With the holiday season fast approaching, eMarspro is back to guide Amazon sellers through the perils of Q4 and ensure they make the most of it. This peak season runs from October to December when Amazon business ventures seek to reap big during the festive season. Q4 can be very profitable but requires good planning and attention, as many sellers receive a turnover increase of up to 30%. To help you survive these fierce months, eMarspro has devised five common missteps that Amazon sellers should avoid to maximize Q4 and some solutions to some of the challenges.
Why are Amazon Seller Mistakes So Costly in Q4?
As important as Q4 is to the overall business of Amazon sellers, any misstep in the season can be a huge drawback. When the consumers are most active, and the market is saturated, rivalry increases, and it becomes essential to be ready. The sales figures in Amazon’s Q4 results prove that the overall sales of small and medium enterprises in the USA sold more than 4,000 products per minute in recent years. Since there is much competition, the sellers cannot afford to sit back, wait, and then act; they need to act and be prepared to act. Here are some of the most frequent Q4 missteps and how to steer clear of them.
1) Not conducting promotions or offers
According to our data in Q4, all the strategies, promotions, and discounts cannot be overemphasized; the most important element is visibility. On occasions such as Black Friday and Cyber Monday, customers search for the best offers, and products with discount offers are appealing. That is why running promotions becomes so important when Amazon’s visual cues, such as banners, indicate a lower price for a product. If some of the Amazon Lightning Deals have ended, sellers can create coupons or small promotions, which can be launched fast and adjusted to requirements.
Solution: According to eMarspro, sellers should take advantage of deals and discounts as soon as possible. Any reduction in price can make a massive difference in the traffic and number of conversions. Those sellers who cannot prepare large promotions should run constant small offers, for example, coupons to keep customers interested.
2) Targeting Individual ASINs That Are Unprepared for Retail
eMarspro cautions that selling underdeveloped ASINs and product listings with low conversion rates is costly and damaging to the brand. High marketing costs are associated with the last quarter, making promoting products that may not have professional content is unprofitable. A retail-ready ASIN should be available in stock, have a rating of not less than 3.5, have more than 15 reviews, and have optimized listings. According to the analysis above, the following products should provide the best return on investment for sellers:
Solution: If some listings are not quite optimized, we suggest focusing on those that are ready for retail. Sellers can target well-rated, good-looking, and relevant-to-the-season products to consumers. Further, any product not meeting these standards should not be heavily marketed to preserve resources and focus on higher-quality production.
3) Deciding the extent of the advertisement budget
The fourth quarter demands a continuous advertising approach. Budgeting decisions that are effective for the remaining year may not be enough since bid competition increases and ad costs increase during the holiday season. It is essential to start campaigns early and gather pace because changing the budget too close to the shopping period will not have an impact.
Solution: Sellers should also control their ad budget before Black Friday and Cyber Monday using the Amazon budget rule, which allows increasing only the funds in peak periods. eMarspro also suggests that sellers spread their advertising budget over the season so they can remain visible duriholng the whole holiday period but not spend all the money in early December.
4) Ignoring Your Brand Store
Brand Stores are often not fully leveraged, and according to our experience, sellers should redecorate their Brand Stores to suit the festive season. Sellers only need to tweak a few elements – for instance, including a holiday banner or presenting Q4 offers – to turn the Brand Store into a holiday destination and stand out from other stores.
Solution: We always remind sellers to add Q4 offers to the Brand Store, ensure buyers’ attention is drawn to best sellers, and make holiday graphics more engaging. Bringing people from social media or other websites to the Amazon Brand Store can make the brand image coherent.
5) Large Changes or Shifts During the Fourth Quarter
Q4 is not suitable for experimenting with new layouts or A/B testing, as issues or complications are likely to negatively affect performance. eMarspro stresses that Q4 may come with unexpected factors, such as shipping cut-offs or new Amazon policies, among others. Sellers might decide to switch images, add or change the content, or try new ads, but all these come with risks.
Solution: Sellers should maintain their current strategies and ensure consistency. They should not chase competitors or respond to external factors, but they should stay with well-proven strategies. If sellers are struggling with storage, for example, or policy changes occur, it is better to calmly analyze the situation rather than overcompensate, which can result in brand or product suspension.
Extra Measures to Boost Q4 Outcome
With Q4 bringing added pressure to sellers, eMarspro offers some final strategies for avoiding common pitfalls:
Run Promotions Strategically: Expect high-traffic shopping days and leverage on increased exposure through moderate margin cuts.
Target Retail-Ready ASINs: Do not spend time and money on products that are not yet fully optimized or are only relevant during specific periods of the year.
Prepare for Increased Ad Costs: Be as flexible with money as possible, and do not abruptly alter the campaigns.
Stick with Proven Methods: Refrain from making the big shifts that add risks to the organization.
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