E02 - Amazon, Ads, and the Algorithm with Time Shelton

On this episode of the Pharmacy View podcast, our guest is Tim Shelton, Pharmacist and CEO of Machete Systems. Tim is an expert in retail and shares his knowledge of making the transition from brick-and-mortar to online and e-commerce. Working with the Amazon platform, Tim explains how Amazon really is one of the better ways to get your business started in the ecommerce space. Because they own more than half of all of the ecommerce in America, they have really locked in the online business world. And for the young and aspiring, Tim recommends using Amazon’s FBA instead of developing all the logistics yourself. He explains how it can turn a great idea into a booming business with their access to the shipping and marketing you need. Tim also spends a good deal discussing marketing for the traditional pharmacist, showing a new world of marketing ideas for the pharmacist who wants to capitalize on the economy of the internet. Topics Covered: ● Pharmacies and the spread of e-commerce. ● 1p v 3p commerce models. ● Traditional and electronic consumer real estate. ● Amazon’s influence on the value of brands. ● How to drive traffic to your e-commerce site. ● A lot of pharmacy chains struggle to get a lot out of moving to the digital marketplace. ● Using consumer data to drive more sales in the retail space. ● How Amazon’s third party selling (FBA) works, and how it drives the algorithm. ● You need access to great product at a great price. ● Start with the traffic and find where the markets are. ● Focus your product page. Key Quotes: ● “Amazon is half the e-commerce market in America.” ● “If you start up your e-com store on Amazon, the traffic’s already there.” (8:20) ● “Think of an iPhone vs a digital SLR camera [for 1p v 3p].” (12:45) ● “Without traffic, any idea you have on the internet is dead.” (14:20) ● “Anyone who owns their own brand is a great partner for us.” (17:50) ● “People have just become used to the digital convenience factor.” (19:05) ● “They want to know what the customer is thinking — and Amazon knows.” (25:55) ● “Do you want to develop your own brand or do you just want to be wholesale?” (30:40)