Problem

Can a new product be brought to the Amazon Marketplace and make the first page of product search results?

Otto Design Works began in 2014 by a group of individuals and their love for everything bicycles. They create a range of cycling and outdoor products, including a compact and lightweight bicycle lock, the Ottolock.

When Otto Design Works approached us with the Ottolock, we determined that in order to be successful they had to rank highly on the search term “Bike Lock” on Amazon. This search result generates tens of thousands of monthly unit sales for the different brands that have a position on the search results page, so capturing even a few percentage points of that volume would have a dramatic effect on their business. We also know from industry research, that less than 20% of people who search on Amazon ever click to the second page of search results, so being on the first page was critical for the future success of the Ottolock on Amazon.

Approach

1. Amazon Product Launch

Because there were many different bike locks on the Amazon Marketplace, we had to find what sets Ottolock apart. We understood the brand and its purpose when launching it onto Amazon and knowing that helped us not only push for a more optimized search, but push the Ottolock brand as well.

2. Eliminate Other Sellers

One of the most important steps we had to take to increase the likelihood that the Ottolock would rank on the first page of Amazon’s A9 algorithm for the search term “Bike Lock”, was to ensure that Otto Design Works was the only seller of the Ottolock on Amazon.

3. Implement Paid Advertising

Something that many companies don’t realize, is that consistent conversions through paid advertising is a critical component to ranking well within Amazon’s algorithm. The problem with this however, is that if a company shares the buy-box, meaning that there are other resellers selling the same product, the advertising a company might be trying to do will only display when they are in the buy-box.

For example, if Otto Design Works was one of four companies selling the Ottolock – all for the same price, all using Amazon’s warehouses to qualify for Prime Shipping, but only Otto Design Works was paying for advertising, we’d have the following scenario:

  • Amazon Customer 1 Searches for “Bike Lock”
    • Alternate Reseller #1 has the buy-box
      • Result – no advertising displayed, Ottolock’s product is on page 8 for the search term, and no purchase is made.
  • Amazon Customer 2 searches for “Bike Lock”
    • Alternate Reseller #2 has the buy-box
      • Result – no advertising displayed, Ottolock’s product is on page 8 for the search term, and no purchase is made.
  • Amazon Customer 3 searches for “Bike Lock”
    • Alternate Reseller #3 has the buy-box
      • Result – no advertising displayed, Ottolock’s product is on page 8 for the search term, and no purchase is made.
  • Amazon Customer 4 searches for “Bike Lock”
    • Otto Design Works has the buy-box
      • Result – advertising displayed and the opportunity to have the consumer click on the ad is available. Ideally this results in a click and a conversion which adds a positive correlation into Amazon’s A9 algorithm for the Ottolock against the search term “Bike Lock”

Impact over time:

    • Total searches – “Bike Lock”: 100,000
    • Buy – Box percentage: ¼ – 25%
    • Total searches that Otto Design Works ad for the OttoLock displays: 25,000
    • Total clicks with average click-through rate of 5%: 1,250
    • Total conversions assuming 10% conversion rate: 125
    • Monthly reviews added to the Ottolock Product Page (assuming 1 in 50 buyers leaves a review): 2

Our approach looks more like this scenario:

Otto Design Works is the only seller of their product on Amazon.  Every customer that searches for the term “Bike Lock” can see the Ottolock advertising being done by Otto Design Works, and the opportunity for clicks and conversions is four times as high.

Impact over time:

    • Total searches – “Bike Lock”: 100,000
    • Buy – Box percentage: 100%
    • Total searches that Otto Design Works ad for the OttoLock displays: 100,000
    • Total clicks with average click-through rate of 5%: 5,000
    • Total conversions assuming 10% conversion rate: 500
    • Monthly reviews added to the Ottolock Product Page (assuming 1 in 50 buyers leaves a review): 10

Results

Successful Launch Without Having Competition

When you review these scenarios, there is a dramatic difference in monthly sales and product reviews left for the Ottolock in the two different scenarios. With product reviews now more important than ever, and another contributing factor to Amazon’s A9 algorithm, accumulating as many transactions as possible is irreplaceable.

With our help, Otto Design Works was able to launch their product on Amazon and they didn’t have to compete with other resellers. Using this method of control and effective advertising, we were able to take the Ottolock from page 15 for the search term “Bike Lock” all the way to page 1 in less than 60 days where it now is one of the top best-selling bike locks on all of Amazon.

Impact

  1.   Increased monthly sales from zero to over 1000
  2.  Over a $1 million in annual revenue
  3.  Over 670% increase in revenue in 60 days