a little test later on that we can show you. So you can basically do a kind of a evaluation self-evaluation whether your products and offering is suitable for Amazon, or whether you are maybe in the business.
That is not as. I played the ball for selling on Amazon. That was that was the brief introduction. And what we'll do now is I'll hand over to the presentation to Michael and he will guide us through some of the things around Amazon that is very useful to know. So we'll just do a very quick presentation shift here.
I think it's. On its way now. So Michael you're on now.
Michael Chabert: Thank you, Kristian. Yeah. I'm Michael I'm from MazeOne and the next 25 30 minutes. I want to take you through very shortly who's Maze One. So who speaking? Also shortly around market trends on Amazon. What is Amazon doing and why?
Mostly of the presentation will be more like some basic how to handle Amazon. It's only 25 minutes. So it will be headlines, not very much into details, but B three areas is covered. It's the operational part, it's the content part and the advertising part of Amazon. And as Kristian mentioned it will be great if you have some questions that we can.
Be more interactive at the end of the presentation. MazeOne, we call ourselves a marketplace specialist agency, but 90% of our work is on Amazon, which is by far biggest marketplace in Europe and us. And also what our clients mostly ask us to do. We are more than 25 people based in five offices working for more than 90 different clients in nine markets.
And based on those clients, we are gathering and seeing every day the challenges and the opportunities working with a platform like Amazon. The clients types are very different industries, different sizes different countries. Broad spector , of client experience, we have
so marketplaces the trends. I would say that about 50% of all e-commerce is happening. On marketplaces. That is a huge number. It's something that surprised many people are seeing this number for the first time, but it's just to say that it is a very big part of the e-commerce system and it's something that you need to somehow understand.
It's not for everybody to sell marketplaces at all, but it should be something you should spend a little bit time to understand and have a strategy for. As you see the different sizes of marketplaces in different countries. Amazon is big in Europe and us clearly more than almost 50% of revenue in us is coming on Amazon Germany, the same et cetera.
Also, this trend from a very big share of e-commerce is growing still a lot. For instance, in Germany, the latest number for second half year, 2019 the growth in Germany e-commerce as a total we're 10%. When we look at Amazon growth in the same period, it was 35%. So Amazon in the markets where they're already are big, they are still growing a lot and taking market shares from other actors.
About the growth lately over these last six, eight months of Corona virus epidemic. The first number here, 63% is how much the stock has increased on Amazon. 63% is it's a lot. And if you convert 63% into valuation in dollars, It's about $570 billion. That's a big number. And for my own understanding of how big that number is, I calculated what's the value of the daily stock market, 25 biggest companies.
And that value is about $500 billion. So just from the growth, the last six, eight months. Amazon could actually buy the 25 biggest stock market companies in Denmark. So that's just giving a picture of how big they are and how much they grow.
They are currently in, in 14 markets where they have a local Amazon service. But they are selling to people in around 180 markets. Why that is because for instance, Germany, Amazon, , you have people from Denmark, Sweden, Norway, and Poland, et cetera. Who's buying into Amazon Dotty. So 400 million customers about 165 million prime members, which is people who out every month paying Amazon at amount to be in a member of the loyalty club.
Yeah. And of course they also have some great services on the site, like streaming services and new music services, et cetera. So big numbers, also something that's happening right now in, in all part of the world in the Nordics is that Amazon have officially set that they are opening in Sweden. Something that have given a lot of attention in the Danish media and Swedish and Norwegian media.
What we do know is they are coming. They haven't actually told us exact date of launch, but most people will say it's going to happen in Q4 up to of course, obviously a high season for many industries. Also what we know is they are having a warehouse built close to Stockholm, and we also seen from job description of a country manager in Sweden, that a part of that role will be to expand into Denmark, Sweden, and Finland.
Things are happening in in the Nordics. I guess a consequence of Amazon growing so much is because of the ability to attract customers and also that the customer journey are changing. And by that, I mean that for some years ago, one of the main points of starting a customer journey would be product searches on Amazon.
