You can read about it more here.
Feb 07, 2023 12:00AM
New Benchmark for Brands in 2023: Drive a Profitable Portfolio Mix on Amazon. Don't run costly price promotions in 2023, but instead, opt for SnS promotions to retain customers. Focus on promoting slow-moving items and divert investments to Amazon Advertising. Drive a profitable portfolio mix to become the new benchmark for brands in 2023. Thanks, Martin.
Martin Heubel
Should #Amazon vendors focus on price promotions in 2023?
Deals are an effective lever to grow revenue on Amazon. But the margin requirements can quickly drain the bottom line of participating brands.
So should you even run price promotions this year?
Here's my take:
๐ฉ๐ฒ๐ป๐ฑ๐ผ๐ฟ๐ ๐๐ถ๐๐ต ๐๐ฒ๐๐ฒ๐ฟ๐ฒ ๐บ๐ฎ๐ฟ๐ด๐ถ๐ป ๐ฝ๐ฟ๐ฒ๐๐๐๐ฟ๐ฒ ๐๐ต๐ผ๐๐น๐ฑ:
» Avoid costly price promotions like Top Deals
» Instead, run SnS promotions to retain customers
» Divert the promotional focus to slow-moving items
» Shift investments to Amazon Advertising
So yes, driving a profitable portfolio mix will become the new benchmark for brands in 2023.
๐ง๐๐๐ฅ;
High margin & low price elasticity: avoid discounts โ
High margin & high price elasticity: ideal for deals ๐พ
Low margin & low price elasticity: discount overstock / EOL itemsโ
Low margin & high price elasticity: discount to activate listings ๐ฏ
--
๐ What's your take on price promotions this year? Let me know in the comments.
#amazonvendor #amazonstrategy
Feb 07, 2023 12:00AM
Customize your FBA reports with ease. With the new Custom Report Builder, create personalized reporting views by simply dragging & dropping the data fields that matter most to you. Monitor key inventory information, including transit, fulfillment, delivery, and more. Try it now in Seller Central. Thanks, Prem.
Prem Gupta
Personalize your FBA reports with new Custom Report Builder
โก๏ธThe new FBA Custom Report Builder allows you to create and save personalized reporting views (“custom views”) by simply dragging and dropping the data fields that matter most to you.
โก๏ธAvailable now, the Inventory business view allows you to monitor key information from various reports, such as inventory that is in transit, in a fulfillment center, being delivered to buyers, lost, or damaged.
โก๏ธTo access the Custom Report Builder, select Reports from the drop-down menu in Seller Central, and then select Fulfillment.
#amazon #amazonadvertising
Feb 07, 2023 12:00AM
Is Amazon CRaPing itself out? Amazon is struggling with "CRaP" (can't realize a profit) items, low-cost items that are expensive to ship. With consumer trading down, Walmart lowering prices, and Amazon's fulfillment costs rising, Amazon is facing pressure on its cost structure and more products falling into the CRaP realm. Walmart, however, has structural advantages, such as its ability to lower costs, grow advertising and third-party businesses, and optimize the last mile of fulfillment. Expect vendors to be hit with their sharpest pricing ever and for Amazon to continue efforts to increase traffic volume to recover profitability. Thanks, Rick.
Rick Watson
Has All Of Amazon CRaPed Itself Out?
Amazon has used the term - internally at first, and then externally - called CRaP -- meaning "can't realize a profit" on certain first-party vendor items
Generally, these types of products are:
* Low cost (like less than $15 historically, but that number keeps rising)
* Expensive to ship
After listening to the earnings call, you wonder if inflation is not tamed in the consumer's mind, that Amazon is in somewhat of a perfect storm.
* Consumers trading down and reprioritizing
* Walmart continues to drop prices
* Amazon's fulfillment costs going up.
This environment benefits a strong 1P business, which Amazon has never been particularly good at managing -- even Jeff Bezos is famously quoted as saying, "Third-party sellers kick our first-party butt."
All this would be normal if Amazon hadn't just doubled its fulfillment infrastructure.
* Even on the earnings call, Amazon admitted that it would have to learn to operate this new network, which is fundamentally different with double the nodes.
* More nodes give Amazon more flexibility, more storage, and (potentially) faster performance [if staffing and automation is right] but at much higher costs.
These higher fulfillment costs put pressure on Amazon's cost structure. Essentially, due to no changes on the vendor's end, more products fall in the CRaP realm.
Not to mention Amazon's first-party vendors are trying to recover costs too, and Amazon has less pricing power than Walmart.
In the meantime, Walmart has a few structural advantages in an uncertain market:
* Walmart has understood how to lower costs and reduce prices since 1962. It was a founding principle.
* Walmart is starting to grow its advertising and third-party businesses, which are beginning to contribute to margin materially.
* Walmart is starting to invest more in micro-fulfillment with its Alert Innovation purchase in 2022 which should reduce costs further over time.
* The last mile is approximately half of your fulfillment costs, and Walmart is better positioned to optimize this last mile because it can use its Stores as fulfillment, and improve the sales productivity per square foot in its real estate, similar to how Target has done in the last ten years.
What Does This Mean?
* Expect Vendors to Get Hit for their Sharpest Pricing Ever
In some cases, expect this not to be enough. Even Andy Jassy recognized on the earnings call that it will need to sharpen its prices on items consumers want.
Seems like a reverse flywheel: Amazon fulfillment costs go up, Amazon price matches Walmart on a like item, Amazon loses more money per unit.
At this point, Amazon only has two responses: Amazon selection could decline (CRaP itself out), or Amazon loses more money. Sounds like a lose, lose.
The true fix is harder: Amazon needs traffic volume, and fast, to recover its structural profitability. Expect Amazon to continue strong efforts to greatly increase its traffic.
#Amazon
Feb 06, 2023 12:00AM
New-to-brand (NTB) reporting metrics help measure strategies that lead to customer acquisition on Amazon. But advertisers couldn't target NTB audiences until recently. With the latest Sponsored Brands API, advertisers can set a bid multiplier for NTB shopper segments from 0 to 900% to maximize brand awareness and focus on new customers. This feature is vital for upper-funnel campaigns, high repeat rate products & to combat increased competition and CPCs. The feature is currently API-only but could be added to the ad console soon. Thanks, Joe.
Joe Shelerud
Did you know you can specifically target new-to-brand shoppers with Sponsored Brands campaigns?
