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How to Kickstart Your Strategy

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How to Kickstart Your Strategy

The Amazon Marketplace is one of the most well-known and popular marketing channels for online retailers. This is due in part to the incredible brand-building potential selling on Amazon offers, but it’s also more simply because of all those prospective customers.

Maintaining an active presence on Amazon was once considered nice-to-have for many retailers, but today, many brands find it an absolute necessity. In order to make sales, your products have to be available where people are shopping, and people are most certainly shopping on Amazon…

  • “In 2021, Amazon’s total consolidated net sales revenue amounted to 469.82 billion U.S. dollars.” (Statista)
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  • “Amazon spent 10.4 billion U.S. dollars on advertising in the United States in 2021. The e-commerce company consolidated its position as the largest U.S. advertiser in terms of spending for the third consecutive year.” (Statista)
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  • There are 153 million Amazon Prime members in the US (200 million worldwide) (Statista)

Amazon is continuously maturing and evolving in all aspects of its business, from enhancements to Amazon Creative, to the launch of Amazon Marketing Cloud, Amazon Moments, Buy With Prime, and so much more.

Content, inventory, search advertising, display, video, targeting, measurement and reporting, and more—the world of Amazon can be overwhelming if you’re just starting out on the platform! But we’re here to break it all down, diving into all the ins and outs you need to understand to successfully sell on Amazon in 2023 and beyond.

Keep reading for a step-by-step list covering how to sell on Amazon.
 

Table of Contents

 

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Source: https://www.statista.com/statistics/274255/market-share-of-the-leading-retailers-in-us-e-commerce/

Weighing the primary pros and cons of selling on Amazon can help you determine if it’s the right fit for your brand, and serve as an easy-to-reference checklist to revisit if you decide to move forward. While many of the pros and cons you’ll likely add to your list will be dependent on your unique situation and business goals, there are a few to consider that are relevant to most brands…

Benefits

  • Amazon is the leading online retailer in the US, with market share so large that it’s nearly incomprehensible. According to recent data shared by Statista: “As of June 2022, Amazon accounted for 37.8 percent of the U.S. e-commerce market…Second place was occupied by the e-commerce site of retail chain Walmart, with a 6.3 percent market share.”
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  • Building a presence on Amazon can introduce you to new-to-brand customers who might not have found your brand through other channels
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  • Having Prime-eligible products can help you secure increased sales from new and current customers, particularly if the free shipping threshold on your website isn’t easily reached with one item

Drawbacks & Considerations

  • Sellers are up against considerable competition on Amazon, including from established brands and sellers who have been actively selling and/or advertising for years
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  • Increased competition within the same space makes having the best price not only important, but absolutely essential to securing sales
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  • There are a number of associated fees to consider, which must be factored into the equation from the outset to help determine profitability

 

How Is Selling on Amazon Different from Selling on Your ecommerce Site?

As profitable and beneficial for brand-building as selling on Amazon can be, there are key differences from how you approach selling on your own site. Sellers on Amazon are essentially tenants, and have to abide by the landlord’s rules and policies.

Let’s explore a few primary differences to consider…

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  • While Amazon Stores (covered below) help you showcase your brand, products, and value proposition on Amazon, you don’t have the same level of control over the look, feel, functionality, and overall customer experience as you do on your own website
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  • On Amazon, you’re not alone. Once you’ve attracted shoppers to your own website, the additional products they’ll find while browsing and comparing will be your own. On Amazon, browsing and comparing can easily lead shoppers to another seller
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  • All that competition comes with some problem sellers. On Amazon, you’ll have to watch out for scammers trying to benefit from your hard work and quality products by using your legitimate ASINs (Amazon Standard Identification Numbers) for their own counterfeit products. To help protect against this, consider enrolling in Amazon Brand Registry

 

Selling on Amazon as a Vendor (1P) vs. Third-Party (3P) Seller

Before we dive into important tips to help you sell on Amazon, it’s important to distinguish between first-party and third-party sellers.

Vendors, or first-party sellers, use a program called Amazon Vendor Central to manage their account. Vendors sell their inventory to Amazon for a wholesale rate, then Amazon sells the product directly to consumers.

Amazon vendors are part of an invite-only program for manufacturers and distributors, with Amazon reaching out to express interest in buying their product or products directly. This is typically done if a brand/product has historically solid selling performance on the platform, or is a well-established brand/product. These listings will display as being both sold by Amazon, and fulfilled by Amazon.

However, the majority of sellers on Amazon are Third-Party Sellers, who use an interface called Amazon Seller Central. This requires sellers to list, price, and market their own products, and also leaves sellers responsible for organizing and monitoring inventory, pricing, advertising, reports, and more. With that said, being a third-party seller has its perks:

  • Increase Exposure and Reach New Customers – With millions of unique monthly visitors, visibility on Amazon helps boost brand awareness, and get more people to your online store. The Amazon Marketplace is huge. You’ll gain exposure to new and varied shoppers through the Marketplace—many of whom might never encounter your online store otherwise
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  • Leverage Marketplace Benefits – Amazon’s Marketplace is a shopping destination that is known for reliability, ease of online shopping, speedy shipping, and an incredible selection. Listing on the Marketplace will allow you to capitalize on the hard branding and growth work Amazon has put in over the past 25+ years
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  • Increase Sales – Many shoppers come to Amazon with the explicit intent to purchase, or at the very least are looking to browse or compare. Online search, advertising, and other forms of online exposure do not guarantee that same bottom-funnel audience that is likely to quickly convert

Selling through Amazon Seller Central is generally more work than selling through Amazon Vendor Central, but it’s also open to a larger group of sellers, and comes with greater levels of control around shipping, prices, and fulfillment—not to mention the potential for higher margins.
 

 
Ready to dive in? Let’s take a top-down approach outlining how to sell on Amazon…
 

Conduct Market and Product Research

If you’ll be selling products on Amazon that you already sell on other online marketplaces, including your own retail website, you already have a healthy head start on the market and product research. That said, you aren’t done!

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Whether you’re a new seller, or an established ecommerce retailer in other spaces, it’s important to conduct Amazon-specific market and product research. The factors and tactics that drive shoppers to your ecommerce site may differ quite a bit from what will lead to success on Amazon.

A few things to consider in your research:

  • What are the current top-sellers in your market, category, or niche, and what can you learn from those listings?
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  • Do the top listings in your category have a large number of images, detailed product information, and/or reviews?
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  • How important does offering Prime shipping appear to be in your space?
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  • What is the overall sentiment for the best-sellers and worst-sellers in your space?
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  • In reading the reviews for similar products, take note of what shoppers like, dislike, have trouble with, or wish they knew before buying
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  • Where possible, contact others in your industry to learn more about their experience selling on Amazon, and ways in which they approach the space similarly or differently than other platforms

 

Assess Your Business Plan

Your business plan on Amazon should start by identifying your primary goals—why do you want to sell on Amazon in the first place? What do you want, or need, to get out of selling on Amazon to consider it “a success?”

From there, it can be helpful to assign a hierarchy to your goals. Knowing which goals are most important will help everyone in your organization better understand what to do, and how to do it, in ways that ladder up to the desired outcomes. It will also help in resource allocation, as you’ll want to be sure your primary goal is supported in every business decision you make.

