top of page

Social Commerce on Instagram, TikTok and YouTube

Definition, examples and trends in 2024

Option 200 (2).png
Amazon Advertising

Intro

In our detailed article, we will show you effective strategies and proven tactics to promote your products with Amazon Advertising and increase your sales. From optimal keyword research to the targeted placement of your ads, we will show you how to reach your target group and stand out from the competition. Whether you are an experienced marketer or an aspiring entrepreneur, this article will provide you with valuable insights and practical tips to unlock the full potential of Amazon Advertising. Get inspired and learn how to maximize your sales on this dynamic platform.

Social media platforms

Social Commerce vs. Social Media: The Core Differences

  • Basic definitions

Social Media: Platforms designed to connect people, allowing them to share, comment and interact.

Social Commerce: The process of selling products and services directly through social media, often through built-in purchasing features within the platform.

  • main goal

Social Media: Creating and maintaining relationships, sharing information and entertainment.

Social Commerce: Driving sales and economic growth through social media by influencing the customer's purchasing decision directly on the platform.

  • Interaction type

Social Media: Dialogue-oriented, with a focus on sharing, liking and commenting.

Social Commerce: Transactional, with interactions often focused on product reviews, purchase inquiries, or direct sales.

  • Functional distinction

WhileSocial media Platforms developed primarily for communication and content sharing have been expandedSocial Commerce this functionality by offering the ability to purchase directly from the post or ad.

In essence, both concepts are closely linked, with social commerce can be seen as a specialized extension of the more general social media concept. It combines social interaction with e-commerce to create a holistic online shopping experience.

Springboard to e-commerce

From Interaction to Transaction Social Media Platforms: A Springboard to E-Commerce

Social media has started its journey as platforms for social interaction and content sharing. Its primary role was to connect people who share opinions, images and experiences. There has been a paradigm shift in recent years, with platforms such as Instagram, TikTok and YouTube emerging as major players in e-commerce.

Instagram, TikTok and YouTube: More than just entertainment

  • Instagram:Not only offers a platform for photos and stories, but also for purchasing products through features such as Instagram Shopping and Shoppable Posts.

  • TikTok:With its unique and innovative video content structure, it opens up opportunities for brands to sell through TikTok Shopping and Sponsored Videos.

  • YouTube: As the largest video platform, it not only enables monetization through advertising, but also through YouTube shopping ads and shoppable video features.

The realignment: Social Commerce as the next step

 

The constant change of platforms and the integration of e-commerce functions show that the focus is strongly on social commerce. Brands and sellers are increasingly using these platforms to present their products directly where their target groups are. The transition from social media to e-commerce is a natural result of digital evolution and consumer behavior. As people spend more and more time on these platforms, companies are looking for ways to maximize their reach and influence. By merging entertainment and shopping, social media platforms now offer a facet that is beneficial for both consumers and brands.

 

Challenges and opportunities

 

Although the transformation of social media platforms into e-commerce players holds enormous potential, it is not without challenges in implementation. Very few platforms still offer direct and seamless access to the purchasing process without having to leave the platform or missing essential convenience functions.

 

However, if these challenges are overcome, social commerce offers enormous opportunities for personalized and targeted marketing, which leads to increased customer satisfaction and increased sales.

Social commerce on platforms

Social Commerce on the leading platforms: Instagram, TikTok and YouTube

Instagram: The pioneer of social shopping

Instagram, originally launched as a photo-sharing app, has grown into a powerful tool for brands and sellers.

​Features and possibilities:

  • Shoppable posts: Allows brands to tag products in their images and videos that can be purchased directly from the post.

  • Instagram Stories:Short-lived content often used to promote limited-time offers or exclusive deals.

  • Instagram Checkout: An integrated payment system that makes the purchasing process seamless and without having to leave the app.

​Strategies for success:

  • Use of high-quality images and storytelling.

  • Engage with the community through polls, comments and direct messages.

  • Collaborate with influencers to expand reach.

TikTok: The new kid on the block

TikTok has quickly evolved from a platform for short, entertaining videos into a powerful marketplace, especially for the younger generation.

Features and possibilities:

  • TikTok Shopping:Allows brands to sell products directly in their videos.

  • Sponsored videos:Paid by brands to showcase their products or services in a creative and entertaining format.

