We have already seen a surge in e-commerce sales driven by the pandemic. Digital Commerce 360 is predicting that online sales will yield an incremental $40 billion in revenue in November-December, reaching almost $200 billion total for the holiday season. That is a whopping +43% increase versus the same time last year. Digital Commerce 360 predicts that this year, 26% of all holiday purchases will happen online, increasing from 19% in 2019. Given this unprecedented level of sales, what should you be doing as a seller?
Start with Inventory
If you don’t have inventory, nothing else matters. This year, managing the supply chain is more complex than ever before. If possible, create FBM listings (in addition to your Amazon FBA) to give yourself a contingency plan in case the stock at Amazon runs out. You do not want your promoted items to go out-of-stock. Track your inbound inventory, and file for reimbursements if the stock gets lost! HINGE COMMERCE has recovered hundreds of thousands of dollars in reimbursements on behalf of our clients.
Promote During Black Friday Cyber Monday
Run at least one promotion during Cyber 5, giving at least 20% off. Recognize that your promotions will have a positive halo effect on the rest of your brand, and will help drive brand awareness and lead to new buyer acquisition during this high traffic period.
Support Your Brand With Paid Advertising (AMS)
To help your brand stand out, you need to invest in paid advertising. Diversify your ad types to drive greater visibility, and promote your products in different places. You should also diversify your targets since not all products in your catalog are the same. Most of all, be sure to track all of your activity carefully (by time period, by brand, by category, by ad type, and by campaign). This detailed data tracking ensures that you can learn what works and what doesn’t work, and reapply those learnings in the new year. Because of increased traffic and steeper competition, advertising costs are rising. Sellers need to operate efficiently and be data-oriented in order to stay successful.
Leverage Amazon DSP, through HINGE
Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads both on and off Amazon. This gives you access to new and existing customers on Amazon, reaching audiences on both Amazon sites, leading publisher sites, and third-party exchanges. HINGE can provide sellers with a significantly less expensive way of accessing Amazon DSP relative to using Amazon Media Group for this. (Reach out to learn more).
Fasten your seat belts, everyone! If the start of the year is any indication, the end of the year is sure to be a wild ride. However, if you have done the right planning, and execute the plan well, you should reap double-digit gains.