Some things you’ll want to consider in building your business plan include:

  • What does our space on Amazon look like? We all know there is a lot of competition on Amazon, but not all competition is created equal. Take time to research other primary players in your space already active on the platform to see if you’ll be going up against MVPs, or can more quickly make a name for yourself with some strategic moves
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  • How long do we plan to sell on Amazon? For most brands, there is no ‘end date’ in mind, as selling on Amazon is an integral part of their overall marketing strategy. However, others use Amazon for a needed temporary boost, or to increase brand awareness that they hope will translate to increased traffic on their own site. Because many marketing strategies are long-term, and different optimization methods and advertising initiatives see the most success on differing timelines, it’s important to determine if selling on Amazon will just be a fling, or you’re working toward an ongoing relationship
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  • How much time and money are we willing to invest in selling on Amazon? Before you spend time creating a robust marketing strategy packed with internal projects and full-funnel advertising options, make sure you have a solid understanding of what you, or your business, are willing to spend. Also consider if there are any situations you would consider make-or-break, and factor those in

 

Find Reliable Suppliers

If you’ll be selling entirely new products for which you don’t already have inventory, you’ll need to dedicate time to researching reliable suppliers. This can be done via the internet, or in person, such as connecting through trade shows. Top considerations when determining a good fit include:

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  • The quality of the products they offer. Be sure to request a sample of every product you plan to purchase so you can personally assess the look and feel
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  • The price per product, and if there is a minimum (or maximum) order quantity
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  • How easy the supplier is to reach, including how quickly they return calls or emails, and how many avenues you’re provided with to contact them
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  • The order volume they can keep up with. Just like retailers, suppliers come in all sizes and capabilities, and some will be equipped for much higher output than others. This can vary not only by the size of the supplier, but the type of goods, among other factors. For example, a supplier might be able to quickly restock socks and candles, but will need more time—or have a smaller number of—hand-knit sweaters, which take longer to produce
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  • How quickly they can ship, and where their shipments come from. Knowing where shipments originate will give you a better idea of how long they will take to arrive from order date, as well as any current conditions / supply chain issues that may impact their delivery

 

Decide Between the Professional or Individual Seller Plan

When choosing an Amazon Seller Plan—Individual or Professional—the most important thing to consider is how many products you plan to list for sale on the site. The totality of the sales you anticipate on the platform should be your guiding light when deciding on a plan.

Both Individual and Professional Seller plans allow for listing products across a wide selection of common categories, with some additional categories available only to Professional Sellers who apply for permission and meet the necessary requirements. Categories exclusively available to Professional Seller accounts include fine art, fine jewelry, collectible coins, and more.

The major differences between the Professional Amazon Seller Plan vs. the Individual Seller Plan include:

Individual Plan: Best if you are an entry-level or niche seller that expects to sell fewer than 40 items per month. There’s no monthly subscription fee, but your selling fees are $0.99 per item in addition to referral fees and additional selling fees.

Professional Plan: Most established brands will start here – particularly if they plan to leverage Amazon advertising, which is only available for Professional plans. The monthly subscription fee is currently $39.99 (with no $.99 per item fee), in addition to referral fees and additional selling fees.

Other key features and benefits a Professional plan offers that an Individual plan doesn’t include: Buy Box eligibility; sales tax collection on items sold; API integration available; create listings in bulk; manage your inventory with feeds, spreadsheets and reports; ability to grant user permissions; on-site advertising tools.
 

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Create Your Amazon Seller Account

To get started, visit the “Sell on Amazon” page and click the ‘Sign up’ bubble. Some things you’ll need on-hand to begin registration include: a credit card that can be charged internationally; banking information, including your routing and account numbers; tax identification information.

If you’re a regular Amazon shopper yourself, chances are good you already have hundreds of emails from them in your inbox. To help in keeping your personal and business-related Amazon emails separate, we recommend using a different email address for your business than the one already linked to your personal Amazon Prime account. If you don’t already have a separate account, consider creating one in Gmail before logging into Seller Central. Keep in mind every Seller Central account you open will require a unique email.

Once you’ve decided on a login, Amazon will prompt you to fill out several additional steps, including:

  • Seller Agreement / Information: You will need your business name & address, mobile or telephone number, chargeable credit card & valid bank account, and your tax information
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  • Billing / Deposit: This is where you will decide on your Professional Seller plan and fees
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  • Tax Information: Here you will select whether you’re a sole proprietor or a business. The major difference? Sole proprietors/individuals use their Social Security Number instead of an Employer Identification Number as their tax identification number
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  • Product Information: Amazon will ask you a variety of questions about your products, including: their UPC codes; if you manufacture your own products; how many products you would like to list on the marketplace. Note that Amazon is already cross-checking UPC codes assigned to different ASINs on their marketplace against the GS1 database. This means any seller without authentic GS1 UPC codes is at risk of getting their listings removed at Amazon’s discretion

Once you complete these steps you will be officially welcomed to your Seller Central dashboard, which includes a variety of tabs for managing inventory, pricing, orders, advertising, reports, and performance.

Don’t forget to list your products and fill out the “About Seller” to let the Marketplace know about your business. You can also include your company logo, FAQs, and your privacy policy.
 

Add Products to Your Store

If the identical product you’re adding already exists on Amazon, you’ll add your product using the existing listing. If this will be a brand new product for which you’re the only seller, you’ll start by creating a new listing.

Below—within Best Practices for Advertising Products Sold on Amazon—we explore how to fully optimize your product detail pages, including how to best structure your title, and use keyword-rich descriptions for optimal discoverability. Some basic listing details you’ll need to get started adding products include:

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  • Product identifier (GTIN, UPC, ISBN or EAN)
  • Product brand, name, and category
  • Product description details and images
  • Item SKU (stock keeping unit)
  • Item price and quantity available
  • Shipping options
  • Product condition (ex. new or refurbished)

 

Establish Inventory Management Processes

You can be doing all the right things on Amazon to get shoppers to your listings, but if your products aren’t in stock, you’ll lose 100% of your potential sales. Effective inventory management is more important than ever, especially if you’re an Amazon seller. In recent years, Amazon introduced monthly long-term storage fees for slow-moving inventory, increased FBA fees, and launched the new Inventory Performance Index (IPI) metric.

There have also been improvements to the basic inventory management features available in Seller Central. What these changes have in common is a mission to help Amazon merchants manage their inventory more effectively. However, some sellers face special challenges when managing their Amazon inventory—particularly if they are self-fulfilling (not leveraging FBA). If that rings true for you, you may want to invest in an Amazon inventory management tool.
 

Choose a Fulfillment Method

Before you can actually start selling, you need to determine if you want Amazon to handle fulfillment of your products, or if it would make more sense to handle your own order fulfillment when purchases come through. Current Amazon fulfillment options include:

  1. Fulfillment by Amazon (FBA)
  2. Fulfillment by Merchant (FBM)
  3. Seller-Fulfilled Prime (SFP)
  4. FBA Multi-Channel Fulfillment (MCF)

 
Let’s break these down to better understand each option.
 

Option 1: Fulfillment by Amazon (FBA)

Amazon statistic, reading “on average, sellers see a 20-25% increase in sales after adopting FBA”

Source: https://sell.amazon.com/

Fulfillment by Amazon (FBA) is a program where Amazon stores, packs, ships, and handles customer service for the products you sell on Amazon. FBA gives you the ability to sell products with free and/or fast shipping and delivery, which can help increase sales.

“Prime members love FREE Two-Day Shipping, and all Amazon.com customers can get free shipping on eligible orders. When you list products for FBA, they are eligible for free shipping, too. Qualified FBA listings are displayed with the Prime logo, so customers know that Amazon handles packing, delivery, customer service, and returns.”Amazon

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FBA is a fulfillment option that sellers can choose for any or all of their products. Sellers vary on the number of products they choose to fulfill (if any) using FBA, with primary considerations including their sales volume, margins, product category, and related seller variables.

Fulfillment by Amazon is a great option for merchants who are looking to efficiently and reliably improve shipping times, while reducing time, money, and resources they must allot to fulfillment, including storage and distribution.
 

