Subscribe to Entrepreneur for $5
Subscribe

The 3 Pillars of Building a Successful Brand on Amazon

Find out why a strong brand is vital for an Amazon seller's success in 2022.

By
Opinions expressed by Entrepreneur contributors are their own.

The world of shopping has undergone a significant change in the past two years. More and more people buy online, products are resold for higher prices and Amazon constantly updates its toolset introducing new initiatives to grow its customer base. So if you want to build a brand on Amazon, there couldn’t be a better time. And if you sell on Amazon, you definitely need a brand.

Just a few years ago, you needed a product and a good ad campaign to sell on Amazon. It was also important to collect good customer feedback, SEO-optimize listings, create quality content and ensure sufficient products stock.

But the rules of the game have changed. Now, in addition to all above-mentioned, you need a solid presence outside Amazon because the path to ultimate success lies through brand building. You need to drive external traffic to Amazon, have an identity and a loyal community. When you bring more external traffic to Amazon, it pushes your listings to the top, which provides excellent growth opportunities. 

Brand matters

Сustomers often make purchases based on a brand's reputation and credibility rather than price or convenience. As a result, most shoppers tend to check the labels to see what brand stands behind the product before making a purchase decision. What's more, they get annoyed and hesitate to buy products when it's not clear what company makes them.

Because consumers deliberately scrutinize the origins of the products they buy, a brand and its reputation become business-critical. A brand is a surety of a product and a guarantee that the buyer's investment will not be wasted. A powerful company earmark can help you effectively beat out competitors, create a steady income stream for years to come and even survive another black swan.

Competitive edge

When built successfully, a brand cannot be copied, and that is the competitive edge. Defining what makes your product unique helps you identify, use, and capitalize on what sets you apart from everyone else. Even if you're new to an industry in which major competitors have already grabbed market share and built strongholds of loyal customers, you can still pose your product as the best alternative to these big names.

Don’t forget about the special relationship of the Amazon marketplace to brands. A good relationship means more capabilities in advertising, trade and higher rankings.

Related: 5 Amazon Ad Settings You Shouldn't Ignore

Customer loyalty

If you're struggling to establish credibility in today's competitive market, it is because you still don't have a brand. The relationship between a company and its customers is complicated, and if maintained right, the overall benefit will give the company a competitive advantage. Successful companies have both their customer base and loyal fans. Without a strong name, you might be missing out on opportunities to gain enhanced credibility and trust among your target audience and potential buyers. 

Increased sales

Time and time again, we see that having a recognizable brand leads to more leads and sales. This is because people trust brands they know and like. Having a brand doesn't just help your bottom line — it boosts overall confidence in your company, making customers feel more comfortable and secure with your product and service. That, of course, means they will keep coming back to your store.

Furthermore, once you have your name safe and sound on Amazon, you will be able to command higher prices, spur trends and set leadership standards. A strong brand has the potential to create customer demand that drives the need for a product or service.

Regardless of the competition, the diversity and the size of the market, there are still some ways you can create a powerful brand on Amazon:

1. Invest in product quality and packaging design

Friends and family members are always considered to be among the most influential forms of advertising since customers trust them the most. That's why word of mouth is an influential marketing strategy that can't be matched against any other ad campaign. A company's success rate in terms of recommendations and positive reviews directly reflects the company's product quality.

The packaging design is perhaps no less important than the product itself. Besides a logo and branding colors, take time to create a powerful message, triggering a wow effect. Every seller that strives to stand out in a crowded market needs an honest and compelling story to share with the world in a way that resonates with customers' pains. In many cases, this story can be found within the product packaging. 

For instance, if you're selling clothes made from recycled materials, that's great. You take care of the environment, so put that on the wrapping cover. Express your values and mission. A recent study reveals that consumers are four to six times more likely to purchase from brands with a strong purpose. Combine messaging with a unique logo and pertinent colors, and you got yourself a brand.

2. Market your product cross-channel

Amazon is the second-largest online retailer globally, which makes it much easier for sellers to reach millions of customers. However, marketing off Amazon plays a much more vital role in brand building. First, it helps you build and grow a loyal community and communicate your message to potential customers who might not have heard what you have to say via Amazon. What's more, by driving more external traffic to Amazon, you receive additional points from the marketplace itself: external traffic is organic traffic which helps you boost your ranking on Amazon and increase brand visibility.

The fight for the top in the Amazon search results is fierce and expensive. That's why external traffic is so vital. Using the Amazon Advertising option solely to boost sales will cost you a fortune as they constantly grow in price. But a big involved community on your website or social media can boost your sales, increase conversion share and help you win a bid. 

Working on your brand recognition now will help you win in the future. There are a lot of different ways for you to get your message out there. You can start with Facebook and Instagram, further expanding to other social media channels. Another proof of the importance of attracting external traffic is the Brand Referral Bonus launched by Amazon.

Note: Figuring out metrics and tracking Amazon sales is the necessary first step to turning your Amazon business into a profitable venture. For example, when launching advertisements on Amazon, it is important to monitor clicks and how many of them are converting. That ratio shows how well your product is performing. Clicks are just one of many metrics that need to be followed.

Depending on your desired strategy and your current goals, you need to weigh your options about the size of investment in advertising you can afford. 

Without being able to monitor these metrics, you can spend much more than you planned.

Related: How Amazon's Domination Could Benefit Your Business

3. Keep your target audience in mind

Modern shoppers expect their favorite brands to care about them honestly. Loyal customers can and often do form an emotional attachment to products and companies they buy from and feel "safe" with. 

When customers form an emotional connection with your brand, it becomes part of their identity, and they do not want to use any other product but yours. This places a heavy burden on your shoulders because you have to keep up with the standards you've set, constantly update the product line and enhance (or at least maintain) its quality. 

It is crucial to find your actual influence and leverage it as much as possible. Satisfying user needs and delivering takes hard work, but it will inevitably pay off. As long as you learn, improve and grow as a brand seller, you will make a great impression on customers and keep them loyal.

A brand is the most valuable asset for Amazon sellers. It's not only what you do, but how you do it. It's the ethos — from the way you represent yourself on your website and social media to how you conduct business and interact with your target audience, the brand is everything. And it's the critical thing that makes the difference between a successful and a struggling business.

Related: Why Amazon and Jeff Bezos Are So Successful at Disruption

Ihor Dubovetskyi

Written By

Entrepreneur Leadership Network Contributor

Ihor Dubovetskyi is the founder of full-service marketing agency Profit Whales.