The Flywheel of Growth
Growing on Amazon is a matter of optimizing shelf space, but what actually drives growth, and especially sustainable long term growth?
In our Zoplenti model, we identify three pillars that support each other, creating a virtuous cycle.
Here’s how it works.
1) Conversion
The first pillar is conversion rate, turning clicks into customers.
How well your brand and products convert depends on how good your content and images are, and how well they answer customer questions and doubts. But also, your pricing stability, Prime shipping, and how clean and easy to navigate your catalog is.
Conversion rate obviously impacts sales, but also ripples on shelf space: the Amazon algorithm rewards the products customers pick.
2) Traffic
The second pillar is traffic, the sheer volume of shoppers that see your products.
Shelf space is important because it brings traffic, but traffic itself is rewarded by the algorithm. The more you have, the more shelf space you’ll get.
That’s why it’s important to bring the right shoppers to your listing, at scale, through smart segment-specific advertising campaigns, listing optimization for organic rankings, and smart off-channel campaigns.
3) Reputation
The third pillar is reputation: your product reviews, ratings, and overall brand perception in your market.
Amazon customers don’t like risk, and a badly reviewed product is risky. Both customers and the algorithm reward good feedback with sales and shelf space.
Boosting the number of positive feedback, while avoiding negatives ones at all costs, is a crucial part of success.
The Flywheel of Growth
If you handle them right, each of these pillars reinforces the others, compounding and feeding your growth for the long term.
We call this the Amazon flywheel of growth.
Better conversion drives rankings. More traffic leads to more sales and reviews. Strong reviews further boost conversion.
The other side of the coin? If one pillar is weak, the whole system stalls, so you need to get it right.
At Zoplenti, our focus is optimizing each pillar to ignite the flywheel, for the long term.