The Benefits of FBA

The launch of FBA was a game-changer for many brands and businesses that don’t have the time, desire, or necessary infrastructure, expertise, or workforce to handle fulfillment as well as Amazon is equipped to do. Some key benefits FBA offers include:

  • Streamlined Operations: FBA eliminates fulfillment shipping efforts for sellers. Instead of handling the logistics, work, and associated fees of warehouse management, including picking, packaging, and shipping, retailers can pass off those tasks to Amazon at a cost
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  • Products are Primed for Amazon Prime Sales: Amazon Prime customers purchase more products, and shop more frequently, than non-Prime Amazon shoppers on the site. Using FBA increases product discoverability as FBA products feature Prime shipping, and appear for Prime-filtered searches. Conversions are typically higher on product detail pages for items that are Prime-eligible, which can increase sales for products you sell using FBA
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  • Customer Service & Returns: Amazon handles customer service and returns for FBA orders—a major perk for sellers who aren’t customer service specialists. This frees you up to spend more time strategically growing your business
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  • Shipping Speed: For online shoppers, FBA provides quicker shipping rates, Amazon Prime-eligible shipping, and 24/7 Customer Service and delivery tracking through Amazon. FBA products are shipped from Amazon, so they typically are processed and shipped more quickly than products sent directly from the retailer. Amazon emphasizes customer service, so shoppers can rely on helpful assistance that can reduce the chances of a dissatisfied customer, or negative review
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  • Buy Box Share: FBA impacts key factors in Buy Box share variables, including shipping and seller rating. FBA is a good way to boost your chances of getting a share of the Buy Box for products where shipping or other Buy Box eligibility requirements might be hard to achieve
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  • Amazon Branding: FBA is fulfilled by Amazon, a company that has worked hard to curate a brand focused on customer service and ease of online shopping. FBA aligns your store with that branding and lends that reputation to your store

Now for the biggest con (for most sellers) to FBA: the cost.
 

Costs of FBA

Amazon seller fees result in a charge of a percent of total sale profits. In addition to those fees, FBA charges fees based on:

  • Shipping weight and size
  • Handling fees
  • Pick & pack
  • Storage costs (sq ft.)
  • Seasonality surges (costs tend to increase in relation to upcoming holidays and tentpole events)

 
For some sellers, FBA initially seems like an expensive option, but keep in mind that leveraging FBA makes Amazon your logistics partner. At Tinuiti, we use our FBA Profitability Analysis Tool to help our clients determine if their products will be profitable using FBA.

Amazon Fulfillment impacts your margin for individual products, which arguably limits profitability. However, with the increase of total sale volume and exposure, FBA is likely a good investment for your online store. For example, you may make less money on an individual product—such as a single water bottle—but you are likely to sell more water bottles overall for a larger holistic profit.

Like the idea of FBA for some of your products, but still want to handle fulfillment on your own for others? You can do that!

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Sellers using FBA don’t have to use the FBA option for all of their products, allowing you to calculate which products are profitable to fulfill with FBA. FBA may not be a strong option for your store depending on the competition surrounding your products, what products you sell, where your business is located, your margins, and other related variables, but its advantages make it worth exploring for all sellers.
 

Option 2: Fulfillment by Merchant (FBM)

Amazon Fulfilled by Merchant (FBM) makes you responsible for picking, packing, and shipping the products you sell on the Amazon Marketplace. FBM does not give you the option to list products as “Prime.”

The biggest benefit of FBM is that you’ll avoid some of the fees that come with FBA. However, you’ll be required to abide by all of Amazon seller rules (i.e. replying to customer support issues within 24 hours, provide tracking info, and shipping within your stated time frame).

Self-fulfillment takes more work, but is doable if you already have the right infrastructure in place to handle all of the above.

Unfortunately, and importantly, with FBM you will not have access to selling via Amazon Prime (unless you’re selling with Seller Fulfilled Prime – see below), which in turn will lead to less sales than a comparable FBA offering.
 

Option 3: Seller Fulfilled Prime (SFP)

Seller Fulfilled Prime (SFP) is a hybrid Amazon fulfillment option that gives you the ability to store, pack, and ship products from your own warehouse, while allowing your products to be listed with the conversion-boosting Prime badge. Just remember—that badge comes with responsibility.

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“Seller Fulfilled Prime is the Prime program that allows you to deliver directly to domestic Prime customers from your own warehouse. By displaying the Prime badge, you are committing to fulfill orders with Two-Day Delivery at no additional charge for Prime customers.”Amazon

Qualifying for SFP isn’t easy, requiring you to “complete a trial period to show that you are able to meet the requirements for Prime fulfillment excellence and customer satisfaction.” During the trial period, you’ll need to satisfy all of Amazon’s outlined requirements. These include (but are not limited to): Offering premium shipping options; shipping 99%+ of your orders on time, and meeting the 1-day or 2-day delivery promise; maintaining an OCR (order cancellation rate) below 0.5%; using Amazon Buy Shipping Services for at least 99% of your orders.

Seller Fulfilled Prime is the best of both worlds for businesses with a solid fulfillment strategy, but there is no room to slack. Amazon holds SFP orders to very high standards, with ambitious requirements.

If you’d like to explore SFP, check to see if Amazon is currently accepting new registrants. If not, there may be an available waitlist to join.
 

Option 4: FBA Multi-Channel Fulfillment (MCF)

Multi-channel fulfillment—an option within FBA—is designed to help sellers active across two or more sites or channels access the same inventory for all order fulfillment, no matter where the sale comes through. With Amazon MCF, you ship all of your inventory to Amazon’s fulfillment centers. When orders come through, Amazon will pack and ship them on your behalf, including those that come through your own website.

By utilizing Amazon MCF, sellers who struggle to maintain efficient shipping and delivery speeds can leverage “the world’s largest fulfillment network to provide fast, reliable ecommerce fulfillment wherever orders are placed.” While FBA and MCF come at a cost, the improvement in customer satisfaction can help improve your reviews, and fuel your business growth on and off Amazon.
 

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Once you have all your products listed on Amazon, optimization and advertising can help give them additional visibility, and a boost in sales. Let’s explore some of the most important things to consider when optimizing your listings, and advertising on Amazon.
 

1. Provide Search Optimized Product Listings

Almost anyone can list on Amazon, but not every seller is following the Amazon SEO best practices that are essential to securing visibility and sales. Detailed product listings can help your product rank above a competitor’s for relevant queries. Additionally, providing shoppers with all the needed information once they land on your page can play a huge role in increased conversions, so it’s truly a win-win to button everything up.

Here are a few tips to get you started…
 

Product Title Guidelines

Amazon product title lengths are determined at the category-level, and are the same for Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), and Merchant Fulfillment Network (MFN) listings. Review Amazon’s category-specific style guides to find the preferred style for products within your category.

Take time to create strong, detailed product titles that make the most of Amazon’s character count limit, including keywords that could help your product rank better for a variety of relevant searches. Don’t keyword stuff, but think beyond the product-focused keywords themselves to things you can naturally incorporate into the title, like ingredients, product attributes, and/or desired effects. If you are selling a shampoo, for example, in addition to including the brand and size in the product title, you might mention if it’s cruelty-free, volumizing, or includes a certain ingredient that shoppers might be searching for, like tea tree or argan oil.

To create product titles (product names) that help you appear in shoppers’ searches, and encourage strong click-through, we recommend following these best practices:

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  • List words in their natural order, considering importance (ie. don’t bury the brand name at the end where it might not be seen)
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  • Capitalize the first letter of each word (excluding prepositions, articles, and conjunctions)
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  • Spell out measurement-related words, such as Ounce, Inch, and Pound
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  • All numbers should be numerals, not spelled out
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  • Ampersands should not be used in titles unless part of a brand name; spell out “and” (in lowercase)
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  • If the size is not a relevant detail, do not list it in the title
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  • If the product does not come in multiple colors, the color should not be noted in the title

 
While a detailed product title is immensely helpful for sellers and buyers alike, there are a few details you shouldn’t include.

  • Price and quantity (unless a multipack)
  • All caps
  • Seller information
  • Promotional messages such as “Sale”
  • Suggestive commentary such as “Best Seller”
  • Symbols, special characters, emojis, and ASCII characters ($, !, &, ?, etc.)

