WHY, WHEN & HOWFOR SUCCESS ON THE ROCKETSHIP

Andy Thompson & Sam Hagerwith cameos by Jeff Bezos

I have won this lottery. It's a gigantic lottery, and it's called Amazon.com. And I'm using my lottery winnings to push us a little further into space.

– Jeff Bezos

WHY:Amazon Landscape8:00 – 8:15am

WHEN: Scenario Analysis8:15 – 8:25am

HOW: Platform Basics8:25-9:00am

BONUS: Advanced Tactics + Q&A9:00 – 9:30am

AGENDA

WHY SHOULD I GET ON?

WHO IS CURRENTLY ON AMAZON?

The Amazon Explosion

Over 200 300 million active users, 100 million of which are paid Prime subscribers. Over 400 500 million products. Over $100 $200 billion in annual revenues. Over 250,000500,000 employees. Over $500 $750 $900 $1000 billion (that’s a trillion) market capitalization.

The Amazon Explosion

Over 200 300 million active users, 100 million of which are paid Prime subscribers. Over 400 500 million products. Over $100 $200 billion in annual revenues. Over 250,000500,000 employees. Over $500 $750 $900 $1000 billion (that’s a trillion) market capitalization.Amazon does everything from fix

your toilet to host your AI application....seriously.

“Start with the customer and work backwards.” – Jeff Bezos

Basic Premise: More sellers will lower costs and prices through competition while bolstering selection for customers. Lower prices and more selection will bring in more customers and the cycle repeats itself.

Bezos’s Napkin

Clash of Titans

10

59%of consumers start their

product searches on

Amazon…compared to 28% who use

search engines – Google,

Bing and Yahoo

The Default Product Search

11

300MMWW active customer

accounts1

188MMUS monthly total visitors1

9 in10consumers will check

Amazon even if they find a

product they want on

another retailers site3

92%of shoppers who start their

purchase journey on

Amazon typically make

their final purchase on

Amazon4

Customer Preference

49% of US

Ecommerce spending

22xHigher Conversion than other online

stores

5%of All US Retail

spending

26%of shoppers

check Amazon while in Stores

Killer Stats

GOT A PROBLEM WITH THAT?

WHEN SHOULD I GET ON?

What we need to do is always lean into the future; when the world changes around you and when it changes

against you - what used to be a tail wind is now a head wind - you have to lean into that and figure out what to

do because complaining isn't a strategy. - Jeff Bezos

Boarding Pass #1

Startups and Small Businesses

ChallengeShort on staff and cash

OpportunityCustomers and Revenue!

QuestionHow do I support the channel?

Boarding Pass #2

Distributors and Resellers

ChallengeExclusivity and Control

OpportunityEasy sales, minimum effort

QuestionWhich products do I list?

Boarding Pass #3

EstablishedBrands

ChallengeBrand Integrity

OpportunityExpansion and Control

QuestionHow does the channel fit in my strategy?

Boarding Pass #4

VC’s andAccelerators

ChallengeLimited R&D + Marketing Funds

OpportunityDirect Customer Feedback and Intel

QuestionHow do I leverage the channel?

HOW DO I FLY THIS THING?

Percentage margins don't matter. What matters always is dollar margins: the actual dollar amount.

Companies are valued not on their percentage margins, but on how many dollars they actually

make, and a multiple of that.– Jeff Bezos

Each platform has its pros/cons. Consider the following when deciding which platform is right for you!

• Margin & Fees

• Pricing Control

• Fulfillment Capabilities

• Inventory Management

• Cash Flow

• Data Availability

• Customer Service

• Internal Operations

Which Platform to Step On?

Seller Central: 3rd Party Seller

Sell direct to the customer

Which Platform to Step On?

Vendor Central:1st Party Retailer

Sell direct to Amazon

Referral Fee: $4.50FBA Fee: $3.19Promotion: $3.00Ad Support: $7.00

Seller CentralMSRP: $30.00

Net Margin: $12.31 Net Margin: 41.0%

Coop Fee: $2.88

Damage + Freight: $0.90

Promotion: $3.00

Ad Support: $7.00

Early Payment: $0.18

Vendor CentralWholesale: $18.00

Net Margin: $4.04Net Margin: 22.4%

3X

Which Platform to Step On?

Sales are driven through the Buy Box

Buy Box Winning Factors:• In-stock inventory• Prime eligible• Price• Seller Rating• History on Amazon• Customer service quality• Performance metrics• Order defect rate

Winning the Buy Box is Key

Does:• Proprietary text and image search with

violation tool• Increase authority of product listings

with your brand name• Provide predictive automation based

on your reports of suspected intellectual property rights violations

• Have a dedicated Brand Support Team

Doesn’t:• Give you authority to “kick off” resellers• Fix pricing or set a floor

Keeps the riff raff in check (most of the time) and allows for a better customer experience.

Brand Registry

6

Product Title: 80-200 characters

Images: 7-9 high res images

Feature Bullets: 5 bullets (200-300 characters)

Product Description: 1,500 – 2,000 characters

Reviews and Ratings: 4+ Stars Reviews

EBC/ A+ Detail Pages: Tell Your Product/ Brand Story

1

2

3

4

5

At its core, Amazon is a search engine. Successful product marketing starts with an OPTIMIZED DETAIL PAGE!

