The Amazon Flywheel was first sketched on a napkin by Jeff Bezos and is now a famous representation of how Amazon operates itself. The idea behind the flywheel is that once in motion, it starts building its own momentum, making it easier to spin. Even though it takes tremendous effort to get started, as is true when starting a business as well, the flywheel is fueled and accelerates as improvements are made.
So right about now, you are probably asking yourself why I’m rambling on about momentum and napkin sketches, and why it’s important for you. Well, I am so glad you asked! The flywheel is not only helpful for Amazon and large companies as a business model. It’s also immensely helpful for Amazon Sellers looking to grow their online selling business.
One of the main components that makes the flywheel advantageous is that the individual parts of the wheel help create that momentum I was talking about earlier. What that means is that each part of your business helps to keep the whole thing in motion. For example, if you are selling products on Amazon, where your products rank in search results is directly impacted by how many sales you’re getting. Basically, the more sales you get, the higher your products will rank. And a good way to help boost your sales, and therefore your rankings, is by advertising your products to get more impressions which can lead to more sales. So, advertising = more sales = higher rankings in a nutshell.
So how can you “supercharge” your own flywheel to really reap the benefits as Amazon has?
You obviously need great products with optimized product listings, enticing product photos, and as many good reviews as possible. Having these things at the bare minimum should help get your flywheel turning. Once you have established these things, you can consider advertising on Amazon.
If you’re not familiar with how advertising works on Amazon, check out this blog.
Because you need sales in order to keep your rankings up, advertising can be helpful in sustaining and raising your rankings. Essentially, if your products are ranked higher then they get seen by more customers and that leads to more sales. And the cycle hopefully continues on and on with you being wildly successful selling products on Amazon!
But advertising on Amazon is not as simple as starting a campaign or two and letting it run. Running successful advertising campaigns on Amazon requires paying attention to keywords that are generating sales, moving them to manual campaigns, negative targeting them in the original campaign….is your head hurting yet?
One of the awesome things about using Sellozo for your advertising on Amazon is that the platform completely automates and optimizes the whole process! No more scouring spreadsheets for profitable keywords, creating manual campaigns for those keywords, remembering to negative target them in the original campaign….you see where I’m going with this.
Since the flywheel is based on the individual parts all working to help create momentum, you can’t let one component slow down the whole thing. If you let managing your Amazon advertising take too much of your time away from managing other important aspects of the business, it can have a detrimental impact on the business as a whole. This is why using tools like Sellozo to automate time-consuming tasks is essential to your success.
Not only will Sellozo’s PPC Manager save you time on keyword discovery and campaign creation, but the optimizations that make Sellozo so awesome will also help eliminate wasted ad spend and lower your ACoS (advertising cost of sales). On average, Amazon Sellers using Sellozo see a 70% increase in ad profitability.
If you have questions about Sellozo or want to learn more, you can schedule a time to speak with someone here.
If you’re ready to get started, you can sign up in just a few clicks by clicking here.