 

Use Detailed Bullet Points for Key Product Features

The Amazon product detail page bullet points—aka “Key Product Features” section—is located under the “Descriptions” tab. Product features are the second most important factor in surfacing your products, so you’ll want to maximize your character count here as well. Amazon shoppers rely heavily on bullet points to gather top takeaways at a glance. The more descriptive the bullet points for your product pages, the better your sales are likely to be.

Try to include the following in your listing’s bullet points:

  • Highlight the top five features that you want your customers to consider, such as dimensions, warranty information, or age appropriateness
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  • Begin each bullet point with a capital letter
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  • Write in fragments, and do not include ending punctuation
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  • Write all numbers as numerals
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  • Separate phrases in one bullet with semicolons
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  • Spell out measurements, such as quart, inch, or feet

As with product titles, there are a few things you shouldn’t do when writing bullet points for your key product features. For example:

  • Do not write vague statements; be as specific as possible with product features and attributes
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  • Do not enter company-specific information; this section is for product features only
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  • Do not include promotional and pricing information
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  • Do not include shipping or company information. Amazon’s policy prohibits including the seller, company, or shipping information

 

Write Effective Product Descriptions

Product descriptions are typically a few paragraphs long, and should explain the major product features, such as size, style, and what the product can be used for. Amazon encourages sellers to include accurate dimensions, care instructions, and warranty information, and use correct grammar, punctuation, and complete sentences.

Note that as of July 17, 2021, Amazon no longer allows the use of HTML tags in product detail page descriptions, with the exception of line breaks (<br>). The use of light HTML—such as adding bolding to text to help it stand out—was common practice, with Amazon citing security concerns and potential accessibility issues as the reasons for removing HTML tagging capabilities.

In addition to HTML tags, other things you shouldn’t list in your product description include:

  • Your seller name, phone number, email address, or physical address
  • Website URLs
  • Company-specific information
  • Product condition
  • Price or availability information
  • Quotes, reviews, or testimonials
  • Requests that customers leave a positive review
  • Details about another product that you sell
  • Promotional language such as “SALE” or “free shipping”
  • Anything that would be considered a ‘spoiler’—applies to books, music, video, and DVD (BMVD) listings
  • Time-sensitive information
  • Promotional material
  • Watermarks on images or videos

 
Additionally, if you’re selling products in a category that Amazon regulates, make sure to carefully read all requirements so you don’t risk your listing getting taken down for using the wrong terms.
 

Use High-Quality Product Images and Videos

All Amazon detail pages require at least one main product image be shown, but additional images and videos can help greatly in securing buyer confidence and increasing sales. Put your best self forward with clear, eye-catching, information-rich images that enhance product understanding and appeal.

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Amazon’s image requirements and site standards include:

  • Images must accurately represent the product for sale, and match the product title
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  • Main product image (the image shown in search results) must have a white background
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  • Product should fill at least 85% of the image frame
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  • Must match the product title
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  • Must have clearly defined borders, and not be blurry or pixelated
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  • Must not contain nudity or be considered sexually suggestive
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  • No Amazon logos, trademarks, or badges used on the platform, or variations thereof, are permitted
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  • Supported file types include JPEG (preferred), TIFF, PNG and GIF (no animated GIFs)
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  • Must not exceed 10,000px on longest side
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  • For your images to be zoom-eligible, they must be at least 1,000px, with a minimum of 1,600px or larger on the longest side recommended for optimal experience

Note that there are additional site standards for Main product images, with the above criteria serving for all images.

By following these best practices, you’ll be able to stay in Amazon’s good graces while ensuring your product listing is compelling.
 

Win the Amazon Buy Box

Amazon’s Buy Box is a coveted section on the right side of an Amazon product detail page where customers can click to add a product to their cart, or make an instant purchase. The majority of Amazon customers shop using the Buy Box, with many not even being aware that for some listings, there are multiple sellers they can choose to shop from.

Amazon Buy Box infographic also showing where other sellers can be chosen by shoppers

If you sell on Amazon and want to increase your sales, winning the Buy Box is crucial. Obtaining and retaining Buy Box ownership requires that you have a Professional Seller Plan, are competitively priced, and maintain Amazon’s performance requirements. Remember—the Buy Box is designed to make it as easy as possible for customers to purchase from the seller offering the best overall value. If that’s you, you’re not only more likely to win the Buy Box, but also to have sustained customer satisfaction.
 

Get Legitimate Product Reviews

Customers rely on authentic product reviews on almost every site they shop from, but thanks to Amazon’s size, products sold there tend to have a high number of reviews. Positive, helpful reviews are the social proof brands need to earn continued consumer confidence.

In soliciting reviews, be sure to adhere to Amazon’s customer product reviews policy. Encourage shoppers to leave reviews whenever possible, but don’t offer compensation for doing so. Also be sure to follow-up on any negative reviews, or neutral reviews that cite a concern. This will show prospective customers reading the reviews that if they have an issue with their purchase, they can count on support.
 

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Use A+ Content

Amazon A+ content is available for select sellers on Amazon—currently including 1P vendors, emerging brand owners, and Amazon Brand Registry sellers. A+ content better conveys the value of your products through the use of detailed product descriptions, rich images, comparison charts and infographics, and/or videos.

Below is an example of an A+ content detail page:

jack black A+ content amazon

Using A+ content on Amazon has proven to increase conversion rates and reduce returns for many sellers. Think of everything a potential shopper might want or need to know about your product to be secure in their purchase decision, and account for that in the content you produce. This will vary based on your product and category, but enhanced user experience and customer confidence is at the core of all A+ content.
 

Invest in Amazon’s Sponsored Ads

Years ago, having a solid organic strategy was enough for many sellers to find success on Amazon. Today, with increased competition and overall growth of the site in mind, Amazon is a bit of a pay-to-play space for the most visibility. For that reason, sellers should be prepared to invest in advertising for their Amazon listings.

There are 3 main, self-serve categories of ad space that brands and sellers can purchase directly from Amazon:

  • Sponsored Products
  • Sponsored Brands
  • Sponsored Display

 
A fourth advertising avenue to consider is Amazon DSP. Similar to Sponsored Products, Brands, and Display, sellers don’t have to work directly with Amazon to leverage DSP. However, it is required that you work with an agency partner like Tinuiti to run Amazon DSP ads, making it less fully ‘self-serve’ than Sponsored Products, Brands, or Display, which brands and sellers can choose to run themselves, or work with an agency to manage.

Amazon Sponsored Products are pay-per-click (PPC) ads based on relevant keywords (and product targeting) that drive traffic to a specific, individual product listing within the Amazon platform. Sponsored Products ads are shown within shopping results, and on product detail pages.

These search ads are Amazon’s flagship ad format and are a key investment for brands across all categories for driving awareness and conversions on Amazon’s marketplace.

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Screenshot of Amazon Sponsored Products on marketplace search

Sponsored Brands ads (formerly Headline Search ads) allow advertisers to feature custom headlines, up to 3 products, and brand creative—including their brand logo—to engage potential customers at the beginning of their shopping journey. Sponsored Brands banner ads are served within, alongside, or at the top of relevant Amazon shopping results to increase visibility with the right shoppers. These ads direct shoppers to specific product listings on Amazon, or your Amazon Store home page.

amazon sponsored brands ads for wireless earbuds

Sponsored Brands video: The use of video is on the rise across digital advertising on the whole, and Amazon is no exception. Sponsored Brands video ads are designed to educate shoppers about your product, and commonly include demonstrations, use-case examples, and top takeaways about product features. These videos should be short, informative, and product-focused; ideally 15-30 seconds in length.

Sponsored Brands video ads best practices include:

  • Open with the product (no fade-ins or empty frames)
  • Customer reviews cannot be included
  • Amazon branding elements cannot be used
  • Because these videos are set to automatically play and loop upon completion, they should be polished and designed for a seamless user experience; Amazon may reject your ad if there are abrupt edits or crops

 
Once you’ve laid the foundation with Product collection and Video ads, consider exploring more advanced Sponsored Brands opportunities and formats, including Store spotlight ads for Amazon Store owners.

