10K Collective e-Commerce Podcast

10K Collective e-Commerce Podcast


Is Your Brand Displaying These Red Flags of Poor Branding on Amazon?

May 17, 2023

Poor Branding in e-commerce
Effective branding is crucial for e-commerce businesses on Amazon. As an owner of a 6- or 7-figure e-commerce business, it's critical to identify signs of poor branding. You then need to work out their underlying causes. Only then can you improve your brand's performance. In this post, we'll explore common red flags of poor branding on Amazon.
Understanding the Metrics
Evaluating Branding Performance
To assess branding effectiveness, monitoring key metrics is vital. Let's explore these essential indicators of poor branding.

Conversion Rate: This metric shows the percentage of visitors who buy. A low conversion rate can show poor branding. That suggests a gap between your brand's promise and customer perception.
Customer Reviews and Ratings: Feedback from customers shapes your brand's reputation. Negative reviews or low ratings might signal poor branding. This can crater conversion rates!
Repeat Purchase Rate: This rate reflects brand loyalty and customer satisfaction. A low repeat purchase rate may suggest poor branding. Happy customers are more likely to come back to your brand.
Brand Search Volume: The volume of searches for your brand name on Amazon reflects customer awareness and interest. Low search volume may show weak brand recognition and ineffective branding efforts.
Price Premium: A premium price compared to competitors can be a sign of strong branding. A lack of a price premium may suggest that your brand is not perceived as distinct or valuable.

Case Study: Conversion Rate and Poor Branding (RavPower)
Let's explore RavPower, an electronic accessories seller on Amazon.

RavPower observed a low conversion rate despite receiving many visitors to their product pages. They discovered that their product images were poor at showcasing features. Their product descriptions lacked clarity. To change this, RavPower invested in professional product photography and improved descriptions. As a result, their conversion rate improved, leading to higher sales.
Poor Branding vs Market Choice - which is driving the bad metrics?

It's a must to recognize branding limitations, especially when it comes to market choice. Entering a hyper-competitive market can present challenges in establishing a strong brand presence. Thorough market research is essential.

The Star Principle, aka the BCG growth matrix, teaches the critical value of being the market leader. It's mission-critical to only go into markets where your products can be the market leader. If one or two big players dominate your market, move on!
Case Study: Element26 and Overcoming Market Challenges
Element26, specializing in weightlifting belts, is as an inspiring case. The brand won market share in a highly competitive industry. Element 26 had high expertise, total commitment and enough funds. Jason Franciosa's business partner had a PhD in physiotherapy. They were and are obsessive cross-fit enthusiasts. And they had solid funding. As a result, Element26 differentiated their brand and emerged as market leaders. This is not normal. It is very hard to do this! Unless you are as expert, fanatical and funded as these guys, don't do it!
Common Root Causes of Poor Branding
Identifying the underlying causes of poor branding is crucial to addressing them effectively. Let's explore some common root causes.

Inconsistent or Confusing Messaging. When your brand has an inconsistent or unclear message across different channels, it's confusing. Customers struggle to understand and connect with your brand.
Lack of Brand Identity and Differentiation. Without a distinct identity and value proposition, your brand will not stand out from competitors. This makes it hard to capture customers' attention and establish long-term brand loyalty.
Poor Product Quality: Product quality is the foundation stone on which all brands are built. If your brand delivers subpar or mediocre products,