It’s hard to believe Amazon launched new-to-brand (NTB) reporting metrics nearly 4 years ago. While the reporting has been awesome for measuring which strategies lead to the highest new customer acquisition, Amazon hasn’t allowed advertisers to target NTB audiences directly until recently.
With newer Sponsored Brands API releases, advertisers can now set a bid multiplier for NTB shopper segments. Similar to placement settings, a bid multiplier can be set from 0 to 900% (10x increase). In addition to NTB bid multipliers, a bid optimization strategy can also be selected that biases the campaign towards NTB audiences over immediate sales (from all sources).
These features are especially important for upper-funnel awareness campaigns and products with high repeat order rates (e.g. supplements) where high LTV is expected, leading to increased competition and CPCs. By setting high NTB multipliers, advertisers can effectively isolate targeting to new-to-brand customers – allowing them to maximize brand awareness or focus on getting new customers in the door.
Although this feature is only available via the API currently, I wouldn’t be surprised to see it added into the ad console soon.
Feb 06, 2023 12:00AM
Amazon Reports Q4 Earnings. Is Amazon Really a Money Laundering Operation? Kidding, but the numbers are breathtaking: $513 billion in net sales, negative $2.7 billion in operating income. The article highlights disturbing trends such as AWS profitability dropping, subscription services (Prime) growth stagnating, and the elimination of HR teams and stores. The author raises questions about the future of Amazon Prime and the company's plan to regain the pre-pandemic cost structure. However, highlights include the biggest Cyber Week ever, advertising growth, increased same-day speed, and a strong AWS customer pipeline. Thanks, Rick.
Rick Watson
Amazon Reports Q4 Earnings: Is Amazon Really a Money Laundering Operation?
I’m kidding of course, but the numbers are breathtaking in how much money comes in the top of the business that does not come out the bottom.
Follow me here for 2022.
* $513 billion in net sales.
* Negative $2.7 billion in operating income.
If I saw these numbers on the screen during an episode of the TV show Breaking Bad, I would say “Another great business model setup by Saul Goodman!”
Witness a few of these disturbing trends:
* Amazon pretty much refused to forecast anything beyond Q1 2023, making investors nervous.
* AWS getting less profitable as investments continue, server utilization drops as customers rationalize their IT spend.
* Revenue from Amazon Sellers grew 24%! However Amazon’s net sales grew only 2%. That’s not a trend that can continue very long…. Fees sellers are paying growing 20x faster than net sales growth.
Aye carumba.
* Subscription Services (Prime) grew 17% year over year on a quarterly basis. This sounds good until you realize they increased prices earlier this year by ….. (drumroll) 17% last year.
* Eliminated HR teams, Stores + Devices, over 18k people.
* CFO says Amazon is looking to “regain” it’s pre-pandemic cost structure. No clear timeline given other than it could take all of 2023 and into 2024. [Personal note: I really need to use that line with my family: “I’m not spending too much, I’m just regaining my cost structure.”]
An important question I have is did Prime membership do a lot of running in place last year? Lord of the Rings and NFL Thursday Night not sounding terribly sticky at least to this outsider. They don’t release Prime subscriber numbers often, but I can’t imagine things are looking great for 2022.
* Not planning to expand Amazon Fresh significantly in 2023 because they have not yet found product/market fit at the right economics. (this came from Andy Jassy himself).
And a couple of highlights:
* Biggest Cyber Week ever. Really there is not much else to write home about. Launch of Buy With Prime.
* Advertising grew 23% year over year on a quarterly basis.
* Increased same day speed in major cities.
* 3P sales 59% of total units in Q4.
* AWS customer pipeline projected strong. Meaning as economy recovers next year, this could reaccelerate growth. 90% global IT spend still on-premises.
As far as the numerical results:
In Q4 2022, Net sales increased 9% y/y, with North America coming in at 14%, weighed down by an international drop of 8% y/y. AWS operating income down 10% y/y from $5.3B to $5.2B.
Full year 2022, Net sales increased 9%, led by North America at 13% growth. AWS segment sales increased 29% y/y.
Feb 06, 2023 12:00AM
New Customer Review Insights Dashboard. Amazon introduces a beta version of a new dashboard to help customers understand reviews better with two snippets for positive and negative reviews based on data from the past 6 months. Thanks, Prem.
Prem Gupta
New Customer Review Insights Dashboard
โก๏ธAmazon introduced a new Customer Review Insights dashboard to help customers fully comprehend the reviews.
โก๏ธCurrently in beta stage, based on data from the last six months.
โก๏ธYou have two Snippets: one for Positive reviews and one for Negative ones.
#amazon #amazonadvertising
Feb 06, 2023 12:00AM
Get ready for change. Multiple budget rules to be active simultaneously on Amazon Ads API and console. Starting Feb 2023, Amazon Ads API and console users can activate multiple budget rules at once, increasing daily budgets independently. A game-changer for vendors and sellers globally. Thanks, Prem.
Prem Gupta
Budget rules are becoming additive
โก๏ธBy the end of February 2023, we will make budget rules to be additive, meaning that more than one rule can be active at a time.
โก๏ธCurrently, only a single rule can be active, but with this release, if multiple budget rules meet their conditions, all rules will be applied and increase daily budget independently.
โก๏ธThis update will impact all advertisers worldwide (vendors and sellers) who use budget rules for their Sponsored Products, Sponsored Brands, or Sponsored Display campaigns through the Amazon Ads API or advertising console.
#amazon #amazonadvertising
Feb 06, 2023 12:00AM
Feb 06, 2023 12:00AM
Amazon's ad revenue hit a record high in Q4 with $11.6B. Experiencing a 23% growth rate and the total ad revenue for the year 2022 was $37.7B with a 21% Y/Y growth. Thanks, Sreenath.
Sreenath Reddy
Amazon Q4 earnings are out. Here are some visuals on ad performance.
Ad revenue for Q4 was $11.6B with a growth rate of 23%.
Keep in mind that there was a second prime day in Q4 of 2022, which wasn’t the case in 2021.
Total ad revenue for 2022 was #37.7B, which amounts to 21% growth Y/Y.
Link to the earnings report is in my comment below.
