April Amazon Recap
From getting new MPS team merch to planning our next Webinar, Advanced Amazon Advertising Strategies to Maximize ROI, April was a fun-filled month for the MPS Team! Check out all the thought-provoking articles and changes to Amazon that had our office abuzz this past month.
Key Industry Happenings & Platform Updates
- In mid-April, Amazon started publishing the criteria for the coveted "Amazon’s Choice” badge on product detail pages. Next to the badge, it read “Why we love this product” with three reasons the particular product was awarded the badge for a given search term. Thus far, the four different bullets we have seen are: “Highly Rated” (reviews), “Popular Item” (related to the specific search term), “Prime Delivery”, and “Low Return Rate”. The Choice badge not only lends credibility to the product and therefore increases click through rates and conversion rates, it is also the default item chosen for Amazon Alexa voice searches, which will become an increasingly important designation as voice shopping grows. https://bit.ly/2vry0ON
- In Amazon's annual shareholder letter, the CEO provided us some interesting insights, including the fact that Prime Members exceeded 100 million globally! And, for the first time, more than half of the units sold on Amazon were from 3Ps, via Seller Central. This is quite the shift! Although a good majority of these units are likely being sold through businesses that are completely new to the marketplace, we think this statistic also reflects the important and growing trend of brands moving part, or all, of their business from selling direct to Amazon (1P) to selling direct to the end consumer via Amazon (3P). Check out the letter here: https://bit.ly/2qGKiOl
- Although, surprisingly not mentioned in the annual shareholder’s letter, Amazon’s ad revenue continues to grow significantly, with particular increases in Sponsored Products and Headline Search Ad spend. But, as all marketers know, along with increased interest, comes increased prices. A report by Merkle states that CPCs (cost per click) forSponsored Product Ads are up 65% year over year and Headline Search Ads are up 128% year over year. It is becoming increasingly important to not only be present in Amazon’s ad market, but also to have a well-developed strategy to ensure you are maintaining the best ROAS as competition heats up. Read up on the stats from the report here: https://bit.ly/2HSIh9b
A few of our top blogs from the month:
- Amazon is the Ultimate Game of 'What You Know'
- 3 Ways to Get More Actionable Data from Your AMS Campaigns
- Preparing for Prime Day: Strategically Creating Deals
- If you missed the March newsletter, read it here
Other industry news we found interesting:
- 70% of Shoppers Use Smartphones to Compare Prices While in Stores
- Amazon is Reportedly Interested in Buying the 3rd Largest TV Home Shopping Channel, Evine Live
- Walmart Gives Website Extensive Makeover in Latest Ecommerce Push
- Fake Reviews are Still an Issue on Amazon
- Amazon Now 5th Largest Retailer in UK with Growth of 22.5% in 2017
- Amazon Will Deliver to Your Car Trunk?
And lastly, a quote we love from Jeff Bezos’s letter to shareholders that reminds us to never be satisfied:
“One thing I love about customers is that they are divinely discontent. Their expectations are never static – they go up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of improvement happening at a faster rate than ever before…You cannot rest on your laurels in this world. Customers won’t have it.”
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