Did Something Go Wrong With My Amazon Sponsored Ads
If you use Amazons PPC ads, you know that theyre a huge source of traffic and sales. If youre not using Amazon PPC yet, you need to. To get started, check out our other article, How to Set Up an Amazon PPC Campaign where we give you step-by-step instructions to setting up your first campaign.
If youre running Amazon PPC, this is a great place to look for the answer to your sales slump. Two common scenarios that have caused Amazon sellers great anxiety are:
Amazon Web Services Statistics
- As of January 2021, AWS is used in over 16 million websites around the world.
- AWS is one of the biggest revenue generators for Amazon. For example, in Q3 2020 alone, the segment generated $11.601 billion in net sales, an increase from $10.808 billion generated in Q2 2020.
- Furthermore, statistics show that in Q3 2020, AWS registered a 29% year-on-year growth in net sales. The growth rate was the same for Q2 2020.
- AWS accounted for 33% of enterprise spending on cloud infrastructure services, followed by Microsoft .
- Meanwhile, Google, Alibaba, and Tencent combined comprised 17% of the market share.
- In the middle of the pandemic, AWS was one of the four largest public cloud providers with strong revenue growth at 29%. The rest were Alibaba , Microsoft Azure , and Google Cloud .
AWS is an extremely profitable venture that is starting to imprint its dominance in the public cloud services market. To illustrate, with over 8,000 partner network members, 1,900+ AWS third-party software products, and 70+ infrastructure services, the AWS is a force to reckon with. Having generated $26 billion in revenue in 2018 alone, AWS is proving to be yet another dominant force unleashed by Amazon.
Reselling Can Be Challenging On Amazon
Many businesses try to resell products on Amazon. However, you need to be careful if you intend to go down that route. You could easily find yourself competing against others reselling the same product and often also the brand that sells you the product. As you all essentially sell the same good, you will all be competing for the coveted Buy Box position, with that usually going to whoever has the lowest price . You often find that some small business, which does not understand its whole cost structure, will underprice everybody else below the actual cost and gain the Buy Box, ultimately making a loss.
If you want to resell on Amazon successfully, you should seek an exclusive sourcing relationship with the brand from whom you are buying your inventory. You also need an agreement from the brand that it wont sell directly on Amazon or become an official Amazon vendor without giving you sufficient notice. But, of course, it can be difficult to find brands that will agree to the requests.
A recent trend is for resellers to develop private label brands, enabling them to become exclusive resellers of their own brands. Of course, there will still be others selling the same types of products, but you can concentrate on marketing your brand.
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The Increasing Amazon Market Size:
- Amazon saw a boost in revenue of 35% in the first three quarters of 2020.
- Interestingly, in Q3 of 2020, Amazon announced an increase in 37% of net sales, hitting $96.1 billion in revenue.
- Besides, in the most recent years, Amazon has recorded steady growth in net revenue. To illustrate, 2016 , 2017 , 2018 , and 2019 .
- As of July 2020, Amazons market value had reached $1.49 trillion.
- In 2020, Amazons projected share of the retail e-commerce markets in the U.S. was at 47% and is predicted to increase to 50% in 2021.
- Amazons global retail e-commerce sales are expected to decrease slightly to 15.9% or $468.87 billion in 2021.
- In 2019, U.S. e-commerce sales figures reached $602 billion. Amazon sales comprised 36.9% of all U.S. e-commerce sales during this year.
- In 2020, Amazon ranked as the top U.S. company in retail ecommerce sales, capturing 38.7% of the market. It is followed by Walmart and eBay .
- However, when it comes to gross merchandise value of global online marketplaces, Amazon only ranked third, generating $339 billion in 2019. The top spot went to Taobao with $538 billion in GMV.
Amazon Prime Day Statistics
Another one of Amazons ingenious creations is Prime Day. This shopping holiday was first held on July 15, 2015, in celebration of Amazons 20th anniversary. Prime Day is an annual shopping window that is exclusively available to all Prime members. The shopping holiday is reminiscent of Cyber Monday or Black Friday. However, unlike the other two shopping holidays, Prime Day deals are offered in a 36-hour window.
- Prime Day 2020 sales registered a record of $3.5 billion, which exceeded 2019 sales by around 60%.
- Over $10 billion worth of products were sold on Amazon Prime Day in 2020.
- During the fourth quarter of 2020, 67% of people planned to make a purchase on Amazon Prime Day. 65% of people planned to shop on Cyber Monday and 59% on Black Friday.