#amazonadvertising #amazonppc
Feb 06, 2023 12:00AM
7 years after founding Simple Modern. The company sells more drinkware than Yeti and Hydro Flask on Amazon. 21 unexpected learnings from the founders of Simple Modern, including the importance of having passionate employees, optimizing for repeat customers, valuing your brand, and using your unfair advantages. The article highlights the importance of focus, relationships, transparency, and customer trust in building a successful business. Thanks, Bryan.
Bryan Porter
7 years after founding, Simple Modern sells more drinkware than Yeti & Hydro Flask on Amazon.
21 unexpected learnings:
1. Privately-owned brands with no intent to sell are set best up to win long term.
2. Hire missionaries, not mercenaries. Employees passionate about your company's mission.
3. Bootstrapped businesses handle cash better. When cash is precious, it’s invested well.
4. Optimize for the second purchase. Lasting brands are built on loyal and repeat customers.
5. Disrupt yourself. It's better than being disrupted by a competitor.
6. Amazing imagery isn’t just to inform customers. It also signals quality.
7. Bias toward action helps when the company is small. However, it can hurt when the company grows in size.
8. Compounding is real. Focus on what propels the flywheel. The results over time can be amazing.
9. To reach national brand awareness, units sold AND impressions must be at scale.
10. View mistakes as tuition. They might be expensive, but they can provide invaluable learning.
11. Your brand is your biggest asset. You must value your brand first before others perceive it as valuable.
12. Generosity is reciprocated. It earns favor and loyalty.
13. The best products are rarely new inventions. They're generally improved versions of an existing product.
14. Great businesses are built on delayed gratification.
15. Strong relationships between a company’s founders/owners create a foundation for a healthy corporate culture.
16. Customer trust is earned in drops, and lost in buckets.
17. Understand incrementality. It’s easy to double down on what’s working, but it is often cannibalistic.
18. Talent density is the best remedy for increased complexity.
19. Outstanding culture is like a garden. Everyone must pick weeds to help the garden grow.
20. Transparency is the #1 quality that people look for in leaders. Be transparent, and people will follow.
21. Know your unfair advantages and use them.
For more thoughts, check out my conversation with Alex Lieberman:
https://lnkd.in/g2BNu9xB
Building a business is hard. These learnings have made us stronger.
If you found this helpful, follow Bryan Porter & Mike Beckham for more.
Comment with your learnings from growing a business.
Feb 06, 2023 12:00AM
Maximize your Amazon profits with the new Small and Light program. Now offering fee savings of $1.50 per unit sold on items $12 and under. A win-win for both you and your customers. Thanks, Aaron.
Aaron Cordovez
In this economic climate, lower prices typically win out the competition.
The new Small and Light program is a HUGE for this.
You can save $1.50 in Amazon fees per unit sold. If you sell at $1 less, you are making MORE margin, and the customer is paying way less.
Win-Win.
Now items $12 and less are eligible.
It's a big deal ladies and gentlemen.
Feb 06, 2023 12:00AM
New Excel input guidance makes managing Amazon campaigns easier with bulk sheets. Discover how to use the feature for Sponsored Products with bulk sheets, available in Excel spreadsheets only. Stay organized with the top header row & first three columns frozen, and avoid format mistakes with warning dialogs & hints. Get started with the feature when you download a blank bulk operation template. Thanks, Yogesh.
Yogesh Kumar
#amazonads #NEWUPDATE
Amazon is now making it easy to use bulksheets to manage and create your campaigns. With the rolling of "Guidance to Sponsored Products" which is
=> Excel input guidance is a feature in bulk sheets that helps you understand what you should enter in the spreadsheet fields, and which fields are required for each campaign entity.
=> The input guidance feature is currently available for Sponsored Products only, and is limited to Excel spreadsheets.
=> The spreadsheet will generally look the same as it does without this feature, but note that the top header row, along with the first three columns, are frozen in place so you can always see those fields even if you scroll.
=> If you enter the value in a different format, you will see a warning dialog with an additional hint about what the format should be.
=> The feature is also available when you download a blank bulk operation template.
#amazonadvertising #amazonads #amazonfba #amazonppc
Feb 06, 2023 12:00AM
Amazon Q4 earnings show sales growth surprises. But operating income continues to decline. AWS and Third-Party Seller Services growth surprised, while Advertising returned solid growth. Net sales increased 9% YoY to $514.0bn, while operating income decreased to $12.2bn / -51% YoY. To improve profitability, Amazon will focus on automation, 3PL services, and streamlining operations. Thanks, Martin.
Martin Heubel
#Amazon Q4 Earnings: Sales growth surprises, while operating income continues to decline. Here is the full analysis:
๐ง๐๐๐ฅ;
AWS and Third-Party Seller Services growth surprised in the fourth quarter, while Advertising returned solid growth. Retail up +2%.
But an unfavourable mix of rising costs and slowing demand continues to hit the online retailer's operating income across divisions:
๐ธ Net sales grew by +9% YoY, from $149.2 bn in Q4 2021 to $137.4 bn in Q4 2022.
๐ป Operating income continued its decline and is down -$0.8bn / -22.8% YoY.
๐ข Advertising delivered solid growth, posting an increase of +23% YoY, up +1.8bn vs the fourth quarter in 2021.
--
FY-2022:
Net Sales increased +9% YoY to $514.0bn, compared with $469.8bn in 2021.
Operating income decreased to $12.2bn / -51% vs. $24.9bn in 2021.
--
Q1 guidance:
๐ธ Net Sales predicted to reach $121bn-$126bn (+4% to +8% YoY).
๐๐ป๐ฎ๐น๐๐๐ถ๐
It's no secret that Amazon is in crisis mode right now. The recent round of layoffs, Amazon Smile's closure, and Prime membership fees increase reveal Andy Jassy's attempt to right-size the business across divisions.
While AWS and Advertising have proven to be reliable growth drivers in the past, recession fears and lower household spending have slowed Amazon's growth performance significantly.
But what about profitability? ๐
Rising fuel, labour, and operations costs continue to pressure Amazon's operating income. While AWS and Advertising soften the impact, they can't fully offset it.
The result?
Amazon needs to refocus on its bottom line, through:
โ๏ธ๐๐๐๐ผ๐บ๐ฎ๐๐ถ๐ผ๐ป & ๐๐ผ๐ป๐๐ผ๐น๐ถ๐ฑ๐ฎ๐๐ถ๐ผ๐ป
Amazon will increase automation efforts in its less profitable retail division. Suppliers will see the removal of account managers, shifting responsibility for business-critical tasks from Amazon to brands.
