In the ever-evolving landscape of e-commerce, where consumer trust and purchasing habits are constantly shifting, a strategic approach to market presence is paramount for sustained growth. Sean Stone, a seasoned Amazon consultant and founder of Spillover Commerce, is championing a "one-two punch" strategy for online merchants. This approach advocates for the robust development of a profitable, branded direct-to-consumer (DTC) website as the primary engine of growth, complemented by the strategic capture of "spillover traffic" – the valuable, often overlooked customer flow that naturally occurs on Amazon. This dual-channel methodology, which inspired the name of Stone’s agency, aims to empower brands to build lasting equity while leveraging the immense reach and inherent trust associated with Amazon’s platform.
Stone’s agency, initially founded as Stone’s Goods in 2021 and rebranded to Spillover Commerce in January of the current year, has a deep-rooted history in Amazon consulting. Since 2017, Stone has been instrumental in managing Amazon advertising campaigns for a diverse clientele, initially as an agency employee and subsequently through his own venture. His current advocacy marks a significant shift in perspective for many brands, urging them to prioritize their proprietary domains while viewing Amazon as a crucial, albeit secondary, sales channel. This strategic pivot acknowledges the inherent strengths of both platforms while mitigating the potential brand dilution that can arise from an over-reliance on a single marketplace.
The core of Stone’s "one-two punch" strategy lies in recognizing and capitalizing on distinct consumer behaviors and platform dynamics. While Amazon offers unparalleled shipping convenience and a deeply ingrained sense of customer trust – factors that are indeed "insurmountable for many brands" – it can also present challenges for brand building. The marketplace is often characterized by intense price competition and a focus on individual product transactions rather than holistic brand experiences. Conversely, a DTC website allows for complete control over brand narrative, customer experience, and data collection, fostering a more profound connection with consumers.
Bridging the Gap: Brand Building on Amazon and Beyond
The perceived dichotomy between building a strong brand on a DTC site and succeeding on Amazon is a central theme in Stone’s philosophy. He acknowledges that the skills and tactics that lead to success on Amazon often differ significantly from those that drive performance on platforms like Shopify, Meta (Facebook/Instagram), or TikTok. "What wins on Amazon is the opposite of what wins on Shopify and Meta," Stone stated in a recent interview. However, he firmly believes that merchants who can master both environments – achieving a harmonious "one-two punch" – are best positioned for dominance, rather than being "trapped by one platform over another."
This perspective directly addresses the concerns of many e-commerce entrepreneurs who grapple with the perceived commoditization of their products on Amazon. Eric Bandholz, host of the podcast where this discussion took place, voiced a common sentiment: "the only people making money on Amazon are selling cheap, junk products. The shipping is good, but the entire experience trashes my brand." He further elaborated, noting that many Amazon sellers are "data- and spreadsheet-savvy. They aren’t trying to build a brand." Stone’s agency, Spillover Commerce, positions itself as the bridge between these two worlds, helping brands navigate the complexities of both DTC and marketplace selling.
The "Platform-Specific Offer" Strategy: Diversifying for Dominance
A cornerstone of Stone’s advice for achieving the desired revenue split, such as a 60% contribution from the DTC domain and 40% from Amazon, is the implementation of "platform-specific offers." This strategy emphasizes that merchants should avoid selling identical products across all channels. Instead, they should curate offerings that are tailored to the unique environment and consumer expectations of each platform.
"Don’t sell the same thing in both places," Stone advises. "Whatever you sell on Amazon will be price-compared against similar items. Create an offer that makes sense for that environment. Perhaps it’s a lesser version of what you sell on your domain." This approach allows brands to maintain the perceived value of their premium products on their DTC site while strategically using Amazon to capture a broader audience, potentially with variations or bundles designed for impulse buys or specific market segments.
Furthermore, Stone advocates for the inclusion of incentives that encourage shoppers to transition from Amazon to the brand’s own website. This could manifest as exclusive bundles, enhanced customer service, or a more comprehensive product experience offered directly on the DTC platform. "Provide incentives for shoppers to buy directly from your site," he suggests. "Maybe it’s a full bundle with the full experience."
Case Study: Gymreapers and the Power of Brand-Driven Amazon Sales
The efficacy of this strategy is vividly illustrated by the example 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 substantial revenue – approximately $10,000 per month – from this single product on Amazon.
