Solutions For Amazon Marketplaces (3P)

Delivering the Operational Intelligence to help Brands:

 

  • Grow Online Sales
  • Drive Sustainable Profitability
  • Gain Competitive Advantage
  • Improve Customer Journeys
  • Hit New Markets
 

Selling on Amazon can be challenging, even for the most established Brands with long standing relationships with Amazon. Luzern helps Brands navigate the complexities, from the fundamentals to the development and roll out of complex route-to-market and Hybrid Amazon sales programs. We are the Amazon experts, with proven technology to dramatically grow online revenues for big brands across the globe.

Solving key challenges for Ambitious Brands:

Price Control

  • Manage Price Points
  • Tackle Squeezed Margins
  • Manage Uncontrolled Sellers

Profitability

  • Margin Optimization
  • Track & Beat Competition
  • Avoid CRaP (Can’t Realize a Profit)

Global Execution

  • Internationalization strategy
  • Global FBA (Fulfilled by Amazon)
  • Multi-Currency Checkouts

Assortment Strategy

  • SKU Control
  • Ensure Product Availability
  • Avoid List Suppression

Content That Converts

  • Product Listings
  • Localized Content
  • SEO / PPC

Amazon Advertising

  • Optimize Performance
  • Improve Bottom of Funnel Tactics
  • ACoS (Advertising Cost of Sale)

Price Control

Manage price points and sell at the price that fits your pricing strategy.

Tackle Squeezed Margins

Many Brands are finding themselves under extraordinary margin pressure when selling to Amazon directly (1P), which is generally triggered by the price war to win the buy box.

Amazon will, of course, seek to maximize their margins and push what is selling best. They then make it clear to the Brands that they need better prices or they will stop ordering some or all of the products. This can equate to millions in lost revenue if the “demands” aren’t met. If you sell direct to Amazon via the 1P program, Amazon acts as a retailer and can implement price adjustments independently.

However, With Luzern as your vendor via the 3P Hybrid model, Brands have price autonomy over their products. Luzern facilitates independent price changes to suit your strategy when it comes to pricing. The Hybrid Model delivers flexibility and gives more control back to the Brand.

Pricing that fits with your strategy

With the Luzern platform you can monitor your portfolio of products based on your RRP as follows:

  • Measurement and ranking of products based on the discount distance (gap) to RRP on Buy box price available to shopper
  • Pricing comparisons across Amazon geographic regions that you sell in
  • Ability to drill down at a seller level to see which seller(s) are impacting pricing
  • View price change frequency and magnitude over time - which sellers, Buy box % etc.
Manage Uncontrolled Sellers

Identify exactly who is dropping the market price on product lines in your category.

Luzern monitors sales data in real time giving you the data intelligence on important metrics, such as the Conversion Rate.

If you have MAP (minimum advertised pricing) violations Luzern can identify the rogue seller to provide details to reach out and prevent such violations.

Price Stability (Volatility)
  • Products scored and ranked based on the observed stability (or volatility ) of the Buy box price available to buyers
  • Track across the different Amazon Geographic selling regions
  • Drill down to detailed view per product e.g. view a single product across Amazon Geographic selling regions
  • Which sellers (including Amazon itself) are driving the volatility

Profitability

Margin Optimization

Monitor and continuously optimize selling prices based on Luzern’s intelligent automated price checker. Luzern’s algorithmic pricer ensures you sell at the price that fits your pricing strategy, ensuring you achieve the margin you need to drive profitability.

Competition Tracking

Benchmark performance against key competitors. Luzern helps you gain visibility into the longtail of your competition. Understand which competitors are out-performing you, and why.

Listing Coverage

Based on a portfolio or product to be monitored:

  • How many products are actively on sale in all regions you sell in
  • How many products and which ones are not actively being sold
  • Trend over time
  • Insight into gaps in portfolio being presented and active over time
Avoid getting CRaP status by Amazon (“Can’t realize a Profit”)

When Amazon deems your product non-profitable it’s referred to as “CRaP”. The most common reasons for the CraP status include pricing pressure and high shipping and storage or warehousing costs in relation to the actual value of the product.

It’s not just heavy or bulky items that are at risk. Any item can be at risk of getting dropped if there’s too much inventory in Amazon’s warehouse for that product.

