2020 will be remembered as a remarkable year for eCommerce. Covid-19 has markedly driven online sales and altered shopping habits for many consumers. As an eCommerce marketer, you need to identify shifting trends and adjust your business strategies accordingly.
In this interview with Mike Begg from AMZ Advisers, Ori Greenberg, Algopix’s CEO, offers his observations on the online sector today, predicts upcoming trends, and provides vital tips to keep your sales strong in volatile times.
What are the main metrics sellers should be tracking to drive their brand and sales?
- Monitor sales trends and know your top-selling ASINs
Assess your sales records for the past year to identify your best-selling items. Monitor fluctuations and drive products that have been particularly popular. If the competition is eating into your market share, offer special discounts or gifts to keep your online buyers loyal.
- Track seasonal or consumer-driven sales trends
Year-round seasonal trends play a crucial role in driving sales. Note which special events or holidays are approaching and push suitable products. A case in point is Back-to-School items, which are currently in great demand. Conduct an in-depth marketing analysis to ensure that you are offering the most popular items.
- Ensure sufficient inventory for bestsellers
Make sure that you have sufficient stock to meet demand. If you do not maintain in-house inventory, discuss ongoing product availability with your suppliers. If consumers discover that you have run out of their desired item, they will rapidly move on and they may never return.
How are disruptor brands upsetting the apple cart for established brands on Amazon?
We are currently viewing a disruptive trend whereby white-label products are thriving and snagging market share from large brands.To succeed with this strategy, the vendor must keep an optimal inventory level, and adopt flexible, cost-effective marketing policies.
This development provides a unique opportunity for entrepreneurs in the eCommerce space. Vendors can sell their brands directly to large companies, saving on expenses and man hours.
Will Amazon remain the dominant eCommerce sales platform?
Amazon still maintains its dominant position in eCommerce, and it will undoubtedly continue to do so in the coming year..
Nevertheless, we are currently seeing an increasing number of other channels generating significant sales. Walmart’s marketplace is gaining momentum. Other marketplaces are making some smart moves, for example Google Shopping, which now offers a free listing strategy, and Facebook marketplace, with a billion potential buyers and immediate product availability. I believe the latter will provide some serious competition for Amazon in the future.
This means that there are growing opportunities for vendors if they study developing trends carefully.
Which channels do you recommend and what are the keys to wise expansion?
First of all, sell where your customers are located. As noted, Amazon and its various international sites are attractive, Walmart and Google Shopping are very popular, and eBay is still a large player. These channels alone cover over 80% of the total marketplace sales in the US.
When setting up new channels, do so gradually. Go for one channel a quarter and make sure that channel has an owner. There are a wide range of issues you will need to control: Make sure to analyse demand, automate cataloging, ensure competitive prices, and promote the most popular items effectively to boost organic traffic.
To drive sales, you will need to be both creative and proactive – set up PPC ad campaigns, experiment with product bundling, and come up with alluring marketing offers for each platform. Try setting up a landing page on Amazon to attractively showcase related products.
How do you know which channels are best for your products?
There’s no room for guesswork when it comes to your online marketing and projected sales.To acquire and assess all of the insightful data that I mentioned in my previous response, you need a BI-based marketing analysis tool that will draw all of the information you require to make your online business thrive.
The Algopix platform enables you to gauge overall demand, view competitors’ pricing worldwide, predict marketing costs and analyze margins. It automatically catalogs your products and provides uniform descriptions for various items. The platform also generates dynamic demand analysis on Amazon, Walmart, and eBay, so that you choose the right channel at precisely the right time.
Want to learn more about how Algopix can boost your business expansion? Click here.