Amazon’s reputation for being a low-price leader leaves many premium brands feeling apprehensive about offering higher-priced products on the platform.
However, data shows that customers of all types shop on Amazon, including those who place increased value on brand, product quality, sustainability, and more.
According to our 2020 Amazon Prime Member Survey, over 60% of customers did not cite price as their top consideration when making a purchasing decision on the platform.
That means that, with the right strategy, the door is open for premium brands in virtually every product category to carve out their niche on Amazon.
It all starts with knowing your customers. Ask yourself why your customers are willing to pay more for your product or brand.
Once you understand what sets your brand and/or product apart, the first step is to highlight that value in your Amazon content.
Start with the product detail page. Ensure that your images are of high quality and showcase your product well. Use video to emphasize product craftsmanship or to tell a powerful brand story.
If your product is endorsed by a celebrity or recommended by a professional, you can also include that as one of your secondary images to gain credibility.
With the description, avoid symbols or excessive punctuation. Keep it clean and informative. If your quality guarantee sets you apart, make sure it is obvious in your description.
Consider also that customers are more likely to do thorough research on a more expensive product. So utilize both your description and enhanced content to inform customers about your product and its use cases.
Of course, you can’t lose sight of SEO while optimizing your detail pages. Be sure to include keywords that indicate a customer’s interest in your value proposition.
For example, if customers pay a premium because your product is Fair Trade, include that keyword to ensure that shoppers searching for those terms can discover your product.
Beyond the detail page, you should also consider the role your Amazon Storefront can play in communicating the special elements that make your premium brand or product attractive.
Since Amazon Brand Stores offer a wide range of customizable templates, it presents a unique opportunity to create a compelling brand story for your customers. At its best, a brand store can immediately communicate to a customer why spending the extra money on your product is worth it.
As inspiration, explore the brand stores of well-known luxury brands that sell on Amazon. For most of them, you should see a store that is aspirational, educational and offers a seamless brand experience.
Of course, there is more to a premium brand strategy than just optimized content. Advertising can also play a crucial role in getting in front of the right audience.
Using Sponsored Advertising, target long-tail keywords that indicate a customer is interested in more than just a generic version of your product.
You will find that bidding to get in front of customers who, by what they searched, have qualified themselves as in-market for your price point, is an efficient way to capture incremental sales.
Another Advertising strategy that premium brands can use to qualify their audiences and advertise more efficiently is conquesting.
By searching for or viewing competitive products of a similar price point, customers are qualifying themselves as being in-market for your product.
You can target these customers in a few ways:
While both of these strategies can be extremely effective, Amazon DSP is particularly useful due to its added targeting features.
Using Amazon’s first party shopper data, you can strategically target audiences who, by demographic, location, and/or activity on Amazon or an Amazon affiliate site, have indicated that they are in-market for your premium product.
Amazon DSP can also be used to drive traffic off-site, making it a powerful platform for many premium brands who see higher conversion on their D2C site.
Premium brands have a place on Amazon. And with the right strategy, they can be extremely successful.
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