Michael draws on a background in the digital marketing space with a focus in social media creation and management. Outside of work, he is a hiking, biking, dog, and travel enthusiast.
Since the outbreak of COVID-19, you may have been hearing more about Amazon dropshipping, and for good reason. When the pandemic hit the US and shelter in place orders went into effect, several things happened in quick succession:
Online purchases surged as shoppers turned to ecommerce instead of brick and mortar stores
Some product categories experienced out-of-season sales peaks, resulting in out-of-stocks
As a result of the out-of-stocks, brands needed to ship more goods into Amazon’s fulfillment centers so they could resume selling to Amazon shoppers, but Amazon’s category restrictions prevented them from doing so quickly enough.
That’s when many brands and sellers discovered the enormous benefits of Amazon dropshipping.
What does an AmazonDropshipping Business Look Like?
Dropship is a selling and fulfillment model wherein a brandacts as the manufacturer, fulfillment provider, and potentially also the seller. It can be a key component in creating a dynamic fulfillment network. Let’s take a look at the most common dropship approach vs. the fulfillment by Amazon (FBA) model:
Manufacturer and seller agree to dropship together, which involves creating an EDI connection between their inventory management and warehouse systems
Seller lists product on marketplace
Shopper orders product and seller is paid
Seller places order with manufacturer and manufacturer is paid
Manufacturer ships product from their warehouse directly to the shopper
Fulfillment by Amazon (FBA) Model
Manufacturer and seller agree to FBA together
Manufacturer is paid as seller places a purchase order, then manufacturer ships inventory into Amazon fulfillment center
Seller lists product on marketplace
Shopper orders product and seller is paid
Amazon fulfillment center ships the product to the shopper
TL;DR:Dropship differs from FBAin two significant areas: when sellers and manufacturers are paidand who provides fulfillment services. In FBA, the seller pays the manufacturer upfront via a purchase order. FBA also requires inventory to be on-hand in the Amazon fulfillment center before consumers can buy the product. Dropship does not require this. Instead, manufacturers double as fulfillment centers.
Pros and Cons of Dropshipping on Amazon
Pros of Amazon Dropshipping
1)Expand catalog selection. Through dropship, brands can list products on Amazon for which sellers won’t place a product order. For example, if a brand wishes to offer a large product selection, but a seller cannot justify buying a large volume of product due to slow sales velocity, dropship enables sellers to still list those slow-moving products without taking on inventory risk. Then, if products perform well in dropship, they can be migrated to FBA.
2) Easier prep requirements. Because inventory is not shipped into Amazon fulfillment centers, brands do not have to meet Amazon’s strict product preparation requirements. This eases the burden on brands and opens the door to sell products on Amazon that exceed Amazon’s FBA size or weight thresholds.
3) Mitigates FBA-dependency. As mentionedpreviously, dropship provides a degree of agility and resilience to a brand’s fulfillment strategy. If they have a dropship infrastructure already established, sellers can respond quickly to unexpected consumer demand since brands don’t have to send inventory to Amazon first or be limited by Amazon’s inventory restrictions.
Cons of Amazon Dropshipping
1) Shipping speed depends on you. Dropship sellers are not guaranteed a Prime badge or 2-day shipping on Amazon because the manufacturer is fulfilling orders. This can result in fewer sales, especially if you’re operating in a saturated category, as consumers are more likely to purchase products with 2-day shipping than products without.
2)You handle customer service. In dropship, brands are responsible for promptly shipping out orders, processing returns, and addressing customer inquiries. This requires committing additional resources, not the least of which are time and personnel.
3) Requires constant maintenance. Dropship on Amazon requires an always up-to-date connection between the manufacturer’s warehouse and the marketplace listing. If the brand is working with a seller, this means that the seller’s inventory system must be in sync with the manufacturer’s inventory system. Being in sync involves connecting technology, but also that manual inputs are being maintained. If this is not done, it can result in out-of-stocks, harming sales velocity and creates a poor customer experience.
When Should You Dropship on Amazon?
Amazon Dropshipping is generally seen as an excellent backup to FBA because FBA offers so many benefits for brands, sellers, and consumers. However, we saw dropship become a massive asset in March 2020, when Amazon’s fulfillment centers ran out of stock of essentials. Through dropship, we were able to help our partners continue fulfilling orders even when they were restricted from replenishing inventory levels, resulting in a 3.25x increased in Amazon orders year-over-year.
In short, dropship is an excellent safety net and a great way to expand your product selection on Amazon as your grow your channel. If you’re looking for someone to help in your Amazon dropshipping efforts, check out ourdropshipping services. If you’re interested in learning about other fulfillment options for ecommerce, check out our post, Walmart Fulfillment Services vs Amazon FBA.
One of the most frustrating experiences as a brand owner is seeing copycat competitors undercut your pricing. In retail, competition is healthy because it forces businesses to innovate, resulting in better deals and products for consumers. However, sometimes it’s not a matter of two quality products vying for patronage. In some cases, it’s a high-quality product being undercut by a low-quality product.
