Expert Report: Using Amazon Data for Last-Minute Holiday Optimizations
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The document provides an expert report on using Amazon data for last-minute holiday optimizations. It discusses the 2021 holiday shopping landscape including inflation, logistics issues, and manufacturing woes. It analyzes Amazon data on how the shopping season may unfold, noting demand may outstrip capacity again and shoppers are nervous after 2020 delays. The document then provides recommendations in four key areas - inventory, SEO, advertising, and promotions - for last-minute optimizations, including increasing inventory, optimizing listings, running promotions, and taking a phased advertising approach.
Expert Report: Using Amazon Data for Last-Minute Holiday Optimizations
- 1. Using Amazon Data for Last-Minute Holiday Optimizations EXPERT REPORT
- 2. Today’s Logistics Kerry Mallett Webinar Coordinator Recording & slides will be in your inbox shortly after the session Download relevant resources Join our chat and submit questions for live Q&A Log back anytime with same link Join our poll questions
- 3. WE’VE MASTERED THE MEDIA THAT MATTERS MOST Tinuiti is the largest independent performance marketing firm across Streaming TV and the Triopoly of Google, Facebook, Amazon. Employees Media managed Award-winning culture* $3B #1 950+
- 4. Some of Our Clients Our Recognition For commerce leaders of today and the future
- 5. Our Speakers ANDY TAYLOR VP Research BRENNA HUGGINS Senior Account Manager, Softlines PRATEEK HARALALKA Head of Customer Success
- 6. Agenda ● The 2021 Holiday Shopping Landscape ● From the Data: How will the Shopping Season Unfold? ● Last Minute Optimizations Fulfillment + Inventory Promotions + Merchandise Strategies Data-Driven SEO & Advertising 6
- 7. What is your biggest pain point this holiday season? ● Inventory and fulfillment challenges ● Advertising costs ● Challenges with promotions ● Something else - tell us in the chat! POLL QUESTION
- 8. The 2021 Holiday Shopping Landscape
- 9. Total Retail: 2019 vs 2020 vs 2021 You can see: ● Dip in April 2020 ● The recovery by June of 2020 ● And how much higher 2021 is trending
- 10. Growth: Physical Retail vs eCommerce In Q2 2020, eCommerce got a huge boost from COVID: 40%+ vs -10% 1 year on, in Q2 2021, the tables have turned: 10% vs 30%+
- 11. Which Categories Won in 2020?
- 12. The 2021 Holiday Landscape Container Prices 4x That in January, 2021 - Freightos.com Acute Shortage of CDLs - Walmart Offering $160k/yr LOGISTICS Retailers Already Offering Deals Expect Shopping To Continue Well Into January LONGER HOLIDAY SEASON Digital Inflation of 3.3% in September - 1st Time Ever! Overall Inflation of 5.2% Fall in Savings from 9.2% to 7.5% INFLATION Lower Output From Chinese Factories China’s Zero-Covid Policy Impacting Ports MANUFACTURING WOES 12
- 13. How will the shopping season unfold? From the data 13
- 14. October Prime Day Created a New Q4 Holiday in 2020
- 15. Ad Click Value Slumped in the Third Week of December 2020 Was demand pulled forward by October Prime Day? Or was it all just shipping fears?
