Agency Amazon PPC Campaign

Mastering Troubleshooting: Unveiling the 3 Main Pillars for Amazon FBA Private Label Success

Are you also struggling with profits for your Amazon FBA private label products? Are you making all the marketing efforts to sell the products yet facing continuous failure?

Are you troubled in identifying factors that exactly need improvements? Worry no more. We at Upscale Valley help Amazon businesses reap profits.

Marketing Spend
Amazon PPC Ads Budgets

In this post, we will confer on the factors that directly influence Amazon FBA Private Label product yield. What are those factors and how playing smartly around them can help you achieve your goals? 

Without any further due, let’s discuss them. There are three main pillars for troubleshooting Amazon FBA Private Label profitability issues:

  1. Marketing Cost
  2. Clickthrough Rate and Conversion
  3. Organic and Repeated Orders

Let us dive into the details for each one of them:

1. Marketing Cost:

Marketing cost is the spend disbursed on the elements that make an ad visible to the targeted audience.

It usually comprises the following elements:

1. Cost-per-click (CPC) of Amazon advertising. CPC is different for different placements and match types in Amazon advertising, for example:

  • Exact match type
  • Broad match type 
  • Video Targeting

All the above targeting types usually have different costs per click, so one should test different match types to find an affordable click.

Amazon FBA Private Label
Amazon PPC Campaign Types

2. Cost of advertising on social media: 

There are various costs associated with advertising on social media platforms. Nonetheless, the following are the most prevalent and easily accessible ways to promote on these platforms.

  • Facebook ads
  • Pinterest ads
  • External ads
  • Instagram ads

3. Cost of generating sales from Influencer Marketing:

Influencer marketing can be a cost-effective strategy for Amazon sellers. To maximize its benefits, focus on the three main pillars of product troubleshooting: optimizing your product listing, managing customer reviews, and improving customer service.

Balancing these aspects can enhance your influencer marketing ROI and generate more sales.

2. CTR and Conversion of Amazon FBA Private Label:

Click-through rate (CTR) and conversion are usually determined with the below-described factors:

  • Title
  • Bullet points
  • A+ content
  • Product image
  • Product video
  • Brand story
  • Pricing offered
  • Product design
  • The value offered through the product
Click through Rate
Click Through Rate (CTR)

To get a conversion rate, you need to apply this formula to Clicks and orders:

Conversion Rate = Orders / Clicks
For example:
Conversion Rate = 5/9
Conversion Rate = 55%

3. Organic orders or repeating orders:

As the name suggests, organic orders depend on the organic ranking of the product page on search engines. If your page ranks well on many keywords, there is a fair chance of organically getting a good number of orders.

However, if you’re lagging in your ranking efforts, it is highly likely to get organically low or no orders, making your Amazon store more reliant on pay-per-click marketing.

On the other hand, repeated orders are usually because of the higher rankings and good customer experience.

How to make significant profits with Amazon FBA Private Label Products?

By now, you must have familiarized yourself with the three pillars that impact the revenue of Amazon private-label products. But how can you use these factors to significantly increase your profits and control total advertising cost of sales (TACOS)?

Here are a few suggestions to make your Amazon FBA Private Label profitable:

  • Improve the Conversion Factors:

Emphasize the conversion factors to improve overall profitability. Optimizing the content quality, utilizing creative images, and enhancing video interactivity can help you achieve a higher CTR rate.

A/B testing can also help a big time in identifying the factors that can assist in acquiring higher clicks. Augmenting conversion factors not only boosts CTR but also helps in stabilizing organic rankings.

A/B Testing
A/B Testing
  • Push Organic Ranks:

Pushing organic ranks can help drive qualified organic traffic toward private-label product pages. Doing so will benefit you by reducing the PPC budget or enabling you to keep the budget constant.

Pushing organic rankings does not always require aggressive advertising spend; it may also involve presenting customers with better designs and offers.

Exhibiting an innovative presentation or offer for your products can help attract customers to sustain organic ranks and traffic. 

  • Be careful with the match types:

If you usually use exact matches (which is getting tough day by day), try going for the broad match or phrase match keywords. This experimentation will allow you to analyze which match type works best toward your goals.

  • Get creative with paid marketing efforts:

Experiment with the third platform ads, influencer marketing, and external ads. See what value each brings to the table and how they can be used effectively to amplify sales and improve total advertising cost of sales (TACoS).

A brand should also strive to add value to its clients on social media. It aids in raising follower engagement, which advances branding efforts and aids in organic and repeated orders.

In Essence

Marketing cost, conversion, organic traffic, and repeated orders are the key pillars to analyze while troubleshooting Amazon FBA Private Label products.

Improving some of these factors will surely enable you to gain desired results. Not sure about it? Give it a try!

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