Looking for a birds-eye view of your Amazon category? Download our live Amazon bencmark reports.

  • Platform
    Back
    • Advertising

      Benefit from smart, AI-powered ad scaling for your listings.

    • Dynamic Pricing

      Set automated pricing using the power of machine learning.

    • Workflow

      Optimize multiple e-commerce campaigns with one click.

    • Content

      Let our algorithm generate SEO-rich content for you.

    • Promotion

      Harness cutting-edge software to drive higher conversions.

    • Market Intelligence

      Gain access to game-changing data and dashboards.

    “I am able to automate the implementation of data-driven decisions.”

    Tobi O, Luxe Weavers
    Read success stories

    Ready to get started? Book a demo

    PricingChat to sales
  • Solutions
    Back
    • Growing brands

      Small team? Let us to be your virtual CMO.

    • Established brands

      We help seasoned marketers automate tedious decisions.

    • Agencies

      Turbocharge your clients’ ads, giving you room for more business.

    • Brand Aggregators

      Optimize your investment and prepare for a profitable exit.

    ecommerce merchandising strategies for merchandising experts

    How optimizing the same variables over and over again is stagnating your eCommerce store.

    Merchandising Strategy
    Building a Merchandising Strategy

    Ready to get started? Book a demo

    PricingChat to sales
  • Pricing
  • Marketplaces
    Back
    • Amazon

      Sell more on the world's largest eCommerce marketplace.

    • Walmart

      Optimize your listings with the world's largest retailer.

    • Google Shopping

      Reach more customers through the world's most popular search engine.

    “For a data guy, I also knew that AI and machine learning were the answer to my ability to successfully advertise on Amazon.”

    Map Sherpa
    Read success stories
  • Free Tools
    Back
    • Amazon Sales Estimator

      Free tools for product research.

    • Amazon Listing Analyzer

      Insights to optimize your listing.

    • Amazon Keyword Discovery Tool

      Keywords to accelerate growth.

    • Amazon ACOS Calculator

      Setup profitable campaigns.

    • Price Elasticity Calculator

      Find your optimal price.

    • Amazon Competitor Analysis

      Outcompete with real-time data.

    12 Ways to grow with 4ps of digital marketing

    Which ways can Trellis help accelerate your strategy?

    12 Ways to Grow Your Brand Using the 4Ps

    Ready to get started? Book a demo

    PricingChat to sales
  • Resources
    Back
    • Blog
      • Understanding the Amazon Impression Curve
        Understanding the Amazon Impression Curve
        How to Improve Your GMV on Amazon?
        How to Improve Your GMV on Amazon?
        Using strategic ecommerce automation
        Case Study: 450% Growth With Strategic 4...
        How to Create Amazon Product Listing Using AI?
        How to Create and Analyze Amazon Content...
        Read All
    • eBooks
      • Amazon PPC Strategy ebook
        Advanced Amazon PPC Strategy eBook
      • Ecommerce Quadrants: Interlock Your Amazon Growth Strategy
      • Subtle Art of Pricing Amid Economic Downturns
      • Real Data Rundown: Increasing Ad Spend During BFCM
    • Success Stories
      • Using strategic ecommerce automation
        Case Study: 450% Growth With Strategic 4...
        Walmart Advertising Software Case Study
        Case Study: 12X Luxe’s Sales With ...
        Case Study: World Products Increases Sal...
        Sponsored Brands Video 101: Harness the ...
        READ ALL
    • Trellis Training
      • Platform Overview
        setup and configuration ads automation
        Setup and Configuration
        Category Targeting
        Scheduled Budgets
        Read More
    • Platform News
      • Trellis Supercharges the 4Ps of Marketing With the World’s First  Merchandising Platform for Amazon Sellers
        Trellis Launches the First 4P Platform f...
        Press Release: Trellis to Provide Supercharged Walmart Advertising With Best-in-Class AI and Automation
        Trellis to Provide Supercharged Walmart ...
        Control With Automation
        A New Automation Experience: Gain More C...
        Trellis Corporation Raises $1.5M In Seed...
        READ ALL
    • Guide to Merchandising
      • Merchandising Manifesto
    • Benchmark Reports

    Ready to get started? Book a demo

    PricingChat to sales
Login Schedule a demo

Category

  • Amazon SEO

Beyond ROAS Optimization: Managing the 80/20 Rule for Amazon to Win More Sales

Share
Ali Babul

Ali Babul

  • November 15, 2021

Most Amazon sellers experience a common situation: 80% of their revenue comes from 20% of their catalog/products. It is a concept that applies to many situations and real-life cases. It even has a name: Pareto Principle. The 80/20 rule on Amazon is applicable for sellers in different situations, for example, if:

  • 20% of their catalog generates 80% of revenue
  • 20% of ad campaigns generate 80% of ad sales
  • 20% of customers are the cause of 80% of customer inquiries
  • 20% of repeat customers are responsible for 80% of repeat purchases
  • 20% of orders are returned/exchanged during their return period
  • 20% of the content on an Amazon listing page helps convert 80% of the customers

The idea behind the 80/20 rule is that it can apply to all aspects of our lives, and there is not much we can do about it. You have probably heard of the saying that “80% of sales come from 20% of clients.” We have found that it is best to think of the 80/20 rule as a recurring phenomenon in the eCommerce arena rather than a ‘problem’. 

