2022 was the year for brands in hyper-execution mode. From advertising campaigns to holiday promotions, every product on Amazon was trying to hit the holy trifecta—awareness, consideration, and conversion.
According to a report by the US Department of Commerce, retail eCommerce sales crossed $250 billion in Q3 last year. Combine this with rising inflation and unpredictable consumer behavior, and you know why it’s crucial to consistently analyze and improve your 1P performance.
While setting up promotional plans can help you generate sales during seasonal events, most brands must consistently replicate their success. The key to driving awareness and conversions all year round is a way to analyze your successes.
2023 is for Mindful Spending
Many factors matter in today’s economy, and the global landscape is evolving yearly. Sales reps want to scale top-line revenue with minimal impact on the bottom line but don’t know the best strategies to prioritize from 2022.
Shoppers today are mindful of every dollar, with 48% of US adults abandoning their shopping carts because of extra costs like shipping and added tax. As more and more shoppers seek the best possible deals, discounts, and coupons, competing brands invest more money on advertising platforms.
This pricing war ends with higher CPCs and increased budgets. Still, like shoppers, advertisers mindful of expenses can optimize and track promotions to significantly increase net profit quarter-over-quarter.
Year-round Promotional Strategies
Every popular e-commerce site is brimming with competition in all product categories, but inflationary pressures keep budgets flat and leave brands no room to increase ad spend commitment. This is where promotional strategy comes into play.
Brands are undoubtedly looking to ride the wave of promotional campaigns and elevate seasonal sales in 2023, and there is no space for guesswork in this strategy.
To do this, you must:
- Track every product detail page.
- Keep on top of inventory replenishment, and
- Craft a profitable advertising mix.
But with so many factors involved and changing in real-time, keeping up with the industry is the biggest challenge.
Responding to First-party Data
On Amazon, sellers have access to so much data that most don’t know how to leverage it all. The company also introduced new features and capabilities for Amazon sellers to extract insights from their brand’s performance.
But accessing primary data (like clicks and sales) isn’t enough to create a comprehensive promotional strategy today. For a complete picture, you need to analyze the raw data you get and turn it into actionable plans for the future.
For example, the net PPM or net pure profit margin does not factor in the promo dollars you paid or the advertising costs you incurred during the promo period.
Turning Data into Plans
A Statista survey showed that 70% of online shoppers read between one and six customer reviews before purchasing. This means you have to optimize and personalize every stage of the sales funnel to ensure a seamless shopping experience.
By understanding how customers react to all your sales elements, including your sales page, product selection, and live ads, you can:
- Improve your product reviews and ratings.
- Retain existing customers, and
- Attract new customers.
But understanding consumer behavior is challenging, and a product inventory meant to attract a large consumer base makes the job even tougher. It would help if you had a tool that calculates insights from your first-party data and turns them into reports that are easy for the entire team to put into practice.
How Pacvue Commerce Helps 1P Sellers
To effectively track all your promotions, coupons, and advertisements, you need a real-time tool that can perform complex calculations. To have better visibility into the true profitability of a promotion, you need to:
- Factor in the promotional discount against costs paid by the brand.
- Add in the costs incurred from advertising support, and
- Compare different day-part segments with day-by-day performance snapshots.
Pacvue Commerce is the one-stop shop for your brand’s eCommerce management that helps you do precisely that.
The tool monitors and reports all costs associated with running promotions on Amazon for you. From forecasting trends to automating recommendations, it helps you analyze past campaigns to optimize future ones. It gives you personalized answers to questions like:
- Does ad performance typically drop after a few days?
- Do promos perform better across specific categories or days?
- Do promos consistently bolster lagging product lines?
By automating manual work like budgets and logistical processes, teams save dozens of hours weekly and better understand how to prevent revenue leakage from driving profitable growth.
The tool also comes with Amazon Latitude—the solution to integrating your advertising efforts with e-commerce processes. This way, you can centralize your sales, products, and operations data in one place, taking back control of your advertising spend and media placement on Amazon.
Learn more about how algorithmic management can help you maximize your e-commerce sales and book a free demo, check out Pacvue Commerce.