Clearing your road to Amazon: Analysis, mapping, and an action plan ensure a successful research trip to the e-commerce jungle

Return to blog

This series of articles is based on numerous discussions and experiences with our customers from various industries. We’ll go through topics that make business decision-makers think when they consider accelerating international growth through Amazon e-commerce sales.

In the first part of the article series, the customer considered launching international digital product sales to ensure future growth. He searched for information and compared setting up his own e-commerce and utilizing the Amazon e-commerce platform. It was clear that getting enough demand for products would be the most expensive investment. Demand and the opportunity to expand into more markets were the most cost-effective available on Amazon. The customer ended up clearing the way to Amazon with the help of Your Amazon Partners.

The first phase of the project was launched quickly. The kick-off meeting defined key milestones, schedules, and customer roles. The customer also got information on what would happen, when, and when more details of different areas were available.

In the e-commerce jungle, you need to find the right market for your product

First, YAP’s project team got to know the customer’s brand and products. Once they had a good understanding of the products, they started digging into Amazon data and doing market-specific analyses. They chose the European and American markets because they already knew that the necessary demand for the products would be found there.

At this stage, no product was excluded. This would be done after analysis, given the market-specific potential and demand for each product. The first step would be to move from analysis to drawing up an actual action plan.

The customer was amazed at the outcome of the analysis. YAP’s project team was able to multiply the market-specific demand for the products on Amazon and create a sales forecast for them relative to competitors. With it, YAP made a very accurate description of the customer’s Amazon sales in different markets.

A well-functioning logistics plan helps in the e-commerce jungle

However, this was not yet enough to create a strategy or make a decision. YAP proceeded according to plan and made a market-specific logistics plan with costs, including warehousing costs. The cost of Amazon sales could be easily bracketed when YAP knew the size of storage batches, which was based on the market sales forecast for the products.

The aim was to optimize the size of storage batches and stock replenishment to a level that would ensure the adequacy of the products after the start of sales and avoid unpleasant sold-out situations. Out of stock, i.e., sold-out situations may result in Amazon’s algorithm no longer favoring the product, and its targeted organic sales will not increase.

The decision to go to the e-commerce jungle is made based on information

The customer had all the information they needed to choose the right products and markets for Amazon sales. The decision was aided by market-specific details on the most potential products and their demand and a realistic view of sales, costs, and future product margins. In addition, there was also a logistics plan for delivering the products to the warehouse in the target market.

YAP prioritized the market based on demand and margin. The first step was to conquer the Amazon markets in Germany, France, Spain, and the UK. The American market was the most attractive in terms of demand, but YAP decided to open the closer European market first due to logistics. A functioning European market would later support the opening of the American market. Its conquest could be financed by revenue streams from the European market, as for this customer, the American market would require significant investments in non-Amazon marketing.

Well-optimized product listings survive the e-commerce jungle

Next, YAP dug up the information needed for product listings on Amazon sales. They would provide the best visibility for the products and the benefits of the Amazon algorithm technologies used by YAP for sale. YAP found the best product positions in the market relative to competitors and demand, the most attractive arguments, and the observations and facts that promote sales in terms of products and brand. This would create product listings that would appeal to buyers, position products correctly in each market, and help them stand out clearly from the competition.

As a final step in the mapping work of the first phase, an action plan was compiled. It would be the handbook on which to take concrete steps for the next step in conquering the Amazon market.

In the following article, we’ll look at how YAP experts helped the client company launch phase two, Amazon sales, which would make internationalization a reality and turn into a day-to-day business for the client.

Read the first part of the article series: Clearing your road to Amazon: How to get started?