According to the survey, 59% of Amazon sellers cite increased ad spend as a major concern. For advertising, Amazon sellers often fall into a vicious circle: if you don’t advertise, you won’t get orders ;

46% of sellers believe that advertising strategies and budgets are challenging. For example, for some products, it may not be possible to push them up, and if it is pushed up, they may encounter involution.

32% of sellers plan to spend more money on advertising. Amazon’s financial report shows that Amazon’s advertising revenue is growing steadily, which also indirectly shows that sellers’ advertising expenditures have increased.

The arrival of the epidemic in 2020 has promoted the transfer of offline consumption to online, driving more Amazon sellers to flood in, and leading to more intense competition. This phenomenon is also reflected in advertising. In the past two years, the cost of advertising has gradually increased, and ROAS has shown a downward trend. 

As can be seen from the above figure, the ACOS of products with low prices is higher, while the ACOS of products with high unit prices is lower.

Why?

Due to the low threshold for low-priced standard products, everyone competes with each other, and the bidding price also increases. Therefore, the lower the order price, the more standard products, the higher its CPC; the higher the customer order, the more non-standard products, its slightly lower CPC.

Therefore, if you want to choose some standard products, try to make a difference, that is, non-standard products; Single quantity to promote the natural ranking of keywords to rise faster.

2. How to increase the value of traffic on the site?

What is the main traffic on the site, and how to make full use of this traffic?

1. Natural search traffic, which is the most used and most mainstream traffic method on the site:

natural search terms;

• AC recommendation words——Amazon’s choice;
• ER recommendation words——additional recommendations——Amazon official or third party internet celebrity product recommendation for post evaluation;
• BO recommended words——best overall;
• Star recommendation words – 4+ star styles – more than four stars, with at least 100+ product reviews.

The most important of these is the natural search term. It must be remembered that keywords are the main factors that promote the rapid improvement of rankings. Only high clicks, conversion rates, and keyword orders will increase the natural position and bring more organic search traffic.

Another factor to push natural search traffic is that if you rely on advertising, the cost is high, and if you rely too much on advertising when the conversion of advertising becomes poor, it will easily lead to a decrease in the overall order volume.

How high is the click-through rate? How much is low? The click-through rate of 0.3% and below is relatively low, and 0.7% is a relatively good value. If the click-through rate can be maintained at 0.7% and above, it means that the click-through rate is very good.

Another one depends on the conversion rate. Check the commodity detector, if it is between 1.5 times and 3 times the average value of the category, and the keywords are increasing every day, it means that the conversion rate is very good.

Therefore, only by improving the natural ranking and reducing reliance on advertisements can links be in a healthy state.

2. Paid search traffic:

• Brand headline advertisement;
• SP advertising words;
• HR recommendation words—high rated—advertisements often appear on the first line of the homepage, with good conversion, more than 4 stars, and at least 100+ comments;

Branded video ads.

It is worth noting that brand video ads, video ads are the type of ads with the highest click-through rate and the best conversion rate on Amazon, so everyone should make good use of them.

Paid search traffic will eventually be transformed into natural search traffic, and paid search traffic needs to keep contributing about 30% of the order volume. There are too few advertising sheets, which means that the contribution is too small on the way to promote links, which will further inhibit the further development of links. If the ratio reaches 5:5, with half of the advertising and half of the natural segment, it means excessive reliance on advertising.

If the number of orders increases steadily, and more and more, the budget for advertising investment should increase accordingly. Sellers should try their best to keep ACOS around 15%, 15% is an ideal value, and the range of 10%~20% is reasonable, so we must make full use of this advertisement.

3. Other traffic:

In addition to the most mainstream traffic, there is also some other traffic, such as category traffic, list traffic, and promotional traffic:

1. Category traffic:

Select a category on the left side of the search box;

The parameter column on the left side refines the category screening – prime, brand, price segment, and star rating.

Therefore, the product parameters must be written as perfectly as possible to participate in an algorithm of A9.

2. Ranking traffic:

• Bestseller;
• New releases;
• Movers & shakers;
• Most wished for;
• Gift ideas.

3. Promotion traffic:

• Lighting deals;
• Best deal;
• Top deal/DOTD;
• Coupon;
• Outlet;
• Warehouse deals;
• Woot! Deals.

4. Associated traffic:

Generally speaking, search traffic is required for standard products, and related traffic is required for non-standard products.

There are mainly the following types of associated traffic :

• Natural Associated Traffic
• looked and looked;
• similar products;
• watched and watched;
• buy everything you see;
• bundling;
• Combo purchase;
• More related;
• brand recommendation;
• Amazon post;
• Upgrade;
• related videos.
• Paid associated traffic:
• product advertisement;
• Four-star product;
• brand advertisement.

focus:

Independently set associated traffic + paid advertising to play associated traffic;

Advertising Association: keyword broad matching, product positioning, automatic advertising, SD advertising.

3. How do small and medium-sized sellers arrange out-of-site traffic

1. Off-site promotion what are the channels?

deal station, various groups, KOL, SNS, and independent station.

2. Why do you want to do off-site promotion?

Improve product sales and ranking: replenish orders for new products, activate half-dead links, clear redundant inventory, and relieve inventory pressure;

Increase traffic search and brand promotion: customers search and shop on Google, and customers search and shop on the site to increase traffic entrances;

Ease the pressure of competition in the station: obtain cheaper traffic outside the station, and promote products outside the station;

Protection of links in the site: independent sites prevent the links in the site from being complained by others.

How Fulfillmen Can Help You

If you’re looking for ways to enhance your e-commerce solutions, we can help you here at Fulfillmen.

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We work with e-commerce solutions, logistics, dropshipping, product sourcing, and many more. Just reach us out and we’ll help you with your needs! You can reach us out here.