Stone’s analysis reveals that Gymreapers’ success on Amazon is not solely driven by Amazon’s internal mechanics. Instead, it’s a byproduct of a sophisticated branding and advertising strategy executed off Amazon. The company leverages extensive advertising on Meta platforms, targeting high-value bundles like belts, knee straps, and elbow straps, all sold on their DTC website, Gymreapers.com. This external advertising drives traffic, and a portion of these consumers, who may be searching for specific high-ticket items or directly for the "Gymreapers" brand, discover the company’s wrist straps on Amazon.
"So they sell the same product for 50% more than Chinese competitors by having a strong brand and external traffic sources," Stone explains. This highlights how a powerful brand identity and strategic off-platform marketing can command premium pricing and generate significant sales even for seemingly commoditized products on a competitive marketplace like Amazon. The Amazon sales, in this context, become an indirect consequence of a well-executed DTC strategy, proving that the marketplace can indeed serve as a powerful revenue stream when underpinned by strong brand equity.
Bundling and Brand Building: Navigating Amazon’s Nuances
When it comes to leveraging Amazon for customer acquisition, the concept of bundling warrants careful consideration. Stone’s experience suggests that while bundling is possible on Amazon, it may not be the most effective strategy for driving organic ranking and conversions. Amazon’s algorithm heavily favors products with high conversion rates. Therefore, a single, high-converting item on a dedicated product detail page often performs better than a bundled offer.
"Bundling on Amazon doesn’t really work," Stone stated. "What drives organic ranking on Amazon is the conversion rate. 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." This emphasizes the importance of optimizing individual product listings and focusing on a strong conversion rate for single SKUs as a primary driver of visibility and sales within the Amazon ecosystem.
For Amazon sellers looking to build their brand beyond the confines of the marketplace, Stone identifies three critical areas of focus. Firstly, achieving "Amazon product-market fit" is essential – a baseline understanding of what sells and resonates with consumers on the platform, which established sellers presumably possess. Secondly, brands need to identify "Meta market fit," meaning products that are well-suited for advertising on social media platforms. Stone uses the example of a basic mop versus a "cool robot vacuum cleaner," suggesting that visually engaging and innovative products are more likely to thrive in the dynamic environment of social media advertising.
The third crucial element is, once again, the development of "platform-specific offers," reinforcing the idea that a one-size-fits-all approach is unlikely to yield optimal results across diverse e-commerce channels.
Unlocking Offsite Opportunities with Data and Creativity
For Amazon sellers aiming to expand their reach and customer base beyond the marketplace, identifying offsite opportunities is crucial. Stone stresses that even without direct Amazon sales data, every seller should maintain a website. This DTC presence, even if not the primary sales driver, serves as a vital hub for customer engagement and data collection.
"All sellers – on Amazon or otherwise – should have a website," Stone asserted. "People will buy products from the site (even if your priority is Amazon), just not a lot of them." The real value lies in engaging with these customers. By actively seeking feedback, asking about their preferences, likes and dislikes on Amazon, and soliciting product suggestions, brands can gather invaluable insights. "Just think creatively," he urged, encouraging a proactive and inquisitive approach to understanding the customer. This direct line of communication allows brands to refine their product offerings, tailor their marketing messages, and ultimately build stronger, more loyal customer relationships.
The Future of E-commerce: A Holistic Approach
Sean Stone’s advocacy for the "one-two punch" strategy reflects a growing understanding within the e-commerce industry that sustainable growth hinges on a holistic approach. The days of relying solely on a single platform are increasingly becoming a relic of the past. By cultivating a strong, branded DTC presence and strategically leveraging the vast customer base and inherent trust of Amazon, merchants can create a synergistic ecosystem that maximizes reach, revenue, and brand longevity. Spillover Commerce, under Stone’s leadership, is poised to guide these brands through this complex but ultimately rewarding journey, empowering them to navigate the dual currents of e-commerce with confidence and strategic acumen.
For those interested in learning more about Sean Stone’s strategies or seeking his agency’s services, SpilloverCommerce.com serves as the primary online portal. He is also accessible and active on LinkedIn, where he continues to share insights and engage with the e-commerce community.
