Amazon FBA Secrets That Will Double Your Revenue In 2024

Mina Elias:
Welcome back to the Amazon Blueprint podcast. Yeah, Amazon just released some major new updates and tools that allow people who use them to make way more money. I’m gonna share with you the top Amazon FBA hacks of 2024 to make way more profit. I’m joined by my friend and PPC expert, Yoni, and he’s gonna share with us all of these hacks and make sure you pay attention because there’s a very specific way to use each one of these tools and you want to make sure that you jump on them before they become mainstream. All right, Yoni, what’s the first one? Amazing.

Yoni Steinschriber:
Mina, thanks for having me, man. The first thing we’re going to talk about today are a brand new tool within the brand analytics tool, and it’s called customer loyalty analytics. It’s something new that Amazon came up with. Essentially what it does is it buckets out your customers so you get a really good sense of who your customers are. This has really given us insights that brands historically have had on d to c websites when they actually own their brand’s information. This is actually finally the first opportunity where we really get to understand our own customers within Amazon. It buckets them into four different categories, essentially top tier, category promising. So these are customers that have spent a lot, buy occasionally, and typically a little bit more than average, at risk customers. So these are customers who oftentimes have been loyal historically, but are falling off. Finally, is hibernating customers. And these are basically old customers that haven’t purchased frequently or at high value recently. It’s been a really great tool for me personally. It really has given me an understanding of the brands that I work with, a better understanding of where they’re at.

Yoni Steinschriber:
We’ve seen, especially in the CPG space, so much growth on the subscription side. We’ve seen so much growth in the organic side. And so being able to understand where your brand lies kind of in that process has been really beneficial. And we’ll talk about some of the other tools that I’ve used in conjunction with customer loyalty analytics to really drive some more traffic, really understand our audiences and how to, number one, elevate the top tier and also kind know, for example, those hibernating, bring them back into the brand, re engage with them, create a brand story for them.

Mina Elias:
And the first actionable thing that comes to mind with those different tiers is probably the ones that are hibernating, maybe using Amazon DSP, which we’ll touch on later on, to target those people, people who’ve purchased from us in the past, but haven’t repurchased and try and re engage them. Is there any other way that we can use these analytics in a more actionable way? Can we send them coupons or anything like that? Yeah, absolutely.

Yoni Steinschriber:
So there’s a couple new tools also that I’ll talk about as well. The first one is brand tailored promotions.

Mina Elias:
And that’s the hack number two.

Yoni Steinschriber:
Yeah, second hack, and this is one of the biggest ones for me that I love. Using brand tailored promotions has given us an opportunity to send specific promotions to audiences. It’s something that we’ve never been able to see in Amazon before.

Right.

We’ve always historically been able to say promotions to either prime members or non prime members. That’s kind of the only differentiator we have now. They break it into a tremendous amount of buckets. So you can target those at risk customers. Specifically, you can target brand cart abandoners.

Yoni Steinschriber:
So if we want to make sure that people who have abandoned cart are reengaged, not only reengaged, but given that discount.

Right.

In the same way that you probably use Kalviyo or a lot of the d to C brands you work with use Klaviyo to send a 10% abandoned cart email. It’s very similar and works in a similar way to that. There’s brand followers, there’s high spend customers. If you want to incentivize people to increase their aov, there’s potential new customers. Oftentimes these are people in the market space. And so what it does is it gives us the ability to target and discount customers that are in buckets as opposed to holistic kind of the all or nothing that we’ve had in the past with Amazon. And it’s really given us an opportunity to empower our brands, to improve the brand loyalty, to create re engagement, to create specific, like you said, specific and targeted things that we can do actionable items to target these customers. So in addition to brand tailored promotions, obviously, like you said, we’ve been using DSP and sponsored display to specifically target, create these promotions and then show these promotions to the people that we’re actually targeting in conjunction, understanding the brand with the customer loyalty analytics, getting a really good sense of who our customer base is, how many people are here, how many people have fallen off recently, all of these different types of things that in conjunction with the brand tailored promotions, getting a good sense of giving these people opportunities.

Yoni Steinschriber:
Let’s say we want the hibernating example. We’re seeing that there’s a lot of people that are falling off. It’s like, how do we reengage? We’re going to see that in customer loyalty analytics that they’re falling off. We’re going to reengage with them with brand tailored promotions and creating those types of discounts and then target them with DSP to show those promotions to them and create that reengagement again.