  • Duet function:Allows two users to create content together, often used for brand partnerships or challenges.

​Strategies for success:

  • Creating viral challenges or trends.

  • Using user-generated content to promote products.

  • Create authenticity through short, crisp, gritty content to keep users' attention.

YouTube: The video giant enters the e-commerce arena

As the world's largest video platform, YouTube has recognized the value of integrated e-commerce and is now offering brands the opportunity to sell their products directly through videos.

Features and possibilities:

  • YouTube Shopping Ads:Appear before or during videos and allow users to click directly to a product and purchase it.

  • Shoppable Video Features:Similar to shoppable posts on Instagram, products can be tagged directly in videos.

  • Product Review Videos:A popular genre on YouTube in which creators review products and offer direct links to purchase.

​Strategies for success:

  • Invest in high-quality video production

  • Engage with the community through comments and Q&A sessions.

  • Partner ring with YouTubers for product placements and reviews.

Comparison and conclusions

While each of these platforms has its own strengths and weaknesses, there are commonalities in their social commerce strategies:

  • Visual focus: The need to showcase products through high quality images or videos.

  • Community engagement: Engaging and building relationships with followers is crucial to success.

  • Seamlessness: A seamless purchasing process without having to leave the app or platform is crucial.

In a digitally connected world, social commerce on these platforms is not just an option but a necessity for brands that want to succeed in the digital arena. It provides a direct interface between brands and their customers and significantly shortens the purchasing process. However, brands need to ensure they adapt their strategies to each platform and audience to achieve maximum results.

Option 206.png
Connection to Amazon

Connection to Amazon: The currently most efficient way for social commerce

Amazon's dominance in e-commerce

Amazon has established itself as a leader in global e-commerce, offering a huge range of products, fast deliveries and a user-friendly interface.

  • Global presence:Available in almost every country, Amazon reaches millions of buyers.

  • Trusted Platform:Because of the consistent customer reviews and reliable customer service.

  • Simplified purchasing process:With features like 1-Click Buying and Prime Delivery, Amazon has made online purchasing a seamless experience.

 

Integration of social media and Amazon

The combination of social media marketing and Amazon's efficient e-commerce system has proven to be particularly effective.

  • Affiliate links:Influencers and brands often use affiliate links in their social media posts to promote products on Amazon and earn a commission for each sale.

  • Amazon Live:A streaming feature where brands and influencers can demonstrate products live and sell them directly on the platform.

10 reasons why Amazon is the key to social commerce success

  • Willingness to purchase: When users are redirected to Amazon from social media platforms, they are often already in a purchasing decision phase, which can lead to immediate purchases.

  • Familiar environment: Familiar to many online shoppers, Amazon offers a familiar and intuitive interface that simplifies the purchasing experience.

  • Millions of Prime Users: In Germany alone there are millions of Prime users who value advantages such as fast shipping. This increases the attractiveness of buying via Amazon.

  • Extensive product range: No matter what the customer is looking for, they are likely to find it on Amazon, speeding up the buying process.

  • Trusted Customer Reviews: Amazon customer reviews provide an additional layer of security and help potential buyers make their purchasing decisions.

  • Fast and reliable delivery options: Thanks to Amazon Prime and other shipping options, customers often receive their products faster than with other online retailers.

  • Easy return process:Amazon's easy returns process gives customers the confidence to buy risk-free.

  • Global reach: Amazon is a dominant e-commerce platform not only in Germany but worldwide, which offers brands a massive international target group.

  • Innovative technology: With features like Buy Now and Alexa-integrated shopping, Amazon is at the forefront of integrating technology into e-commerce, further streamlining the buying experience.

  • Seamless integration: Amazon easily integrates with various social media platforms, allowing businesses and influencers to create seamless purchase recommendations for their audiences. This simple integration allows brands to market their products directly through social networks and guide users to purchase on Amazon in just a few clicks.

A future without Amazon?

It's obvious that Amazon and social media are a powerful combination for e-commerce. However, the question is how this relationship will develop in the future. With the rise of integrated social commerce features on platforms like Instagram, TikTok and YouTube, we could see greater integration directly on these platforms, reducing the need for an external platform like Amazon.

 

Still, Amazon remains a powerful tool in every e-commerce entrepreneur's arsenal for the foreseeable future. Brands and sellers should make the most of this platform while also keeping a close eye on social commerce developments.