Large enterprise suppliers will continue to see a consolidation of programmes and trade alignments at regional (pan-EU) level.
โ๏ธ๐ฏ๐ฃ๐ ๐๐
๐ฝ๐ฎ๐ป๐๐ถ๐ผ๐ป
Amazon will increase its focus on service offerings beyond its marketplace, targeting 3PL providers and competitors like Shopify.
Buy with Prime is expected to be one of Amazon's biggest bets in 2023. Paired with the recently launched Amazon Warehousing & Distribution (AWD) service and FBA capacity management system, Amazon intends to monetise its existing fulfilment capabilities.
This is a low-hanging fruit for the online retailer that could quickly become one of its most profitable business divisions.
โ๏ธ๐ฅ๐ฒ๐ฝ๐ฟ๐ถ๐ผ๐ฟ๐ถ๐๐ถ๐๐ฎ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐๐๐๐๐ฟ๐ฒ ๐๐ถ๐ด ๐๐ฒ๐๐
We can expect Amazon to continue streamlining operations and cutting headcount in divisions with a low probability of high margins. This mainly affects its Fresh and Devices divisions. Expect Amazon to either monetise or reduce its existing service offering in 2023.
What do you think? Comment below!
#amazonearnings #retail #ecommerce
You can read more about it here.
Feb 03, 2023 12:00AM
Start small, start smart: Launch your Amazon biz with $500 or less for faster success. Learn the costs of selling on Amazon, tips for success and how to reduce costs with a comprehensive understanding of private labeling, research, sourcing, launch, and advertising. Thanks, JungleScout.
JungleScout
Starting an Amazon business can be a profitable venture with the right approach and understanding of costs. Sellers who started with $500 or less had a faster success rate, longer-lasting business, and lower workload than those who started with $10,000 or more.
A private label product using the FBA model requires an initial investment for samples, FBA fees, and product costs. Sourcing three samples from potential suppliers for $300, and purchasing inventory for $2,000.
To sell on Amazon, there are mandatory costs such as a professional seller's account ($39.99/month), UPC code ($30), and trademark enrollment ($350). Optional costs include product design and photography, which can enhance the product presentation and launch success. It is advised to avoid unnecessary expenses such as legal fees, a standalone website, and expensive training.
The average cost of starting an Amazon business is estimated at $3,836, but it can range between $2,790 and $3,940. Focus on optimizing your product listing, using Amazon PPC, and utilizing free educational resources to start and succeed in your Amazon journey.
Feb 03, 2023 12:00AM
5 ways to Boost Conversion with A+ Content in Under 60 Minutes. Chris Rawlings shares tips for Amazon sellers to improve their listings. From showing and enlarging text size to shortening content, accessing premium A+ content, and adding a future pacing module, these tips can help increase conversion rates. Thanks, Arqam.
Arqam Cheema
Five ways to Increase Conversion with A+ Content in Under 60 Minutes
๐
Recently I came across a session of Orange Klik, in which Chris Rawlings shares 5 of the top changes sellers can make to their A+ content in under an hour to improve listing conversions.
Those who haven't watched this great piece of content YET can read this QUICK summary:
1. SHOW
Something that you’re telling but not showing.
Audit your listing and figure out what you're telling but not showing. Then figure out how to show it.
Visual Communication is the critical key aspect to every single thing you want to communicate in your listing. Decide which aspect of your listing needs more visual attention but isn't being shown visually.
2. ENLARGE THE TEXT SIZE
Enlarge the text size on an image. At least 7/10 make the mistake of not doing this.
This is the most common mistake that crushes the conversion.
Images with text on them are a key component of A+ content.
Small Text + Powerful Image = Strong Communication
3. SHORTEN CONTENT
Shorten any written component longer than 1 sentence.
When EBC content is overflowing with text, it creates noise instead of communicating. It’s eventually hurting your conversion rate.
Visual Repetition = Good
You can show a core idea about the product in multiple ways using visuals.
Text Repetition = Bad
The most common way to shorten your content is to see if there’s text repetition.
You can shorten the text by using ChatGPT. There are several hacks present that you can use.
4. ACCESS PREMIUM A+ CONTENT
Here’s a hack to access premium A+ content:
- Add Brand Story to all listings, open or close
- Duplicate or Reupload A+ Content 15 Times
It may take a little time to get access, you may even have to request seller central.
But as long as you tell that you fill both criteria as stated in the Amazon terms and conditions.
It has insane benefits and much better options for your content.
5. ADD
Future pacing module to your A+
Future pacing is handling the fear of the unknown and uncertainty that a shopper feels about what’s going to happen when they get the product or when they try to use the product.
It is a sales term that is used for telling the prospect what’s going to happen when they buy.
Top 3 Objections in Customer’s Head:
- What’s it gonna be packed in
- What settings they’re allowed to use it in
- How to set it up, or how to put it together
All of these are uncertainties in the shopper’s head that will keep them from making a purchase or converting their decision to buy.
Future Pacing can be:
- Unboxing
- Step-By-Step Guide
- Instructional
- How to put together a guide
Breakout with steps regarding where the parts go if there are multiple parts
Link to the complete session: https://lnkd.in/dyifscG6
Keep Learning, Keep Hustling
Captens
#captens #amazon #amazonads #amazonlisting #amazonadvertising #amazonppc #amazoncopy #amazonsales
Feb 02, 2023 12:00AM
Maximize social engagement with this fun and easy-to-use feature. Get ready to boost shares by introducing friends to this must-have product. With a unique twist on the traditional share option, this feature is sure to bring a smile to your face. Thanks, Destaney.
Destaney Wishon
Share this product with friends ๐๐๐ค
What a great feature to drive more social engagement and shares.
Simple and fun.
Feb 02, 2023 12:00AM
Feb 02, 2023 12:00AM
Buy with Prime is now open to all with a 25% boost in shopper conversion. Get ready to experience the benefits of Buy with Prime. Thanks, Jeffrey.
Jeffrey Cohen
Happy Buy with Prime Day!
If you didn't see the news, Buy with Prime is officially open to everyone today. Are you planning to use this service?
Based on a recent study - BWP Increased shopper conversion by an average of 25%.
I will be covering this product a bit more later this month but I am curious if this is something you are excited about?
Comment below and let me know your thoughts.
