I am having a healthy disagreement a VP at the moment, regarding two new clients and wanted to get external opinions. We are working with 2 clients, both e-commerce, one is a $500-800 after-market car accessory (there are no competitors) and the other is a $50-100 health and wellness product with a CBD angle.
My approach is to run some small test campaigns to understand audience response at the top of the funnel and measure their conversion onsite, refining the gaps we identify along the way. Typically that’s best done on FB/IG, though it may involve Google or even Pinterest/Snap at this stage.
VP wants us to include Amazon as a secondary storefront (neither brand currently has an Amazon presence), as well as Commission Junction, as a way to throw “everything against the wall and see what sticks”. Or, in other words, to see what acquisition and conversion channels result in the highest ROAS.
I disagree for a lot of reasons, but I’m concerned I might be being overly judgmental before letting the data tell its story.
- I am looking at this like we’re developing true DTC brands (Away, DSC, Native etc) and the best way to control the user experience is to manage it from start to finish. None of those DTC market on Amazon. But if Amazon does indeed increase conversion significantly, does that make up for the 15%+ commission they’ll take? For now, I am ignoring the potential for counterfeiting on Amazon, or at least taking that as a given.
- Even if an Amazon storefront is part of our ultimate plan for them, I believe that should come later, once we’ve refined all the creative/messaging/targeting variables.
But I’m having a hard time quantifying those concerns, and so I wanted some second opinions as to whether there’s any real harm in building an Amazon storefront for them at this stage. My take on CJ is a little different, I think the only time to use Affiliates is when they can reach people that you otherwise couldn’t or they have trust you can leverage indirectly (this is another topic, but I think Influencers are the new Affiliates, and they are a good example of this).
Any opinions are welcomed - am I making decisions without the benefit of data? Should we try everything and see what sticks? Or is Amazon a pit of vipers that we should only enter into once we’ve refined everything else? If the client asks “Why not Amazon”, what would you say?