Mina Elias:
Yeah, and also do some more retargeting. Actually what I’ve seen is adding a 10% discount on card abandoners is what it’s called. I think has increased our revenue by about ten to 15%. Or I think it’s the other way around. I think a 15% discount has increased our revenue by 10%. So it’s something that’s super, super effective.

Yoni Steinschriber:
Yeah, absolutely. And especially if you’re like a CPG brand that you use, subscribe and save a lot. Those are ways to reengage when you’re touching upon abandoned cart. I think historically, something at least that I see as a seller on Amazon, and I’m sure most sellers out there see this, is that the conversion rate from ad to cart to actual purchase is significantly lower on Amazon than most other platforms. Right on Shopify typically be 60% to 70% of the people that add to cart purchase.

Right.

On Amazon, I’ve seen brands that are as low as 40% or 30% or even 20%. Sometimes there will be five people that will add a product to their cart from this brand. Only one will purchase. And so this is a really tangible and specific way that we can make sure that we’re actually getting those customers an aggravation that I’ve had for a long time with Amazon. And I think that most sellers and agency owners and everyone has had is the lack of visibility.

Yoni Steinschriber:
I think as AMC Amazon marketing cloud has gotten bigger, become more robust, people are understanding their purchase process, as people are understanding where their customers are falling off.

Mina Elias:
Amazon is now giving us tools to.

Yoni Steinschriber:
Actually use that data and tangibly put it to work.

Right.

Creating those types of discounts. Like you said, 15% off for an abandoned cart is generating 10% more revenue for a brand. That’s crazy. That’s wild. And oftentimes, right, these are we’re talking, and I’ll get to this later, but we’re talking about incentivizing growth for maybe already loyal brand members. What it does is it creates sort of this endless cycle of feeding the organic side which continuously builds up the baseline, which continuously reduces your tacos, even if you’re spending the same amount of money. And it feeds the system to maintain and build tremendous profitability long term for the brand. And that’s what I get really excited about.

Right.

I think that you’ve touched on this.

Mina Elias:
In many times and brand tailored promotions, they appear in the form of emails, right?

Yoni Steinschriber:
Correct.

Mina Elias:
Yeah. So basically you set up a brand tailored promotion and then someone abandons their cart, which, by the way, I know why people abandon carts so much more on Amazon is because a Shopify cart doesn’t stick with you. It’s a cart on someone else’s for. But Amazon is kind of your own cart.

Right.

And you use Amazon for everything. So you can be browsing and be like, add to cart, add to cart. I’ll think about it later. I’ll think about it later. So I think that’s why so many people add to cart and abandon it. But sending them that email direct from Amazon, I think is a really good move.

Yoni Steinschriber:
Yeah.

So it’ll come as an email and then what it’d also look like is when you see promotions on the page itself and it’ll show the promotion. So if you’re a customer, let’s say you didn’t even see the email and you’re on the Amazon product page and, and you’re someone who’s abandoned cart, you’ll see that promotion, that 10% off discount on your page alone, but the person sitting next to you won’t see that same 10%.

Wow.

And so that’s the really nice thing is that it’s within the UX and the UI of Amazon itself and the visibility is really high.

Right.

So if you’re using DSP or something, let’s, for the abandoned card example, they’re not only going to see an ad for that, they’re going to see an ad for that with the promotion on it. In the same way that coupon drives higher click through rates, that promotion is going to also drive higher click through rates for those customers.

Mina Elias
That’s amazing. Now hack number three, subscribe and save and reorder coupons. These are incredible and I’m very excited to hear about them. So I know that subscribe and save, I’ve personally used it. It’s this new feature where basically you can add an additional coupon on top to incentivize people to do subscribe and save. So if you have a product that’s a one time purchase, this doesn’t apply to you, but if you’re a supplement, CPG, any sort of consumer product, this is incredible because now you can say, I’m going to add $10 off or $5 off for people who subscribe and save. So not only are you getting the regular 10% every single time, but you’re getting an additional, let’s say five or $10 on the first one that you do. So let’s say it’s a $20 product. You’re willing to sell it for $10 on the first time time, and then later on they’re subscribing, so they’re ordering again and again. What is your take on that? And tell us a little bit more about how you’re using it. Yeah, absolutely.