Feb 02, 2023 12:00AM
George Barnett Reid
This infographic is rubbish, but it did £13k in 10-minutes.
Why?
Product market fit.
The brand has an incredible reputation in the wavy hair space.
They had 1300 people sat on an early-bird SMS list.
There were limited units available.
And it's priced right.
The infographic didn't matter. It did what it had to do. Inform the customer on product benefits. Quickly.
Lots of people will tell you you need beautiful A+, stunning infographics, sensational lifestyle shots, etc
And you do need them for long-term success. They will give you marginal gains. Which do stack up.
But if you don't have a good product, a good price, and good demand, then it really does not matter.
SO next time that agency is saying, "it's not working because you've got bad A+ or main images", maybe question it.
FYI we offer both services.
If you're a tenner more and offer no extra value, that's why it's not working. The best infographic in the world won't fix that.
#itsalwaysdayone
Feb 02, 2023 12:00AM
Feb 02, 2023 12:00AM
Feb 01, 2023 12:00AM
Budget rules get an update. All eligible rules will now combine, so be extra careful when setting up multiple rules to avoid a budget surge. Check your existing campaigns before the change takes effect. Thanks, Himanshu.
Himanshu Verma
๐ New update on Budget rules starting February 1
โก๏ธ If you have multiple budget rules in place, all eligible rules will combine, as opposed to the one with the highest previously.
I think it's a useful feature, provided you're being extra calculative when setting up multiple rules, to avoid one potential risk:
- The budget can go up as much as the sum of all the budget rules combined.
It's also worthwhile checking all your existing campaigns and rules before it comes into effect.
#sponsoredads #amazonppc #itsalwaysdayone
Feb 01, 2023 12:00AM
Discover new audiences quickly with Amazon's DSP. The new overlap report feature provides insights on audience relationships, showing the affinity between overlapping audiences and your selected one. Filter by categories such as In-market, Lifestyle, or Demographics for more precise targeting. Boost your brand's reach and achieve goals with Amazon's DSP's powerful audience tools. Thanks, Joe.
Joe Shelerud
Audience research just got quicker and easier with Amazon's DSP.โฏ
Creating an overlap report is nothing new but being able to see overlapping audiences when you click into an audience is definitely a welcomed addition.
Overlap reports can show you relationships other audiences have with the audience you are looking at by showing an affinity. The higher the affinity, the more similar the overlapping audience is to your selected audience.
Whether you’re researching audiences during a setup, trying to expand your reach with relevant audiences, or focusing your targeting, overlap reports give you great insights into audiences you may not have considered before. Some may even catch you by surprise.
You’re able to filter by categories such as In-market, Lifestyle, or Demographics to name a few. In-market and Lifestyle audiences are great to use for research and potential expansions, while Demographics can help you really hone in on your target audience.
No matter your brand’s goals, we can help achieve those with the powerful audiences and great tools to available in Amazon’s DSP.
Feb 01, 2023 12:00AM
Get ready for a game-changer! Amazon Ads beta now allows for product-level reporting - making performance insights easier than ever. Not all accounts have it yet, but keep an eye out. Thanks, Emily.
Emily Lease
FINALLY! Products Beta in Amazon Ads! Not every account has this yet but be on the look out ๐ Even if you separate campaigns by ASIN this makes it so much easier to quickly understand performance directly in the console by product!
#amazon #amazonppc #amazonadvertising #amazonads
Jan 31, 2023 12:00AM
Is a 1-year contract worth the risk? Aaron shares why they prefer month-to-month deals. Get an insider's take on why free trials and short-term agreements are the safer bet for clients in this article. Thanks, Aaron.
Aaron Cordovez
Should you trust a company that forces you into a 1-year contract to work with them?
OR
A company that gives you a free trial?
I have always done contract consulting work on a month-to-month basis because if I did a great job I would think the client would stay with me.
Honestly, if you get paid the month BEFORE the service, there is not a lot to lose.
When I see a 1-year contract, it SETS OFF A HUGE ALARM. Makes me think I will be unhappy by month 1-2 and won't be able to get out of the agreement.
Jan 31, 2023 12:00AM
georges.blog
1 A+ page every day.
My top 1000:
https://lnkd.in/eHqwyA-H
#itsalwaysdayone
Jan 31, 2023 12:00AM
The Dipping Cost of Shipping. Shipping costs returning back to pre-pandemic levels. Thanks, Visual Capitalist.
Mansour Norouzi
Charted: The Dipping Cost of Shipping
source: Visual Capitalist
Jan 31, 2023 12:00AM
Discover the Benefits of A-Z Testing for Your Product Description. Split testing your product description is a great way to optimize your sales on MYE. Learn how to create multiple main images and test cycles through all of them to determine a winner. Try using multiple titles already populated into MYE for maximum results. Thanks, Daniela.
Daniela Anavitarte Bolzmann
TELL ME: Would you ever split test your product description?
Excited to see MYE evolving BUT not sure product description would be top of my wish list.
THIS WOULD BE ๐๐ฝ A-Z testing rather than split testing
For example:
๐ฏcreate multiple main images
๐ฏtesting cycles through all of them until a winner
๐ฏtesting moves on to the next variable automatically
๐ฏ like multiple titles that we have already populated into MYE
A girl can dream right? ๐คท๐ฝโ๏ธ
TELL ME: Would you ever split test your product description?
#amazonfba #amazonbrands #ecommerce
Jan 31, 2023 12:00AM
8 deadly mistakes to avoid on Amazon in 2023. Learn how to protect your margins with these Amazon tips. From blaming the algorithm to lacking cost control, these 8 missteps could cost you in the online marketplace. Thanks, Martin.
Martin Heubel
8 things that will kill your #Amazon margins in 2023:
1. Blaming the algorithm
2. Listing your entire product portfolio
3. Not using data to inform your decisions
4. Business reviews without a clear agenda
5. Not having a distribution control strategy
6. Not measuring the ROI of each trade term
7. Offering cost support to increase cost prices
8. Not knowing your total costs to serve Amazon
Avoid as many of these as possible.
---
What else would you add? Let me know in the comments!
#amazonvendor #amazonstrategy
Jan 31, 2023 12:00AM
Discover the eCommerce brand making $1M+/week on email sales of a surprising product. See how they used a customer quiz to build a 2.5M email list & drive conversions. Key takeaways: data-driven personalization works & quizzes provide valuable customer insights. Thanks, Kenny.
