What is Market Basket Analysis & How It Can Help Boost Your Amazon Sales?
Market basket analysis is the process of better understanding consumer purchasing patterns.
The cost of obtaining new customers on Amazon has grown over the years. Especially with Amazon Brand Registry's advanced features, you obtain data on customer search and the buying behavior of your target customers. Many strategies like cross-selling, and upselling can help retailers generate more sales from existing customers, growing revenue without acquisition costs. But how to figure out which products to promote together?
Market basket analysis allows you to look into the items that customers are most likely to buy alongside any given product. However, it’s difficult to get the correct market basket.
So, let’s discuss Market Basket.
What is Market Basket Analysis?
Market Basket Analysis examines the point of sale data to figure out products that are often bought together.
This data generates a basket of the item combination and calculates the strength of item correlation. Eventually, it will help the brand to predict customer purchasing habits, analyze the effectiveness of strategic initiatives and eventually boost the revenue.
What Strategies Can Help Boost Market Basket Analysis:
1. Make Product Bundles
Virtual bundles are cost-effective and easy to boost your sales on Amazon. Bundles are excellent tools for your product and are positioned more prominently in the ‘frequently bought together’ box.
On Amazon, sellers can choose the products that they would like to bundle. Amazon then assigns the selected bundle a unique SKU and you can create the product page. Whatever items your customers are buying together or are slow movers with top-selling, will make a good bundle and may also have the possibility of becoming your best sellers.
2. Highlight Related Products in Your A+ Content
One another thing you can do is to use A+ content. With Market Basket Analysis, the products that are statistically proven to be purchased together give you a list of products and variations that are likely to result in a winning cross-sell.
Why not plant the seed of additional purchases by showing products side by side in A+ content.
3. Create a Promotion
Market basket analysis quickly tells you if your products are being bought together. Knowing this you can encourage this same behavior in shoppers by generating a promotion that provides a discount when those same products are purchased together.
It is one of the most simple ways to expose customers to more of your products and expand your brand awareness on Amazon.
4. Mention Complimentary Products in Product Images
Moving ahead you can highlight the products that are frequently purchased together as a ‘product line’. You can highlight them in your images or bullet points to create instant awareness of other products that your audience may want but are unaware of it.
Presenting an image of products together can kickstart the discovery of various products a customer may want to buy. Simply, make them aware of what you offer in a location they will already be visiting.
5. Add Inserts
Product inserts are one of the effective ways to increase brand awareness. This can help increase repeat purchases for a particular product also in Market Basket Analysis.
Market Basket Analysis shows you exactly which items are likely to be matched together. If a customer is likely to buy a particular product, however, it didn’t quite make it into the basket the first time, an insert showing frequently bought together can make a repeat purchase from the same customer.
6. Use Sponsored Ads
With the help of sponsored ads on Amazon, your brand will be able to achieve many things at once. Market Basket Analysis is one of those effective ways.
Sponsored Product Targeting
Product targeting is placing a complimentary product on another of your listing is excellent. Not only you are making awareness based on actual data, but you are boxing out the competition on your listing at the same time.
Sponsored Brands
Sponsored brand ads let you create ads that will show complimentary products side by side.
Sponsored Display Product Targeting
Sponsored display product targeting, can self-target and show an ad for complimentary products right below the buy box.
7. Upgrade Your Storefront
Use the ‘frequently bought together’ tab on your storefront to boost the purchase of a particular product. You can gently encourage adding multiple products or bundles to the buyer's cart.
Benefits of Market Basket Analysis:
Understanding the correlation between product and product groups helps you enhance your recommendations rules to boost conversion. This method is known as Upsell and cross-sell. With it, you can also learn which products to pair together in promotions and when to suggest correlated products at the point of purchase.
When you can spot consumer purchases and product patterns, you can design more successful product promotions, shelf layouts, aisle displays and more.
Wrapping Things Up,
This article has examined many ways of Market Basket Analysis and how it can help increase your sales. Getting started might require some help, why not reach out to Your Seller?
Our team will provide you with Amazon marketplace management services, resulting in increased revenue for your brand store. Contact us at +1 510 648 3933 or +91 9909513312 or mail us at contact@yourseller.in.