In this blog, we’ll provide a rundown of how to better manage the 80/20 rule for Amazon PPC and drive desired outcomes. The earlier you execute these strategies, the better for your eCommerce business because it will lend you a competitive edge that is much needed in a highly competitive market. 

Table of contents
  1. How Can Amazon Merchants Optimize the 80/20 Rule When It Comes to Revenue?
  2. Introducing the Dynamic Promotion and Relegation System (DPRS)
  3. What to Expect from the Dynamic Promotion and Relegation System (DPRS)?
  4. Who is it Made For?
  5. What’s Trellis?

How Can Amazon Merchants Optimize the 80/20 Rule When It Comes to Revenue?

The interesting part about the Pareto Principle is that Amazon merchants are limited in the actions they can take to correct the situation. While talking to our customers, who generate millions in revenue per year, we realized that most of them are aware of the rule and simply accept it as a fact. It’s one thing to go from a ratio of 20/80 to 30/70, but it’s usually resource-intensive to change that ratio to 50/50, as an example. 

The best part about this rule is there is a way to fully embrace it and use it to your advantage. We developed a solution to help Amazon sellers manage their marketing ad spending based on the performance of their catalog. What initially started as a special request for one of our customers has now become an in-platform feature that is available to all users. 

Introducing the Dynamic Promotion and Relegation System (DPRS)

To put it simply, by using the Dynamic Promotion and Relegation System (DPRS) feature, Trellis’ intelligent automation platform sorts a seller’s catalog into three sections: Best, Better, Good.

The feature automatically tracks product performance and categorizes it in one of the three groups. Based on this categorization, each group is allocated a percentage of the marketing budget for Amazon advertising. The “Best” group has the highest budget, while “Better” has a mid-level budget, and finally, the “Good” has the lowest budget. This allows the platform to improve sales for top-selling products while continuing to keep track of low-performing products and potentially promote them to a higher group that has a greater budget allocation.

Furthermore, DPRS ensures that if a product has an Amazon advertising budget, it will not be at the expense of a better-performing product. These decisions are completely automated and data-driven, with no manual inputs required from Amazon sellers using the feature.

What to Expect from the Dynamic Promotion and Relegation System (DPRS)?

We’ve seen encouraging results for Amazon merchants that are currently using this feature. Some sellers experienced a reduction in effort by almost 30%, while others saw an improvement of 40% in catalog engagement. One outcome that we noticed across the board was that most of our customers experienced an average increase of 15% in sales growth while improving budget utilization by 21%. 

The biggest metric that really showed our customers the value of this system is the average increase of 60% in growth in productive targets. We have a more comprehensive breakdown of the results of Trellis’ Dynamic Promotion and Relegation System here, where we showcase how we helped multiple furniture merchants improve the achievement of their business goals. 

Who is it Made For?

Integrating this feature as part of the broader Amazon PPC strategy will prove useful for Amazon sellers with a large catalog. However, we also have customers with a small catalog (<50 ASINs) that have garnered positive results by implementing this feature. 

Our statistics show that Amazon merchants with 100+ ASINs are most likely to gain the highest value out of the system by saving time spent on outsourcing budget management, improving their ACoS, and supercharging sales growth. 

The best part about this feature is it is available with all our paid plans. For more details about our pricing and platform features, please visit this page or book a demo with one of our experts.

What’s Trellis?

Trellis is a demand generation platform that helps Amazon sellers, vendors, and brands grow their eCommerce business by using artificial intelligence to optimize and automate their advertising campaigns. 

From full-funnel targeting, dynamic promotion and relegation, creating composite media plans, keyword harvesting, optimizing budgets and crafting video ads that convert, Trellis is the one-stop platform that does it all. 

Explore Trellis now to help the right customers find you on the world’s largest marketplace. 

Ali Babul

Ali Babul

Ali Babul is the Chief Evangelist at Trellis, leveraging a decade-spanning agency background to drive growth strategies for brands of all sizes. Possessing an acute awareness of immediate needs and overarching objectives, Ali specializes in orchestrating the expansion of products and the amplification of success for these brands. His pivotal role involves shedding light on the challenges that brands encounter while navigating diverse marketplaces.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Posts

Understanding the Amazon Impression Curve

Understanding the Amazon Impression Curve

July 7, 2023
How to Improve Your GMV on Amazon?

How to Improve Your GMV on Amazon?

July 4, 2023
Using strategic ecommerce automation

Case Study: 450% Growth With Strategic 4P Automation

June 29, 2023

See how you rank among your competitors.

Get additional insights about your category with our live dashboard. 

Download Your Report

Choose To Sell More With Trellis

Book a Demo

Subscribe for growth tips and tricks straight to your inbox.

Facebook Instagram Linkedin Twitter Youtube

Get Started

  • Schedule a Demo
  • Sign Up
  • Pricing

Product

  • Advertising Automation
  • Dynamic Pricing
  • Product Content
  • Promotion

Solutions

  • Growing Brands
  • Established Brands
  • Agencies
  • Brand Aggregators

Company

  • About
  • Partners
  • Contact Us
©Trellis Corporation 2023 •  Privacy Policy •  Terms and Conditions
cross