Sponsored Display is a self-service advertising solution that helps you “engage and re-engage shoppers, on and off Amazon” using shopping and contextual signals. In other words, Sponsored Display ads are effective for reaching entirely new audiences, and for retargeting.

These easy-to-setup-and-launch ads are available for 1P vendors and professional sellers enrolled in Amazon Brand Registry, and are offered with your choice of a CPC or vCPM pricing structure.

Sponsored Display ads can prove beneficial across the full funnel, with optimization strategies including: Optimize for viewable impressions; Optimize for page visits; Optimize for conversions. Because these ads can display deals and savings badges, they can prove especially valuable during Amazon sales events or brand-specific promotional periods.

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Where your Sponsored Display ads will appear on and/or off Amazon is determined by your targeting strategy—available tactics include product targeting and audiences.

  • Potential product targeting placements, which are designed to reach shoppers actively considering and comparing their options, include: on product detail pages; within shopping results pages; beneath the featured offer; alongside customer reviews
  •  

  • For Sponsored Display audiences campaigns, which are designed to reach relevant shoppers based on their click and browse history, “your display creatives may appear off Amazon on apps and third-party websites such as Twitch, as well as on Amazon in placements on the homepage, product detail pages, and shopping results pages—helping you reengage with shoppers in their purchase journey.”

Example of Amazon sponsored display ad on news site

Sponsored Display ads are ideal for building mid-funnel awareness, helping inform, engage, and convert shoppers. As discussed in our post on Amazon’s blog—How to approach display advertising with Tinuiti—these ads help advertisers “access display inventory without the higher requirements of Amazon DSP.”

“Sponsored Display’s customization features help you tell your brand story and increase campaign performance. Sponsored Display allows you to refresh or edit specific campaign sections, rather than starting from scratch.You can use updated creative elements such as images, headlines or logos for increased seasonal relevance.”Amazon
 

Advertise Off-site with Amazon DSP (agency support required)

Amazon DSP — also known as the Amazon Demand-Side Platform — gives brands and sellers the ability to programmatically buy video, audio, and display ad placements. Programmatic ads use available data to determine which digital advertising spaces you’ll buy, and how much you’ll pay for them.

Amazon DSP allows brands to use Amazon targeting capabilities in showing ads to new and existing customers on Amazon owned-and-operated web properties, in addition to those it does not control. Even brands that aren’t selling products on Amazon can advertise using Amazon DSP.

Amazon DSP unlocks incredible opportunities for brands and sellers, and we expect the unique ad options and capabilities will only continue growing. Some current forward-thinking DSP advertising options include streaming TV ads on Fire Stick, and in-store screen ads in Whole Foods stores. If you want to reach customers in these spaces, DSP is the way to do it.

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Example of Amazon video ad placement with Under Armour bag
 

Set-Up an Amazon Store

Amazon Stores are a free self-service product that allows brand owners to design and create multipage stores to showcase their brands, products, and value proposition on Amazon. If we think of Amazon.com as a shopping mall, Amazon Stores are the individual retail spaces within.

Example of R+Co Amazon Store

Setting up an Amazon Store is crucial for brand-building on Amazon, but the process can take some time and expertise to efficiently navigate. For that reason, many sellers choose to work with a reputable Amazon agency like Tinuiti to build, design, and optimize their Store.

Here are some of the benefits of working with an experienced Amazon agency to build your Amazon Store:

  • Understanding of how Amazon works and the types of content that resonate best with Marketplace shoppers
  •  

  • Knowledge about Store requirements and best practices. An agency’s solid understanding of Amazon’s restrictions and policies can save you substantial time on revisions. It’s also super beneficial to work with an agency that’s already familiar with Amazon’s available features and layouts
  •  

  • Avoid wasting time on re-submissions. An experienced agency will be up-to-date on the latest qualifications, which will allow you to move faster through the creation and submission process

 

Additional Best Practices When Selling on Amazon

 
Some final considerations to make include whether to sell internationally, how Amazon Attribution and Brand Registry can help you grow and protect your brand, and how those fees all stack up. Let’s dive into each…
 

Remember: There Are Fees to Sell on Amazon

The cost to sell on Amazon is largely determined by which selling plan you choose, and how you’re planning to handle fulfillment.

As we mentioned earlier, Amazon sellers can choose between a Professional or Individual selling plan. Individual sellers pay $0.99 for each item sold on Amazon, plus referral and additional selling fees. Professional sellers also pay referral and additional selling fees, with a $39.99 monthly charge that exempts them from the $0.99 per item sold fee.

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chart showing differences between professional amazon selling plan vs individualVisit Amazon’s pricing page for a fuller breakdown of Amazon fees and additional cost considerations and incentives.
 

Measure Cross-Channel Impact with Amazon Attribution

Amazon Attribution is a measurement solution that provides advertisers with valuable insights into how their non-Amazon marketing channels are performing on Amazon; these reports include both orders and revenue for traffic originating off Amazon. It can measure traffic brought directly to Amazon, as well as traffic to a site that later converts on Amazon. This arms advertisers and brands with the necessary shopper journey information to optimize their media campaigns, and grow product sales.

Amazon Attribution can measure traffic from nearly any source, including search ads, display ads, social ads, video ads, and email marketing. Through the creation of orders and line items, brands can create unique tracking templates, and performance can be measured to their desired level of granularity.

There is currently no cost to participate in Amazon Attribution, but it is only available to eligible sellers and vendors, including: “professional sellers enrolled in Amazon Brand Registry, vendors, KDP authors, and agencies with clients who sell products on Amazon.”
 

Consider Enrolling in the Amazon Brand Registry

Screenshot from the Amazon Brand Registry homepage

Source: https://brandservices.amazon.com/brandregistry

The Amazon Brand Registry gives brand owners access to proprietary text, image search, predictive automation, and reporting tools designed to protect their registered trademarks and create an accurate and trusted experience for customers.

The Amazon Brand Registry also allows brands to search for content using images, keywords, or a list of ASINs in bulk, and report suspected violations through a simple, guided workflow.

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Let’s talk about why this is important for sellers.

While selling on Amazon, you may experience counterfeit issues or situations where your product content is changed by a third party seller.

The Amazon Brand Registry provides a necessary set of tools that may help sellers avoid these issues— including Transparency by Amazon, Project Zero, and Counterfeit Crimes Unit.

Here’s how Amazon’s Brand Registry works, how to enroll, and other brand protection programs that you can use to prevent third-party sellers from counterfeiting your products on the marketplace.

To become a member of the Amazon Brand Registry you must:

  • Step 1. Review eligibility requirements. ”Brands must have a pending or registered and active text-based or image-based trademark”
  •  

  • Step 2. Sign into Amazon Brand Registry. Brand Registry application must be submitted by the trademark owner. If you are an authorized agent, please have the trademark owner enroll the brand first, and add your account as an additional user. If you meet the eligibility requirements, sign in using your existing Seller or Vendor Central credentials. Or, if you don’t yet have an Amazon account, create one for free
  •  

  • Step 3. Enroll your brand. Once you sign in, you will need to enroll your brand(s). After Amazon has verified the information you submit during enrollment, you will be able to access Brand Registry’s features to help protect your brand

 

Explore Selling Products Internationally

In the beginning stages, it’s common for sellers to experience a combination of excitement and fear at the prospect of selling products internationally. Common concerns like credit card fraud and shipping delays may seem overwhelming at first, but with the right guidance, sellers can avoid common mistakes and simplify their global expansion process.

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The decision to go global is often driven by a combination of factors—some financial, and others related to marketing, merchandising or operations. It can be a lucrative decision for some sellers, but not all. We recommend honing in on your primary goals in going global to determine if it’s the best move for your business.
 

 
For many sellers and brands, absolutely!

With the right products, sophisticated marketing tactics, helpful tools, and seller support, brands selling on Amazon can see great success. Although the competition for almost every category on the marketplace is fierce, there are still plenty of opportunities for brands to thrive.