Purchase decision process

How social commerce impacts the purchasing decision process

Intuitive product discovery

 

In today's digital era, consumers are more likely to discover products through social media rather than actively searching for them.

  • Personal recommendations: Influencers and friends share products they love, which creates a trustworthy impression.

  • Ztargeted advertising: Based on user behavior and interests, increasing the relevance of product advertising.

Emotional purchase incentive

The visual and personal nature of social media can provoke strong emotional reactions.

  • Storytelling: Brands tell stories about their products that appeal emotionally to buyers.

  • Authenticity: Users tend to prefer product recommendations from real people over traditional advertisements.

 

The power of the community or community

 

Community plays a central role in modern e-commerce.

  • Word of Mouth: Satisfied customers share their shopping experiences and recommendations, which is a natural and credible form of advertising.

  • Reviews and Opinions: Buyers rely on reviews and opinions from others to make informed purchasing decisions.

  • Interactive shopping: Live sales events, Q&A sessions and other interactive formats promote customer loyalty and increase sales.

  • Real-time feedback: Instant communication with customers allows brands to collect feedback and adapt their offerings accordingly.

Social media has, without a doubt, transformed the purchasing decision process. Like any technology and strategy, this will continue to grow and adapt to changing consumer trends. It is essential for brands and sellers to navigate these changes and develop the right strategies to operate effectively in the social commerce space.

Costs

Costs of social commerce campaigns

One of the crucial aspects that is often overlooked when implementing social commerce strategies is budget. How much does it really cost to launch an effective social commerce campaign on platforms like Instagram, TikTok and YouTube?

Influencer partnerships

The cost of working with influencers can take up a significant portion of the budget. Depending on their reach and popularity, influencers can charge fees ranging from a few hundred to tens of thousands of euros per post.

 

​Content creation

High-quality content is the key to success in social commerce. This requires investment in professional photography, video production, and interactive content creation tools. The good news: Many professional influencers create such content themselves. It is important to give them a detailed briefing in advance.

Integration of e-commerce tools

Integrating tools and platforms that make the social media buying process easier may come at a cost. This not only incurs direct costs for the tools, but also expenses for their implementation and maintenance.

Monitoring and analysis

To determine the ROI of your campaigns, you need to invest in analytics tools. These tools allow you to measure the effectiveness of your campaigns and adjust them if necessary.

Additional costs: Budgeting for platform-specific features

Instagram: The cost of ads on Instagram can vary depending on audience targeting, duration and format. Features like Shoppable Posts or Instagram Checkout may incur additional costs for integration and administration.

TikTok: Running sponsored videos or paying influencers for product placements can be expensive on this platform, especially if you want to hire popular content creators.

YouTube: In addition to the cost of producing high-quality videos, companies also have to pay for YouTube Shopping Ads. Costs may vary depending on competition and keyword targeting.

budget

The costs for social commerce campaigns can ultimately vary greatly and depend on various factors, including the platform selection, the campaign scope, the target group and the specific company goals. However, as a rule of thumb, you can assume high 4-digit or low 5-digit amounts for initial relevant tests. Follow campaigns with increased budgets until the desired ROI / RoAs.

Special case

Special case of performance-based social commerce

In addition to the classic influencer marketing, a second performance-based approach is gradually establishing itself. While the classic model pays based on posts, the performance-based model is based on results achieved. Performance requires e-commerce excellence, with marketplaces offering advantages. Both approaches have their advantages, but the performance model scores with better traceability and ROI.

Social commerce and classic influencer marketing vs. performance-based influencer marketing

This article will shed light on the difference between classic influencer marketing and the performance-based approach, while also taking into account the influence of social commerce.

The future

A look into the future: The emerging paradigm shift caused by social platforms as e-commerce players

Social media platforms are constantly transforming and expanding their functions far beyond the original concept of social networks.

  • Multi-functionality: From communication to entertainment to shopping, platforms now offer a wide range of services.

  • Advanced Monetization Options: Platforms allow users to generate income through advertising, partnerships, and direct sales.

E-commerce as a standard function

Several platforms have embedded e-commerce features to provide a more seamless and direct way to purchase.

  • Direct sales: Opportunities for brands and individuals to sell products without using external links or platforms.

  • Integrated payment systems: Simplify the purchasing process and increase the conversion rate by minimizing purchase abandonment.