Listing Fundamentals

Listing Features/Recommendations:

Increase in Conversion

Rates

45%

Reviews encourage customer confidence in your product via social validation & drive SEO ranking.

• Vendor Central (Vine Program)

• Seller Central (Early Reviewer Program)o Brand Registeredo <5 Reviewso >$15

• 3rd party tools (Seller Central): Feedback Genius, FeedbackFive

• Grassroots effortso W.O.M., Mailers, Inserts, Email to CRM

Even ONE review drives immediate and measurable sales results

Building Reviews

Below the fold, additional rich and detailed content that can result in higher conversion rates, increased traffic, and increased sales.

Content can include:

• Optimized copy

• Images (product and lifestyle)

• Brand highlights

• Product features, including visuals

• Comparison charts

• Video

Enhancing Your Content

Design and create multipage stores to showcase your brand, products and value proposition.

• A complete multi-page experience

• Showcase full range of products across different categories

• Showcase new products

• Own a unique Amazon URL (ex. Amazon.com/ YOURBRAND) – great for driving external traffic to a “landing page” on Amazon

• Drive Headline Search Ads to brand advertising experience

Propping Up Your Storefront

Drive repeat purchases with Subscribe & Save.

Gain access to highly engaged Amazon customers Site placements

Increase brand awareness Email campaigns

Additional brand marketing Improved forecasting and in-stock levels of your products

Amazon gives subscribers a discount on their SnS orders, plus free shipping. SnS is available on grocery, health and personal care, and office products.

Encourage Repeat Purchasers

The benefits of promotions range from driving sales and increasing conversions to generating a halo

effect on specific products.

Help People Buy More

Amazon done right

Client:Natural Supplements Company

Amazon: A Case Study

ImprovementIn ACOS

72% Increase in Avg.

ConversionRate

45%

Increase in Avg. Monthly Unit

Orders

446% Increase in Avg. Monthly Amazon

Sales

500%

RESULTS

Challenges: Resellers, price integrity, buy box capture, advertising struggles, poor listings, and stagnant sales

LANDING THE SHIP

Our motto at Blue Origin is 'Gradatim Ferociter’:

'Step by Step, Ferociously.– Jeff Bezos

• These can be bullets too

• Use this slide template when you want to call

something out

• Don’t put it on the B background slides

• Ok, cool. Thanks.

CALLOUT PLUS 2:

Amazon is now the 3rd largest digital ad seller in the U.S.

Advertising on Amazon

$4.61B $0.88B$20.0B$39.9B

Google Facebook Amazon Oath

Multiple opportunities to leverage Amazon’s data and reach new customers for your brand

Sponsored Product Ads/ Headline Search

Amazon Marketing Services(AMS) – SPA, HSA, PDA

Amazon Advertising Platform(AAP)

Amazon Media Group(AMG)

Seller Central Vendor Central Vendor CentralSeller CentralOpen

Vendor CentralOpen

No minimums No minimums Self-managed: No minimumsVendor managed: $10k

Vendor managed: $35k

Advertising on Amazon

Advertise from Anywhere

Sponsored Product Sponsored Brand (Headline Search)

Product Display

Native Ad IntegrationIncrease Discoverability

Prominent PlacementDrive Awareness

Cross Sell/Up Sell/Conquest

Capture existing demand by converting hand raisers actively searching for your products.

Advertise from Anywhere

Get the flywheel spinning, drivetraffic, and capture engaged customers with highly targeted ads.

Shift the Odds in Your Favor

42

Agencies now have exclusive access to Amazon’s programmatic platform known as the Amazon Advertising Platform (AAP).

Programmatic in a Flight Near You

✓ Vendor & Seller Central

✓ Reach Amazon’s audience segments on and off of Amazon owned and operated properties

✓ Fees are related to requirements of the Agency administering campaigns

✓ Vendor Central (typically)

✓ Direct display, video ads, custom ad units - across Amazon owned and operated properties (Amazon.com, IMDB, Digital Photography Review, and Fire)

✓ Management fee of $35K with spend minimums per ASIN

Self Serve vs. Piloted (for a fee)

They simply want to own the customer and it's a valid argument.

• Data

• Communication

• Customer Service

• Pricing

Why Brands Don’t Send Traffic to Amazon

• Brand Messaging and Image

• Remarketing

• SALES ATTRIBUTION TRACKING

But Here’s Why They Should…

The customers are already there, buying product whether brands like it or not.

• Customer Service

• Remarketing

• Conversion Rates 22x

• Seamless Buying Experience

• SALES ATTRIBUTION TRACKING

• Link to product detail pages and other pages on Amazon

• Share on social media

• See clicks and sales attribution for off-platform media

• View earnings summary –paid monthly

Drive customers to detail pages and monetize traffic.

The Missing Link

Correlation Coefficient of Paid Media Spend to Unit Sales

• AMS: -0.64• Search: 0.98• Display: 0.86• Social: -0.91

• ALL: 0.95

The Proof is in the Correlation

Video Ads on Platform and in Search• Early Access by application and

approval only• Product Detail or Landing Page• Less than 90 Seconds + Audio• $35K Minimum

Amazon Attribution Tag• Beta recently ended• Sign up open for future entrance• Display, Search, and Video• Page Views, Purchase Rate, and Sales

Shiny New Objects

THANK YOU“I think that, ah, I'm a very goofy sort of person in many ways.”

- Jeff Bezos

shager@booyahadvertising.comathompson@booyahadvertising.com