- 16. Demand Might Outstrip Capacity Once Again
- 17. Shoppers Still Nervous from 2020 ‘Shipageddon’? Source: 2021 Tinuiti Holiday Shopper Survey 57% of shoppers expect to start shopping on or before Thanksgiving, compared to 48% who expected to do the same in 2020
- 18. It’s no Prime Day, but Amazon launched Black Friday Deals Already Target also ran their ‘Deal Days’ event from Oct 10-12, as retailers push consumers to shop earlier
- 19. Advertisers still seeing huge CPC growth heading into Q4
- 20. Advertisers still seeing huge CPC growth heading into Q4...across categories CPC is still growing across most of the product categories we’ve studied
- 21. Advertisers still seeing huge CPC growth heading into Q4...across borders CPC growth is even stronger internationally than in the US
- 22. Cyber Weekend Will Be Pricey, but Worthwhile
- 23. Fulfillment + Inventory Last Minute Optimizations 23
- 24. Inventory Coverage SELLER CENTRAL ● Send an FBA Bulk Up Order to cover season ● Protect your listings with backup inventory on MFN *Don’t forget to input realistic ship windows for your warehouse VENDOR CENTRAL ● Send bulk up order through Born to Run on top sellers ● Cover Amazon’s out of stock with drop ship listings
- 25. What if I Have Inventory Issues? OUT OF STOCK ● Identify inventory pockets you do have instock ● Pivot merchandising and marketing levers to drive traffic to this inventory ● Slow down or turn off marketing for out of stock items ● Position inventory to be a replacement for top sellers through bundling, promotion, price change etc 25 SLOW SELLERS ● Identify items with low sell through ● Pivot merchandising and marketing levers to drive traffic to this inventory ● Promote early ● Bundle with top selling
- 26. Promotions + Merchandise Strategies Last Minute Optimizations 26
- 27. Promotions COUPONS Definition: High visibility on the search results page with the coupon badge. Shoppers engage by “clipping” the coupon to apply discount Eligibility: Minimum 20% off discount + good reviews LIGHTNING DEALS Definition: Limited quantity deals that run for several hours on the event page Eligibility: Minimum 20% discount off the lowest price in last 30 days or last year to date 7-DAY DEALS Definition: Price discounts featured on the event page that run throughout duration of the event Eligibility (Sellers only): Minimum 15% discount off lowest price in last 30 days or last year to date BEST DEALS Definition: Limited quantity deals that run for 14 days on the event page Eligibility (Vendors only): Minimum 15% off discount off the lowest price in last 30 days or last year to date
- 28. Merchandising Fundamentals Images ● Use all image slots ● Get creative ● Consider using video Everything on the detail page is free real estate to add search optimization and promote your product and brand Variations ● Fix any issues right away ● Don’t change in Q4 Bullet Points ● Put important conversion details at top ● Have SEO content in the rest Title ● Ensure they are search optimized ● Max out characters
- 29. 29 Amazon A+ Content What is Enhanced Marketing Content? ● Enhance product detail pages with additional text and images. ● Premium branded placement below the fold on your Amazon detail page. ● Packages the listing together and helps distinguish your products as premium.
- 30. Merchandising Levers at your Disposal Comparison chart to A+ content Amazon Posts* Brand Store* 30 Brand Story* *Brand Registered
- 31. Data-Driven SEO & Advertising Last Minute Optimizations
- 32. 32 The Dynamics Around the Key Search Terms
- 33. 33 “Holiday Gifts” - Diving Deep
- 34. Holiday Advertising - What to Expect Change in Ad Spend: October 1st - 7th vs October 26th - November 1st 2021 Sponsored Product Ads Sponsored Brand Ads Sponsored Display Ads (23.08%) (22.95%) (15.58%) 2020 Sponsored Product Ads Sponsored Brand Ads Sponsored Display Ads (5.11%) NA +7.87% October Last Week vs November Last Week 2020 Sponsored Product Ads Sponsored Brand Ads Sponsored Display Ads +69.18% +54.80% +63.74% Percentage increase in CPC between September end & October end Keywords: 'gift', 'gifts', 'holiday', 'holidays', 'christmas' 2020 12% 2021 14% Clearly, that wasn't big. However, when comparing October 2020 & October 2021, CPC increased by 80%! Good news! There’s still time! As seen on this table, the game really only begins in November! Retailers actually reduced their Ad Spend!
- 35. The Phased Approach to Advertising NOW: START! ● Test - Creatives, Products, Keywords, Bids ● Get The Flywheel Going ● Awareness + Brand Video Ads ● Medium PPC Investment ● TURKEY 5 ● Go Big ● Defense ● Conquesting ● Remain Agile ○ Inventory ○ Competitors ● Heavy PPC Investment DECEMBER ● Defense ● Conquesting ● Messaging ○ Last Minute Gifting ● Liquidate ● Low PPC Investment 35
- 36. Overall Framework NOW: START! ● Test - Creatives, Audiences, Products, Keywords, Bids ● Get The Flywheel Going ● Awareness + Brand Video Ads ● ● TURKEY 5 ● Go Big ● Conquesting ● Remain Agile DECEMBER ● Messaging ● Liquidate 36 Source: Feedvisor
- 37. Next Steps 37
- 38. Key Takeaways ● The 4 Focus Areas: ○ Inventory ○ SEO ○ Advertising ○ Promotions ● Shoppers are expected to shop earlier - make sure you’re there to meet them in the early days of the holiday shopping season ● Amazon Ads pricing is much higher than it was last year - set expectations and budgets accordingly ● Harvest learnings from Prime Day 2021 & Q4, 2020 ● Pick your battles carefully and remain agile
- 39. Schedule Your Consultation with an Amazon Expert
- 40. Q&A
- 42. Thank you!