And that have changed in the big Amazon markets. So Amazon now is bigger have a higher share product searches, which is traditionally have been the core business of Google. So Amazon is taking market share from Google in the big markets.
So there's always pros and cons. Amazon is I think some obviously advantages, but there's also some issues and challenges with Amazon. What. I'm listing here is what, some of the things we hear from our clients. So asking the clients, what is the biggest opportunity going on Amazon? They often say is it's an efficient sales machine.
If you do it right and make your homework good and the execution good, you can drive quite a lot of sales through Amazon. Probably most because of, they do have a lot of clients shopping on Amazon and people who aren't Amazon, they are part definitional looking for buying a product. So high willingness to buy.
And also for Amazon they are very efficient carrier or logistics partner. They do Yeah, I would say that if not the world, probably the world's best at moving products optimizing warehouses and moving products from warehouses to clients fast and efficient and cheap. So that's some of the pros that we hear from the clients, but also of course there is changes.
So chances are that you giving away some ownership of customer data it's sold by Amazon. And by that you, as a client, you as a brand, do not get the customer data that you can work on all your email systems or your own loyalty programs. There is a lot of competition on Amazon. So being an Amazon is not automatically meaning you're going to sell a lot.
It's a lot of competition. And by that, it's also mean that there is a price pressure on prices. Something that many brands do not like. And last I will mention that Amazon is very difficult to work with very rigid rules and algorithms. That's not. Sometimes easy to understand they have automated a lot of the client service.
Like they have automated the warehouses with the robots. They do have a lot of bots chatbots dealing with client questions and that's not always a good way of solving problems. So yeah. Pros and cons with Amazon.
Then, if we're looking into how to sell an Amazon. So we're moving into more like operational part of, if you decide Amazon is something I'm going to work on, are you already working on Amazon? There are some tactics you need to control. Basically. I would say there's three main. Areas you need to be good at it's operational excellence, meaning you have to decide what type of relationship I will have with Amazon.
What kind of fulfillment will I bring to the end-users or the clients, et cetera, as content, you need to build your product content in a way that consumers like, but also in a way that Amazon's search engine, like. Last you need to, when your products are available in the best possible way, you need to drive traffic to those products by advertising and by that driving sales.
So that's the three components I would say you need to master. So I will dig into the three components. First of all, how to get started There's two ways to work with Amazon two account types that you can choose between them. One is a seller account, which is something everybody can use. No matter if you are a small company with just one employee, or if you are one of the biggest companies in the world, everybody can use a select account.
Then you have another account, which is called a vendor account. That's you can compare that with a wholesale relationship with Amazon. So basically Amazon is buying your products and they selling them to the consumer. The disadvantage of that is that as a brand, you do not control what the price point to the consumer is.
It's decided by. Amazon price algorithms that constantly look through data and decide what is the price for selling this product on a seller account, you as a brand control the price to the consumer you control how to build what products you wanna sell, what markets you want to sell in, et cetera.
Also, one thing that's important to mention is a vendor account is not something you can choose. It's only per invitation, meaning that Amazon have to reach out to you to make that happen. But that's a two, basically two ways of dealing with Amazon. Then that's another decision to to think about is how is the logistics going to happen?
Basically again, two scenarios. One is you pay Amazon for a fulfillment service, meaning Amazon, you send your stocks to Amazon warehouse, Amazon taking the stock and they send it to the consumer when it's bought. The other option is that you can do it from your own warehouse and sending directly to the consumer.
There's pros and cons with both scenarios. I would say for immature Amazon account, you will often use fulfillment by Amazon because you know how much stock is sold by historically sales data. But also you get a prime label on your products, meaning that you will get an extra. Attraction towards the consumers and you will get an extra priority in Amazon's algorithm.