Amazon has not been slow in taking action and clamping down on any items they deem to be unprofitable on its site and won’t re-order CrAP items.

Luzern helps brands manage their products and pricing and can ensure items can still be sold. Global Brands trust Luzern as their go-to 3P seller if they are at risk or have already received CRaP status.

Global Execution

Internationalization Strategy

We can help you to expand your sales into new markets. We have years of experience in the right go to market strategies to export products globally.

We advise on the selling landscape of each potential marketplace to help you create an internationalization strategy that makes sense for your business goals.

Our expert team can take the burden out of understanding local taxes and regulations and ensure you have the necessary processes set up.

Track Seller Landscape Across Amazon Geographies

Analyze the complete seller base of your products across Amazon geographic regions.

  • How many products does each seller actively list
  • Drill down into the detail for each product
  • Number of sellers, attributes of the seller and their pricing strategies
  • Track Buy box price and each individual seller’s price over time
Merchant of Record

If you sell products or services online, you need an entity called “Merchant of Record” (MoR) to accept and manage online payments via credit or debit card. The MoR is the organization whose name appears on the cardholder’s credit or debit card statement when they make a purchase.

The MoR is responsible for many of the administrative tasks required for online businesses to effectively collect payments in a fast and secure manner.

The Merchant of Record is authorized and held liable by each in-country financial institution to process the end consumer’s credit and debit card transactions.

Luzern manages the MoR Process and handles the necessary administrative tasks including:
  • End to end management of the checkout process.
  • Management of the payment portal where the customer securely enters their credit/debit details
  • Calculation and application of the region-based tax. The correct amount is then displayed to buyers during the checkout process
  • Collection and remittance of the required taxes (including VAT) to the proper authorities
  • Secure transfer of customer information from the payment gateway to the payment processor
  • PCI compliance - We ensure all customer information is safe and secure
Global Transactions in local currencies

If you sell into other countries, you need international merchant accounts that allow:

  • Regional payment methods
  • Payment contracts with each currency
  • In country tax calculation
  • Local VAT
Therefore, if you’re processing global payments, it’s safer to outsource.

If you want to simplify your day-to-day tasks or are selling internationally, outsource your MOR.

Instead of having to work directly with customers and financial service providers, outsourcing allows you to communicate with just one entity—your MOR.

Partnering with a trusted MOR

As a full-service ecommerce solution, we cover everything from collecting and remitting taxes to managing refunds and chargebacks while maintaining compliance with country-specific payment laws and regulations.

Assortment Strategy

Results Driven Strategies for Amazon Marketplaces

Selling on Amazon can be challenging, even for the most established Brands with long standing relationships with Amazon.

Luzern helps Brands navigate the complexities, from the fundamentals to the development and roll out of complex route-to-market and Hybrid Amazon sales strategies. We are the Amazon experts, with proven technology to dramatically grow online revenues for big brands across the globe.

Brands of all sizes can face similar challenges selling on Amazon:
  • Lost control over pricing which impacts pricing on all channels
  • List Suppression - Amazon call pull your Amazon product
  • Margin pressure - the squeeze can mean no profit on certain product lines
  • New Product Launches - Amazon don’t support as deemed too risky
  • Product Returns - Managing returns can be a significant overhead; and
  • Amazon can push competitors’, or Amazon own products, if there is more margin in it for them

However, the bottom line is that if you are a popular brand, you need to be on Amazon. To be successful, Brands need to reimagine their Amazon strategy and look at new ways to protect their brand whilst increasing online revenues. 

Protect your Brand. Maximize Sales.

Actively manage sales margins, position against competitors, and reach new buyers.

Reap the benefits of 3P even as a 1P seller

With Luzern, you can safely add your 3P (3rd Party/ Seller Central) Marketplace to Amazon, even if you already sell 1P to Amazon (1st Party/ Vendor Central). Luzern manages your 3P account, enabling you to sell products that are not being sold on 1P.

Luzern successfully manages this 3P Hybrid model for leading brands across the globe, ensuring they stay in control of pricing, maintain the direct relationship with their customers, whilst extending their inventory and driving sales of additional product lines beyond 1P.

A Hybrid Model enables you to build up listings and history, growing sales and margin across 3P as well as protecting your 1P direct with Amazon, avoiding channel conflict or any “race to the bottom” pricing battles.

