Sean Stone, a seasoned Amazon consultant and founder of Spillover Commerce, is advocating for a dual-pronged approach to ecommerce growth, a strategy he dubs the "one-two punch." This method emphasizes the simultaneous development of a robust, branded direct-to-consumer (DTC) website and the strategic utilization of Amazon to capture and convert traffic that naturally spills over from other platforms. Stone’s agency, Spillover Commerce, was rebranded from Stone’s Goods in January of this year, reflecting his evolving perspective on how brands can best thrive in the current digital marketplace.
Stone’s philosophy centers on the idea that while Amazon’s dominance in online retail is undeniable, particularly due to consumer trust in its shipping and return processes, it should not be the sole focus for brands aiming for long-term value and brand equity. Instead, he proposes treating Amazon as a secondary sales channel, offering a curated selection of products or specific versions of core offerings, while the primary brand experience and full product range reside on the merchant’s own domain. This approach, he argues, allows businesses to harness the vast reach of Amazon without sacrificing brand integrity or becoming overly dependent on a single platform.
"The best way to grow an ecommerce business is to launch a profitable Shopify website and then leverage the spillover traffic that inevitably occurs on Amazon. It’s a powerful one-two punch," Stone explained in a recent interview. His agency works with both Shopify brands that struggle to gain traction on Amazon and Amazon-first sellers seeking to diversify their revenue streams and build a more resilient business model.
The Evolving Landscape of Ecommerce
The ecommerce landscape has seen a significant shift in recent years. While Amazon has long been the undisputed king of online marketplaces, the rise of sophisticated DTC platforms like Shopify has empowered brands to build direct relationships with their customers. This has created a dynamic where businesses can no longer afford to be platform-agnostic. The challenge lies in finding the optimal balance between leveraging the immense customer base of marketplaces and cultivating a unique brand identity and loyal customer following on owned channels.
Data from Statista indicates that global ecommerce sales are projected to reach over $8.1 trillion by 2026, a testament to the continued growth of online retail. Within this expansive market, Amazon holds a substantial share, consistently demonstrating strong sales figures and an unparalleled logistical network. However, the cost of customer acquisition on Amazon, coupled with intense competition and a lack of direct brand control, has led many merchants to seek alternative strategies.
Deconstructing the "One-Two Punch"
Stone’s "one-two punch" strategy is built on two fundamental pillars:
Punch One: Developing a Profitable, Branded Site
This involves creating a compelling DTC website, often built on platforms like Shopify, that serves as the brand’s primary storefront. Key elements of this pillar include:
- Brand Identity and Storytelling: A DTC site allows for complete control over brand messaging, visual identity, and customer experience. This is crucial for building an emotional connection with consumers and fostering loyalty.
- Full Product Offering and Bundles: Merchants can showcase their entire product catalog, offer exclusive bundles, and create premium experiences that might not be feasible or cost-effective on a marketplace.
- Direct Customer Relationships: Owning the customer relationship allows for direct communication, personalized marketing, and valuable data collection for future product development and sales strategies.
- Higher Profit Margins: Eliminating marketplace fees and commissions can lead to improved profit margins on sales made directly through the branded site.
Punch Two: Converting Spillover Traffic on Amazon
This pillar focuses on strategically using Amazon to capture customers who may have initially discovered the brand through other channels, or who prefer the convenience of Amazon’s purchasing and shipping. This involves:
- Platform-Specific Offers: Stone strongly advises against selling identical products on both platforms. Instead, he recommends creating distinct product offerings for Amazon that cater to the marketplace’s environment. This could involve a simplified version of a product, a bundle specifically designed for Amazon, or items that are complementary to the main offerings on the DTC site.
- Leveraging Brand Recognition: For brands with a strong external presence, consumers may specifically search for their brand name on Amazon. This "branded search" traffic can be a valuable source of sales, even if the product offered is slightly different from the DTC version.
- Targeting Specific Customer Segments: Amazon can be used to reach customers who prioritize speed, convenience, and the trust associated with Amazon’s fulfillment and customer service.
- "Amazon-Only" Items: Offering select products exclusively on Amazon can drive discovery and sales without cannibalizing the brand’s DTC channel.
Bridging the Gap: Brand Building vs. Marketplace Savvy
A common point of contention in the ecommerce world is the perceived dichotomy between building a strong brand and excelling in the data-driven, competitive environment of Amazon. Eric Bandholz, the interviewer, raised this concern, noting that many successful Amazon sellers are adept at data analysis and spreadsheet management but may not prioritize brand building, and that the Amazon experience can sometimes detract from a brand’s perceived value.
