Attracting new Amazon customers has become more expensive over time. Obtain data on your target customers’ consumer search and purchase activity, especially with the additional features of the Amazon Brand Registry. Sellers can increase their sales without increasing the cost of customer acquisition through tactics such as upselling and cross-selling to increase sales to existing customers. But how do you choose which products to pair and when to offer?
All your answers lie with one of Amazon’s Brand Analytics reports. You can learn about the products people are likely to purchase with a product by doing a market basket analysis (market basket analysis). Though the Market Basket report on your customer’s purchasing behavior becomes easily accessible with market basket analysis, finding the right basket is not child’s play if you don’t research right.
What is Amazon Market Basket Analysis?
Sellers can increase sales by better understanding customer purchase patterns through market basket analysis, a strategic data mining technique. This Amazon brand analytics feature aims to discover underlying product groups and commonly purchased goods by mining large datasets, such as purchase records from the past.
Retailers may maximize inventory management, marketing, cross-selling, and consumer interaction by spotting these co-occurrence patterns and making informed decisions based on them.
The likelihood that a customer will additionally purchase conditioner (and the brand of bread) when they are already in the store if they buy shampoo? A rise in sales could be on the horizon if stores use this Market Basket report to make more informed decisions about predictive marketing, cross-selling, and ledge space planning.
Why Is It Important?
With a firm grasp of the relationships between products and their categories, you may refine your recommendation criteria to increase conversion. The term for this strategy is upselling and cross-selling. Additionally, it can teach you how to promote related products and when to recommend them to customers at checkout based on their previous purchases.
Product promotions, shelf layouts, and aisle displays can all be improved with the ability to detect customer purchases and product patterns.
How To Use Amazon Market Basket Analysis To Boost Sales?
Meet The Customer Preferences:
A seller’s success can be gleaned from metrics such as Average Order Value (AOV). With the help of Amazon Market Basket Analysis, sellers may not only comprehend but also influence AOV.
Later in this article, we’ve discussed how to upsell and provide enticing offers that encourage more extensive sales so your customers spend more money with each purchase. A helpful clue is establishing free shipping thresholds or tiered incentives to enable customers to make larger purchases.
Knowing what makes a product popular is vital with so many possibilities on Amazon. Market Basket Analysis seeks to identify the factors influencing customers’ decision-making by investigating domains such as item comparison and alternatives.
Find all the information you need to enhance product listings, incorporate new features, and meet customer preferences. If you want more people to buy your products, highlight their unique qualities in the product listing that you believe satisfies your target customers’ needs or expectations from your product.
Reduce FBA Fees To Increase Profit Margins:
An essential part of running a retail business is keeping track of inventories. Amazon Market basket analysis can help you maximize your inventory by revealing which products are most often bought together. Stock planning and management can benefit from these Market Basket reports by avoiding surplus and guaranteeing constant availability of popular commodities.
A market basket analysis is crucial when making suggestions for products on the web. Amazon sellers use market basket analysis algorithms to personalize product recommendations to each customer according to their tastes and past purchases, which improves the shopping experience and increases revenue.
Finding upselling and cross-selling opportunities is one of market basket analysis’s most direct benefits. The average transaction value can be increased using market basket analysis algorithms to propose higher-value or complementary items to customers when they click on products online or add them to their basket. This way, you can pair or combine your popular or star products with your slow-moving inventory, eventually controlling your FBA costs.
Offer A Promotion To Convert Add-to-Cart Visitors Into Customers:
We’ve already established how Market Basket reports reveal which products customers frequently buy together, either from your product catalog or competitors’, even if they’re not in the same category. Imagine you sell coffee, and the data shows people often buy it with mugs and travel thermoses. Bingo! Bundle opportunity! Either this or you pair your star product with the least popular one.
Once you have your bundles, you can leverage Market Basket report data to identify peak purchase times for specific products. Then, you can offer temporary discounts on bundles to create a sense of urgency and boost sales, such as using Amazon’s lightning deals to promote your products or bundles.
Another way to improve your sales using Market Basket report data is thinking out of the box! Go beyond just focusing on immediate pairings. Market Basket Analysis can reveal hidden trends, like customers buying winter coats and cozy socks together months before the winter season. Sellers can use this information to create seasonal or thematic bundles ahead of time. To sweeten the deal, sellers can offer free shipping on bundled orders and overcome cart abandonment due to shipping costs.
Conclusion:
Brands can enhance their product strategy, increase offline and online sales, and get closer to customers by analyzing Market Basket reports monthly. Brands can test ideas to upsell or cross-sell their products on Amazon. By leveraging Amazon Brand Analytics to obtain a comprehensive Market Basket report, logistics and marketers may work together to meet customers’ genuine needs without incurring additional FBA costs.
This data-driven partnership has the potential to bring teams together with the common objective of increasing sales and fostering innovation throughout the company. To discuss bespoke marketing strategy for your brand further, contact us at Prime Retail Solution, a leading e-commerce agency, today!
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