To be a successful Amazon seller, you should:

  • Research potential niches before deciding on the products you want to sell
  •  

  • Understand pricing, costs, and fees. This can include manufacturing costs, shipping, packaging, selling fees, and more
  •  

  • Ensure your business operations are in good shape, including inventory management and forecasting
  •  

  • Acquire expert knowledge of marketing, branding, and advertising. We recommend partnering with an Amazon agency that specializes in Amazon advertising
  •  

  • Leverage cross-channel insights. Thanks to tools like Amazon Attribution, brands can measure the impact of their marketing efforts across multiple platforms and channels
  •  

  • Avoid complacency. Brands who rest on their laurels can be quickly outpaced by emerging competitors

And most importantly, be prepared for whatever Amazon throws your way. Changes can (and do) happen every single day. Looking for a partner to help you navigate these challenges? We’d love to hear from you!

 

Editor’s Note: This post was originally published by Tara Johnson and has been regularly updated for freshness, accuracy, and comprehensiveness.

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Should Your Brand Shout Its AI and Marketing Plan to the World?

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Should Your Brand Shout Its AI and Marketing Plan to the World?

To use AI or not to use AI, that is the question.

Let’s hope things work out better for you than they did for Shakespeare’s mad Danish prince with daddy issues.

But let’s add a twist to that existential question.

CMI’s chief strategy officer, Robert Rose, shares what marketers should really contemplate. Watch the video or read on to discover what he says:

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Should you not use AI and be proud of not using it? Dove Beauty did that last week.

Should you use it but keep it a secret? Sports Illustrated did that last year.

Should you use AI and be vocal about using it? Agency giant Brandtech Group picked up the all-in vibe.

Should you not use it but tell everybody you are? The new term “AI washing” is hitting everywhere.

What’s the best option? Let’s explore.

Dove tells all it won’t use AI

Last week, Dove, the beauty brand celebrating 20 years of its Campaign for Real Beauty, pledged it would NEVER use AI in visual communication to portray real people.

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In the announcement, they said they will create “Real Beauty Prompt Guidelines” that people can use to create images representing all types of physical beauty through popular generative AI programs. The prompt they picked for the launch video? “The most beautiful woman in the world, according to Dove.”

I applaud them for the powerful ad. But I’m perplexed by Dove issuing a statement saying it won’t use AI for images of real beauty and then sharing a branded prompt for doing exactly that. Isn’t it like me saying, “Don’t think of a parrot eating pizza. Don’t think about a parrot eating pizza,” and you can’t help but think about a parrot eating pizza right now?

Brandtech Group says it’s all in on AI

Now, Brandtech Group, a conglomerate ad agency, is going the other way. It’s going all-in on AI and telling everybody.

This week, Ad Age featured a press release — oops, I mean an article (subscription required) — with the details of how Brandtech is leaning into the takeaway from OpenAI’s Sam Altman, who says 95% of marketing work today can be done by AI.

A Brandtech representative talked about how they pitch big brands with two people instead of 20. They boast about how proud they are that its lean 7,000 staffers compete with 100,000-person teams. (To be clear, showing up to a pitch with 20 people has never been a good thing, but I digress.)

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OK, that’s a differentiated approach. They’re all in. Ad Age certainly seemed to like it enough to promote it. Oops, I mean report about it.

False claims of using AI and not using AI

Offshoots of the all-in and never-will approaches also exist.

The term “AI washing” is de rigueur to describe companies claiming to use AI for something that really isn’t AI.  The US Securities and Exchange Commission just fined two companies for using misleading statements about their use of AI in their business model. I know one startup technology organization faced so much pressure from their board and investors to “do something with AI” that they put a simple chatbot on their website — a glorified search engine — while they figured out what they wanted to do.

Lastly and perhaps most interestingly, companies have and will use AI for much of what they create but remain quiet about it or desire to keep it a secret. A recent notable example is the deepfake ad of a woman in a car professing the need for people to use a particular body wipe to get rid of body odor. It was purported to be real, but sharp-eyed viewers suspected the fake and called out the company, which then admitted it. Or was that the brand’s intent all along — the AI-use outrage would bring more attention?

To yell or not to yell about your brand’s AI decision

Should a brand yell from a mountaintop that they use AI to differentiate themselves a la Brandtech? Or should a brand yell they’re never going to use AI to differentiate themselves a la Dove? Or should a brand use it and not yell anything? (I think it’s clear that a brand should not use AI and lie and say it is. That’s the worst of all choices.)

I lean far into not-yelling-from-mountaintop camp.

When I see a CEO proudly exclaim that they laid off 90% of their support workforce because of AI, I’m not surprised a little later when the value of their service is reduced, and the business is failing.

I’m not surprised when I hear “AI made us do it” to rationalize the latest big tech company latest rounds of layoffs. Or when a big consulting firm announces it’s going all-in on using AI to replace its creative and strategic resources.

I see all those things as desperate attempts for short-term attention or a distraction from the real challenge. They may get responses like, “Of course, you had to lay all those people off; AI is so disruptive,” or “Amazing. You’re so out in front of the rest of the pack by leveraging AI to create efficiency, let me cover your story.” Perhaps they get this response, “Your company deserves a bump in stock price because you’re already using this fancy new technology.”

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But what happens if the AI doesn’t deliver as promoted? What happens the next time you need to lay off people? What happens the next time you need to prove your technologically forward-leaning?

Yelling out that you’re all in on a disruptive innovation, especially one the public doesn’t yet trust a lot is (at best) a business sugar high. That short-term burst of attention may or may not foul your long-term brand value.

Interestingly, the same scenarios can manifest when your brand proclaims loudly it is all out of AI, as Dove did. The sugar high may not last and now Dove has itself into a messaging box. One slip could cause distrust among its customers. And what if AI gets good at demonstrating diversity in beauty?

I tried Dove’s instructions and prompted ChatGPT for a picture of “the most beautiful woman in the world according to the Dove Real Beauty ad.”

It gave me this. Then this. And this. And finally, this.

She’s absolutely beautiful, but she doesn’t capture the many facets of diversity Dove has demonstrated in its Real Beauty campaigns. To be clear, Dove doesn’t have any control over generating the image. Maybe the prompt worked well for Dove, but it didn’t for me. Neither Dove nor you can know how the AI tool will behave.

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To use AI or not to use AI?

When brands grab a microphone to answer that question, they work from an existential fear about the disruption’s meaning. They do not exhibit the confidence in their actions to deal with it.

Let’s return to Hamlet’s soliloquy:

Thus conscience doth make cowards of us all;

And thus the native hue of resolution

Is sicklied o’er with the pale cast of thought,

And enterprises of great pith and moment

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With this regard their currents turn awry

And lose the name of action.

In other words, Hamlet says everybody is afraid to take real action because they fear the unknown outcome. You could act to mitigate or solve some challenges, but you don’t because you don’t trust yourself.

If I’m a brand marketer for any business (and I am), I’m going to take action on AI for my business. But until I see how I’m going to generate value with AI, I’m going to be circumspect about yelling or proselytizing how my business’ future is better.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

It’s the age of AI, and our job as marketers is to keep up.

My team at Foundation Marketing recently conducted an AI Marketing study surveying hundreds of marketers, and more than 84% of all leaders, managers, SEO experts, and specialists confirmed that they used AI in the workplace.

AI in the workplace data graphic, Foundation Labs

If you can overlook the fear-inducing headlines, this technology is making social media marketers more efficient and effective than ever. Translation: AI is good news for social media marketers.

Download Now: The 2024 State of Social Media Trends [Free Report]

In fact, I predict that the marketers not using AI in their workplace will be using it before the end of this year, and that number will move closer and closer to 100%.

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Social media and AI are two of the most revolutionizing technologies of the last few decades. Social media has changed the way we live, and AI is changing the way we work.

So, I’m going to condense and share the data, research, tools, and strategies that the Foundation Marketing Team and I have been working on over the last year to help you better wield the collective power of AI and social media.

