What is a “Dead Listing”?
In the vast and competitive world of the Amazon marketplace, navigating the eCommerce landscape can be a challenging endeavor. As an Amazon seller, it’s more than possible that you have dealt with a “dead listing.” (Is this term sending shivers down your spine? You’re not alone!) A dead listing describes a product listing with a low number of sales, struggling to turn a profit over an extended period.
We sat down with an experienced Amazon seller, David. He is a valued client of Intellivy, with hands-on experience in reviving underperforming listings. Our conversation delved into the intricacies of dead listings and the strategies employed to conquer this challenge.
The term “dead listing” refers to a product listing with low sales, one that fails to turn a profit over an extended period. According to David, such listings are often the result of early failures in the marketplace. He highlighted Amazon’s Honeymoon phase, where the newly launched listing failed to outperform competitors or garner relevance. This leads to a lack of organic exposure on the Amazon Marketplace. Over time, these listings accumulate negative historical data, setting them on a path of persistent underperformance, even if optimization attempts are made.
The Metrics of Performance
For David, profitability is the ultimate metric of a listing’s success. If a listing fails to generate profit, it becomes unsustainable to maintain it. The key to unlocking profitability lies in achieving sales numbers. Crucial indicators of a listing’s health include search terms, Click-Through Rate (CTR), and Conversion Rate (CVR). Winning the CTR battle hinges on the main image — a seller must present an offer that surpasses established competitors in terms of value, claims, design, and pricing. Converting those clicks to sales at a superior rate is the key. Amazon’s algorithms favor listings that consistently outshine competitors on these metrics, granting more organic exposure and the ability to command higher prices.
Click-Through Rate (CTR): Understanding Customers’ Wants, Needs, and Desires
In the quest to decipher the mystery of “dead listings” on Amazon, one critical factor stands out: understanding the wants, needs, and desires of customers. David sheds light on this vital aspect, emphasizing the need to address customer problems and pain points that set a listing apart from its competitors.
Why CTR Starts with Solving a Problem: An Example
The pivotal strategy lies in captivating the customer’s attention right from the outset, even before they click on a product tile. To illustrate this point, let’s consider the scenario of a search term for wireless noise-canceling headphones. Rather than relying solely on standard features and basic attributes, such as “wireless noise-canceling headphones” prominently displayed in the main image, take a deeper approach. Showcasing the headphones’ cutting-edge adaptive noise cancellation technology and their luxuriously comfortable fit can address a concern that the customer might not have consciously considered. This approach, though unanticipated, is essential for their ultimate purchasing decision. This approach proves to be instrumental in crafting an alluring main image that effortlessly stands out from the crowd when users search for “wireless noise-canceling headphones.”
By identifying the hooks that resonate with customers and addressing them comprehensively on the product listing, sellers can craft a compelling narrative that captivates potential buyers. This involves showcasing not only the product’s features but also its benefits, unique selling propositions, and any additional value it offers.
The success of a listing on Amazon is not solely determined by showcasing features that resonate with the search terms. It is an intricate balance between understanding customer needs and desires and effectively communicating the product’s value to the customer.
Reviving the Dead: Step by Step
Addressing dead listings requires a meticulous approach. David provides a comprehensive approach to tackling dead listings:
- Find the problem
Intellivy is an invaluable tool in your quest to pinpoint the underlying issues responsible for a dead listing. Through polling, you receive customer feedback, particularly on the main image and other components of your listing, and you start to understand customer preferences. Refine your listing until it aligns with the customer’s expectations, breathing life into a listing once deemed inactive.
- Market analysis
A thorough analysis of the market and competitor offerings is the first step. Understanding how competitors solve the same customer problems is crucial to identify gaps and opportunities.
- Identifying the problem
Determine if the issue lies in the product itself, marketing communication, or pricing. This analysis helps identify the complexity of the situation and the necessary steps for improvement.
- Listing rebuild
If the problem lies in communication, a complete listing overhaul might be the solution. Better messaging, more clarity, and enhanced visuals can make a significant difference.
- Market analysis
- Solve the problem
The poll you’ve conducted through Intellivy yields tangible results. You can analyze the outcomes yourself or let the integrated A do the analysis for you. Opting for the AI model offers a thorough evaluation of respondents’ answers. The AI generates a comprehensive analysis, highlighting the listing’s inherent strengths and weaknesses, while also giving actionable insights aimed at improving your listing.
- Product redesign
In some cases, the product itself may need improvement. Whether it’s enhancing features, addressing negative reviews, or redesigning elements to showcase important aspects on the main image, product development can play a crucial role.
- Price adjustment
If the price is a limiting factor, renegotiating with the manufacturer or adjusting the pricing strategy may be necessary to stay competitive.
- Product redesign
Distinguishing Temporary Underperformance from True Death
Recognizing the difference between a temporarily underperforming listing and a truly dead one is crucial. While underperformance may occur during launch or growth phases due to competitive fluctuations, true death is characterized by a sustained inability to achieve a break-even price or make profits. Evaluating market dynamics, competitor behavior, and the potential for long-term profitability helps sellers make informed decisions about the fate of their listings.
Preventing Dead Listings
The key to preventing dead listings, according to our expert, lies in meticulous research and offering compelling value to customers. Validating this value through polling and market analysis helps sellers create listings that resonate with customers from the outset, minimizing the risk of stagnation.
Navigating the Amazon marketplace demands both adaptability and strategy. While dead listings pose quite a challenge, sellers armed with a comprehensive understanding of their customers and competitors can breathe new life into these listings. By focusing on metrics that matter and staying attuned to market shifts, sellers can write their success stories in this dynamic eCommerce era.
Remember, the key to success lies in adapting, improving, and never giving up on the potential of your products on the world’s largest online marketplace.