Sean Stone, founder of Spillover Commerce, is advocating for a strategic approach to ecommerce growth that leverages both direct-to-consumer (DTC) branded websites and the vast customer base of Amazon. His philosophy centers on a "one-two punch" strategy: first, establishing a robust, profitable branded site, and second, capitalizing on the inevitable traffic that spills over onto Amazon. This dual-pronged attack, Stone argues, is crucial for modern online retailers seeking sustainable success in an increasingly competitive digital landscape.
Stone, a seasoned Amazon consultant since 2017, observed a critical shift in how brands should operate. Previously focused solely on optimizing Amazon presence, he now champions a model where brands prioritize their own domains, utilizing Amazon as a secondary, yet vital, sales channel. His agency, initially launched as Stone’s Goods in 2021 and rebranded to Spillover Commerce in January of this year, specializes in guiding Shopify brands that struggle on Amazon but recognize its indispensability, as well as assisting Amazon-first sellers aiming for diversification.
"Consumers love Amazon shipping. They trust it. If something doesn’t work out, they’ll be taken care of and made whole. And that trust is insurmountable for many brands," Stone explained in a recent interview. He elaborated on this by recommending that merchants treat Amazon as a supplementary channel, offering a specific version of a product, a limited selection, or perhaps a single item from a broader catalog. The core principle remains: "merchants need to have something on Amazon. People trust the shipping too much."
The Strategic Imperative: Balancing Brand Integrity and Marketplace Reach
The conversation with Eric Bandholz, host of the interview, highlighted a common concern among DTC brands: the potential dilution of brand identity when engaging with Amazon. Bandholz articulated this apprehension, stating, "It makes sense. But the only people making money on Amazon are selling cheap, junk products. The shipping is good, but the entire experience trashes my brand. I don’t see how merchants can build something of value on Amazon. Many Amazon sellers are data- and spreadsheet-savvy. They aren’t trying to build a brand."
Stone acknowledged this perceived dichotomy, asserting that Spillover Commerce aims to bridge this gap. He posited that success on Amazon and on platforms like Shopify or Meta (Facebook/Instagram) often requires different skill sets. "What wins on Amazon is the opposite of what wins on Shopify and Meta," he stated. However, he believes that many merchants possess the adaptability to excel in both arenas, forming the foundation of the "one-two punch" that can lead to market dominance, rather than being constrained by reliance on a single platform.
Crafting Platform-Specific Offers: The Key to Dual-Channel Success
When presented with a scenario of a DTC brand aiming for a 60% revenue split from its own domain and 40% from Amazon, Stone outlined a clear strategy: the creation of "platform-specific offers." The crucial advice is to avoid offering the identical product on both platforms. "Whatever you sell on Amazon will be price-compared against similar items," Stone noted. Therefore, the product offered on Amazon should be tailored to that environment, potentially being a "lesser version" of the premium product available on the brand’s own website.
Conversely, incentives should be provided for customers to purchase directly from the brand’s domain, such as offering a "full bundle with the full experience." This approach allows brands to maintain the integrity of their premium offerings while still participating in the massive Amazon marketplace.
A compelling case study to illustrate this point is that of Gymreapers, a company specializing in weightlifting accessories. Despite the highly commoditized nature of products like weightlifters’ wrist straps, where numerous competitors offer similar items at significantly lower prices, Gymreapers reportedly generates $10,000 in monthly revenue from wrist straps on Amazon. This success, Stone explained, is not solely due to the product itself but stems from a sophisticated branding and traffic generation strategy.
"Gymreapers’ strategy is obvious," Stone revealed. "They get huge sales on Amazon from roughly 200 Facebook ads. I checked last week in the Facebook Ads Library. They also use TikTok influencers." Crucially, these external advertising efforts are directed towards high-priced powerlifting bundles, such as belts, knee and elbow straps, and deadlift straps, all sold on Gymreapers.com. Customers searching for specific items like wrist straps and encountering the Gymreapers brand through these external campaigns often navigate to Amazon to find the product, even if it’s priced higher.
"So they sell the same product for 50% more than Chinese competitors by having a strong brand and external traffic sources," Stone concluded, emphasizing how branding and off-platform marketing can create a perceived value that justifies a higher price point on Amazon.
Beyond Bundles: Optimizing for Amazon’s Algorithm
The discussion then shifted to the effectiveness of bundling on Amazon as a customer acquisition strategy. Stone expressed skepticism about its efficacy in driving organic ranking. "Bundling on Amazon doesn’t really work," he stated. "What drives organic ranking on Amazon is the conversion rate. So in our experience, the best play is to have a high-converting offer on a product detail page and drive as many organic sales as possible." While bundling is possible on Amazon, it typically underperforms compared to a single, well-optimized product with a strong conversion rate.
Building Brand Equity Off-Amazon: A Three-Pillar Approach
For Amazon sellers looking to cultivate a brand presence beyond the marketplace, Stone outlined a focused strategy built on three key pillars:
- Amazon Product-Market Fit: Sellers must first ensure they have a product that resonates with the Amazon customer base, a prerequisite for any sustained success on the platform.
- Meta Market Fit: This refers to identifying products that benefit from advertising on social media platforms like Meta (Facebook/Instagram). Stone provided a clear example: "Don’t advertise a mop on Meta, but do advertise a cool robot vacuum cleaner." The suitability of a product for social media advertising hinges on its visual appeal, innovation, or lifestyle relevance.
- Platform-Specific Offers: As previously discussed, creating distinct product offerings or bundles for each platform is essential to avoid direct price comparisons and to cater to the unique consumer expectations of each channel.
Leveraging Data and Creativity for Offsite Opportunities
Addressing the challenge of identifying offsite opportunities without extensive internal data, Stone underscored the universal importance of having a brand website. "All sellers – on Amazon or otherwise – should have a website," he advised. Even if the primary focus remains on Amazon sales, a brand website serves as a crucial touchpoint for engaging with customers.
"People will buy products from the site (even if your priority is Amazon), just not a lot of them," Stone admitted. The real value lies in engaging with these customers and soliciting their feedback. "Ask about their preferences, such as likes and dislikes on Amazon as well as product suggestions. Just think creatively." This direct customer interaction provides invaluable insights that can inform product development, marketing strategies, and ultimately, the optimization of both on- and off-platform sales efforts.
The implications of Stone’s "one-two punch" strategy are significant for ecommerce merchants. By acknowledging the distinct strengths and weaknesses of Amazon and DTC channels, brands can move beyond a singular platform focus. This approach allows for brand building on owned properties while simultaneously tapping into Amazon’s unparalleled reach and customer trust, creating a more resilient and scalable business model. The ability to strategically differentiate product offerings and leverage external traffic sources to bolster Amazon sales, as exemplified by Gymreapers, demonstrates a sophisticated understanding of the modern ecommerce ecosystem. As the digital marketplace continues to evolve, adopting such a balanced and multi-faceted strategy will likely become a hallmark of successful online retailers.
For those seeking to implement this dual-platform strategy or gain further insights, Sean Stone’s agency, Spillover Commerce, can be reached through their website at SpilloverCommerce.com. Stone is also available on LinkedIn for professional inquiries.