 

Social as an innovation driver for e-commerce

 

Ongoing competition between platforms is likely to lead to more innovative e-commerce solutions, and brands need to plan strategically to take full advantage of these developments. It will be interesting to see how these new e-commerce capabilities will impact customer behavior, brand loyalty and sales strategies. 

 

A good example of pioneering work  In the development of e-commerce functions, TikTok provides this. It also offers, among other things, live shopping: an interactive sales experience in which viewers can buy products during live broadcasts.

 

This evolution could also change the dynamic between platforms and external e-commerce players, such as Amazon. It will be critical for brands and sellers to adapt and develop flexible strategies to remain competitive in this ever-changing landscape.

 

AR and AI in Social Commerce

 

As we watch social media change, we can certainly expect more innovation and integration in the social commerce space. The development of augmented reality (AR) shopping experiences, improved AI-driven shopping assistants and seamless payment methods are just some of the trends that will continue to shape the social commerce landscape in the coming years.

The rise of social commerce is a clear sign that brands and consumers are looking for increasingly engaging, personalized and interactive shopping experiences. It will be exciting to see how this sector will evolve to meet the ever-changing needs and expectations of modern consumers.

eBazaaris

How eBazaaris advances your business in social commerce

The digital landscape is constantly changing and companies must adapt to remain competitive. Social commerce has proven to be a revolutionary way to connect brands with customers, with the purchasing process taking place directly on social media. But implementing this strategy can be difficult and time-consuming. This is where eBazaaris comes into play.

Connecting brands and influencers

 

With the clear goal of making social commerce efficient and effective, eBazaaris brings brands and influencers together. By building this powerful bridge, they enable brands to:

  • Visibility through diverse posts, stories and reels.

  • Conversion and sales through targeted forwarding to the desired sales channel, be it the brand/retailer shop, marketplace shop or influencer shop.

  • Safety through constant monitoring and quality control

Data-based decisions

Through automated multi-channel reporting and in-depth analysis, eBazaaris gives companies insights that help them make the right decisions. A deep understanding of customer preferences, purchasing habits and interactions allows brands to adapt and optimize their strategies.

Services that make the difference

What makes eBazaaris special? These are their holistic services:

  • Customized solutions:Every brand is unique. eBazaaris understands this and offers strategies specifically tailored to the needs and goals of each business.

  • Authentic presentation of brands: Through creative content that shows products in real application situations.

  • Increase credibility: With real influencers in authentic environments.

  • Increasing awareness: Both through content generated by influencers and through targeted paid media campaigns.

  • Smooth selling experience: eBazaaris' decentralized social commerce platform enables brands to sell their products through a proprietary influencer shop network.

Not just a social media agency

While many wonder whether eBazaaris is a social media agency, their service goes far beyond what traditional agencies offer. They focus on optimizing the social commerce process while seamlessly integrating with other agencies and service providers.

Be part of the revolution

The path to social commerce success may seem complex, but with the right partner on your side, it's easier than ever. Let eBazaaris help you strengthen the connection between brands, influencers and sales channels.

Find out more about the impressive results eBazaaris has already achieved. Or get in touch directly to find out how they can help you achieve your social commerce goals. It's time to unlock the full potential of social media and increase your business' sales.

F.A.Q

FAQ

10 frequently asked questions about social commerce:

  • Does eBazaaris sell directly to end customers (B2C) as a dealer?
    Ja, je nach gewähltem Modell der Zusammenarbeit treten wir als Händler auf, der Ihre Produkte direkt an Endkunden auf Marktplätzen in Europa verkauft.
  • Which marketplaces does eBazaaris support?
    Wir unterstützen aktuell Amazon (in 8 Ländern), eBay, Kaufland, bol.com, Otto und Idealo Direktverkauf. Weitere Marktplätze befinden sich derzeit im Setup. Gerne berücksichtigen wir dabei auch Ihre Wünsche.
  • Does eBazaaris also handle B2C returns?
    Ja, sobald eBazaaris als Händler auftritt, bearbeiten wir selbstverständlich auch alle Endkunden-Retouren.
  • Will eBazaaris buy my goods?
    Wir arbeiteten i.d.R. als Kommissionär mit einem Konsignationslager, bieten aber je nach Modell auch den Kauf von Waren an.
  • Can I book individual services separately?
    Selbstverständlich bieten wir unsere Leistungen modular an, d.h. Sie können die Bestandteile Beratung, Projekt Management, SEO Content oder Werbe- und Marketing Management als Einzelpaket buchen.
  • What costs should I expect?
    Unsere Vergütung richtet sich nach der Anzahl der betreuten Produkte (SKUs), dem betreuten Umsatz sowie dem Werbebudget. Hinzu kommen plattformspezifische Kosten sowie Investitionen in Werbung- und Marketing. Gerne erstellen wir Ihnen ein individuelles Angebot.
  • Is eBazaaris an online pharmacy?
    Bei der Leistungserbringung arbeiten wir mit lizenzierten Amazon Seller Accounts in Kooperation mit einer Partner-Apotheke zum Vertrieb von Healthcare Produkten zusammen.
  • What costs should I expect?
    Unsere Vergütung richtet sich nach der Anzahl der betreuten Produkte (SKUs), dem betreuten Umsatz sowie dem Werbebudget. Hinzu kommen plattformspezifische Kosten sowie Investitionen in Werbung- und Marketing. Gerne erstellen wir Ihnen ein individuelles Angebot.
  • Is Amazon relevant in the pharmaceutical sector at all?
    Im Healthcare Bereich ist Amazon mit fast zehn Prozent des Marktanteils mittlerweile der drittgrößte Absatzkanal für OTC-Produkte in Deutschland und wächst stetig weiter. Dabei bestehen besonders in diesem Segment noch zusätzliche Einschränkungen bei der Markenführung und Vermarktung:
  • Where does Amazon Pharma Solutions sell?
    OTC Produkte verkaufen wir ausschließlich auf Amazon Deutschland. Viele Healthcare-Produkte können wir auch in anderen Amazon Ländern, eBay, Kaufland, bol.com, Otto und Idealo Direktverkauf anbieten. Weitere Marktplätze befinden sich derzeit im Setup. Gerne berücksichtigen wir dabei auch Ihre Wünsche.
  • Can I book individual services separately?
    Selbstverständlich bieten wir unsere Leistungen modular an, d.h. Sie können die Bestandteile Beratung, Projekt Management, SEO Content oder Werbe- und Marketing Management als Einzelpaket buchen.
  • Do influencers sell my products?
    Es gibt verschiedene Möglichkeit: So können Influencer entweder über Ihren eigenen Shop ihre Produkte verkaufen, oder aber auf ihren einen Dritt-Shop oder einen Marktplatz verweisen.
  • What costs should I expect?
    Unsere Vergütung richtet sich nach dem eingesetzten Media Budget sowie der Anzahl von Influencern, mit denen Sie gerne zusammenarbeiten möchten.
  • Can I only book individual services?
    Einzelne Bestandteile unserer Leistung bieten wir auch gesondert an.
  • Can I use my own influencers?
    Selbstverständlich können bereits bekannte Influencer in unsere Zusammenarbeit eingebracht werden.
  • Is eBazaaris a social media agency?
    eBazaaris Social Commerce ist keine reine Social Media Agentur und betreut z.B. keine Markenauftritte im Social Media. Wir arbeiten gerne mit Ihrer bestehenden Social Media oder Kreativagentur zusammen. Auf Wunsch empfehlen wir Ihnen einige Social Media Agenturen mit denen wir inder Vergangenheit gut zusammengearbeitet haben.
  • What costs should I expect?
    Mit welchen Kosten muss ich rechnen?
  • Will eBazaaris buy my goods?
    Kauft eBazaaris meine Ware?
  • Which marketplaces does eBazaaris support?
    A: Wir unterstützen aktuell Amazon (in 8 Ländern), eBay, Kaufland, bol.com, Otto und Idealo Direktverkauf u.a.. Weitere Marktplätze befinden sich derzeit im Setup. Gerne berücksichtigen wir dabei auch Ihre Wünsche.
  • Can I book individual services separately?
    Kann ich einzelne Leistungen separat buchen?
  • Does eBazaaris also handle B2C returns?
    Wickelt eBazaaris auch B2C Retouren ab?
  • Does eBazaaris sell directly to end customers (B2C) as a dealer?
    Verkauft eBazaaris als Händler direkt an Endkunden (B2C)?
  • Is ELMO directly connected to Amazon Seller, Vendor and Ads accounts?
    Ja, ELMO kann automatisch Daten aus allen Amazon Konten abrufen.
  • Can I get a demo?
    Selbstverständlich, Termine können gebucht werden unter: Kontakt
  • Can I export data from ELMO?
    Selbstverständlich, i.d.R. können alle Daten in ELMO in Standardformaten exportiert werden. Gesonderte Formate können auf Anfrage erstellt werden.
  • Which marketplaces does ELMO support?
    Wir unterstützen aktuell Amazon (in 8 Ländern), eBay, Kaufland, Otto. Weitere Marktplätze sowie auch Versandapotheken können nach Absprache ergänzt werden.
  • I already use other tools to control Amazon, what advantages does ELMO offer me?