Yoni Steinschriber:
So my take is that I use it now all the time. Subscribe and save users depends on the brand. But if you go into your subscribe and save dashboard, you can see the value of a subscribe and save user versus one that’s not typically. I see a two x in terms of lifetime value from a subscribe and save consumer versus someone who’s not. So for us, it’s a no brainer to add an extra discount, right? I would rather give that 10% to incentivize someone to subscribe and save as opposed to get a one time purchase. One time purchases are great, but the customer acquisition costs are really high. And so what this does is it says, hey, you can buy it at normal price or you can buy it at subscribe and save. And let’s say you have a 10% subscribe and save discount plus another $5. It’s like, okay, now I’m really incentivized to buy. And even oftentimes customers forget to turn off their subscription, even if they decide, hey, after two months we’re not using it. You got three orders instead of the one that you would get otherwise. So we’re using it often and frequently.

I’ve seen some really large CPG companies owned by Unilever and things like that that have really big budgets and obviously don’t care necessarily about the profitability. Rather, they care about generating more customers. They’re using subscribe and save coupons obscenely. Like, I have seen 50% for, 50% off. The whole point is just like feed the system, right? Again, we’ve talked about this before. Costs are rising specifically on sponsored products and sponsored brand side, right? Cpcs have risen so much over the years, and in order to combat that, we have to figure out creative ways to build holistic brands to drive down the tacos, right? You had a post the other day on LinkedIn which talked about AcOS versus tacoS.

Yoni Steinschriber:
Why?

AcOS is kind of bullshit at this point. And tacos is so important. And similarly, it’s so important to have subscription to feed that system and make sure that you’re driving that, because no matter what, even if you have a shitty acos, but you have $300,000 worth of organic traffic through subscriptions, through organic ranking, et cetera, each month, it doesn’t matter if you have a bad month on ads, because holistically, your account is going to look really good.

Mina Elias
Yeah. And that’s the beautiful thing is with subscribe and save. I mean, I turned it on for MMA nutrition and I think within a week I generated an additional 88 subscriptions or something. It was like a crazy number of subscriptions. In my case, people usually subscribe one in three months, so they get one every three months because it’s 100 servings. But just imagine adding 88 subscriptions a week over the course of 52 weeks. Or let’s say 300 subscriptions a month over the course of twelve months. That’s 3000 units that I’m going to be selling, which is since it’s once in 90 days, it’s 1000 a month. That’s completely passive. Essentially, I could turn everything off.

Mina Elias
And I’d still make about $30,000 a month, $15,000 a month in profits just by doing nothing because it’s subscription. Now imagine that. Just keep building and building and building over time. It’s really going to help, because when you’re fighting with PPC, you’re trying to acquire customers. Now, if before you were acquiring customers and then organic was helping you because you’re spending $1,000 on ads, maybe you’re making 3000 in sales in PPC, and now it’s an additional 3000 in organic. But now you’re adding another piece of the pies for that same thousand in PPC. Maybe it’s 3000 PPC sales, 3000 organic, and then another 3000 in subscribe and save.

And now your tacos is like slashed by a third and it makes a big difference.

Yoni Steinschriber:
Yeah.

So I had a brand, I actually work with them still. I’ve been working with them for about 1516 months at this point. When I started our first month, we had 80 subscribers total in our subscribe and save. This past month we have 2900 subscribers.

Wow.

And this is a brand that we spend about 25, $30,000 a month. So it’s not crazy numbers. And we’re now generating upwards of about $300,000 a month in revenue coming from about $30,000. And a lot of these strategies.

Right?

Obviously, some of these are newer, but implementing subscribe and save. Focusing on customer loyalty, focusing on brand building, focusing on that connection with the customer. Creating these systems leads to such a good place. Last month there was a competitor. They’re really large, they have a lot of money, and they decided to spend a lot. Typically we’ve seen oftentimes where there are market instances that happen where you don’t have a lot of control.

Yoni Steinschriber:
Right.