- On the first day of Prime Day, Amazon saw a lift of 700% in units sold.
- Product views increased by 5% in Prime Day 2020 compared to the previous year, while unique purchases increased by 51%.
- 62% of shoppers bought holiday gifts on Prime Day 2020.
- Amazon product sales comprised 65% of Prime Day sales while 35% came from marketplace products.
- In the U.S., electronics was the most purchased product category on Amazon Prime Day at 32%, followed by household essentials , health and beauty , and toys and video games .
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How Do I Find The Sales Volume For Amazon Categories
You can find the sales volume for Amazon niches using the AMZScout PRO Extension. Search the niche in Amazon and open the tool. In addition to sales estimates for individual items, it will show an average for the niche. Multiply the average by the number of products to get a total volume for the top products.
Find Profitable Amazon Products
So, hereâs another important thing to remember Just because a product has a good Best Sellers Rank, does not mean it is necessarily a good product to private label and sell.
Below, you will find some key considerations to help you determine just how profitable your product of choice could be for your business.
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Characteristics Of A Good Product
1. Retail price between $25 $50 USD
We discovered that this price range makes it easy to cover direct costs like Amazons fees, cost of goods sold, and advertising costs. Any higher than $50, and your conversion ratethe percentage of people that see your product and purchasedrops.
2. Low seasonality.
We are after products to sell all throughout the year and not just during certain seasonal periods. The Google Trend Report is built right into the Chrome Extension to detect seasonal sales spikes you can easily avoid.
3. Less than 200 reviews for the top sellers
4. Small and Lightweight
It is much faster and easier to import via Air, so you want something that wont be too expensive to import.
5. Can be improved.
You can implement feedback from your competitors product reviews and create an improved and superior product.
6. Simple to manufacture.
You dont want to run into quality control or manufacturing challenges. Avoid glass, electronics, or highly complex products if you can.
These are just guidelines, and a blueprint that we have used time and time again as a team of Amazon sellers. Every product has its own unique balance of opportunity vs competition.
Using Keepas Google Chrome Extension
Now that you have an idea of why this information can be important, you can use Keepas Google Chrome extension to:
- Determine average sales ranks
- Evaluate price history and stability
- Update the prices on products you have listed for sale
- Determine your risk profile in regards to the number of other offers on the listings
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Fields In The Sales Report Csv File
The CSV file is a text file with a .csv file extension. The CSV file must use UTF-8 encoding to support localized strings.
The CSV file contains one header row . Each subsequent row in the file contains the information for one report item. The Invoice ID field defines a unique identifier for each line-item in the report.
The following table describes the fields for each entry in the CSV file:
The possible values for the in-app subscription status field described are as follows:
- TRIAL â Orders that are free of cost.
- PAID â All paid orders except for introductory price and promotional price orders, described below.
- Introductory Price – All Customers â Orders paid at an introductory price that was available to all customers .
- Promotional Price – Lapsed Customers â Orders paid at a promotional price that was available to lapsed customers only.
The introductory and promotional price values correspond to the promotional pricing plan configured by the developer.
Consider the following example.
- A subscription plan is configured to offer a monthly free trial, followed by an introductory price for the first three months, followed by the regular plan.
- The promotion type is classified as “Introductory Price – All Customers”.
When a new customer purchases the subscription, the in-app subscription status of those orders appear as listed in the following table.
Amazon Earnings From Prime Subscription Speaks Volumes:
- Amazon statistics show that in Q3 2020 alone, the firm gained $6.58 billion in revenue from the subscription services category.
As Amazon statistics have shown, there is an influx of consumers into Amazon Prime. The service has caught the attention of many consumers, and its popularity is set to continue to snowball. Whats intriguing is that Amazon Prime has quashed one of the most prevalent eCommerce challenges, shipping, besides its other inimitable benefits.
The Prime subscription program is a supreme example of Amazons innovation prowess. It signifies Amazons relentless endeavor to extend its reach and command all facets of the customer purchase journey.
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Checking For Indexing On Your Amazon Listing
Once you have made changes to your Amazon listing, we recommend that you wait 24 hours before checking to see if you are indexed for the appropriate keywords. You can check keyword indexing for free manually with the following method:
- Open an Amazon page and make sure All Categories is selected.
- Type in the Amazon Standard Identification Number of the product and keyword you want to check.
- Hit Enter.
