Unlocking E-commerce Success with the Inverted Pyramid of Design

The inverted pyramid of marketplace activation, which includes phase 1: design, phase 2: manufacturing, phase 3 : Offer and awareness building, phase four: marketplace activation

Unlocking E-commerce Success with the Inverted Pyramid of Design: How ARMR, an Amazon Agency, Applies Bill Nye's Concept to Marketplace Activation

During a recent flight home from spring break with my family, I had the opportunity to watch a master class by Bill Nye the Science Guy . His content has always been exceptional, skillfully delivering complex ideas in an easy-to-understand manner. In this class, he shared some of the tools that contributed to his success, including the inverted pyramid of design. It quickly became clear how this concept could be applied to e-commerce marketplace activation, providing an efficient way to determine if you, your support provider, or potential client is ready to progress to the next stage and ultimately succeed in e-commerce marketplaces.

What is the inverted pyramid of design?

Bill Nye's Inverted Pyramid of Design consists of four levels:

1. Design Phase: Be Part of the Start

2. Procurement Phase: Choose the Right Materials

3. Fabrication Phase: Efficiency, Efficiency, Efficiency

4. Marketing Phase: Spreading the Word · Use Pyramids Within Pyramids

To premise for the Inverted Pyramid of Design is that as you ascend the levels of the pyramid, the amount of time, money and resources increases.

The expectation is that the previous phase must be developed to maturity in order to adequately support the next phase. Thus with each new phase (or tier) you are becoming more broad than the previous - and as you add additional layers - you create the inverted pyramid form.

In partice this means that when you ascend the levels of the pyramid, you have a requirement for more people, more support, more resources and more money, but also more buy-in from a larger audience (your customers).

How can the inverted pyramid of design be applied to e-commerce?

The concepts of the inverted pyramid of design integrate well with e-commerce, and Amazon specifically, through marketplace activation. ARMR's Inverted Pyramid of E-commerce Marketplace Activation (IPEMA) parallels these levels:

1. Design Phase:

   • Does your product meet the needs of the customer and satiate logistical needs?

2. Manufacturing Phase:

   • Do you have the capability to produce inventory and maintain a high level of quality?

3. Offer & Awareness Phase:

   • Is the content design strategy going to deliver engaging content?

   • Is the content vehicle (detail pages, video, imagery, ads) aligned with the audience you’re seeking to build a relationship with?

   • Is the marketing strategy and allocated budget aligned with the opportunities for the channel?

   • Is the inventory available to be purchased?

   • Are you aligned with the market pricing?

4. Marketplace Activation Phase:

   • Are marketing & operational plans being executed to convert customers?

To help you understand and apply ARMR’s IPEMA model to your brand, let's imagine a four brands from independent categories: a beauty brand, a water brand, a pet brand, and a swimwear brand. At each phase of the e-commerce Inverted Pyramid of Marketplace Activation (IPEMA), these brands must meet specific requirements.

1. Design Phase:

   • Beauty Brand: Develop eco-friendly packaging and offer a diverse range of shades or scents

   • Water Brand: Create sustainable, recyclable packaging that minimizes plastic waste

   • Pet Brand: Ensure products cater to various pet sizes, breeds, and dietary needs

   • Swimwear Brand: Design comfortable, durable, and inclusive swimwear for all body types

2. Manufacturing Capability & Inventory Building:

   • Beauty Brand: Establish relationships with suppliers to source high-quality, sustainable ingredients and materials; invest in efficient production methods

   • Water Brand: Develop partnerships with local water sources to ensure supply consistency; maintain inventory levels for potential spikes in demand

   • Pet Brand: Implement rigorous quality control measures to guarantee product safety and effectiveness; stock sufficient inventory to meet market demands

   • Swimwear Brand: Collaborate with ethical manufacturers that prioritize sustainability; maintain inventory levels according to seasonal trends

3. Offer & Awareness Building:

   • Beauty Brand: Showcase product diversity and eco-friendly initiatives through engaging visuals and storytelling

     • Leverage social media influencers, targeted ads, and email campaigns to reach potential customers; monitor performance and adjust strategies as needed

   • Water Brand: Emphasize the company's commitment to sustainability and water quality through informative content

     • Employ content marketing, social media, and PR efforts to raise awareness about the company's environmental commitment and product quality

   • Pet Brand: Highlight the product's health benefits and the brand's commitment to pet wellness through educational content

     • Engage customers through targeted marketing channels, such as pet owner forums and social media groups; collaborate with veterinary professionals to promote the product

   • Swimwear Brand: Use high-quality images and videos to display the brand's inclusive designs and sustainability efforts

     • Launch seasonal marketing campaigns, collaborate with fashion influencers, and utilize user-generated content to showcase the brand's unique selling points and designs

4. Marketplace Activation:

   • Staying In Stock! Active demand plans that are constantly seeking to optimize inventory allocation. Get rid of the slow movers to make inventory allocation space for the fast turners. You can’t run ads if you are not in stock. You lose all platform sales velocity when your offer is out of stock.

   • Build A Review Mote. If you want to reduce marketing costs and improve conversation, then build yourself a huge mote of positive and informative reviews. This doesn't happen on its own, it takes leveraging Amazon and tools to stay within the Terms of Service.

   • Leverage an Amazon Agency like ARMR

Adapting models like Bill Nye's Inverted Pyramid of Design into specific industries like Amazon, brands are able to create a powerful framework to help businesses determine their readiness for e-commerce success. By understanding where their company stands in each phase and addressing the unique challenges of their industry, business owners and managers can unlock the full potential of e-commerce marketplaces and drive growth in today's competitive landscape.

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Regardless of the industries that your brand participates in, ARMR’s IPEMA model can provide valuable insights and guidance to help you achieve your e-commerce objectives - connect with our team to learn how this strategic framework can improve your presence on Amazon and generate customer activation.