Paul Hanley of Waterwipes demonstrates how to trade Amazon successfully using a combination of sales tactics and internal strategies.

1. Paul Hanley - WaterWipes
How to trade profitably on Amazon

2. Session Overview
• Who are WaterWipes?
• Who are Amazon?
• Amazon retail
• eCommerce supply chain
• Amazon Advertising

3. Who are WaterWipes?

4. Who are Amazon?
4-guiding principles
• Customer obsession rather than competitor focus
• Passion for invention
• Commitment to operational excellence
• Long-term thinking

5. Outlining the levers for growth
Retail
- Catalog selection
- Cross channel selection
- Terms of business
- Promotions
- Brand loyalty
- Trade investments
- 3P security
Supply Chain Marketing
- Competencies against KPI’s
- Efficiencies and improvements
- Future proofing and profitability
- Developing ecommerce content
- Aligning Amazon retail & AA
teams on activations
- Full funnel approach
- Trail and optimisations
- Understanding how Amazon
impacts offline

6. Amazon continues to grow, with Q4 being the key
74
89
107
135
177
232
0
60
120
180
240
300
2013 2014 2015 2016 2017 2018
20%
23%
26%
Q4, 32%
Q1 Q2 Q3 Q4

8. • Standard £2.99 small items, £4.99 large items shipping fees
• Prime Members get priority shipping free as standard and other
benefits for £7.99 p/m
• Large selection of consumables, electronics, books, media, toys,
beauty etc
• Many 3P sellers on this channel with unique shipping costs
either FBA or Ship from own location
• Delivery throughout UK and rest of globe
• Only available for Prime Members
• Fill basket with +£15 to place order
• £3.99 shipping charge for all orders
• Free shipping all orders over £90
• Promotion by 4 eligible products and receive free shipping fee
worth £3.99
• Same day delivery (within 24hrs) throughout UK and channel
islands
• Offers Amazon essential items fast, very fast! Same day delivery
within 1 or 2 hours, record time is in UK, 14 minutes from click to
delivery
• Available throughout majority of large cities and suburbs in UK
• Partnered with Morrisons to offer majority of Morrisons fresh
range on Amazon Prime Now & Pantry, a partnership that is
going from strength to strength
• Min order is £10 with no delivery charge for orders over £40, all
orders below subject to £3.99
• Same day/ next day delivery (option is with the customer)
• Wide selection of meat, fruit, fresh produce including local
market foods or unique brands. 180,000+ items
• £3.99 add on fee for Prime members to monthly membership or
£2.99 standard delivery fee
• £40.00 minimum order value

9. Outlining the levers for growth
Retail
- Catalog selection
- Cross channel selection
- Terms of business
- Promotions
- Brand loyalty
- Trade investments
- 3P security
Supply Chain Marketing
- Competencies against KPI’s
- Efficiencies and improvements
- Future proofing and profitability
- Developing ecommerce content
- Aligning Amazon retail & AA
teams on activations
- Full funnel approach
- Trail and optimisations
- Understanding how Amazon
impacts offline

10. Outlining the levers for growth
Retail
- Catalog selection
- Cross channel selection
- Terms of business
- Promotions
- Brand loyalty
- Trade investments
- 3P security
Supply Chain Marketing
- Competencies against KPI’s
- Efficiencies and improvements
- Future proofing and profitability
- Developing ecommerce content
- Aligning Amazon retail & AA
teams on activations
- Full funnel approach
- Trail and optimisations
- Understanding how Amazon
impacts offline
✦ More options
✦ Better quality
✦ Lower cost
✦ Faster delivery

11. Outlining the levers for growth
Retail
- Catalog selection
- Cross channel selection
- Terms of business
- Promotions
- Brand loyalty
- Trade investments
- 3P security
Supply Chain Marketing
- Competencies against KPI’s
- Efficiencies and improvements
- Future proofing and profitability
- Developing ecommerce content
- Aligning Amazon retail & AA
teams on activations
- Full funnel approach
- Trail and optimisations
- Understanding how Amazon
impacts offline

12. How to build your brand with Amazon
Resonate Engage Excite

13. Resonate
• Size of your audience
• Understand your audience
• Optimise approach

14. First: Understanding your audience ; what is the size of prize on Amazon?
Not engaged with the
category
Researched the
category
Researched your
brand
Purchased your brand
>15M
2-5M
300-500k
20-100k

15. Second: Understanding your audience ; use insights to understand your audience
• Who is my audience on Amazon?
• When are they viewing and purchasing my products?
• Are most of my orders one-off purchases?
• How long does it take for my audience to buy again?
• How long does my audience consider products before purchasing?

16. Third: measure awareness, consideration and the impact on sales
Impressions
Clicks/CTR
Unique reach
Video views
Nielsen Brand Effect
Millward Brown Brand Lift
IRI offline sales
Branded searches
New-to-brand
Awareness
Consideration
Purchase
Loyalty

17. 49%
Of consumers rate emotion as
the highest factor in
connecting with a brand
People want emotional connections

18. WaterWipes 2019
• Worked closely with Amazon to understand
demand planning reports
• Created a logic to help predict Amazon sell in
volumes
• Worked closely with Amazon to understand
landed cost price and sourcing options
• Test and learn; outcome less nuances in EU5
regions on Amazon performances & investment
options
• Invested terms strategically for growth
• Fixed the basics on Amazon
• Developed Amazon specific content
• Invested in cross channel availability
• Test & learn on AA search & DSP targeting
• We have developed very strong relationships
with Amazon UK both retail and advertising
• We have invested in Amazon experience
internally
• Our ambition is to develop an Amazon task
force, cross functional with key contacts on
Amazon side
• We continue to review our market
promotional activity
• We continue to review our pack strategy
• We continue to refine how we promote on
Amazon and drive increased repeat purchase
and brand loyalty

19. The flywheel for operating successfully & profitably on Amazon
1
2
34
5
6
Insights Selection
Supply Chain
Efficiency
Perfect In-
Store
Customer
Activation
Loyalty &
Repeat
Long term thinking & planning is the key for success