Wed May 15 2024
Amazon Latitude Eliminate Margin Leakage Automatically
Updated on : March 20, 2024
With hundreds of businesses selling their products through Amazon, growing in highly competitive markets is a continuous pursuit. For the majority of advertisers, this involves the manual surveillance of ASINs to monitor developments, and manually updating campaigns with right ASINS to maximize profits.
Brands are spending too much time trying to navigate unproductive processes to ensure that their products are ready for retail with the aim of avoiding large losses because of margin leakage.
It's a lot of unneeded and tedious work.
This blog will discuss the problems of margin leakage and the solutions.
Learn how to automate the process of your campaigns analysis and to stop the non-performing ASINs in your campaigns, while changing them with retail-ready ASINs to simplify your current procedure.
Understanding Margin Leakage on Amazon
As a marketing or brand manager, you are required to manage all day-to-day, business-critical tasks that directly impact margin control and the amount of revenue you earn. As a result, knowing where and how you could be losing revenues and reducing margins is an essential aspect.
There are a number of typical ways that margin leakage can affect your business on Amazon:
- Third-party sellers latch on to the variations of your product
- Marketing ads that aren't performing well slip through the cracks, and then continue to air.
- You lose the Buy Box due to a lack of tracking
- Price matching can impact ACOS targets.
Companies are planning to recover in 2023, and are creating structures to compensate for the loss of revenue this year.
The first step in easing revenue issues is to find a solution with leakage of margins. By understanding current techniques and seeking out new ways to improve companies can increase their efforts.
The Pain of Manual ASIN Monitoring
Every ASIN is crucial and continuous checking is the only way to be sure that your campaign is on the right course without derailing or losing revenues.
With people making their choices quickly online, a minor ASIN problem could result in losing numerous sales and potential customers. However, many companies still depend on manual monitoring of ASINs that require lots of time, energy and dedication from employees. In many instances eCommerce teams can spend months calculating the best ASINs can boost profitability based on the current market, but then they not be able to meet their target because of an oversight in the manual review.
Manual supervision isn't will be 100% error-free. Even if it was, it will be extremely inefficient.
For example, knowing when to stop an ASIN and then replace it with a suitable alternative is a challenging manual job. A variety of KPIs, like your ACOS can help you assess your margins for profit and help you select the most profitable possible ASINs that you can activate. However, for each new ASIN the team needs to examine the profitability of the business in the near term before deciding to activate that media again.
Automating support for ASINs ready for retail -- using custom and proactive ASIN margin controls you'll save your team time each week that they can utilize to take advantage of new opportunities.
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Find a complete solution to Margin Leakage
As a seller on Amazon your product will not be qualified for advertising if you're not a winner of in the Buy Box. Add that to the eCommerce platform's variable price compressions, and you'll understand the necessity to prevent unhealthy inventory from moving at the expense of your media budget.
In this scenario it is essential to monitor your ASINs which require an official media presence is the only way to make sure you are profitable in 2023.
Amazon Latitude is a solution that allows users to do what they want to do.
With Latitude you are able to recognize and stop any ASINs that aren't ready for retail and substitute them with more suitable alternatives with no manual effort. Latitude assists in reducing loss of margins by directing brands to the most effective ASINs to spend their media. Your marketing team can track these suggested ASINs in just a small amount of time depending on your specific objectives and goals automatically recommend retail-ready ASINs and also pause ASINs that are not within your margins. Its even better Latitude will replace your suspended ASINs with retail-ready ASINs.
Furthermore, KwickMetrics monitors your Buy Box to ensure that you have ownership of the product and you're making maximum the profit from each campaign you manage automatically. You can track every aspect that goes into your Amazon campaign including your reviews, content and tickets, so that your team can keep track of the metrics that drive growth you value.
How Latitude Can Help Brands Solve Margin Leakage
Once you've figured out the definition of what Latitude is, Here are three ways that it can help companies prevent leakage of margins and boost profits:
Use Retail-Ready ASINs to drive sales
According to your own margins, Latitude examines the active ASINs according to their content score as well as media support. If there is a low margin, it will remove the ASIN and suggests alternatives for replacing it.
Get ahead of price compression
When your campaign is in full swing, if Amazon does not match the price of another retailer on the SKU the price reduction could make your ASIN non-eligible. Latitude will stop any unviable ASINs to allow media support and replace them automatically with a different acceptable ASIN
Drive higher ROI and performance by combining Marketing and Media
Your media and marketing teams can define their own goals for the campaign's performance and Latitude will utilize those inputs to determine if an ASIN is able to pass a review number. If there is a match then you'll know the ASIN is ready for advertising.
As a first-to market solution, KwickMetrics has worked with hundreds of sellers, brands and agencies to design Latitude. It allows users to cut down for manual ASIN monitoring and avoids the potential loss of sales through automating every step, eliminating the loss of margins. You can identify any issues quickly, boost the performance of your campaign, and eventually increase revenues.
For more information on algorithms that can maximize the sales you make on your eCommerce, check out KwickMetrics Commerce and request for a demo now!
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