    ELMO bietet insbesondere einen holistischen Überblick über Seller- sowie Vendor-Konten sowie ein zentrales PIM/CMS System zur Verwaltung aller produktbezogenen Informationen. Weitere spezialisierte Tools, z.B. zur Steuerung von Werbung, Preisen, … können parallel genutzt werden.
  • Can data be automatically exported to third party systems or data warehouses?
    Gerne besprechen wir die genauen Anforderungen und erstellen ein Angebot für einen Custom Data Feed- / Dump.
  • Mit welchen Kosten muss ich rechnen?
    Unsere Preise richten sich nach der Anzahl der Produkte, der Marktplätze sowie der gewünschten Module.
  • How is social commerce different from traditional e-commerce?
    While traditional e-commerce involves selling products via a dedicated website or platform (e.g. Amazon), social commerce enables direct purchases via social media platforms such as Instagram, TikTok or Facebook.
  • How do I measure the success of my social commerce activities?
    Most social media platforms offer detailed analytics and reports that allow brands to track sales, engagement, and other important metrics. Tools like Facebook Insights or Instagram Analytics can be very informative.
  • Will social commerce replace traditional e-commerce?
    Although social commerce is gaining traction, it is unlikely to completely replace traditional e-commerce. Both forms of e-commerce are likely to coexist and complement each other, each serving different aspects of online shopping.
  • Why is social commerce important?
    Social commerce allows brands to interact directly with customers where they already spend time: on social media. This can lead to higher conversion rates, a personalized shopping experience and increased brand awareness.
  • What are the biggest challenges in social commerce?
    Challenges include changing platform algorithms, building trust with customers, market saturation and constantly adapting to new technologies and trends.
  • What is Social Commerce?
    Social commerce refers to selling products and services directly through social media platforms. Instead of redirecting the user to an external website, the entire purchasing process can take place within the social platform.
  • How can I get started with social commerce?
    Start by creating a business profile on your desired social media platforms and using available eCommerce integrations or extensions. Instagram Shopping and Facebook Shops, for example, are popular options.
  • Which platforms are best for social commerce?
    Platforms like Instagram, Facebook, Pinterest and TikTok already have integrated social commerce functions. The "best" However, platform depends on the target group, the product and the type of campaign.
  • What role do influencers play in social commerce?
    Influencers can play a crucial role in social commerce because they already have an engaged following. Your product recommendations can serve as trusted opinions and boost product sales.
  • Is social commerce safe?
    As with any online purchase, there are risks. It's important to use secure payment methods and ensure that the platforms you buy or sell on have solid security measures in place.
  • Which model offers the best customer support?
    The e-commerce accelerator model often offers comprehensive support as it aims to help brands at every stage of their e-commerce journey.
  • Is the e-commerce accelerator model more expensive than the others?
    The cost of the e-commerce accelerator model can vary, but often they add value through additional services and support and are not higher in the total cost consideration.
  • Can I change my sales model later?
    Yes, brands can rethink their strategy and switch to a different model, depending on the contract terms and business objectives.
  • How can I measure the success of my chosen model?
    Success can be measured by sales, profit margins, customer satisfaction, brand presence on the platform and other KPIs. It is important to set clear goals and regularly review progress.
  • How does the seller model differ from the vendor model?
    In the Seller Model, brands sell their products directly to customers through Amazon Marketplace. They have more control over pricing, inventory and marketing, unlike the vendor model where Amazon controls these aspects.
  • What are Amazon sales models?
    Amazon selling models are different strategies and partnership models that brands can use to sell their products through the Amazon platform. They vary in terms of control, cost, support and relationship with Amazon.
  • Does the seller or vendor model offer the highest profit margin?
    The seller model can often offer the highest profit margin as brands have direct access to customers and full control over pricing. However, marketing and logistics costs can vary. For very low-priced products (>€10), the vendor model is often the only option to maintain a positive contribution margin with single products in the long term.
  • What is the Amazon Broker Model?
    The broker model involves working with an intermediary or expert who manages the relationship between the brand and Amazon and optimises the sales process.
  • Are there any hidden costs with these models?
