Amazon Seller Survey: 46% Expect Lower Margins Podcast #101 | Summary and Q&A

TL;DR

Retailers are seeing strong growth on Amazon but are worried about declining profit margins and the lack of quality access to data for efficient marketing efforts.

Key Insights

• 🙈 Retailers are concerned about declining profit margins on Amazon despite seeing strong sales growth.
• 🖤 Many brands lack access to quality data for refining and optimizing their marketing efforts on the platform.
• ☠️ Amazon PPC offers better conversion rates compared to other platforms, making it a preferred advertising option.
• 🖤 The lack of effective tracking tools for external traffic to Amazon is a major challenge for marketers.
• ❓ Manufacturers are prioritizing investments in Amazon DSP to reach consumers across various stages of the sales process.
• 💦 Retailers are recognizing the importance of marketplace control and are working on distribution strategies.
• 🆘 Enforcing MAP (minimum advertised price) policies can help manufacturers avoid price undercutting on Amazon.

Transcript

i've got some interesting amazon data survey facts and figures for you today my name is stephen pope i'm the founder of my amazon guy this will be just kind of a short news beat if you will talking about some survey results so this survey uh comes from the cleveland research company and this is basically a summary of a virtual summit got five short... Read More

Questions & Answers

Q: What is the biggest concern for retailers regarding Amazon's business performance?

The survey reveals that retailers are worried about declining profit margins despite experiencing growth in sales on Amazon.

Q: Why do brands prefer to invest more in Amazon PPC than other platforms?

Brands find better conversion rates on Amazon compared to other platforms, making it a more cost-effective advertising option. Additionally, higher ad costs on Amazon can help improve keyword rankings, unlike on websites.

Q: What are the challenges of sending external traffic to Amazon?

Amazon's tracking tools for external traffic are still in beta and unreliable, making it difficult for marketers to track and optimize their campaigns effectively. As a result, many marketers are redirecting traffic to their websites instead.

Q: Why are manufacturers increasingly investing in Amazon DSP?

Manufacturers see Amazon DSP as a valuable tool to reach consumers throughout the sales funnels. It offers targeting improvements and is seen as a more effective way to increase brand visibility and sales.

Summary & Key Takeaways

• Many retailers are experiencing better than expected demand on Amazon, but they are concerned about declining profit margins.

• Most companies are participating in advertising on Amazon, but two-thirds of brands lack enough quality access to data for optimizing their marketing efforts.

• Manufacturers are focusing on paid search advertising on Amazon, and there is an increasing demand for Amazon DSP (demand-side platform) to reach consumers across sales funnels.