What it does is when we have a bad month on the ads, it doesn’t affect us the way that it would normally. And so because of those $300,000, basically $150,000 are coming from subscribe and save alone. The baseline is so much higher that it doesn’t matter if we have a bad month, right. We still want to keep growing, we still want to do it. But what it does is it provides a base level of profitability, a base level of revenue. That is awesome, right? You have it in your back pocket, you don’t have to worry about it anymore. And I think it’s the best way for brands to really engage. As a huge proponent of DSP and a huge proponent of sponsored display and those retargeting, you have a really good understanding of why it’s so important to create multiple touch points with these consumers, to create that relationship, to build that.

Yoni Steinschriber:
Right.

You have an MMA nutrition. Obviously, you know the importance of building that brand loyalty, especially in a CPG brand that focuses on reorder, creating those repurchases.

Yoni Steinschriber:
And let’s talk about reorder coupons.

Yeah, cool.

So reorder coupons are also a really cool tool right next to subscribe and save coupons. So if you go into your advertising coupons dashboard, you’ll see them right there, kind of at the top. The Reorder coupons are also super cool. So subscribe and save we talked about, right. It really incentivizes subscriptions. Reorder coupons. I’ve been using a lot in conjunction with the buckets that we talked about in the customer loyalty analytics. So we’re talking about our top tier customers. I had a brand that once this came out, I looked and I saw that their top tier customers actually this year were expected to spend 20% less than they were in previous years. And so that was eye opening to me. And what that said to me was, hey, we need to increase our lifetime value of these top tier customers because similarly, right, if we’re not getting that same robust bottom, regardless of what we’re doing on the ads, it’s not going to look as good. So for us it was, hey, we really need to target some of these top tier customers, these high spending customers, and give them an opportunity also, right? Incentivize them with brand loyalty.

Yoni Steinschriber:
we’re going to give you discounts. And so creating those reorder coupons also similarly only work for customers who’ve previously purchased from your brand. And so that’s obviously a huge benefit as well, where similarly with DSP, you launch a reorder coupon, you target your past 90 days customers and you drive traffic. Not only are you going to drive traffic to the typical sponsored display ad that you see, but it’ll have that specific coupon, reorder coupon 10% off and so it’ll increase click through rates the same way that any coupon typically does.

Yoni Steinschriber:
Very nice.

I love it.

Hack number four, customer engagement. This is a really cool one. I don’t think a lot of people are using it. I don’t think a lot of people know about it. But honestly, I didn’t expect Amazon to do this. So do you want to touch on customer engagement? Yeah, absolutely.

Yoni Steinschriber:
So this is the closest thing that we have to sort of mailchimp or to email marketing, email marketing tools that we have that D to C brands have always had, that we’ve never really had right outside of sending messages through seller central. So there’s kind of two buckets here when we talk about customer engagement. There are promotions to existing customers and then there’s also new product launches. And so you can target four different buckets. One are repeat customers, high spend customers. Number two, three is recent customers, and number four, brand followers.

Right.

So in the storefront we’ve tried to.

Mina Elias:
Get, you follow Amazon posts and you’re getting.

Yoni Steinschriber:
Exactly, exactly. And I find that bucket the least fruitful, the other three much more so. And so what you can do is you can create, they’re templated within Amazon, but you can create sort of email marketing campaigns that target one or more of these buckets. So for example, we’re MMA nutrition, we have a pre workout that we use all the time, et cetera. Let’s say we come out with a collagen supplement. We have a pool of high spend customers. What we can do is we can send direct promotions to our high spend customers knowing that there’s going to be high click through rates, high conversion rates, because they’ve bought and they’re brand loyal and say, hey, let’s leverage this product that has thousands of customers high value that has thousands of reviews that people know and love. And let’s use this leverage to help launch our new product. That’s where I’ve used it the most. And I think that it’s super. You know, we talk about so many launch strategies and I’ve worked with you in the past about driving external traffic and all of these different types of things. Something that I think is really underutilized in the Amazon seller community, in agencies everywhere, is our ability to leverage our already existing success to generate that new product launch and immediately drive really, really profitable high value traffic immediately.

