In 2016, more than 20 years after Amazon’s founding and 10 years since Shopify launched, it would have been easy to assume e-commerce penetration (the percentage of total retail spend where the goods were bought and sold online) would be over 50%.
But what we found was shocking: The U.S. was only approximately 8% penetrated — only 8% for arguably the most advanced economy in the world!
We’ve had a close eye on the rate of e-commerce penetration globally ever since. Despite e-commerce growth skyrocketing over the past year, the reality is the U.S. has still only reached an e-commerce penetration rate of around 17%. During the last 18 months, we’ve closed the gap to South Korea and China’s e-commerce penetration of more than 25%, but there is still much progress to be made.
It’s clear that we are still in the early days of this megatrend and it is our strong conviction that it is inevitable that we will get to a point where at least half of every retail dollar is spent online over the next decade.
Below are five key predictions for what this road to further penetration will hold.
D2C retail will accelerate as merchants seek independence
Marketplaces have forged the path for e-commerce adoption among merchants of all sizes. They have raised significant capital and made the necessary investments in payments and logistics infrastructure, often subsidizing the consumer experience with free shipping or discounts to get them comfortable buying online.
The balance of power has shifted toward merchants, who previously didn’t have the picks and shovels to build their own e-commerce capabilities.
In recent years, merchants have pursued options aside from these marketplace aggregators. They have sought independence, opting to pay 5%-10% of their gross merchandise value (GMV) on their own technology infrastructure rather than paying the 6% to 45% (average of about 15%) in marketplace fees. Most importantly, they have prioritized owning the relationship with their end customers, given that customer loyalty and lifetime value is becoming ever more important in a hypercompetitive online market.
Amazon Listing Optimization for Maximum Conversions (Step by Step)
Amazon is one of the great places brands and individuals sell their products. It’s a marketplace where buyers search for what they want to purchase.
According to research done by Statista, the site gets traffic in billions. In December alone, the website got 2.9 billion visits from target customers.
This shows that more target customers visit the site to search for products. Therefore, if you have a product you want to sell, it is essential to make sure many of your target buyers see it to increase the chance of selling it.
This short article will teach you how to optimize your Amazon listing to increase visibility, drive more traffic to your product, and increase conversion rates and sales.
What is Amazon Product Listing Optimization
This is a strategy used to optimize your product’s visibility on Amazon. The plan lets more target customers know about your product and how it can solve their pains.
It makes it easy to rank on Amazon search engines, be discovered by target customers, increase your product’s conversion rates, and drive more sales and revenue.
Why Invest in Amazon Listing Optimization
As an individual seller or a business owner, there are important reasons why you should invest and optimize your products on Amazon. This section of the article will highlight some of these reasons and their importance when selling products through Amazon.
Attract More Target Customers to Your Products
When your listing is optimized, more target customers engage with the products you have to offer them on Amazon. Since they’re on Amazon to search for products to solve their pains, they will get to know about your product and how it can help solve their pains.
Increase Brand Awareness
You could be a business offering products through Amazon, but most of your target customers don’t know about your brand or your products. With Amazon listing optimization and the traffic you drive to the product, more people will learn about the different products you offer.
They will also know about your brand and engage more with it from the website links, where they get to hear from other customers and build more trust with you and your products.
Drive More Conversions and Sales
When your product is optimized with the right quality images, descriptions, and key features or keywords, your target customer can easily search for the product and engage with it.
They can see that the products can solve their pains and be convinced to try the product to solve their challenges leading to more sales.
Steps for Amazon Listing Optimization
You want to reach more target customers and drive them to engage with your products on Amazon and even buy them, right? Well, to effectively achieve that, there are steps you can follow for your listing optimization. Here are some of these steps for your Amazon listing optimization
Target customers’ search for products starts with using the keywords associated with what they want. As part of Amazon optimization, keywords target customers use in their search are essential.
Do a keyword search to know the best keywords your customers use when searching for what to buy from Amazon. You can use the best Amazon PPC management tools and other keyword research tools to help get the best keywords.
It is also essential to use keywords with high search volume. High search volume makes it easy for many of your audience to know about your product listing.
One way to use the right keywords is to research competitors making more sales from the Amazon website. See the keywords they use and how they connect with their target audience.