    Each model has its own cost structure. It is important to check all agreements carefully and ask about charges or percentages that may not be immediately apparent.
  • How does the chosen model affect my relationship with Amazon?
    The models define the way brands interact with Amazon, whether as a direct partner, an independent seller or through an intermediary.
  • Which model is best for big brands?
    While the vendor model is often preferred for established brands, large brands can use any model depending on their specific goals and resources.
  • How can I choose the best model for my brand?
    Consider your business goals, resources, market position and growth plans. Consult experts or use resources like this article to make informed decisions.
  • What is the Amazon Vendor Model?
    The Amazon Vendor Model refers to a direct partnership between brands and Amazon, where Amazon buys the products directly from the brand and sells them through the platform.
  • Can I use several sales models at the same time?
    Yes, many brands use a combination of models to serve different segments of their portfolio or different markets.
  • How can an e-commerce accelerator help brands?
    An e-commerce accelerator combines the benefits of the other models, provides additional expertise, support and tools, and helps brands rapidly grow their online presence and sales.
  • Traffic Source
    Where does the traffic come from? Organic Search, Social Media, or ADs? It will draw the picture of efficient as well as under-performing channels.
  • Click-Through-Rate (CTR)
    Clicks/Total Impression. The rate of customers clicking on an ad is divided by your total impressions.
  • Sale
    Sale stats capture the financial state of your business. Also, it clues you what type of products are attractive to customers. 
  • Number of Page Visits
    The total number of visits to your page is instrumental in how successful your marketing strategies are. It also notes how popular your product is on search feeds and the clicking probability of your pop-ups.
  • Conversion Rate
    Total Number of Visits/ Sales. The number of visits divided by the number of sales makes the Conversion Rate.
  • Traffic
    Check how many visits you have in a given period and compare it to previous results.
  • Ad Cost on Sales
    Ad Spend/ Revenue Received This KPI determines how effective your investment was. 
  • Average Position on Search
    The average position KPI informed you about your websites' amazon SEO performance. You can see how you are performing and ranking on your targeted keywords.
  • Total Ad Cost on Sales
    Ad Spend/ Total Revenue Received. This number draws a bigger picture. You will indicate what portion of your total revenue ad spend takes.
  • Total Profit
    The KPI indicates the financial state of your company. You should really know how much you are making on Amazon. This number will help you evaluate strategic decisions.
  • Ratings and Reviews
    It is the only social proof customer has when checking your product. Reviews and ratings affect customer decisions and can strengthen a company's reliability. Reviews also prompt people to interact, which could lead to enhanced profits for businesses.
  • Publishing Frequency
    You'll want to consider how often they post content on their account.  Keep in mind that if a person is promoting too many brands, they may start to lose credibility with their followers. You should also check how often they publish sponsored content.  If you see 4-5 sponsored posts in a row, you should reconsider your choice, as influencers might be overused.
  • Relevance
    Look at your influencer's social media channels and imagine how your product or service will fit in the profile. If your integration seems out of context, it's not a good match.  Think about potential collaboration actions and messages. Does it look natural? For example, if you decide to partner up with a fashion influencer and give their followers a special discount for your new summer 2022 cloth collection, it is a good one.
  • Audience
    Take a closer look at the influencer's audience! You want to work with a person who will act as a medium and connect you with a relevant follower base. Make sure to check out your audience, location, age, gender, and other demographic features that will help you make the right decision. 
  • Influence in a Niche
    Reach is less worthy than authority. Look for people who are considered an expert in the subject matter. For example, wine bloggers have smaller audiences but are considered wine experts, while travel bloggers have larger audiences but may not be as knowledgeable about wine.
  • Quality of Content
    Check whether the influencer content that is clear, well-composed, and creative. None wants to appear in a channel that showcases poor quality as your brand may automatically get a bad reputation.
  • Engagement Rate
    Engagement rates show how well an audience interacts and responds to the content. Add the total number of likes and comments the influencers get on a post To work out the post engagement rate. Divide the total amount of likes and comments by followers and multiply it by 100 to find the average engagement rate. Also, check whether it responds to their followers as the quick reaction is the ability that you want to look at selecting potential candidates. 