Kenny Adegbulu
This eCommerce brand makes $1M+/week on email alone.
They have built a list of 2.5M+ email subscribers & gathered tons of first-party data.
What do they sell? Pooping Powder.
How do they do it?
I’ve broken down their strategy and how you can apply it to your brand.
The Brand is called ColonBroom
They receive about 500k visits to their site every month
Traffic is primarily driven through paid social: Facebook & TikTok
Here’s the real interesting part… their funnel:
All paid media leads to the same landing page, their diagnosis quiz.
Customers are asked 13 questions about everything from weight, sex, age & pooping habits.
The genius of this quiz is that it does the following:
- Helps the customer diagnose their problem: “You don’t poop enough”
- Encourages customers to share their goals: “What is your goal weight”
- Using data previously given presents ColonBroom as the solution: “ColonBroom can increase your bowel movements from 3 to 12 times a week”
ColonBroom knows only around 4% of customers will convert on the landing page alone.
Most of the conversions take place via email.
Using the data provided by customers via the quiz, ColonBroom sends a series of personalised emails:
- Email 1 - “84% of people who are {similar demographics as customer} achieved success with ColonBroom”
- Email 2 - Head of Nutrition, “I can help you achieve your goal of {weight/pooping}”
- Email 3 - “Still trying to hit {desired goal}? Get Exclusive discount”
- Email 4 - “Sorry, We’ve can only reserve your order for 24 hours”
These emails result in a conversion rate of 8%, driving millions of revenue for the brand yearly.
Key Takeaways:
- Customers are more than happy to share data if there is perceived value
- Quizzes are a great way to capture first-party data but also intent before conversion.
- Brands must use customer data to personalise the customer experience, increasing conversion.
#ecommerce #dtc #d2c #crm
Jan 31, 2023 12:00AM
Data reveals key metrics for Amazon ads in Q4 of 2022. Click-Through Rate, Conversion Rate, Average Order Value, Cost Per Click, and Advertising Return. Top of Search ads won in click-through rate. SD Audience targeting had the highest conversion rate. Sponsored Brands had the highest average sales per order. Sponsored Display Product Page was the most expensive in cost per click. Sponsored Brands Top of Search had the best ACoS and ROAS. Thanks, Joe.
Joe Shelerud
Curious how the key metrics compare between the different ad types?
This data set included almost 3 billion impressions and over 10 million clicks from Q4 of 2022.
The goal with sharing this aggregate data is to provide some benchmarks that I hope will be helpful. As always, there is a large mix of products in many categories where performance can vary significantly so keep that in mind when comparing to your own performance.
โก๏ธ Click Through Rate:
Top of Search ads took the win here for click through rate as usual. Sponsored Products TOS click through rates are significantly higher than any other ad type followed by Sponsored Brands TOS.
โก๏ธ Conversion Rate:
SD Audience targeting had the highest reported conversion rate but take that with a grain of salt. SD Audience targeting made up a small portion of our overall spend since we tend to run most audience targeting campaigns through Amazon DSP. When we do use this ad type, it’s typically lower funnel retargeting which uses view-based attribution so it’s not a direct comparison to click based conversion rates.
The next two highest performing placements were Sponsored Products Top of Search followed by Sponsored Display Product Page ads.
โก๏ธ Average Order Value:
The average sales per order were highest in Sponsored Brands campaigns followed by Sponsored Display. This makes sense since we tend to have a higher weighting of Sponsored Brands campaigns for higher priced products since they have a longer consideration period and require more mid-funnel advertising to drive conversions.
โก๏ธ Cost Per Click:
Sponsored Display Product Page placements where actually a bit more expensive than Sponsored Products Top of Search in Q4. SD Audience Targeting was next highest on a cost per click basis followed by Sponsored Brands Video ads.
โก๏ธ Advertising Return:
For the click-based attribution placements, Sponsored Brands Top of Search had the best ACoS and ROAS of any ad placement. This was followed by Sponsored Display Product Page placements and then Sponsored Products Top of Search.
There is a lot to unpack here so I’ll follow up with another post (and a podcast episode!) on our key takeaways and action items on how you can use this data.
Anything that surprised you?
Jan 30, 2023 12:00AM
Before investing in Amazon DSP. Consider these 4 factors for success: optimized PDPs, effective use of Amazon's sponsored ads, ASINs with positive ratings and reviews, and patience to find the optimal strategy. Exception: retargeting and remarketing campaigns don't require all 4 but perform better if they are met. Thanks, Jason.
Jason Landro
Don’t run Amazon DSP if you can’t answer yes to the following four questions:
1. Have you fully optimized the PDPs of the ASINs you are thinking of adverting through ADSP?
Put your best foot forward before investing in moving up the funnel
2. Are you effectively utilizing Amazon’s suite of sponsored ads on those ASINs?
If not, you can’t expect ADSP to work well
3. Do the ASINs have hundreds or thousands of reviews with at least a 4-star aggregate rating?
(Note: the amount of reviews should be competitive based on the category)
4. Are you willing to have patience to find the optimal DSP strategy?
It takes time to dial in the winning combo of audiences, targeting, and placements, and it doesn’t always happen on the first try.
The experimentation can cost you some money, so if your margins or budget is tight, you might not want to go down this path now.
However, there is an exception to the above test
If you want to run retargeting or remarketing campaigns, you don’t need to answer yes to all the above to have DSP work for you
The reason is that the consumers in either audience are either actively interested in your ASINs or they have already purchased your ASINs, so they should have high buying intent
Nevertheless, you will still perform better with retargeting and remarketing if you can answer yes to all four questions before you start
What are you considering before running ADSP?
#amazondsp #amazonads
Jan 30, 2023 12:00AM
Jan 30, 2023 12:00AM
Discover the surprising e-commerce power rankings. Japan is #2, Germany beats the UK for #3, and India rockets to the top. Explore the maturity of Amazon in Japan and learn about the quick rise of India in e-commerce. Thanks, Malte.
Malte Karstan
Often underestimated: maturity of Amazon in Japan!
Still, Japan is number 2, while Germany is leaving UK behind securing rank 3.
Also astonishing, how quick India outpaced the other territories. According to population size, it is of course not suprising at all.
