7min chapter

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#332 - Amazon Growth Tips from a Multi 7-Figure Seller: How to Increase Traffic, Clicks, and Conversions

DTC POD: How The Best Brands Are Built

CHAPTER

Optimizing Traffic for Growth on Amazon

This chapter delves into the strategies for increasing traffic on Amazon listings, emphasizing the significance of targeting keywords, optimizing bid amounts, and understanding buyer intent to drive impressions, clicks, and conversions. The speakers highlight the similarities between Amazon ranking and SEO, stressing the importance of testing keywords and considering buyer behavior to achieve growth on the platform.

00:00
Speaker 1
And today we're going to be talking about some
Speaker 2
of the core pillars of what it takes to grow on Amazon. So like you said, last time we talked about, okay, if you want to launch on Amazon, how do you do that? But now we're going to be talking about, you know, how do you grow on Amazon and what you need to do, especially as, you know, competition goes up, there's more brands going after similar products, it's you got to, you got to get yourself right. So why don't we, why don't we walk through first, what are the core pillars we're going to be talking about today? And then we can kind of jump into each and run through them. Amazing, yeah, so the three core pillars that
Speaker 1
I, I call it the Trivium Trinity, right? Because like the three things that our team needs to focus on at all times is traffic, so growing traffic, you know, click -through rate, getting a better click -through rate, and conversion rate. And the reason is, Amazon is a simple funnel, right? It's like any funnel. At the top, there's impressions. So there's people seeing you in search results and on product pages and a certain number of those impressions turn into clicks and that's going to be based on your click -through rate and there's seven factors that affect that which we'll cover and then you know a certain number of those people that make it to your listing turn into customers and that's based on the conversion rate and there's also a certain number of factors that affect that and so if you just have this focus of okay, how do I grow my impressions, you know, through paid ads, through organic, how do I increase my cook through it, through the seven, you know, pulling the levers of the seven factors, and how do I increase my conversion rate? If you just do that consistently, you're inevitably going to grow on Amazon. And there's a couple other things we can touch on, like lifetime value and average order value. Obviously, you know, a larger AOV means people will spend more money with you, a better LTV means they'll come and buy again and again. But if you just focus on those core pillars, you will ultimately scale. And so Amazon can really, I know it can be very complicated, but can be simplified into just focusing on those three things.
Speaker 2
Yeah. And I think that's super
Speaker 1
important
Speaker 2
as well, because a lot of times if you look at it, even in Amazon listing, there's like a million different things you have to do. But like just thinking about it a simple way, I think is really helpful when it comes to growth. So let's talk about, let's start out with traffic, like under that umbrella, like what do you think about when it comes to traffic and, you know, how do you grow and scale your traffic?
Speaker 1
So you know traffic can come from two ways paid and organic so let's start with paid and when I talk about traffic I'm essentially talking about just increasing the number of impressions so increasing the amount of people the number of times that people are seeing you Right because I can't influence someone to click on me But you know as you know like when you're running and I learned all of this by the way by looking at what people on D2C We're doing like Facebook and stuff like that because what they were is they were, you know, running ads and they were getting a certain number of views and a certain CPM and a certain click -through and all that kind of stuff. So essentially, you know, with paid, the goal is how do I show my product to the most amount of people, but in a way that makes sense, right? In a way that converts. So, you know, ideal, let's say that you add a product with 500,000 reviews, right? We know you're going to convert on everything. So, what you would do is simply you identify every single keyword that a customer would potentially search for this product with and then create a campaign and show up on the top of the first page and that will result in you showing everywhere, getting the maximum number of impressions and converting on all of them because you have 500,000 reviews, right? Which is more than anyone else. But all of us are limited by our click -through and conversion rate. We don't have that many reviews. We have maybe 1 ,500, 200. And so it's still the exact same playbook. You're identifying every single keyword that you can potentially convert on, but then you're starting to make educated guesses and testing them. And so, you know, let's say my budget is $500 a day, right? So I'm I know that I can go, you know and target all thousand keywords. Let me just target, you know 50 or 100 of those keywords. And so I'm taking those keywords launching them in campaigns, targeting them and you know based on my bid is how high or how low I'm gonna show. I'll talk about the nuances in a second. But sure the broad, you know concept is I want to target all of these keywords. I want to get the data, so I want the keywords to get ad spend. There's a certain threshold. So in my opinion, at least 50% of your product price needs to be spent on a keyword. So if you have a $30 product, at least spend $15 on a keyword, then you can make an accurate decision on, is this keyword converting or not converting? Now, the nuances is the bids, right? The higher you show up in the search, the more clicks you're going to get for sure, right? Which means more traffic. However, if your conversion rate isn't good enough, then you start bleeding, because you're getting way too many clicks and not enough sales. And so, based on whatever your conversion rate is, you start optimizing your bids, you start lowering your bids and instead of showing up on position one, you show up on 5, 8, 15, 16. The thought behind it is the lower you show up in the search results, if someone makes it all the way down the page and then cooks on you, there's a higher buyer intent. And so for a keyword like electrolyte powder or just whey protein, right? Like someone's looking for whey protein. If I show up on top of the search first page, I'm gonna get all these people that don't even know what kind of whey protein they want, right? They're whey protein, they're like, maybe I need whey isolate, maybe I need a plant -based protein. So it's like, you don't want to catch someone in the beginning of their search. But if you show up a little bit lower in the search results or on longer tail keywords, it means that that person has a way higher buyer intent. That's super
Speaker 2
interesting because I think about Amazon in a lot of ways very similar to how you might approach SEO. But when you think about SEO, a lot of times if you have something that ranks a little bit further down, that means it's kind of a Shitty result for the keyword that you've been searched for and Google is like that's like not that good of results like it's almost like the further you go down Amazon the less likely you are to like get Good conversion and get intent because like Amazon saying or Google saying this isn't good But that's a very interesting viewpoint in terms of Amazon that actually it's, you know, being number 10 in a search query isn't necessarily a bad
Speaker 1
thing for the right buyer and the right keyword. Exactly. And it differs from keyword to keyword. And so that's why when we take all these keywords and we test them because we're number one testing, will they convert at all? And then number two, it will they convert and at which position right because let's say you're buying a food scale so if you say like you want a food scale like 250 grams whatever like let's say it's a very specific keyword you're most likely buying whatever is on the top of the search because you're very like you're looking for something specific so what is at the top what has good reviews and a good price I'm buying that right as opposed to if you just type in food Scale it's like whoa, you know, there's a lot of different types. There's a lot of different shapes There's a lot of different specs so you might browse way more So in the keyword also matters like you can have broad keywords where being positioned 10 15 20 You know is fine and you can have long tail keywords where no position being positioned 15 20 No one even makes it that far right because at that point, they're very specific. There's only a couple results for it. Yeah,
Speaker 2
exactly.

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