Ahead of its imminent, highly anticipated launch, we get the nitty gritty on how brands can prep for success on, and with, Amazon.co.za
Amazon.co.za is inching ever closer to its local launch “in 2024”, according the global ecommerce giant’s blog. But local independent sellers have been able to register since mid-October.
Interestingly, one of Amazon’s most successful and award-nominated specialist marketing agencies is based in South Africa, and has years of expertise in the intricacies of succeeding in this competitive marketplace.
RT7 Digital has a decade of knowledge in hand, having helped brands gain a foothold on Amazon in the United Kingdom, the United States, and within the European Union.
Simply put, managing director Russell Ball says RT7 is a full service Amazon marketing agency that has helped brands win on Amazon.
“We have over 40 Amazon account specialists based in Cape Town and Johannesburg, with offices in London, Hamburg and Dallas. We focus on the three core areas of Amazon: account, organic and paid, ensuring a brands’ products are optimised and perform on the platform,” he explains.
Ball says it is too early to speculate on the scope for Amazon adoption by South African brands. “Knowing Amazon as we do, and the complexity that comes with it – including the budgets one will need to remain competitive – we see this channel benefitting large to medium brands initially, and only in 18 months from now,” he says.
Competition is a good thing, says Ball, and there’s no harm in brands currently selling on existing South African ecommerce sites such as Takealot, hosting their products on Amazon: “as long as they have the resources and budgets and can manage the demand”.
Then again, “There will be brands that might not be seeing great results and want to try Amazon. There is no doubt that Amazon entering the South African market will put additional pressure on existing ecommerce channels.”
With AI being the buzzword of 2023, it’s far-reaching consequences for ecommerce cannot be overlooked.
“While not new, AI services have now matured to the point where they are flexible, meet market demands, and have significant commercial viability,” says Ball.
“Numerous AI applications have emerged within the Amazon environment, from both third parties and Amazon itself. Whether it’s researching content, conducting sentiment analysis, optimising advertising, or building listings, AI is now featured in most leading Amazon SaaS tools and in the most sophisticated advertising suites. As a leading Amazon agency, RT7 is continuously evaluating new tools and deploys the best for the benefit of their clients,” he adds.
Positioning themselves for success
For now, RT7 is focused on direct marketing to the brands and agencies it wants to work with.
“We aim to position ourselves as the knowledge experts by offering traditional marketing and advertising agencies the chance to collaborate with RT7 to help their clients position themselves on Amazon,” says Ball.
“We are already in direct communication with some of the larger brands in South Africa who see Amazon as a real opportunity. So one-on-one direct interactions with our strong local network, mixed with the normal PPC, Amazon South Africa landing page, content specific to the region shared on many platforms, events, and a good PR campaign is how we’re getting our brand out there.”
Prepped for takeoff?
There will be challenges, he admits. “Managing the expectations, getting to understand the intricacies and complexity of managing a brand on Amazon, budgeting for long term gains (18 months plus before one will see returns), working out fulfilment, and managing stock are just some of the challenges we foresee,” Balls says.
Which begs the question: What does being ‘ready’ for Amazon look like?
Ball explains. “In the context of Amazon South Africa, being ‘ready’ would imply that you have”:
- Registered your account (avoided one-account policy issues)
- Dealt with brand registry intricacies
- Made the seller vs. vendor decisions
- Managed brand ownership issues, and
- Fully optimised your listings and all the content that is needed for that.
THE AMAZON BRAND CYCLE
Typically, the Amazon brand life cycle has four key stages
Phase 1: Establishment with the objective of gaining traction
During this initial phase, focus on establishing a solid foundation for your brand.
Consider: competitor and product research, niche analysis, product development and selection, keyword research, asset creation of conversion-optimised listings, reviews strategy – vine, brand strategy – store/a+, stock strategy – hybrid/vendor/seller/fba/direct fulfilment, pricing strategy, launch strategy, paid social campaigns for audience analysis and, finally, adopt a testing and learning philosophy.
Phase 2: Acceleration with the objective of gaining market share and establishing profitable lines.
In this phase, focus on expanding your market share and establishing profitable product lines.
Consider: advertising investment, market share focus, continuous seo focused on competitors, driving up bsr (best sellers rank), reviews focus on building brand presence, target specific competitors and products, social listening, affiliates, and finally consider consider hybrid.
Phase 3: Defend + Grow with the objective of optimising and adjusting
During this phase, your focus shifts to optimising your brand’s performance and defending your market position.
Consider: DSP (demand-side platform), catalogue management, audit resellers and focus on buy-box retention, split variations to drive down competitors, advertising defensive tactics, editorials, special events, and finally consider new markets.
Phase 4: Yield with the objective of maintaining dominance for high-earning SKUs
In the final phase, your focus is on maintaining dominance for your high-earning SKUs while proactively monitoring the market.
Consider: Continue leveraging Amazon’s DSP, manage successful listings and products with day-to-day tactics, monitor new brands and products entering the niche & adjust immediately, pricing strategy, and finally continuously optimise your SKUs by incorporating visual SEO elements such as compelling images and videos.