Jan 27, 2023 12:00AM
Unlock the power of product-level advertising data on Amazon with this game-changing feature! Amazon Advertising now allows for detailed analysis at the product level, giving advertisers the ability to optimize campaigns and drive better results. Thanks, Aaron.
Aaron Cordovez
Wow... One of the most lacking features in Amazon Advertising is here.
Product-level advertising data!
Boom!
Jan 26, 2023 12:00AM
New Products tab in ad console makes taking product-level action easier. With features like exports, custom date ranges, and listing recommendations from Amazon. Thanks, Joe.
Joe Shelerud
New Feature: A “Products” tab is surfacing for some brands in the ad console.
The Products report breaks down product-level Sponsored Products and Display performance. Advertisers can now start with a product, then drill-down into all the campaigns and ad groups it exists within. The new layout makes taking product-level action so much easier than the previous UI.
Other nice features include:
โ๏ธ Allows exports and custom date ranges – streamlines access to product level performance data compared to advertising reports
โ๏ธ Multi-select products to add to existing campaigns or create new campaigns
โ๏ธ Quickly view listing recommendations from Amazon
Excited to see the rollout of this report expand to more brands – hopefully soon!
Jan 26, 2023 12:00AM
Why marketers should not just focus on ROAS? Learn how ChatGPT, other metrics, and long-term branding efforts can benefit your campaigns. Thanks, Robert.
Robert Avellino
#chatgpt : why should I not care about ROAS?
"ROAS (Return on Advertising Spend) is a commonly used metric to measure the effectiveness of digital advertising campaigns. However, it's important to note that ROAS should not be the sole focus of your advertising strategy. It should be considered in conjunction with other metrics such as customer acquisition cost, lifetime value, and engagement to gain a comprehensive understanding of the effectiveness of your campaigns. Additionally, focusing solely on ROAS can lead to short-term thinking and neglecting important long-term brand-building efforts."
That's a pretty friggin good answer...
If you're a marketer only focusing on #roas... #chatgpt will be coming for your job. CPCs are not getting cheaper, and overfishing your pond will not set you up for long-term success.
Time to think bigger.
#amazonadvertising #digitaladvertising #retailmedia
Jan 26, 2023 12:00AM
New feature for sellers: Package Hierarchy on Amazon's B2B section. Check out Brett's brief on how it can increase sales and provide value for sellers. Thanks, Brett.
Brett Bohannon
NEW Feature on Seller Central: Package Hierarchy
Just found this in the B2B section. Lost more to unpack but here is a brief.
From my understanding this was a VC program that was launched in 2022. Here is a snippet from Amazon " while providing value for sellers through increased growth. In the first half of 2022, case packs sales grew 16% faster than single unit sales, with 15% higher conversion for Amazon Business (AB) customers than single units."
There are two options : 1. Case pack option and 2. Amazon Bulk Services
All can only be done on flat files / templates (more to come on this)
You have to create case packs before you can create bulk (pallet offerings)
Program eligibility:
Only seller-fulfilled offers are currently eligible to participate in the program. We are working on extending support for Fulfilled by Amazon (FBA).
You must be brand authorized to be able to create a package hierarchy.
Every package configuration (unit, case, pallet) of a product must have a distinct external product ID (such as GTIN or UPC). The program is currently available for hardline and consumables product types.
Variation and Package Hierarchy difference:
"Package hierarchy is different from variation relationships. Variations are sets of products that are related to one another in terms of size, color, flavor, and so on. With package hierarchy, different package configurations (unit, case, pallet) are linked to each other through an established hierarchy. Features for better seller and customer experience, including the referral fee discount launched as part of the ABS program, are applicable for products linked using package hierarchy but do not apply to variations. Package hierarchy and variation relationships can co-exist, that is a product can be part of a variation relationship and also a package hierarchy at the same time."
I'll be unpacking this over the next week and look forward to bringing you more info on this.
Jan 25, 2023 12:00AM
Jan 25, 2023 12:00AM
Get ready for flat files with 10 bullet point options on Amazon. I don't think bullets are that important, but you shouldn't ignore this. Thanks, Brett.
Brett Bohannon
Flat files with 10 Bullet point options! Yeehaawwww
Haven't seen this yet and saw it for the first time working with a Canada seller.
Perfect timing for my take on this next week in the newsletter.
Amazon Cowboy ๐ค - we get it done!
Jan 24, 2023 12:00AM
George Barnett Reid
Top 1000 A+ Pages โก๏ธ Discover what the best brands are doing, then copy it.
https://lnkd.in/e79HrDSp
#itsalwaysdayone
Jan 24, 2023 12:00AM
PPC is crucial for maintaining organic ranking. Not cutting it can harm your business. A client cut their PPC budget and saw a significant decrease in sales and revenue. PPC and organic ranking drive sales and revenue together. Thanks, Daniel.
Daniel Orkun Duzgun
PPC is not needed if you're ranked organically. Really? ๐คจ
Today I want to discuss a topic that has been coming up in the Amazon Seller communities occasionally - how cutting PPC can actually harm your business.
We were working with a client who had a product that was ranked organically on the top of the first page of search results. They were convinced that PPC was not necessary and decided to cut their advertising budget for that specific keyword.
Then guess what happened? (insert drum roll here ๐ฅ)
๐ After cutting PPC, we saw a significant increase in their BSR from 3000 to almost 9000 in around 15 days which led to a decrease in sales and ultimately, a decrease in revenue.
This is just one example of how PPC and organic ranking work hand in hand to drive sales and revenue for your business and without the PPC, the organic ranking will eventually slip away.
#amazon #amazonfba #amazonseller #amazonadvertising #ppc #advertising
Jan 24, 2023 12:00AM
Amazon's new RX service brings relief to those struggling with rising healthcare costs. A move that's been coming since 2019's PillPack purchase. Simplifying and innovating healthcare for all. Check it out and let me know your thoughts! Thanks, Jeffrey.
Jeffrey Cohen
Glad to see Amazon continue to disrupt the #RX market. This is a move that we have seen coming since Amazon purchased PillPack for $753M in 2019. Andy Jassy is showing that Amazon is still looking to innovate and simplify. This new service will bring relief to those who struggle with the rising costs of healthcare. I am lucky to have good #healthcare, but I know that isn't true for others. I also applaud the likes of Mark Cuban, who have also taken steps to reduce these costs.
If this applies to you, please check this out. Let me know what you think of the program.
You can read it about it here.
