Why The Future for Amazon Sellers is Shopify

Let’s be clear: the leading force in the future of eCommerce experiences is Amazon.

Just ask their 142.5 million Prime members. They LOVE their ultra-fast free shipping.

I personally don’t buy a product on Amazon unless I can get it Prime’d to me.

Just like every other person, I just have a knack for immediate gratification as soon as a purchase something online. Oh, the perks of being human.

Amazon built the World’s largest online mall and opened its doors for sellers to set up shops.

According to Bigcommerce, Every month 198 million people enter the Amazon mall ready to buy which is an amazing opportunity for online sellers to capitalize on Amazon’s traffic.

But here’s the kicker:

Amazon’s traffic means Amazon’s customers, not yours. If you don’t believe me, just try to email them. I dare ya.

And yeah, I know what you may be thinking

“if they’re buying my products and I’m making money who cares?”

Well, that depends on who you ask and what your goals are.

Wholesalers don’t have to worry about this too much but if your goal is to build a long-term sustainable household brand you can’t do it on Amazon – at least not in the way you think.

Amazon is already a brand.

Amazon shoppers don’t remember the name of the brands they purchase – all they know is that

“They got it on Amazon”

So if your goal is to build a household multimillion brand you don’t need to abandon Amazon – all you need to do is complement it with your own website on an external platform like Shopify.

And here’s why:

Use The Largest & Most Powerful Product Search Engine To Your Advantage

Every Amazon seller should be familiar with the A10 Amazon Algorithm.

This algorithm is the powerhouse that matches potential purchasers with the products they’re more likely to buy so that the purchase can be completed in the shortest amount of time.

Here’s a breakdown of the Amazon algorithm our friends at SellerApp put together:

Image 6

(chat credit: SellerApp; data credit: InternetBizUni)

If you look at the above chart closely, you will notice that the following factors are mainly influential in determining the Amazon rankings:

For the sake of this post, we’ll focus on the Last 2: Organic Sales and Sales from External Links.

These 2 factors are said to account for 35% of the ranking algorithm.

Organic Sales happen when a person searches for A product on Amazon and then buys YOUR product without any help from Amazon PPC ads.

Imagine this: you have a Shopify store and your Amazon listing.

You’re capturing your new customer’s data on your Shopify store when they purchase and sign up for coupons.

One day you send a mass email campaign to your customers with a promotion. Some of them click on the links and go to your website to purchase.

Some of them decide to go to Amazon, search for your product and purchase it there because they get Prime benefits.

What do you think this will do to your Amazon listing?

Well besides the immediate sales, Amazon will take notice of these “organic” sales and rank your products higher in your category.

BUT now imagine this, what if in that email instead of sending people back to your website, you sent them to your Amazon listing? This is considered external traffic which as you know is 15% of the weight in the Amazon algorithm.

If they purchase that’ll increase your rankings as well over time.

Higher rankings = more sales

More sales = higher rankings

+1 for Shopify.

If Amazon Grows, Do You Grow?

One of my business mentors Roland Fraiser once told me

“Never grow someone
else’s business”

which makes a ton of sense because in reality… why would you? Instead, grow your own!

If you had to make an extra $3,000 in sales in the next 24 hours without spending a dime on ads how would you do it?

On Amazon you may run a sale on your listing and hope that increases your sales but we both know it doesn’t always work like that.

On Shopify, you can just send out a campaign to your email list and boom – sales. And the best thing is that you can do it again next month. And the month after that one. And the month after that one. And the… well you get the point.

When you sell on Amazon you’re only borrowing digital real estate in Amazon’s digital mall. I already touched on the they’re-not-your-customers point which means you don’t have their data.

So as Amazon’s business grows with more customers, it also grows with more sellers.

More sellers = more competition.

Just because we see every day Amazon growing more and more, it doesn’t necessarily mean that your Listing is growing at the same rate.

But with your own Shopify store, you can leverage the power of Amazon while having the confidence you’re building your own brand not just an Amazon listing.

What would happen to your income if Amazon shut down your store today? It may be improbable that Amazon would do this, but not impossible.

If you had a Shopify store, you could rely on your existing customers and their data.

Data is the new oil.

So by collecting emails, phone numbers, and other valuable information you could protect your business from an I-shouldn’t-have-put-all-my-eggs-in-one-basket catastrophe.

This brings me to my next and last point…

Again. And Again. And Again

Here’s an indisputable business fact:

Getting someone to purchase for the first time is one of the most expensive things you can do in business.

First-time sales may help you get traction but growth relies on customers coming back to purchase again. And again. And again.

That’s why two of the most important metrics in business, especially in eCommerce are CPA – Cost Per Acquisition (of a new customer) and CLTV – Customer Lifetime Value.

If you know those two metrics, then you’ll know how much you can reasonably spend to get a new customers vs how much you can expect that new customer to bring in revenue over the average time period they do business with you.

But remember to know your LTV you have to know your CPA and if you’re not getting new customers how are you ever going to know your LTV?

People are not going to stop shopping on Amazon any time soon, but that doesn’t mean they will not shop somewhere else either.

So what can you do? Use Shopify as your sales channel to acquire new customers and Amazon to retain your customers.

This offers the best of both worlds not only to you but also your customers.

You can get their data every time they shop on your Shopify store, communicate with them, and have the piece of mind that if your product delivers on all its promises, you’ll be building a brand over time.

You can also leverage the power of Amazon’s infrastructure to deliver a better shipping experience.

And the best thing about this is that you can sync both stores so that if you want, all your shipping can be done by Amazon, even if people purchase via your Shopify store.

You can also share reviews from Amazon to your Shopify store so that your potential new customers get the confidence they’re buying quality products.

Even though these may sound like basic principles, most store owners have been taught to choose one channel over the other one when both of them complement each other very well.

So if you’re on the fence about Shopify, reach out to one of our Amazon Expansion Consultants so we can guide you through the process of expanding your success on Amazon to Shopify.

Ready to expand your success from Amazon to Shopify?

Do it without moving a single finger

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