The advantage about FBM is if you have no sales history and you're starting on Amazon, it could be good to start out with an FDM solution. And then when sales start to roll in, what to send to an Amazon warehouse and how much that's a decision to be taking on logistics. Another decision is if you are a brand owner and you have a registered trademark in one of the trademark agencies in Europe, it would be a very good idea to also do the brand registration with Amazon because Amazon, they give brand owners some extra benefits.
It means that they give them some extra ways of presenting the content. They also give some extra tools to advertise your products. So it is a good idea too, to do that. If you are a brand owner that is registered to trademark benefit, just for an example is as a brand owner, you will get the rights to control the content.
Not only on what you selling to the consumer yourself, but also what resellers are selling to consumers. This example is from from a junior lever, who is having a lot of fast moving consumer goods. And basically what happened in the past where that junoir lever let resellers sell on Amazon, that didn't go in and control the content.
So what happened in a very extreme case, as you see on the left side is. And resay that basically took a mobile phone and took a picture of a product on the kitchen table and pushed it to Amazon for sale and Unilever big company as they are. They have a lot of brand guidance and they didn't like that way of the products being presented.
So they went in and requested the brand, took a con an account and started to produce content. Unilever have no interest and no ambition of selling directly to consumer, they only sell for resellers, or they have a interest that consumers are meeting the brand in a certain way as they meet the brand in the physical stores.
So that's another way of, or another reason why a brand registration can be a good idea.
Christian Beer: So maybe we actually got a question. Yeah. Yeah. Whether you, you control your pricing differently using the two different scenarios. So there are better control mechanisms, I guess that's four for the one or the other scenario you
Michael Chabert: described.
Yeah, definitely. When you go on a sales account, nobody, then you decide what price to put on the product. If you go for vendor agreement, You do not control the price at all. It's controlled by Amazon. So if you want to control your price 100%, then you will have a seller account. What you do not control is if you have resellers selling your brand on your behalf, and they are by some reason, going down in price, but that's the same situation you've probably experienced in the physical store sometimes.
Does that make sense? Yep. I
Christian Beer: think that was a nice and clear answer. Thank you.
Michael Chabert: Okay. So that was the part regarding getting started. Some operational decisions to take next will be a little bit about the content, what content is possible to present yourself and your company on Amazon. Basically there's free big content components. There's a product page PDP.
There's an expansion of the product page where it's called a plus. It's giving you some extra storytelling opportunities. And last you have a storefront, which is basically a. A small website on Amazon, where you can tell not only the product story, but also the company story going into to the details.
The product pages is for everybody, everybody can build a product page, but the two last components is something that only is supported by brand owners. So you probably know everybody, or most people have been on Amazon. They have seen a similar page. It's a product page. It looks very similar. No matter if you buy dog food or you buy at tennis racket very simple, some would say not beautiful at all.
Very limited of what you can do, but this is the limitation that Amazon gives. Neither the less. It makes it even more important that hundreds, thousands, millions of products are presented. And in competition, you need to control every component in on Amazon to make the best out of it. So titles reviews, variation, bullets, pictures, everything needs to be optimized very carefully.
Then as an expansion of a product page, you can do a more detailed and more nice looking presentation of the products. This case is hunkemöller, where they have chosen to do a plus content. They want to do it in a way that addresses one of the biggest challenges of. Action on e-commerce professional.
E-commerce have a lot of returns. People buy civil sizes, civil items, and the return rate up very high. So it I've chosen to use the, a plus content part to address, help consumers find the right version of format and the right size. So it could also be another way of using a plus content. We'll be presenting similar product so you can upsale your product.
But basically it gives you a more nice looking way of presenting your product.
The last component is a brand store, which is like a small website. Again, this is Hunkemöller, as you probably already see is it's a bit more like a webpage. It has a couple of menus where you can navigate into Hunkemöllers different product categories. So again, it gives you some more content and more storytelling, but also is behind a brainstorm.
Is some analytics. So you can, as your own website, optimize the traffic to your website, what are people visiting on the website and how much sales is getting ready from the visits data that you can optimize your content and advertising? Yeah.