  • Authenticity
    Authenticity is crucial when it comes to social media. To be influential, an account must be authentic. Authentic influencers have a dedicated following because they share real thoughts and experiences with their followers. When an influencer promotes a product or service, the followers can trust that the endorsement is genuine. You can find them by looking through your unique brand hashtags or mentions on social media platforms like Instagram and Twitter.
  • Personality and Response Speed
    Personality and response speed plays a huge role during the selection process. The candidate should be easy to work with and respond quickly to your messages and collaboration requests. Great personality + fast response speed is a match made in heaven. You will accelerate the content product and lay the foundation for long-term relationships with your customer. 
  • What Are the Benefits of Influencer Marketing?
    There are many benefits to using this approach, such as: B2B transactions are more likely to benefit from influencer marketing due to their larger size and a lot of revenue. Creators who align with your campaign's objective are the best choice for an increase in revenue.
  • How to Use Influencer Marketing to Create Loyalty and Build Relationships?
    Influencer marketing is a great way to build relationships and attract the attention of your target audience. It also has benefits for those who are looking to generate more traffic with less effort. The main goal is to build a relationship with someone who influences your target audience.
  • How to Identify the Right Influencers for Your Brand?
    You can use the abovementioned tools to identify influencers. A person’s influence is determined by their social networks, interests, and the age of their followers. There are different types of influencers activists, connected, authoritative, and trendsetters. Activists use their voice to effect change; Connected individuals have many friends and share content with them; Authoritative individuals are experts in their field and often provide advice; Trendsetters spot new trends before anyone else. There are many different ways to identify the right influencers for your brand. The most common way is by analyzing their social media profiles and reaching out to them on Twitter, LinkedIn, or via email. In the case of LinkedIn, you can also look up their company page and contact them there. An influencer can be either flashy or not, but they should complement the brand. It's also important that the person's values align with yours. To identify the right partners for your brand, understand what influence is and how it works. You then need to determine your target audience and what type of messaging you want to deliver. Once you have this information, you can use several tools - like Klout - to identify individuals who can influence your target market.
  • Which Brands Are Using Influencer Marketing?
    Many brand giants actively use influencers to reach their audience and further expand their customer base. Dunkin Donuts, Nike, Adidas, Motorola, Old Spice, Lyft, and many others leverage the strategy to promote their service to help spread the word about their products.These companies use influencers to promote their brand on media platforms such as Instagram, YouTube, and Snapchat. Not only businesses but other public institutions utilize influencer marketing. For example, the UK's National Health Service (NHS) is partnering with Instagrammers to spread its campaigns by word-of-mouth.
  • Is Influencer Marketing Paid or Earned Media?
    In general, most people would say that it's earned media. The whole point of it is to get someone with a large following to talk about your brand or product. However, there are some cases where you may have to pay an influencer to promote your product or service. It depends on the situation and the agreement you have with the influencer. But, if you organically earn the mention from an influencer, then it is earned media.
  • What Is AI Influencer Marketing?
    AI influencer marketing is a type of digital advertising that leverages Artificial Intelligence (AI) to create personalized, targeted ads. These intelligent adverts can adapt their targeting to the individual, based on their browsing history as well as other information such as location, age, and gender.
  • How to Use Influencer Marketing to Boost Your SEO
    There are four ways that influencer marketing boosts your brand's SEO, and they are: 1. They have a larger audience than you do, so it's easier to build awareness for your brand through them. 2. Getting backlinks from them will help your website rank better in search engines. 3. Some are nofollow. They don’t affect search rankings. However, their followers might click on the link and visit your site anyway. It is called the "no follow" effect. 4. Social media signals can improve SEO indirectly by driving traffic to your website or blog posts.

Arrange a free consultation

Arrange an initial telephone call in which we will discuss your needs and requirements in the e-commerce marketplace. We would be happy to prepare a free brand analysis for your brands.

Container.png
bottom of page