Protect

Luzern protects the supply chain against 3rd party sellers, managing the number of third party sellers and managing minimum advertised price (“MAP”) programs. Consistent pricing sends a strong message about a brand’s value.

SKU Control

With a hybrid model, Brands can sell part of their SKUs directly to Amazon (1P) and the rest via the marketplace (3P). Amazon is typically selective about the SKUs that they carry, ensuring they sell the most profitable. That could leave the Brand not being able to sell other SKUs. However, this does not have to be bad news. By selling 3P with Luzern, you can gain better control of pricing, realise better margins and proactively control SKU range and selection.

We believe that a hybrid model is the safest approach if you’re not already selling 3P. By selling 3P, your brand can stay in control of pricing and the customer experience, plus obtain sales beyond 1P by extending your inventory across 3P.

Content That Converts

Optimise Your Pages

Optimizing your product pages to present your products effectively is vital, not only to improve the visibility of your products on Amazon but also to improve the customer experience of your Brand.

Compelling product descriptions, clear feature bullets and strong imagery with clear product photos improve the shopping experience for the customer and increases the likelihood that they’ll buy from you.

Amazon Product Listings That Drive Conversions:

Luzern has a dedicated team of Amazon Marketing Experts that will conduct a comprehensive product and keyword research analyses as well as a full competitor landscape analysis.

Our in-house team of eCommerce experts deliver persuasive sales copy and research and apply effective style keywords, backend keywords, and Amazon platinum keywords to ensure the most relevant search terms to optimize your listing in Amazon search results.

Luzern’s Amazon Listing Optimization Services deliver effective product listings that entice shoppers and more importantly, convert to sales.

Where your product ranks is hugely important to ensure its easily visible on Amazon is irrelevant unless those shoppers are actually converting into buyers!

SEO / PPC Services

Luzern’s SEO Specialists work side-by-side with our Amazon Marketing Experts to deliver a fully optimized Amazon listing that combines your product keywords with compelling sales copy to create a truly effective product listing.

Our Amazon PPC Experts will work closely with you to develop a custom Amazon Advertising Strategy that stays within your budget while achieving your north star sales goals.

An optimized listing also has a positive effect on your organic search results.

We’ve built a sophisticated platform and process to drive optimal results. We provide full-funnel attribution and reporting down to the keyword level on:
  • CTR
  • Sales / Click
  • Cost / Click
  • Sales / Spend (ROAS)
  • Sales / M
  • Cost / M
  • Conversion / Same Brand + Advertised ASI

Amazon Advertising & Performance Marketing

Luzern’s team of Amazon experts deliver effective campaigns to improve conversions. From list optimisation, beating the competition or boosting under performing campaigns, we’ll work with you to ensure you achieve the best results.

Optimize Performance

Even mainstream brands can lose ground to insurgent digital competitors that have a digital first approach.

It’s important to ensure your Brand is performing at its optimum online to seize competitive advantage. We can help.

Services at a glance:
  • Rapid, interactive Drill-Up/Down through campaigns, Ad Groups, Ads
  • Ability to see longer term trends across all these views
  • Detailed dashboards down to Product Targeting
  • Ability to track at keyword level activity and performance
Improve Bottom of the Funnel Tactics whilst protecting Top of Funnel investments

We can help you improve bottom if the funnel tactics that drive conversions. This will not affect your top of the funnel efforts that drive traffic, our campaigns use budget to drive conversions at the sku level.

Luzern can help expand your reach by implementing Manual as well as Automatic Sponsored campaigns that:
  • Maximise Relevance through Keyword optimization
  • Increase Click Through Rate with keyword rich Amazon Ads
Active Campaign Optimization & Refinement

We continuously leverage consumers search information, in order to tweak campaigns and refine keywords further. This improves both targeting and Advertising Cost of Sales (ACoS).

Sponsored Campaigns

Along with Automatic Sponsored campaigns, our approach to implement Manual Sponsored campaigns will gain brand exposure for your brand.

We have direct control on Manual campaigns in terms of keyword bidding and implementation whilst Automatic campaigns work to drive conversions even further.

Headline Ads

We ensure optimal results for by implementing Headline ads. Headline ads increase brand awareness and maximise sales.