Since you’re in the same market and target the same customers, you can use those keywords for your product optimization and promotion through Amazon.
You can also read through their product description and key features. See how they write the descriptions and how they use the keywords within the product description and key features sections.
Ensure you don’t copy their description for your products as that can affect your product’s optimization and traffic to your products, affecting your sales.
Use Informative Titles For Your Products
Another essential part of your Amazon listing optimization is your Amazon product titles. Ensure that the headlines of your title are captivating and attractive and use primary keywords in the title.
Make the titles easy to read and ensure the target audience can get a glimpse and know more about your product from its title even before they read the description.
Target customers now use mobile devices more than ever for their product search. As you look for the title description of your products, ensure that the title is optimized for mobile search.
Suppose the target customer is using a mobile device and can’t engage with your product title, description, or any other part of your product optimization. In that case, they will look for other alternative products to buy. As a result, you lose an opportunity to engage and convert a potential customer and make sales.
Remember, you’re optimizing the listing to drive and engage more target customers, increase conversions, and make more sales. So, if you can’t engage target customers on their mobile devices, you lose a big chance to drive them to take action and convert to be customers.
Use Quality Images For Your Products
Your target customers need to see the product you’re promoting on Amazon, even if you have an excellent product description. As part of Amazon optimization, ensure the product pictures have a high resolution and are clear, especially your main pictures.
It will be easy for the target audience to see the images of what they want to buy clearly. You can even drive the target customers to make a purchase easily when they see the main parts of the product you sell on Amazon.
Your target audience should also be able to zoom in on the product images. It will help them see the parts of the products well. For example, here is a picture of a hp laptop from Amazon with the main product image and other zoomable images.
When taking the images for the product, use a white background like the above images for the laptop. Your product should be large enough to occupy 85% of the space allocated for the image on the Amazon site.
Write Optimized Product Descriptions
Your target customers need to know more about the product. So explaining how your product works in detail is essential. Help the customers know how your product solves their pains and convince them that it’s the best they can have.
Let the customers see the benefits of your product. It will help them quickly see the value and connect how the benefits will help them solve their pains.
As you write the description, use the right keywords with high search volume. The target customers mostly use keywords to search for products from the website.
When writing the description, mention relevant details about the product that your target customers can easily understand and are more linked to the pains they want to solve. In addition, it raises their curiosity and makes them engage more with the product to learn how it will quickly help solve their challenges.
Optimize Product Key Features (Use Bullet Points)
When describing the product value and showing the target customers how it works, use bullet points to make it easy for readers to view the content about your products.
They can quickly skim through the content and engage with it with ease. Use short sentences when showing target customers the product’s key features.
Highlight key benefits of the products to the customers for them to notice as they read and know more about the features. Don’t forget to add to this section’s primary and secondary keywords.
Add Q&A for Customers and Reviews
You have done your customer search and understand their pains and how to address them. Even if you have given the target customers all the other information and description for the product, they will have questions to ask.
You can identify the possible questions your target customers can ask about the product and then provide the best answers. For example, some customers have questions about a car vacuum cleaner sold on Amazon.
You can also see the questions addressed by your competitors and add them to your questions collection in this section of the Amazon optimization.
You should also add keywords within this section. They will make it easy for your optimization efforts and can also drive more potential customers to engage more with this section and the others above.
To help build trust and show potential customers that your products have value, add reviews of the product from the past customers.
Customers trust other customers. Here are the car vacuum cleaner product reviews from the above customer Q&A. Since some sellers want to get customers, it’s essential to use an Amazon review checker to see if the reviews are genuine.
When they hear that other customers with similar problems benefited from the products, they’re more likely to try the product to get equal or far much better results for their pains.
Ready to Improve your Amazon Listing For More Sales on Amazon?
Brands and other sellers are looking for the best channels to drive traffic to their products on Amazon, engage with the target audiences and convert them to make more sales.
Using Amazon and optimizing your product listings can help you reach those goals and drive more sales for your product.
Suppose your products are not selling on Amazon. In that case, the above steps will help you optimize your product and attract a large target audience who will get to know about your product offers and even convert more customers to your amazon products.