If the product is indexed for that keyword, it will show us as a result .
If the product is not indexed for that keyword, the product will not appear in the result.
Suppose you are looking to check indexing for many ASINs or keywords we have found a paid tool that works well. KW Indexer is a Chrome extension allowing you to type in the keyword and check through the extension.
How Do I Find Sales Volumes On Amazon
To find the BSR of any product, visit the product page for a particular ASIN on Amazon.com and scroll down to the Product Details Section. Here you will see in bold Amazon Best Sellers Rank for the product you are viewing along with its rank in related subcategories. There are more than 60K subcategories on Amazon.
Furthermore, Can you see how many sales on Amazon?
To find the BSR of any given product, just scroll down to the Product Details section on that products Amazon listing. Youll see that the top-level BSR is #2,150. The additional BSR listed underneath the top-level is for sub-categories, and can be ignored.
Then, How do you check popularity on Amazon? In order to find the Amazon product ranking for a given product, first go to any Amazon product page. Once you are on the product page, scroll down to the Product Information section. On the bottom of the chart, you will see Best Sellers Rank on the left hand side of the chart.
How do I find my daily sales on Amazon? Once youve logged on to your Seller Central account, scroll down to your Sales Summary section on the right side of your page.Then click on View more of your sales statistics.
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Target Locations Where Your Book Has Already Found An Audience
Plan Future Promotions
Armed with knowledge of which promotion efforts have led to sales, you can plan how best to spend your time and money promoting your book. Guest blogs and webinars may not generate great sales for my books, but they put the titles in visitors minds, take little effort, and cost nothing. A paid ad is a different story. If I dont see an uptick in sales, I may think twice before continuing or repeating the ad.
Look at your sales over time. If they peak in certain months, concentrate your promotion to hit buyers at or just before the peak. You might even want to visit Amazon pages for related books to see if their sales ranks improve at certain times. Readers may be buying these books seasonally, and you can target your promotion to inform potential buyers about your book before they blow their budget on competing content.
Use information from the geographic BookScan reports, available through Amazons Author Central, to plan a virtual or live book tour. Target locations where your book has already found an audience.
Laurie Lewis is the author of the award-winning book, What to Charge: Pricing Strategies for Freelancers and Consultants, and the brief e-book, Freelance Fee Setting: Quick Guide for When a Client Demands a Price NOW. She bases these books on more than twenty-five years of experience as a freelance medical editor and writer.
What Is Multidimensional Methodology
The Multidimensional Methodology will help you determine your profitability at the SKU level so you can make the most informed business decisions, including:
- Returns management.
- Vendor negotiations.
First, well go through the most effective methods to measure profitability on Amazon, and then well get into the specifics of how you can squeeze the most profit out of each dollar you invest.
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How Much Does Keepa Cost
Keepa costs 15 per month, which is a little less than $17 per month as of October 2019. This is for their premium plan with all of their features. They do have a free plan that provides certain info, but doesnt cover everything we talked about in this post. And we arent getting paid to say this, there arent any affiliate links for Keepa in this post, were just sharing some of the details on a tool we believe can help you in your business.
This is a very inexpensive tool for your business when you consider the data it gives you access to. You should have no trouble getting a positive ROI on this investment, as it gives you access to data that ensures your buying, pricing and research decisions are the best they can be.
Although this product was completely free up until early 2019, you shouldnt even think about looking for a substitute product or a way to do the same research without paying for the subscription. The cost to not use the software is too great!
Get Your Pricing Right
With how much competition there is on Amazon, pricing plays a huge factor in customers buying decisions.
Think about it from a shoppers point of view. Everyone wants the best price. If a customer is weighing up your product versus another, price is often the determining factor.
This is especially true if youre selling against multiple sellers on the same listing. When selling the exact same product, 99% of the time, the customer will choose the lower-priced item. The chances that you can convince someone to pick you because you have a better seller feedback profile is pretty small.
In this case, it might be worth investing in an automated repricing tool to adjust your pricing and stay ahead of the competition.
While its most common to lose out by pricing your products too high, the opposite can also cost you money.
You dont want to sell your products too cheap. Many people sell their products much cheaper than the competition when they could get the same number of sales by raising the price.
Thats why you need to price competitively. Too far above or below the price point of similar products will cost you money.
Bottom line: you may be missing out on sales by pricing your products too high. Check up regularly and make sure your pricing is competitive. Be careful of pricing your products too low, too, as this can be another way youre losing money.
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