Let’s jump into it.

What’s the role of AI in social marketing strategy?

In a recent episode of my podcast, Create Like The Greats, we dove into some fascinating findings about the impact of AI on marketers and social media professionals. Take a listen here:

Let’s dive a bit deeper into the benefits of this technology:

Benefits of AI in Social Media Strategy

AI is to social media what a conductor is to an orchestra — it brings everything together with precision and purpose. The applications of AI in a social media strategy are vast, but the virtuosos are few who can wield its potential to its fullest.

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AI to Conduct Customer Research

Imagine you’re a modern-day Indiana Jones, not dodging boulders or battling snakes, but rather navigating the vast, wild terrain of consumer preferences, trends, and feedback.

This is where AI thrives.

Using social media data, from posts on X to comments and shares, AI can take this information and turn it into insights surrounding your business and industry. Let’s say for example you’re a business that has 2,000 customer reviews on Google, Yelp, or a software review site like Capterra.

Leveraging AI you can now have all 2,000 of these customer reviews analyzed and summarized into an insightful report in a matter of minutes. You simply need to download all of them into a doc and then upload them to your favorite Generative Pre-trained Transformer (GPT) to get the insights and data you need.

But that’s not all.

You can become a Prompt Engineer and write ChatGPT asking it to help you better understand your audience. For example, if you’re trying to come up with a persona for people who enjoy marathons but also love kombucha you could write a prompt like this to ChatGPT:

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ChatGPT prompt example

The response that ChatGPT provided back is quite good:

GPT response example

Below this it went even deeper by including a lot of valuable customer research data:

  • Demographics
  • Psychographics
  • Consumer behaviors
  • Needs and preferences

And best of all…

It also included marketing recommendations.

The power of AI is unbelievable.

Social Media Content Using AI

AI’s helping hand can be unburdening for the creative spirit.

Instead of marketers having to come up with new copy every single month for posts, AI Social Caption generators are making it easier than ever to craft catchy status updates in the matter of seconds.

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Tools like HubSpot make it as easy as clicking a button and telling the AI tool what you’re looking to create a post about:

AI social media caption generator step 1

The best part of these AI tools is that they’re not limited to one channel.

Your AI social media content assistant can help you with LinkedIn content, X content, Facebook content, and even the captions that support your post on Instagram.

It can also help you navigate hashtags:

AI social media hashtags generator example, HubSpot

With AI social media tools that generate content ideas or even write posts, it’s not about robots replacing humans. It’s about making sure that the human creators on your team are focused on what really matters — adding that irreplaceable human touch.

Enhanced Personalization

You know that feeling when a brand gets you, like, really gets you?

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AI makes that possible through targeted content that’s tailored with a level of personalization you’d think was fortune-telling if the data didn’t paint a starker, more rational picture.

What do I mean?

Brands can engage more quickly with AI than ever before. In the early 2000s, a lot of brands spent millions of dollars to create social media listening rooms where they would hire social media managers to find and engage with any conversation happening online.

Thanks to AI, brands now have the ability to do this at scale with much fewer people all while still delivering quality engagement with the recipient.

Analytics and Insights

Tapping into AI to dissect the data gives you a CSI-like precision to figure out what works, what doesn’t, and what makes your audience tick. It’s the difference between guessing and knowing.

The best part about AI is that it can give you almost any expert at your fingertips.

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If you run a report surrounding the results of your social media content strategy directly from a site like LinkedIn, AI can review the top posts you’ve shared and give you clear feedback on what type of content is performing, why you should create more of it, and what days of the week your content is performing best.

This type of insight that would typically take hours to understand.

Now …

Thanks to the power of AI you can upload a spreadsheet filled with rows and columns of data just to be met with a handful of valuable insights a few minutes later.

Improved Customer Service

Want 24/7 support for your customers?

It’s now possible without human touch.

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Chatbots powered by AI are taking the lead on direct messaging experiences for brands on Facebook and other Meta properties to offer round-the-clock assistance.

The fact that AI can be trained on past customer queries and data to inform future queries and problems is a powerful development for social media managers.

Advertising on Social Media with AI

The majority of ad networks have used some variation of AI to manage their bidding system for years. Now, thanks to AI and its ability to be incorporated in more tools, brands are now able to use AI to create better and more interesting ad campaigns than ever before.

Brands can use AI to create images using tools like Midjourney and DALL-E in seconds.

Brands can use AI to create better copy for their social media ads.

Brands can use AI tools to support their bidding strategies.

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The power of AI and social media is continuing to evolve daily and it’s not exclusively found in the organic side of the coin. Paid media on social media is being shaken up due to AI just the same.

How to Implement AI into Your Social Media Strategy

Ready to hit “Go” on your AI-powered social media revolution?

Don’t just start the engine and hope for the best. Remember the importance of building a strategy first. In this video, you can learn some of the most important factors ranging from (but not limited to) SMART goals and leveraging influencers in your day-to-day work:

The following seven steps are crucial to building a social media strategy:

  1. Identify Your AI and Social Media Goals
  2. Validate Your AI-Related Assumptions
  3. Conduct Persona and Audience Research
  4. Select the Right Social Channels
  5. Identify Key Metrics and KPIs
  6. Choose the Right AI Tools
  7. Evaluate and Refine Your Social Media and AI Strategy

Keep reading, roll up your sleeves, and follow this roadmap:

1. Identify Your AI and Social Media Goals

If you’re just dipping your toes into the AI sea, start by defining clear objectives.

Is it to boost engagement? Streamline your content creation? Or simply understand your audience better? It’s important that you spend time understanding what you want to achieve.

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For example, say you’re a content marketing agency like Foundation and you’re trying to increase your presence on LinkedIn. The specificity of this goal will help you understand the initiatives you want to achieve and determine which AI tools could help you make that happen.

Are there AI tools that will help you create content more efficiently? Are there AI tools that will help you optimize LinkedIn Ads? Are there AI tools that can help with content repurposing? All of these things are possible and having a goal clearly identified will help maximize the impact. Learn more in this Foundation Marketing piece on incorporating AI into your content workflow.

Once you have identified your goals, it’s time to get your team on board and assess what tools are available in the market.

Recommended Resources:

2. Validate Your AI-Related Assumptions

Assumptions are dangerous — especially when it comes to implementing new tech.

Don’t assume AI is going to fix all your problems.

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Instead, start with small experiments and track their progress carefully.

3. Conduct Persona and Audience Research

Social media isn’t something that you can just jump into.

You need to understand your audience and ideal customers. AI can help with this, but you’ll need to be familiar with best practices. If you need a primer, this will help:

Once you understand the basics, consider ways in which AI can augment your approach.

4. Select the Right Social Channels

Not every social media channel is the same.

It’s important that you understand what channel is right for you and embrace it.

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The way you use AI for X is going to be different from the way you use AI for LinkedIn. On X, you might use AI to help you develop a long-form thread that is filled with facts and figures. On LinkedIn however, you might use AI to repurpose a blog post and turn it into a carousel PDF. The content that works on X and that AI can facilitate creating is different from the content that you can create and use on LinkedIn.

The audiences are different.

The content formats are different.

So operate and create a plan accordingly.

Recommended Tools and Resources:

5. Identify Key Metrics and KPIs

What metrics are you trying to influence the most?

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Spend time understanding the social media metrics that matter to your business and make sure that they’re prioritized as you think about the ways in which you use AI.

These are a few that matter most:

  • Reach: Post reach signifies the count of unique users who viewed your post. How much of your content truly makes its way to users’ feeds?
  • Clicks: This refers to the number of clicks on your content or account. Monitoring clicks per campaign is crucial for grasping what sparks curiosity or motivates people to make a purchase.
  • Engagement: The total social interactions divided by the number of impressions. This metric reveals how effectively your audience perceives you and their readiness to engage.

Of course, it’s going to depend greatly on your business.

But with this information, you can ensure that your AI social media strategy is rooted in goals.