Just to show you a case on a company who have been working very intense with the content and the results coming from that. It's a Danish company. It's called urtekram. They are having organic foods, organic beauty products, and been on Amazon since 2018. At the end of 19 that they chose to invest more into optimize the best selling product pages and also developing a plus.
And pre-install. And they have actually in this case, not used any money on advertising. So what they've seen from the race in Q1 last year to Q1 this year is a rate of about 600% in the re in the sales. So it's a way of showing that if you very going into details of optimization of content, you can achieve high growth.
Christian Beer: So a company like, like urtekram, how many products are they approximately offering at Amazon? It's I guess it's not the full assortment. Nope.
Michael Chabert: Nope. They right now they have about 100 products on Amazon in a about three markets. That's where they are right now, but they are looking into expand into more products and more markets.
And in that case could be relevant for urtekram to look into automation who PIM systems or proxy tools as a channel.
So that was the content part. So looking into the advertising part Again, looking at this many people you have already been and seen that advertising is showed in the first screen. And they it's a very big part of the first green experience on Amazon. So the red box you see here is all at the Tyson formats.
It's five products presented, which is paid for, and the free products outside of it box is organic. So it just shows that if you wanna, be on top and drive sales, you need to invest in advertising. Amazon provides you basically three different formats to advertise. I would go into the details of each product going forward here.
First of all, you have Sponsored product format it's for everybody. Meaning it's for seller accounts and vendor accounts small companies, big companies, everybody can use sponsored products, probably the most used format on Amazon. The targeting opportunities for these placements is also very wide.
So you could say that One targeting method is automatic. Meaning you letting Amazon algorithms decide how you campaigns going to be targeted. You can also choose specific keywords that you want to buy and place your ads towards when a consumer search for that. Or you can even say that product targeting, which means.
People who have been visiting your competitor product pages, you can actually buy that attention, approves your ad towards that audience who have seen specific product pages that you think is relevant compared with your own products.
Then sponsored brands is another format. It's a bigger format where you can have more products into the format. The it's a limitation of how many can use this format. It's mainly for brand owners who have been doing a brand registration and for companies who have done have been the agreement with Amazon targeting methods, here is a little bit limited.
It's only driven by keywords, but again it's a very efficient format. That the, that also brings good return on investment. The last format I wanna show you is what we call the sponsored display format. It's only placed on a product page. So when a consumer, in this case looking for a camera, then a competitor can buy this placement on that specific product page.
Again, it's only for brand owners who have been doing a brand registration and it's for windows the targeting method here is just product targeting. So only placement on product pages, all three formats have different ways of being used in combination or just one of them. If it's depending on the situation of the brand.
And he, again, a very short case, it's a brand who wants to be anonymous, but it's a Danish brand who is in the beauty industry. And also been on Amazon since 2018. And in 19, they wanted to. Invest more in optimizing the advertising. And in this case, you will see that the blue line is what we call a cost, which is a very typical KPI or your advertising ECOS means that you will take a percentage of your sale.
And reinvest in the, at the time in advertising. And in this case, you will see the a costs of 17% of this client means that they have invested over time, 17% of the revenue into advertising. Also in this case, they have been setting up different appetizing formats, and they have been seeing a growth of almost 500% from November to March.
Meaning a period of five, six months.
So very last slide from for me is if anybody is wondering, what does it cost to, to be an Amazon? I've seen some examples of, if you have a vendor account, sorry, if you going for a seller account. Amazon. I have a very clear pricing. It's a, you have to pay 39 euros per month. No matter if you're selling or not, then you will look into a sales commission.
You have to pay to Amazon between seven and 15% depending on industry. So 7% is typically consumer electronics. 15% is the most categories like beauty. House and garden fashion, et cetera. Then they have to pay 15% of the sales to Amazon on a seller account. You need to be aware of the fulfillment costs.
