The Amazon River: Tapping Its flow - Amazon Monitoring Software from AMZAlert

The Amazon River: Tapping Its flow

One issue that companies experience while selling on Amazon is an increased cost of advertising due to low conversion rates. When a company has a product with a low conversion rate, its ranking is adversely affected and competition moves-in. Compounding the problem, the cost of advertising also increases as the product’s ranking drops. The company must then focus on increasing their conversion rate through keyword harvesting and fine turning their listing in hopes that they can make up ground in the market.

How is Amazon like a river?

More than a play on words, the Amazon e-commerce platform is like a river flowing with consumers. The first necessity for a seller to tap into this flow is a sellable product, then smart advertising practices become a differentiator. The farther you are upstream, the greater the flow. The greater the flow, the more opportunity a seller has to make a sale from said advertising. The flip side of this is that if a seller is advertising but it is not effectively converting to sales, Amazon will reduce that seller’s rank and position their advertising downstream (lower in search results) compared to a competing product that is experiencing a higher conversion rate. The goal for companies selling on Amazon should be to do everything possible to keep their position on the river and steadily move upstream via high conversion rates.

Conversion Rate and Cost of Advertising?

Poor conversion rates not only push the product downstream, but they result in an increased cost to advertise even if the product is selling. Some companies may even see the cost associated with advertising double as a result of low conversion rates. And, once downstream, should a company decide to automate and optimize their advertising they still have to pay a higher cost for ads than their competitors making it difficult for them to get upstream. While on the flip side, the company using ad optimization leveraging AI will stay far upstream enjoying high conversion rates, sales, and constant heavy customer flow.

Solving Conversion Rate via AI

Utilizing an ad optimization service will keep one’s conversion rates high, and the cost of advertising low. Manually harvesting keywords and performing the data analysis on them to achieve optimal results requires a lot of man-hours and expertise.  Not only is manually managing every component of one’s ad campaigns subject to human error, but it is a distraction for some companies who prefer to focus solely on their product and satisfying their customers. Leave the ad optimization to experts and automation, integrate your business process with an AI product, and remain at ease knowing you will stay afloat on the river in a desirable upstream position.

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