Advertising costs have skyrocketed, but orders have plummeted, and the internal competition among Amazon sellers has intensified!

"Everyone is going crazy, my profits are going to be swallowed up by advertising!"

This year, Amazon sellers have transformed themselves into cross-border philanthropists, also known as the cross-border Wu Sangui. One cabinet is for giving away, one cabinet is for swiping, and one cabinet is for flash sales. Even if they don’t make money on the Amazon platform, they will buy advertisements for their brother-in-law!

In recent years, Amazon advertising has become increasingly expensive, and the recent frequent account suspensions have made competition among sellers at the advertising level even more intense.

When Amazon advertising also began to roll out inward, the order situation of a large number of sellers became worse, which meant that the ranking that "Cross-border Philanthropist" had worked hard to obtain during the Member Day might be about to be unstable.

Therefore, for Amazon sellers, how to stabilize sales and rankings after Member Day becomes the top priority (there is some useful information on this in the article).

Advertising costs are rising sharply, and Amazon sellers are crying!

Before Membership Day, the editor saw many sellers complaining that advertising fees are getting more and more expensive.

According to established rules, sellers' advertising expenses will increase during Member Day.

As expected, during Membership Day, many sellers reported that their advertising fees had increased significantly, but there was no return - not a single order was placed.

Many sellers are still fantasizing that after Member Day, advertising expenses and order volume will be directly proportional. However, the reality is contrary to their wishes. Nowadays, the editor sees more and more complaints from sellers: advertising fees are skyrocketing like a rocket!

The ads are still there, but there are no sales. Isn't that infuriating?

Advertising fees are too expensive. For the same number of clicks, advertising fees are much more expensive than in the previous two months.

After Member Day, sales were extremely poor and advertising data was even worse, with ACOS exceeding 300%, but only clicks without conversions.

My home furnishing category, 10 to 20, it’s too crowded.

My brother-in-law's spaceship is not burned by fuel, but by our advertising fees. Everyone here has worked hard for my brother-in-law to go to space!

When I opened my eyes, all the advertisements in the store only had one offer with an acos rate of 500%. I thought it was a joke my brother-in-law was playing on me before he went to heaven.

…

The editor learned that the lower the average order value of many sellers , the higher the CPC. In addition to the 3C category, sellers in almost all categories such as beauty and health, pets, home furnishings, and auto parts are troubled by high advertising costs. They know that the advertising costs are being wasted, but they can't stop. They can only open the backend with a curse every day , and then ship the goods with a curse, and increase the advertising with a curse.

"The internal competition among Amazon sellers is fully reflected in advertising." The editor learned that the average cost per click of ads on Amazon is now $1.20, up 30% from $0.93 at the beginning of the year and up more than 50% year-on-year.

The demand for advertising on Amazon is growing faster than the inventory of advertising on and off Amazon , which has pushed up advertising prices. Industry insiders said that many new sellers have entered Amazon this year, which has directly intensified competition among sellers at all levels. Everyone has increased their advertising budgets, which has directly increased advertising costs. At the same time, the recent frequent account suspension incidents have also caused some sellers to give up illegal practices such as evaluation and fake orders. After these people "turned over a new leaf", they turned their attention back to advertising. When everyone is working hard on advertising, this has also pushed up advertising costs to a certain extent.

An Amazon seller said that before June, his average bid in the 3C headphone category was about $3.5 per click. Now that everyone is running ads normally and not making fake orders, his CPC bid has soared to more than 4 points or even higher.

Another seller of pet supplies said that it would cost 2.5-3 US dollars to bid for a small keyword to be on the homepage , but his own selling price was only 12 US dollars. Excluding advertising fees and 3.5 US dollars in FBA delivery fees , he made almost no money on an order. What’s scary is that at this time, there are sellers in the same industry selling this product for 4.99 US dollars ... When high advertising fees meet a price war with no bottom line, the seller said that he was questioning his life after selling on Amazon !

Research shows that Amazon advertising has already pushed up customer acquisition costs by more than 20%, and will only get higher in the future . A large number of Amazon sellers have ultimately made themselves poor while enriching the platform.

It is understood that Amazon's advertising business grew by 52.5% last year . Some time ago , eMarketer predicted that Amazon's US advertising business would grow by another 30.1%, exceeding $20 billion for the first time . Based on the current situation of Amazon sellers spending a lot of money on advertising, the editor predicts that the revenue growth of Amazon's US advertising business in 2021 may be higher than the predicted value.

Orders are so poor, how can sellers maintain sales and rankings?

Summarizing the recent situation of sellers, it can be found that although advertising fees are still being spent, the order situation of Amazon sellers is not optimistic.

Especially after Member Day, the orders of a large number of sellers dropped like a slide, and the effect of sales volume drop was very significant.

Therefore, after Membership Day, how to stabilize sales and rankings becomes the top priority.

Weibo user "Xiafanmao" said that to stabilize rankings, it is actually necessary to stabilize traffic. Generally, there are two main actions:

1. Maintain current keyword rankings

2. Improve the ranking of missing keywords

The greatest value of a big promotion is actually in the ending part, because the surge in traffic brings in a large amount of data.

It is necessary to collect records: the main competitors and new competitors of the day, as well as the rankings of all your keywords. After a week, do a comparative analysis (it is best to record this action for a week)

By cross-comparing the three types of data, we can determine which keywords are truly valuable.

Due to the weight, the ranking of some keywords will soon collapse. These words are what you usually ignore, but they can accumulate and bring stable conversion data.

Some sellers have a misunderstanding that everyone's word composition is the same, but the order ratio is different. The theory is correct, but the problem lies in the optimization of operations. Sellers should not follow the same direction as big sellers. Instead, they should focus on their own advantageous long-tail traffic first. Form a traffic fortress, and then develop new traffic words.

After the statistics are completed, the keyword data will be roughly divided into three types:

1. Only your keywords on the homepage.

These are the exclusive traffic tags for your listing. Keeping them is the top priority. Losing them is like losing your base camp. When optimizing your copywriting, be sure not to change the words in them.

2. The top competitors, adjacent competitors, and you are not on the first three pages of keywords.

These are useless words. Generally, they have low search volume or are too broad. Overall, they will only drag down the weight of the ad. If you really think they are useless, you can use human intervention, which is more cost-effective than advertising.

3. Keywords that are not on your homepage.

This is more common. It belongs to the main battlefield. Different advertising optimization strategies need to be adopted according to the degree of competition and own conditions. Big keywords need accumulation, and it is not possible to catch up overnight. We can start with keywords that only have a few adjacent competitors on the homepage, and improve them one by one.

Note: The suggestions from Weibo user "Xiafanmao" are for reference only. Sellers in need can take a look at them.

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