If you're using Amazon's fulfillment, it's price per sold unit, and it depends on size and weight advertising. You need to reserve some money for that as well. But how much is up to you? Ambition and budgets. Then there's also cost of doing things. And if you have internal resources, it's time basically, and knowledge you need to provide to make this happen, or another opportunity would be to partner up with a agency as us, or there's a lot of agencies out there.
And to give you an example of pricing we, we typically charge 3000 Euro for starting package. Which means that we will help creating a seller account and create 25 product pages. And then you are on Amazon with some products and yeah. Then it's the first step has been taken. So very last thing is if anybody out there on this call today have an account we would like to offer you a free of charge.
Analytics of new activities and coming up with what we think is being good from the current activities and what we think could be improved. So if interested, you are welcome to reach out to me on my email and we can have a chat about that.
Christian Beer: That's perfect. Michael. I think a lot of people are very curious about how much it cost and what's the potential for all your business.
We have received questions and we'll get back to those in a short while just a sham printer. And what I would do now is basically give you just a, an idea of how you can automate the data part, because as Michael told us, one of the customers and cases that you showed today urtekram, they had Was it a hundred products or so, but in all different languages and wanted to expand into a richer geography.
So that will be a lot of manual and copy paste and spreadsheets moving back and forth. If you don't automate automated. And this is where dynamicweb can come in handy, we have this. PIM product information management system. That basically is something that in our cases together with your e-commerce and it's connected to your ERP system.
So what you can do from here is basically you can deliver data to various channels. And one of those is the marketplace channel, which of course is very important here. The way we handle the marketplaces with dynamicweb is basically that we have a partnership with a company, Dutch company called Channable.
And when we send data to channable, they can basically distribute those data to up to 2,500 different marketplaces. So it's not only Amazon. It's also eBay could be a Google shopping feeds could be. All kinds of other regional local vertical, marketplaces that channable has connected to The way we see it typically is that if there is a lot of volume and you want to do the shipping, maybe yourself, you need to get some product information up to your marketplace and you need to get some orders back.
And this is basically what we help with. And we have made this short video here giving a brief example on how it can work. We are inside. There's an application of and in that we can basically structure our products. And enriching them, translating them and making them ready for our amazon.
We can steeply expose the products in different categories. So we can think that data to Amazon. And when we have died, what data we want, Amazon, we can then decide on which fields and inputs that should be centered. And depending on how many markets you're on, you should determine which plan you want which currencies, et cetera.
But then there's also appeals. Variation and reform as one to deliver. And then when you bind all of that, we will generate a link. That is a nice XML but it's it's very rebuilt when you add new up in . Into to Amazon because this middleware that is called channable and in take data, you saw a minute ago in dynamicweb, which was XML and then map the data to channel.
So we get products basically, feed it from our system to channel and in channable. Or we can then. Map the field. So
extra. And this is only when we've set it up. After we add an auto product, this is done totally automatically. So after doing that, we can basically product, eh into channable from, dynamicweb and it's that distribute data to ASAM and NTD. Get us back. We're not going to
Yeah. When we when we talked about doing this webinar, at some point, we also made a small little gimmick about it. Some of you may have already heard about this this test, but if you're interested in Amazon, And whether there's a fit with the goods and types of products and business you're in, we actually created this free Amazon tests and we will send it out the link here together with them, with the slides after the webinar.
So I think this is this is what we planned to say. And I can see that there's a lot of great questions here. And I think maybe Michael, you are, since you're the Amazon expert, I'll be reading and hopefully you have some good answers here. So we already talked about this pricing thing, but we have a question here.
We are ready. We are registered in Amazon brand, registered on Amazon us. Would that automatically apply to Europe, other markets as well?
Michael Chabert: Unfortunately not. Amazon is basically three different accounts. You a us account, give you access to sell in us and Canada and South America. Would you want to deal in Europe?
You have a totally different account with a different login and here you have to do a brand registration per market in that account.
