How to ace Amazon Email Marketing and what to know about the new FBA fee increases?
As we jump into a new year, Amazon sellers have a lot to feel excited about. One of the most promising developments which look set to shape performance in 2023 is a serious expansion in email marketing functionality.
So, what’s changed?
First things first, if you’re an Amazon seller, you will have had access to limited email functionality since 2021. However, you’ll only have been able to send emails to shoppers who opted to follow your brand or subscribe. That meant your email reach was limited and you couldn’t use email to its full potential to grow your sales.
That’s all set to change with the launch of Tailored Audiences. In essence, Tailored Audiences is Amazon’s name for email marketing. Via this tool, you can now send sales emails to three distinct categories of Amazon shoppers:
- Shoppers who have purchased from you at least twice within the last 12 months.
- The top 25% of your Amazon customers in spending terms.
- Shoppers within the top 20% of your most recent orders received.
If you’re used to carrying out email marketing off Amazon, the very limited functionality available up until now will likely have frustrated you. The good news is Amazon is taking steps to address that.
When you send an email via Amazon, you can now tailor the appearance of that message to align it more closely with your own branding. That means you can add your company logo, add images, and share supporting products.
What’s the purpose of email marketing on Amazon?
Email is consistently named one of the best marketing channels for return on investment (ROI). While it’s lower tech when compared to some of the more sophisticated marketing options available nowadays, it’s proven to work.
Encourage repeat business by staying front of mind
Email on Amazon is especially helpful as it allows you to remain in regular communication with your Amazon shoppers. If you have delivered a good customer experience and a high-quality product, sending strategic emails to those shoppers keeps your brand front of mind. That helps to increase your chances of building repeat business and having your customers recommend you to others.
Better target your customers
You can use email on Amazon to better target and retarget customers using their associated sales data. This makes it much easier to send marketing communications that are likely to be relevant to that shopper – such as offers on similar or related products to things they’ve already purchased from you.
Nurture your shoppers to stay competitive
There are so many brands competing for attention and sales on the Amazon marketplace that you need to take every chance you can to stay relevant. Remaining in regular email contact and providing helpful information, or product details can ensure you don’t get forgotten and drop out of contention the next time that shopper wishes to buy something.
Two of the emails you should be sending to your Amazon shoppers
As with any email marketing campaign you run, thought should be given to the content of your emails. Amazon currently limits the number of emails you can send to an individual shopper to one per week, per brand, so you’ll need to consider how you want to use that limited capability. There are two email types that should feature in that plan:
Thank you for your purchase
Sending a thank you email after a customer’s initial purchase is an important first step in building a fruitful relationship with that individual. This email sets the tone for your dealings with that Amazon shopper. Use this as an opportunity to welcome that person to your brand, tell them more about you, and showcase other products they may like.
Building up a steady stream of new reviews can make a real difference to your success and sales on the Amazon marketplace. Amazon email marketing has a ‘request a review’ feature that you should really make use of. All you need to do is click to send a review request email to buyers from 5 to 30 days after they make a purchase.
What tools does Amazon offer to manage your on-platform email marketing?
Email marketing is still a new addition to the Amazon Seller Central suite of tools but there are still a few handy features available to help you optimize your email performance.
If you don’t have an in-house designer to hand, Amazon offers a series of pre-designed templates. These templates ensure that your emails look professional when arriving in shopper inboxes. There’s a range of designs to choose from, so you should be able to find something that fits your brand’s aesthetic.
Measurement is important to every marketing activity you conduct, and email is no different. Performance reports will give you useful data such as open rates, click throughs, and unsubscribes. You can use this to determine whether your emails are on the right track and refine your approach for even better results.
Just as you would with standard email marketing, you can segment your Amazon audiences to better target your email messages.
If you’d like more information about email marketing via Amazon, don’t miss this complete guide created by the team at ClearAds.
Fulfilled by Amazon Fees to Increase
If you’re an Amazon seller based in the USA, you may have heard that the fees associated with using the Fulfilled by Amazon (FBA) service are set to increase in 2023. This is sure to be unwelcome news but don’t despair. While prices are rising globally and Amazon has had to increase FBA fees in line with these additional costs, it isn’t all bad news.
Let’s look at exactly what costs are going up, and which services you can expect to pay less for this year.
Outbound order fulfilment
If you use FBA to handle shipping for orders received, you’ll pay around $0.22 more for fulfilment this year. Prices are based on the parcel’s weight, calculated by 0.25lb and 0.5lb categorizations.
If you store products with Amazon, you can also expect your storage fees to creep up during the peak season of October through December if your products are housed in non-sortable fulfilment centers, and don’t fit into a standard shipping box. Prices will also increase during off-peak months but by a smaller amount.
Products being stored with Amazon long-term will also become more expensive. You’ll now pay for any products stored more than 180 days (except for clothing and accessories) and 271 days.
If you need Amazon to dispose of items you store in its fulfilment centers, the cost to do so has more than doubled from the original fee of $0.45 to a minimum of $0.97. The cost for larger items starts at $13 plus a weight-based surcharge.
As we mentioned earlier, it’s not all bad news. Although no business owner will ever welcome their costs creeping up, Amazon has also pledged to keep some fees the same, and reduce the cost of accessing certain programs where possible.
New products will no longer pay fees for the processing of returns, storage, or removal and disposal under the FBA New Selection program. That’s good news if you have new product launches planned for this coming year.
Small and Light
If you tend to sell smaller, lighter items, you can expect to pay less to participate in FBA’s Small and Light program. This gives access to free shipping for Prime shoppers and lower shipping and logistics fees for sellers. As well as making this program cheaper to join, Amazon is also broadening its eligibility criteria. There is one caveat though; you can only join this program if your small, light item costs $12 or less.
Fuel and inflation surcharge
If you used FBA last year, you’ll have been paying a fuel and inflation surcharge. This was a new fee that Amazon introduced because of rising gas prices across the country. While that increase was passed on to sellers, now that prices at the pump are returning to more normal levels, the levy is being removed. You won’t pay this fee in 2023 (unless gas prices spike again in which case this surcharge may be re-introduced).
Another cost not increasing in 2023 is the fee charged for liquidation. This process sees your unsold inventory being liquidated by a third-party provider. If you’ve used this service previously, you can expect to pay around the same in 2023.
Increasing costs in any area of your business can have a direct impact on your bottom line. It’s important to get a clear handle on where increases will be felt and where savings can be more. For more on this subject and a detailed breakdown of cost increases across the FBA program, head over to ClearAds for a complete guide to every change confirmed so far. You can also find more information about these topics and many more on the Clear Ads Blog.