6. Choose the Right AI Tools

The AI landscape is filled with trash and treasure.

Pick AI tools that are most likely to align with your needs and your level of tech-savviness.

For example, if you’re a blogger creating content about pizza recipes, you can use HubSpot’s AI social caption generator to write the message on your behalf:

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AI social media generator example

The benefit of an AI tool like HubSpot and the caption generator is that what at one point took 30-40 minutes to come up with — you can now have it at your fingertips in seconds. The HubSpot AI caption generator is trained on tons of data around social media content and makes it easy for you to get inspiration or final drafts on what can be used to create great content.

Consider your budget, the learning curve, and what kind of support the tool offers.

7. Evaluate and Refine Your Social Media and AI Strategy

AI isn’t a magic wand; it’s a set of complex tools and technology.

You need to be willing to pivot as things come to fruition.

If you notice that a certain activity is falling flat, consider how AI can support that process.

Did you notice that your engagement isn’t where you want it to be? Consider using an AI tool to assist with crafting more engaging social media posts.

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Make AI Work for You — Now and in the Future

AI has the power to revolutionize your social media strategy in ways you may have never thought possible. With its ability to conduct customer research, create personalized content, and so much more, thinking about the future of social media is fascinating.

We’re going through one of the most interesting times in history.

Stay equipped to ride the way of AI and ensure that you’re embracing the best practices outlined in this piece to get the most out of the technology.

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MARKETING

Advertising in local markets: A playbook for success

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Advertising in local markets: A playbook for success

Many brands, such as those in the home services industry or a local grocery chain, market to specific locations, cities or regions. There are also national brands that want to expand in specific local markets. 

Regardless of the company or purpose, advertising on a local scale has different tactics than on a national scale. Brands need to connect their messaging directly with the specific communities they serve and media to their target demo. Here’s a playbook to help your company succeed when marketing on a local scale.  

1. Understand local vs. national campaigns

Local advertising differs from national campaigns in several ways: 

  • Audience specificity: By zooming in on precise geographic areas, brands can tailor messaging to align with local communities’ customs, preferences and nuances. This precision targeting ensures that your message resonates with the right target audience.
  • Budget friendliness: Local advertising is often more accessible for small businesses. Local campaign costs are lower, enabling brands to invest strategically within targeted locales. This budget-friendly nature does not diminish the need for strategic planning; instead, it emphasizes allocating resources wisely to maximize returns. As a result, testing budgets can be allocated across multiple markets to maximize learnings for further market expansion.
  • Channel selection: Selecting the correct channels is vital for effective local advertising. Local newspapers, radio stations, digital platforms and community events each offer advantages. The key lies in understanding where your target audience spends time and focusing efforts to ensure optimal engagement.
  • Flexibility and agility: Local campaigns can be adjusted more swiftly in response to market feedback or changes, allowing brands to stay relevant and responsive. 

Maintaining brand consistency across local touchpoints reinforces brand identity and builds a strong, recognizable brand across markets. 

2. Leverage customized audience segmentation 

Customized audience segmentation is the process of dividing a market into distinct groups based on specific demographic criteria. This marketing segmentation supports the development of targeted messaging and media plans for local markets. 

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For example, a coffee chain might cater to two distinct segments: young professionals and retirees. After identifying these segments, the chain can craft messages, offers and media strategies relating to each group’s preferences and lifestyle.

To reach young professionals in downtown areas, the chain might focus on convenience, quality coffee and a vibrant atmosphere that is conducive to work and socializing. Targeted advertising on Facebook, Instagram or Connected TV, along with digital signage near office complexes, could capture the attention of this demographic, emphasizing quick service and premium blends.

Conversely, for retirees in residential areas, the chain could highlight a cozy ambiance, friendly service and promotions such as senior discounts. Advertisements in local print publications, community newsletters, radio stations and events like senior coffee mornings would foster a sense of community and belonging.

Dig deeper: Niche advertising: 7 actionable tactics for targeted marketing

3. Adapt to local market dynamics

Various factors influence local market dynamics. Brands that navigate changes effectively maintain a strong audience connection and stay ahead in the market. Here’s how consumer sentiment and behavior may evolve within a local market and the corresponding adjustments brands can make. 

  • Cultural shifts, such as changes in demographics or societal norms, can alter consumer preferences within a local community. For example, a neighborhood experiencing gentrification may see demand rise for specific products or services.
    • Respond by updating your messaging to reflect the evolving cultural landscape, ensuring it resonates with the new demographic profile.
  • Economic conditions are crucial. For example, during downturns, consumers often prioritize value and practicality.
    • Highlight affordable options or emphasize the practical benefits of your offerings to ensure messaging aligns with consumers’ financial priorities. The impact is unique to each market and the marketing message must also be dynamic.
  • Seasonal trends impact consumer behavior.
    • Align your promotions and creative content with changing seasons or local events to make your offerings timely and relevant.
  • New competitors. The competitive landscape demands vigilance because new entrants or innovative competitor campaigns can shift consumer preferences.
    • Differentiate by focusing on your unique selling propositions, such as quality, customer service or community involvement, to retain consumer interest and loyalty.

4. Apply data and predictive analytics 

Data and predictive analytics are indispensable tools for successfully reaching local target markets. These technologies provide consumer behavior insights, enabling you to anticipate market trends and adjust strategies proactively. 

  • Price optimization: By analyzing consumer demand, competitor pricing and market conditions, data analytics enables you to set prices that attract customers while ensuring profitability.
  • Competitor analysis: Through analysis, brands can understand their positioning within the local market landscape and identify opportunities and threats. Predictive analytics offer foresight into competitors’ potential moves, allowing you to strategize effectively to maintain a competitive edge.
  • Consumer behavior: Forecasting consumer behavior allows your brand to tailor offerings and marketing messages to meet evolving consumer needs and enhance engagement.
  • Marketing effectiveness: Analytics track the success of advertising campaigns, providing insights into which strategies drive conversions and sales. This feedback loop enables continuous optimization of marketing efforts for maximum impact.
  • Inventory management: In supply chain management, data analytics predict demand fluctuations, ensuring inventory levels align with market needs. This efficiency prevents stockouts or excess inventory, optimizing operational costs and meeting consumer expectations.

Dig deeper: Why you should add predictive modeling to your marketing mix

5. Counter external market influences

Consider a clothing retailer preparing for a spring collection launch. By analyzing historical weather data and using predictive analytics, the brand forecasts an unseasonably cool start to spring. Anticipating this, the retailer adjusts its campaign to highlight transitional pieces suitable for cooler weather, ensuring relevance despite an unexpected chill.

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Simultaneously, predictive models signal an upcoming spike in local media advertising rates due to increased market demand. Retailers respond by reallocating a portion of advertising budgets to digital channels, which offer more flexibility and lower costs than traditional media. This shift enables brands to maintain visibility and engagement without exceeding budget, mitigating the impact of external forces on advertising.

6. Build consumer confidence with messaging

Localized messaging and tailored customer service enhance consumer confidence by demonstrating your brand’s understanding of the community. For instance, a grocery store that curates cooking classes featuring local cuisine or sponsors community events shows commitment to local culture and consumer interests. 

Similarly, a bookstore highlighting local authors or topics relevant to the community resonates with local customers. Additionally, providing service that addresses local needs — such as bilingual service and local event support — reinforces the brand’s values and response to the community. 

Through these localized approaches, brands can build trust and loyalty, bridging the gap between corporate presence and local relevance.

7. Dominate with local advertising 

To dominate local markets, brands must:

  • Harness hyper-targeted segmentation and geo-targeted advertising to reach and engage precise audiences.
  • Create localized content that reflects community values, engage in community events, optimize campaigns for mobile and track results.
  • Fine-tune strategies, outperform competitors and foster lasting relationships with customers.

These strategies will enable your message to resonate with local consumers, differentiate you in competitive markets and ensure you become a major player in your specific area. 



Dig deeper: The 5 critical elements for local marketing success

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Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

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