Christian Beer: Yeah. All right. Another one wants to know how much it costs to register a brand at Amazon. I don't know if that was with that included in your previous slide.
Michael Chabert: I would say that for the startup package we will include a brand registration.
It's not taking a lot of time. If you have the data and necessary that Amazon are asking for.
Christian Beer: Okay. Yeah. We have asked to hear from Nick, we are the sole licensed distributor for another company's brand in UK. How do we register as the official seller of the brand in Amazon, UK when we don't actually own the brand?
Michael Chabert: So if you not own off the brand, but you have the sole rights to sell it, it's a little bit complicated. It depends on the relationship you have with a brand owner. Sometimes we hear that the print owner is giving the reseller a lot of Liberty and give them the rights in the country to act as a brand owner.
And sometimes brands do not want to do that. So technically Amazon you can do it, but it really depends on your permission from the brand owner. Yep.
Christian Beer: So this is a question about being a brand owner. So entering brand texts, how do you deal with language versions? Is it up to the brand owner to enter text in the different languages?
Michael Chabert: Yes. It's the brand owner who control the content on a seller account. So that's the brand owner who will be responsible for that. Okay, but we do see, and that was the case for Unilever. But we do see is that where the brand owner do not control and not have an active account and actively, eh, do something.
Then you will see as Unilever that resellers will sell your product on their own content. And not always content that you as a brand owner would like them to do.
Christian Beer: So basically, if you want to be in control, then it's better get going and make it happen.
Michael Chabert: If you're not having an account, Amazon is not responding to you or do not have any relationship with you.
If you need to do something, you need to have an account. Then you are in the game and can do something.
Christian Beer: Yeah. So is a plus content free for brand owners.
Michael Chabert: That's another question. Yes. Amazon is not charging anything for brand stall or a plus content. It's only your own resources to develop it and push it out.
Christian Beer: Yep. So there's a question about if it's easy to integrate at PIM of any sort with Amazon, is it expensive to integrate it? That may be on my end, I think most PIM systems like, dynamicweb, quite flexible, too. To define these XML export. So I think it would probably be easy to integrate every, eh, every PIM system to to to Amazon at least if it's a modern system.
So I think the short answers is yes, they are. And we will go on with them. Next one. Can you say anything on the B2B trends on Amazon? That's a bit broad but still we talked about B2C
Michael Chabert: today. Yeah. Yeah. I would say that a B2B has existed in Amazon us for many years and is a big part of the Amazon business over there.
In Europe it's maybe four or five years old, but what we do see is for many companies, they tend to use an Amazon account, especially in the big Amazon market. To buy furniture to the office. Yeah. Even paper and in all our office articles, they tend to have an Amazon account and buying from Amazon on that case.
So I would say, yeah, the Amazon business to consumer is definitely the biggest part of the Amazon business, but Amazon business to business is growing a lot. Yeah.
Christian Beer: Okay. So another question here, how does the keyword search slash targeting work?
Michael Chabert: It works. Amazon have been copying the way Google is handling keyword searches.
So the principles are the same. So it's a price per click and it's a repeatable environment. So you have to in auction based pricing. You have to put a price on specific keywords and then depending on who else is bidding, you win the bid and you win the click.
Christian Beer: Okay. Yep. Then we have a question about what opportunity does in a Norwegian B2B reselling company, industrial components, and Latin, a large number of use selling me to in a norwegian, market have on Amazon B2B today is amazon something we should disregard from now seeing that Amazon is currently not established in Norway.
So that's a big
Michael Chabert: question. The question and not knowing exactly. The company's a unique selling proposition and products and market. I would be very careful to answer that. What I can say is amazon is definitely not for everybody. As some companies, some industries where you probably can prioritize your time towards all the channels that is better than Amazon.
Christian Beer: But that may be a kind of a question that requests for more information. An an invitation maybe to reach out to you afterwards.
Michael Chabert: Definitely. But I'm sorry. I'm not more precise on that topic, but yeah. Yeah. Yeah.