That crossover is really great for customer engagement. The other thing that we can use it for is not just new products, but existing products that have a new promotion. So for example, holiday season is coming up. Customer engagement is also a really, really great way to focus in and target those customers and drive more sales. For those Black Friday Cyber Monday deals, obviously they’re becoming more robust. There’s so many people getting targeted, et cetera. This is a good way to leverage your existing audience, not just people who are randomly searching brandlessly for pre workout, but someone who actually engages purchased from MMA nutrition, et cetera. And they can go and see their coupons now that way. And those also come along like emails similar to Clavia or Mailchimp or anything like that. Awesome.

Mina Elias:
And those are obviously two incredible ways to leverage that. Number one, product launches is huge and everyone knows the importance of the honeymoon phase. So you have to use every tool that you have possible when you’re launching. And of course, if you already had success, you have thousands and thousands of customers from an existing product. Why not leverage all of that into a new launch? And Amazon only really cares about your unit sales velocity when you launch. The higher you can get that through any means necessary, the better you’re going to be. And hack number five, using DSP to drive visibility. Now, DSP is an incredibly powerful platform. It’s separate from Amazon PPC. Amazon PPC is the regular Amazon advertising platform where you can use sponsored products. Basically, if you type in a keyword, you’ll see an ad it says sponsored. That’s regular PPC. With DSP, we are using Amazon’s audiences. So basically things that we know about customers. For example, I want to target everyone who’s purchased my product in the last 365 days, but has not repurchased in the last 90 days or hasn’t purchased my competitors in the last 90 days. Since I can create an audience for people who purchased my product in the last year and people who purchased my product last 90 days and people who purchased competitors products.

Mina Elias:
I can exclude different audiences. I can include different audiences. I can go after competitors, people who viewed competitors but haven’t purchased from them or have not even purchased from me or viewed me or whatever if I’m trying to build all these audiences. And the beauty of DSP is the retargeting ability. Now, combine everything Yoni already talked about with all of these different promotions. When you utilize Amazon DSP, you’re able to target customers in different areas of the funnel. So you’re targeting the warmest, like people who are going to repurchase from you. Retargeting people who viewed but haven’t purchased. They haven’t just made any purchase decision, you or competitors. So you can retarget them to make a decision. Then competitor targeting people who viewed competitors but haven’t purchased, then complementary product target. So other products that are complementary to your product, and there’s infinite other ways to go about this, but DSP is incredibly powerful. How have you been using it?

Yoni Steinschriber:
Yeah, it’s a really good question. I think like you said, in conjunction with some of these, right? So having these coupons, having these types of customer engagements using the new analytics tools, all of those, right? And when we’re able to create these types of promotions, we want to get as much visibility as possible. So like you said, right, in sponsored products, we can’t target audiences. We can target products and we can target keywords and that’s it. So when we’re creating coupons or discounts for people that are in specific buckets like abandoned cart or high value customers and things like that, we don’t have the ability to specifically target those people. Once we create a promotion on regular advertising, DSP, how I utilize it is really building out those audiences, like you said, right? Finding those audiences where I really want to target brand loyal customers, last 365, et cetera, right. So I know that, hey, these promotions that I’m creating are going to apply because they’re high value customers or they’re abandoned cart customers, et cetera. So I’ve been using it really as a tool and a means to drive more visibility for a lot of these types of new tools to continuously feed the system and create sort of that baseline of customer loyalty, brand loyalty, those are the things for me that is the most important.

Yoni Steinschriber:
And so DSP is a really great tool, really. For me, it’s just like get as many eyeballs on all of the tools that Amazon’s giving us access to. Get as many eyeballs on these promotions and deals that we’re running for their specific little niche audience. Make sure that people are seeing these because oftentimes these are the highest converting customers, these are the highest click through customers and they’re the most loyal customers. You’re going to have the highest aov and lifetime value.

I love it.

Mina Elias:
And that’s it, guys. Five hacks that you guys need to be using right now in 2024. This is going to move the needle. There’s going to increase profit. You want to jump on it now before everyone else jumps on it. And here’s a piece of advice. Anytime Amazon releases a new tool, you want to jump on it. Guys, I hope you like this episode. And if you want more episodes like this, make sure to go find me on Instagram at the Mina Elias and let me know that you like this episode. And as usual, we also do free audits. If you want us to go take a look at your account, just visit triviumco.com and we will build a full strategy for you, help you and consult you and everything that you need to do. All right, peace out, guys. See you in the next episode.