Amazon Agency by Neulabs

For each of the main products, it is necessary to identify the 3-5 direct competitors on Amazon.
It is important to be aware that the most important competitors on Amazon may be different (brand, product range) from the main competitors that the client company has on physical channels.

When comparing competitors on physical channels with competitors on Amazon, it is normal to find:
- Traditional brands that are also competitors on physical channels, with a good quality presence on Amazon (listing, pricing & promotions, online paid marketing)
- Digital brands created for distribution on Amazon, which have low brand awareness and are not present on physical channels, but which have a strong online presence on Amazon thanks to products designed for the channel, highly optimized listings and stores, promotional campaigns with very structured discounts and deals, many product variants, and product sizes optimized for e-commerce logistics and Amazon FBA
- Traditional brands that also compete on physical channels, which do not have a presence or have a poor presence on Amazon (for example, the online offering is largely sold by wholesalers and retailers, with problems in terms of content, sales price, and logistics performance)

If the Client Company does not have an Amazon account, Neulabs will open accounts on Amazon (both Seller and Vendor) and assist the Client Company in collecting and submitting the required documents, including KYC (Know Your Customer) documentation.

Neulabs can also support the Client Company in activating the Brand Registry, which is necessary to activate a series of features on listings, to protect against abusive resellers, and to activate specific paid marketing campaigns on the Brand.

Neulabs analyzes the client company's product range to identify which products would be suitable for online sales on Amazon. In particular, aspects such as value in relation to logistics costs, any regulatory constraints (such as the need for sales authorizations, formulation deposits, registration with local authorities), and any logistical and sales constraints for hazardous or flammable products (defined as Hazmat by Amazon).
In addition, product bundles are suggested to reduce the impact of logistics costs on the sales price, in order to expand the client company's margins.

Before defining a sales plan, Neulabs supports the client company in creating a profit and loss statement for each individual product, including various cost items (such as Amazon fees and an estimate of paid marketing costs), in order to define a target margin per item sold (both as a percentage of the sale price and as an absolute value per item). This allows us to then work on sales prices, promotional plans, marketing investments, and optimization of logistics costs.

For each product (ASIN) and for each country in which the product is sold, Neulabs will help the client company to set a list price and a promotional calendar with weekly price reductions for each product, alternating weeks of high turnover and improved sales velocity/BSR with weeks of higher margins.

The listing optimization carried out by Neulabs is broken down into several sub-blocks of activities:
- Keyword research: using specific software, the words most searched for by users (both generic words and brand keywords) and search volumes (number of searches per month) are identified for the different months of the year. This analysis is used to understand (i) the size of the market in terms of number of searches (ii) the seasonality of the market and how search terms change over time (iii) the division between generic keywords and brand keywords, and (iv) how well known or searched for the client company's brand is on Amazon.
- Writing copy for titles (listing titles) and descriptive bullet points for the product in the languages in which the product will be sold
- Defining galleries, collecting available design materials, any photo shoots, and preparing image galleries with product shots, product settings, infographics, and product explanation videos
- Preparing A+ Pages

Paid marketing is essential for generating incremental sales, thereby improving sales velocity and organic positioning on Amazon. A product launch and management plan must include a paid marketing budget and targets for the incidence of paid marketing costs on revenues, at the individual product or product family level.
Paid marketing costs should be viewed as variable costs of sales and should be included in target margin calculations as a cost item.
It is extremely unlikely and inadvisable to consider a significant and structured Amazon presence without considering the paid marketing budget.
Neulabs manages all paid marketing activities on Amazon, starting from a target marketing cost incidence per country per product family. In particular, Neulabs selects the keywords on which to bid, the bids, and builds and manages PPC (Pay per click) campaigns on Amazon.
The paid marketing effort must be defined together with the client company, considering (i) the strength of the listing and reviews, (ii) the amount of paid marketing invested by competitors, and (iii) the presence and strength of promotional plans by the client company and competitors.

In some cases, the logistics (internal or via 3PL) of client companies are not equipped for e-commerce and Amazon logistics (e.g., picking & packing, preparing product bundles, preparing pallets that comply with Amazon replenishment rules).
Neulabs has its own agreements with 3PL and couriers in the main European countries, with a particularly strong presence in Italy and Germany, and can give client companies access to its agreements, also managing operational interactions with 3PL and couriers.

To manage its brands, Neulabs has developed a series of dashboards and BI tools to monitor sales, revenues, and margins in real time at the individual product level, optimize paid marketing investments, monitor the positioning of listings on organic keywords, and analyze the evolution of reviews.
These dashboards are also used to manage the Amazon accounts of client companies.

One specific area in which Neulabs supports its Italian clients is increasing exports by leveraging online sales.
In particular, Neulabs has extensive experience in geographical expansion on Amazon, bringing Italian brands abroad, particularly to Germany and France.
This experience stems from the fact that 70% of the revenue of Neulabs' own brands is generated abroad.
Experience means knowing local markets, having native speakers in marketing teams for content management, paid marketing campaign management, and competitor monitoring, as well as having local logistics structures in various European countries (agreements with 3PL and local couriers).

In some cases, Amazon can be used for special inventory disposal projects, both for products that are no longer in the catalog and for excess inventory of products that are still part of the catalog.
This type of activity must be analyzed on a case-by-case basis.
It is only carried out for companies that are already customers for the management of the main Amazon account, not as ad hoc projects for new customers.