Amazon is the world’s largest e-tailer, accounting for a quarter of e-commerce purchases in the U.S. So how can brands improve their performance on the e-tailer?

L2’s series of Amazon-focused Insight Reports answers that question. Based on the new Commerce IQ, the reports examine topics like search and product listing structure in addition to delving into the specific experience of Beauty and Hair Care brands. Here are a few key takeaways:

Work on your Amazon presence. Brands investing in merchandising features like product images and clippable coupons show up first in the retailer’s search results. But as more brands become cognizant of that fact, scoring the top rank will become increasingly expensive and competitive. Seventh Generation is a case in point.

Get your SKUS together. By grouping related SKUs under a parent listing, brands can leverage bestselling products to improve the sales rank of newer or less popular items. Who’s doing this right: Febreze, L’Oréal Paris. Who’s doing this wrong: Almay.

L'Oreal switched its Amazon strategy

 

Don’t avoid Amazon. A few Luxury Beauty brands refuse to engage with the e-tailer out of concern for brand equity. But this is a losing strategy: LVMH’s Prestige Beauty products are more popular than those of any other major Beauty enterprise, and because they’re sold by third-party merchants, the brand doesn’t get to control the customer experience. By officially distributing with Amazon, brands have been able to minimize the visibility of third-party merchandise.

Luxury Beauty brands on Amazon

For more on brand performance on Amazon, read L2’s relevant Insight Reports:

Insight Report: Amazon Search

Insight Report: Amazon Product Listing Structure

Insight Report: Amazon Beauty & Hair Care

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