Jan 24, 2023 12:00AM
Want to know if Buy with Prime is worth the operational investment? Find out how much you'll pay in transaction fees and learn the true value of the service in this article. Thanks, Marketplace Pulses.
Marketplace Pulses
Buy with Prime fees are 20-40% per transaction, or even more for items below $20 due to the $1.50/order minimum Prime service fee. Yet, fees are not as critical as whether Buy with Prime is worth the operational investment.
You can read about it more here.
Jan 24, 2023 12:00AM
Are you missing out on crucial insights into your customer's buying behavior? Check out this graph from Amazon Marketing Cloud data, showing the amount of time between a customer's last click and their purchase. Half of the purchases take place within 10 minutes of the last journey click, this data can significantly help in shaping and strategizing the funnel. Thanks, Dustin.
Dustin Wassner
Are you missing out on crucial insights into your customer's buying behavior?
Check out this graph from our Amazon Marketing Cloud data, showing the amount of time between a customer's last click and their purchase.
This data aggregates all 3 Ad Types, and DSP. The DSP data plays a significant role in these specific results.
For this brand, half of purchases take place within 10 minutes of the last journey click. This is important to know.
Knowing this data for a specific product line, or brand as a whole, can significantly help in shaping and strategizing the funnel. This will vary per brand, and will change based on how the data is segmented.
This is just one of MANY ways that AMC data can be utilized.
Got question about how AMC can be used to help your brand? Feel free to reach out. Destaney Wishon is also a great resource, and is probably a lot more enjoyable to talk with ๐
#amazonmarketingcloud #retailmedia #amazonppc #customerjourney
Jan 23, 2023 12:00AM
If you run an e-commerce brand, you are likely overspending on branded search ads. Amazon's internal numbers show that when we run no ads on SM key terms, we still receive 95-99% of the total clicks! Use very low-cost-per-click bids to optimize your ad spend. Elite e-commerce performers stand out by finding and limiting these taxes. Thanks, Mike.
Mike Beckham
If you run an e-commerce brand, you are likely overspending on branded search ads.
Buyers who search brand names have a very high purchase intent.
Amazon's internal numbers show that when we run no ads on SM key terms, we still receive 95-99% of the total clicks!
If you are going to do it - use very low cost-per-click bids.
Ad systems look at this formula:
Expected Revenue = Click Through Rate (CTR) x Cost Per Click (CPC)
Because you will have a very high CTR, you can still win placement with extremely low CPC bids.
It can make sense to spend on branded terms if you are paying a low enough cost per click.
It doesn't lead to many incremental sales, but it does lead to some.
The problem is that it is very difficult to see the signal through the noise. Take all ROAS data with a boulder of salt.
There are many silent taxes that Google, Facebook, Amazon, et al. charge daily.
These costs add up and chip away at your profitability.
Finding and limiting these taxes is part of what makes the elite e-commerce performers stand out.
Jan 23, 2023 12:00AM
UK cost of living crisis is driving change in consumer shopping behavior. 64% of shoppers switching to cheaper brands, value-based keyword searches up 46%, own-label purchasing up 13.3%, and 42% of shoppers used loyalty schemes to save money. Brands need to streamline, innovate and increase visibility to counter private labels' increased share of search on retailer sites. Thanks, Mike.
Mike Black
The UK cost of living crisis is driving major change in #consumer shopping behavior. Here are some stats:
๐ 64% UK shoppers are switching to cheaper brands
๐ Value-based keyword searches ("cheap", "offer", "budget") are up 46% within grocery
๐ The number of shared unique visitors between Sainsbury's, Tesco, Asda, Waitrose & Aldi increased by 36% YOY -- showing that shoppers are value-shopping more than ever
๐ค Own-label purchasing is up 13.3% YOY and PREMIUM own label brands are up 10.25%
๐ฒ 42% of shoppers are using loyalty schemes to save money
๐ More consumers favor large packs (example: larger packs of wet cat food are up 9 PPT vs smaller packs YOY)
How should brands be responding?
1. Streamline, rationalize & innovate your ranges
2. Put pack sizes under review
3. Closely watch competitor price & promotions to avoid being behind the discounting curve
4. Increase the visibility of your brand to counter private label's increased share of search on retailer sites
5. Enhance content to educate on the value offered by your brands
LAST WORD
Just because you're in the premium space doesn't mean you can't win in a down economy. As consumers scale back expensive discretionary items (TVs), they will indulge in other ways to compensate. This is called the lipstick effect. ๐
One sign of this happening now -- Amazon sales for "premium" coffee capsules are up 50% YOY.
(All of the above was sourced from a great white paper co-developed by Publicis Commerce and Profitero)
Link to download the report.
Jan 23, 2023 12:00AM
Learn how Amazon's Choice badge impacts your search performance with 2 new reports. Amazon's Choice Badge Data & Search Funnel Outliers Data, available in the Seller Central dashboard. Get insights on top & bottom-performing search queries for your brand, and avoid going through all search queries. Thanks, Joe.
Joe Shelerud
Did you know that you can see the impact of having the Amazon’s Choice badge on search performance?
We’ve been able to download the Search Query Performance report for a while now, but the dashboard also has two additional reports that can be exported.
The first is the Amazon’s Choice Badge Data – Monthly Report:
- This report shows your brand’s overall search query performance with and without the Amazon’s Choice badge.
- Overall, it will give you the impact of the badge on your performance.
The second report is the Search Funnel Outliers Data – Monthly Report:
- This report breaks out the top and bottom performing search queries for your brand.
- It labels the top search queries as “high performers” while labeling lower performers as “opportunities” in the report.
- The goal of this report is to avoid having to go through all search queries and just be able to focus on the outliers.
To find these reports, go to Seller Central -> Brand Analytics -> Search Query Performance. Make sure you have selected a reporting range of “Monthly” and then click Generate Download. Data for these reports will be available from 9/1/22 onward.
Jan 21, 2023 12:00AM
Want to improve your ad conversion rate? Check your ad relevance and conversion rate - increase in ad relevance leads to 2x higher conversion rate. Thanks, Elizabeth.
Elizabeth Greene
There's two components to ad conversion rate
1) How well your ads convert
2) How targeted your traffic is
Highly relevant traffic is how we were able to have ads converting at 8% when the account average was 3%.
That's over 2x!
If you're struggling to get results in your ads, check conversion rates
Both the unit session percentage and ads