Christian Beer: So another question here with a windows central account, how do you get Amazon to order new products where there is no sales data?
Michael Chabert: Eh, that's the thing about vendor accounts Amazon, when they approach a vendor relationship, they do have a lot of data to back up. And that's the advantage that when Amazon knock on your door and wants to a vendor account, it means that they have done a homework and they do know they can sell your products.
Okay. What is the disadvantage is that you do not control it. So you do not decide what products Amazon, things are relevant. There can be a new product line that you want to launch, but Amazon do not have data that backs up a decision. Then you are left on a vendor account, not being able to sell it.
But I don't know. I'm going to say that a seller account. You can go out actively push products that you believe in. I'll have a,
Christian Beer: Yep. So yeah, we actually add some inputs about the sound quality, but yeah, I think it's a bit too late to see if we can fix anything here, but what can we do to increase ranking on a product that is new? Yeah, that is new on Amazon.
Michael Chabert: Yeah. So that's the biggest challenge because new to Amazon means that you will start at the lowest ranking and then the but what we advise our clients to do is you to accelerate your rankings organically, you need to invest cleverly in advertising to build traffic and fuel sales.
When that's happening, you will see your organic sales will increase as well. So it's a kind of a positive yeah, positive flow you're building up.
Christian Beer: Okay. What can you say about the Amazon algorithm that leads to your product being displayed on. Chop content X percent advertising X percent FBA X percent.
I asked this question with selling commodity products in mind.
Michael Chabert: Eh, Amazon we do know what is what variables are important? We do not know exact weighting. Amazon is keeping the algorithms in a black box. But what we do know is that one of the major things that moves the needle on Amazon.
algorithms is sales. So you could say it's a kind of a disadvantage for new sellers, but when you sell a lot, you automatically have the con consumers vote and Amazon is weightning that a lot. So you will be very high in the rankings. If you sell a lot And another thing is if you do FBA, it's giving you extra points your product pages.
If you have a good score on reviews, it's weighting a lot. unfortunately, I can't give you exact percentages on how much each component is because that's only Amazon's algorithm to know, and they do not share the exact data. Okay,
Christian Beer: another question here. You have talked about advertising on Amazon and methods for doing it.
What about improving organic traffic? What is the, how to,
Michael Chabert: for that? Yeah. Organic is a civil components. It's in the back end. When you put a product page out on Amazon in the back end, you will have the opportunity to do later attacks by you decide what keywords is relevant for my product page.
So that's a exercise you need to be doing. Then it's also a product page is built by many different variables. If you just have one product pitcher that will and another product page have eight pictures, then it will be prioritized. It's
Christian Beer: basically like Google, the more rich and enriched content that you deliver the better ranking organically.
Michael Chabert: Yeah. You at the same principles.
Christian Beer: Yeah. Yeah. Okay. So another question, I think it's the last I have on the list here. So would you advise to have both a VC and an se account,
Michael Chabert: but it depends on the situation. We have clients who do have that scenario but it's always a history before you end up there.
So often we see clients start out with a seller account. Then at some point, Amazon will knock on your door and say, Hey, we see your products are selling well, can we buy it? Sometimes it's we see scenarios where cost a brand have started with vendor account, but then in the process choose to have a seller account either because they're not satisfied with what's.
Amazon is doing on buying the products, what prices they pay. Or maybe Amazon will not buy the products in a specific market by the Amazon will not buy a new product range. Then you, as a company, you say, okay, if you do not buy it through the vendor account, then I will create a seller account and address that market or to risk that kind of product.
Christian Beer: Sounds like it sounds like a logical approach. Yep. I think that was that was basically the questions. So thank you for typing in and asking all these great questions and then we would like you to to wish you all a good day and thank you for tuning in here. We will be sending out slides and and Michael's offered to look at, take a look at your current Amazon account and you have some tests.
So thank you for now and have a great afternoon. Bye.