Be Prepared for the 2020 Holiday Season on Amazon
The COVID-19 pandemic has transformed the U.S. retail industry in an unexpected way that forced many brick-and-mortar businesses to shut their doors causing consumers to flock to online shopping channels at unprecedented rates. The COVID-19 crisis has solidified Amazon’s No. 1 market position and this holiday season is expected to be the largest the online shopping platform has ever seen.
We want to make sure you are prepared for the upcoming holiday season since it has been projected that the majority of Christmas gifts will be purchased online because most shoppers will want to avoid large crowds. Read below for tips on preparing for the holiday season on Amazon. We will discuss managing inventory, pricing, optimizing your product description page, and of course, review the important dates in Q4 2020.
Inventory
Be proactive with your inventory in Q4. Figure out which products will need to be restocked and plan for an increase in sales compared to previous quarters (meaning you will need more inventory than usual). Have your inventory ready to be shipped to the fulfillment centers in October. Be aware of FBA intake processing delays and supplier/carrier lead times, as it may take longer to fulfill inventory during the busy season. Most importantly DO NOT run out of inventory during the holidays because it could cost you thousands in lost sales!
You should also be conscious of the overstock on products that aren’t moving. In 2019 Amazon increased its storage fees for FBA sellers. Between October – December standard size will cost $2.40 per cubic foot and oversize will cost $1.20 per cubic foot. Don’t waste your budget on storing products that won’t move.
Clear out your slow-moving stock that is taking up room on the Amazon shelves by cutting prices, running promotions, creating new bundles, or donating products to charity for a tax write off. Moving these products will save you money on storage fees and increase your Best Sellers Rank (BSR), helping you get your products closer to page 1.
Pricing
In addition to price reductions on slow-moving products, you should also take a look at the current pricing for all of your products. The Amazon algorithm loves low prices (as do Amazon shoppers). If you’re priced 15% less than the best sellers on page 1 for a keyword, Amazon will start moving you up the rankings quickly.
Don’t worry, your prices won’t need to stay low forever. We use a strategy that slowly raises the price back to the full price as the sales velocity picks up. This is done in small increments to maintain the Buy Box. This strategy can improve your Click Through Rate (CTR) on your advertising, increase your organic sales, and improve your rankings across all indexed keywords (which will result in MORE SALES)!
Listing Health
Q4 is the most competitive quarter for Amazon sellers. It is time to make sure your listings are visually appealing and fully optimized with images, copy and Enhanced Brand Content (if available). Here are a few guidelines for an attractive listing that will increase your conversion rates this quarter.
Copy
Your listings should have optimized bullet points, titles, and detailed product descriptions that use relevant high-ranking keywords. Use a keyword research tool to determine the most effective key terms for your product. Then input as many as possible in the copy to increase your listings visibility, relevance, and conversion. Adding SEO optimized copy will give you an edge over your competitors.
Images
You should have 5-6 secondary images that include text, banners, and lifestyle imagery. Display images that show your product in use and call out the benefits not just the features of your product. For example, a product feature might be 100% natural coconut oil. The benefit of this feature for your customers is “soft moisturized skin that will make you feel beautiful.”
Enhanced Brant Content
Enhanced Brand Content (EBC) will set your Amazon listing apart from competitors and help you build your companies brand. It will make your listing more visually appealing to shoppers by allowing you to add more images to convey the benefits of your product and tell the story of your brand. EBC is proven to increase conversion and click-through rates.
Holiday Optimizations
Aside from a general health check on the copy and images in your listings, we also suggest a few minor changes that are specific to the holidays. You should update your copy with relevant holiday keywords such as, “stocking stuffers for kids,” “Christmas gifts for mom,” and “Christmas gifts for husband.”
This serves two purposes; it will catch the eye of the consumer and help your product rank for holiday-related search terms. You can also add holiday-themed images to your priority listings to communicate that your product is perfect for gift giving!
Know Key Dates
Last but certainly not least, you need to know all of the important Amazon dates and deadlines, so you don’t miss out on any opportunities to increase your sales in Q4. Here are the Amazon cutoff dates for 2020:
Inventory for Black Friday and Cyber Monday should arrive at Amazon fulfillment centers by November 6, 2020.
Inventory for Christmas shopping should arrive at Amazon fulfillment centers by December 1, 2020.
Inventory for 2021 should be sent to Amazon fulfillment centers no earlier than December 17, 2020. Until then, please only ship items to Amazon that will sell in 2020.
Preparing your inventory and Amazon listings for the busy holiday season can be overwhelming but the work you put in now will help you close in on your end of year sales goals! We suggest you concentrate on product listings that provide the highest return for your efforts. After you determine your priority products make sure your listings are fully optimized, prices are set just right, and all inventory is in stock.
Having an amazing holiday selling season on Amazon is all about preparation. If you find yourself lacking the strategy needed to be poised for killer sales, please schedule a free consultation with us today! We want your brand to see success this Q4!