Stone acknowledges this challenge but believes it’s precisely where Spillover Commerce can add significant value. "Success on Amazon and on Shopify comes from different skill sets. What wins on Amazon is the opposite of what wins on Shopify and Meta," he stated. "But many merchants excel at both. That’s the one-two punch that can dominate, not being trapped by one platform over another."
His agency aims to bridge this gap by helping brands understand and implement strategies that are effective in both environments, recognizing that a holistic approach is key to sustainable growth.
Case Study: Gymreapers and the Power of Brand-Driven Amazon Sales
Stone highlighted the example of Gymreapers, a brand that has achieved remarkable success selling weightlifting wrist straps on Amazon, a product he describes as highly commoditized. Despite competitors selling similar items at significantly lower prices, Gymreapers generates substantial revenue from these straps.
"Gymreapers’ strategy is obvious," Stone explained. "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." He clarified that the Meta ads are not for individual wrist straps but for high-priced powerlifting bundles sold on Gymreapers.com. "People seeking only wrist straps are searching for ‘Gymreapers’ and landing on Amazon," he said. "So they sell the same product for 50% more than Chinese competitors by having a strong brand and external traffic sources."
This case illustrates how a powerful brand, cultivated through external marketing channels, can drive demand for even the most commoditized products on Amazon. Consumers are willing to pay a premium for products from a brand they trust and recognize, even if identical or similar items are available at a lower cost from less-known sellers.
Strategic Considerations for Platform-Specific Offers
When advising a direct-to-consumer brand aiming for a revenue split of 60% from their domain and 40% from Amazon, Stone outlines a clear strategy:
- Differentiated Product Offerings: "Create platform-specific offers. Don’t sell the same thing in both places," Stone advised. This means crafting product variations or bundles that are optimized for each platform. On Amazon, this might be a single, highly-rated product, while on the DTC site, it could be a comprehensive bundle that offers a complete solution or a superior customer experience.
- Incentivizing Direct Purchases: To encourage customers to buy directly from the branded site, merchants should offer compelling incentives. This could include exclusive discounts, loyalty programs, early access to new products, or the full, uncompromised brand experience.
- Bundling on Amazon: A Nuanced Approach: While bundling is a common tactic, Stone suggests it may not be the most effective strategy for driving organic ranking on Amazon. "What drives organic ranking on Amazon is the conversion rate," he noted. "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, a single, strong-converting product is often a more reliable path to Amazon visibility.
Building a Brand Beyond the Marketplace
For Amazon sellers looking to expand their brand presence beyond the marketplace, Stone recommends focusing on three key areas:
- Amazon Product-Market Fit: This is a foundational element, indicating that the product resonates with Amazon shoppers.
- Meta Market Fit: This refers to identifying products that benefit from advertising on platforms like Facebook and Instagram. Stone uses the example of a "cool robot vacuum cleaner" as a product suitable for Meta advertising, as opposed to a basic mop, which might not generate the same level of engagement.
- Platform-Specific Offers: As previously discussed, tailoring product offerings to the unique characteristics of each platform is crucial.
Data-Driven Insights for Offsite Opportunities
The challenge of identifying offsite opportunities without readily available data can be daunting. Stone’s advice is straightforward:
- Establish a Website: Every seller, regardless of their primary focus, should have a website. This serves as a hub for brand information and a potential point of sale, even if sales volumes are lower than on Amazon.
- Engage with Customers: Actively solicit feedback from customers who purchase through the website. Inquire about their preferences, likes and dislikes on Amazon, and suggestions for new products. This direct interaction provides invaluable insights for product development and marketing strategies.
- Creative Thinking: Stone emphasizes the importance of creative problem-solving. By understanding customer behavior and market trends, sellers can identify new opportunities and adapt their strategies accordingly.
The Future of Ecommerce Growth
Sean Stone’s "one-two punch" strategy offers a forward-thinking approach to ecommerce growth. By acknowledging the strengths of both DTC and marketplace channels, and by implementing a nuanced, platform-specific approach, merchants can build more resilient, profitable, and brand-centric businesses. The continued evolution of online retail demands adaptability and a strategic vision that transcends single-platform dependencies.
As the digital landscape continues to evolve, with consumer behaviors and platform algorithms constantly shifting, the ability to master both direct customer engagement and marketplace optimization will be the hallmark of successful ecommerce enterprises. Spillover Commerce, under Sean Stone’s leadership, is positioning itself as a key partner for brands seeking to navigate this complex terrain and achieve sustainable, long-term growth.
For those interested in learning more about Sean Stone’s strategies or engaging his services, his agency’s website is SpilloverCommerce.com, and he can also be reached via LinkedIn.