There’s not much that brands can do about competitors’ prices, but there’s plenty they can do to convince shoppers that the higher cost of their product is well worth it.
How to Defend Against Competitors Undercutting Pricing
#1 – Highlight What Makes Your Product Better
OnAmazon, customers have many choices when looking at products. A simple and free way to help your products stand outis topromoteyourdifferential features in the copy, images, and A+ Content. Differentiators are features that make your product different from your competition, such as location of production, quality of materials, performance, additional features or capabilities, aesthetics, or warranties. These factors can help convince customers that your product is worth paying a little more.
#2 – Use Amazon Live
Amazon Live is an Amazon service that allows sellers to broadcast livestreams in which they demonstrate product usage, features, and benefits. Featured products appear directly below the live broadcast window. Brands can use Amazon Live to share their story, live events, educational content, and so much more. Customers on Amazon Live can ask questions and receive answers in real time. Amazon Live allows customers and brands to connect on a more intimate level compared to a video or listing and is an excellent (and free) way to increase visibility.
#3 – Engage with Your Audience on Social Media
Social media is one of the most powerful tools that brands can leverage to grow their audience. When we talk about social media, we’re meaning Facebook, Instagram, Twitter, LinkedIn, Snapchat, TikTok, YouTube, and so many more platforms.
Brands can use social media in many ways, but one of the most important uses is actively engaging with your customer base. This means responding to comments in a timely manner, creating social posts that invite your audience to actively participate in a discussion, and responding to all direct messages. Audiences want to feel a connection to a brand, and engagement on social media is one of the top ways to do so.
Most importantly, a strong social media presence builds brand trust. Consumers are more educated than ever, and social media is a big part of that education. They’ll initially turn to your social channels to ensure your brand is legitimate but they’ll stay to engage with your brand on a personal level.
#4 – Respond to Reviews, Comments, and Questionson Listings
When managing many listings,responding to each and every review and comment can seem daunting. However, responding to your customers, regardless of whether their feedback is positive or negative, is critical to differentiate your brand from competitors. Responding to questions, praise, and criticism takes time and energy, and not everyone is willing to do it. By taking time to respond to customers in a timely manner, you demonstrate that your brand cares about your customers, and shoppers will favor you for that.
#5 –Represent Your Brand Consistently Across All Sales Channels
Consistent representation across all sales channels is often overlooked, but it’s incredibly important for maintaining brand integrity and strong customer relations. Inconsistent representation can lead shoppers to question quality and product authenticity.
Brands should seek to maintain a consistent brand name, brand voice, high quality copy and images, and prices across online marketplaces. This ensures you provide a fantastic customer experience with your brand, no matter where shoppers find your products. By doing so, you cultivate a reputation as a reliable brand that cares about your brand, products, and customers.
#6 – Be WhereYour Customers Are
The ecommerce landscape is constantly changing. In order to stay ahead of your competitors, you need to meet shoppers where they’re at. In today’s age, that means listing your products online, such as on Amazon, Walmart, and Google Shopping. As mentioned above, that likely also means curating an active presence on social media. In addition to posting and responding regularly, consider running social media ads and leveraging influencer marketing. You competitors may simply wait for shoppers to find them, so you can get a leg up by getting directly in front of shoppers, no matter where they’re at.
The Amazon ecosystem is getting more competitive and complex each day. Counterfeit goods slipping into listings and rising marketing costs are just two of the many issues brands face when selling on Amazon. Luckily, one tool brands can use to overcome some of these issues is Amazon Brand Registry.
What is Amazon Brand Registry?
Amazon Brand Registry is an Amazon program that provides brands additional protection and access to other marketing services, including:
One big issue for unregistered brands is the lack of control over their listings. When your brand is not part of the Amazon Brand Registry, unauthorized sellers can come into your listing and change content. As brand trust becomes more important to consumers, it is crucial to maintain control of your listings.
When brands are brand registered with Amazon, only authorized accounts can change listings. Authorized accounts can include your employees or another account to which you have assigned a role, such as an authorized agency. There are currently three types of Amazon Brand Registry roles: Administrator, Rights Owner, and Registered Agent. Each comes with a different level of permissions.
Administrator: An individual who has full permission to assign roles to user accounts.
Rights Owner: An individual who is the rights owner or an employee of the rights owner who is authorized to report violations.
Registered Agent: A third party who is authorized by the rights owner to report violations.
If you wish to give a seller the authority to report violations on your behalf and have extra authority within your listings, you must add them as a Registered Agent, Rights Owner, or Administrator.
How to Assign Brand Registry Roles
To assign roles for Amazon Brand Registry, follow these steps:
1 – On the Amazon Brand Registry platform, click on Brand Registry Support.
2 – Click through Update your brand profile > Update role or add new user to account
3 – Follow the on-screen form to submit the seller’s email as the role you desire them to have.
Apply for Amazon Brand Registry
Learn how to apply to Amazon Brand Registry.
Learn More about Amazon Services
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Online shoppers can’t physically inspect your products before buying them on online marketplaces, such as Amazon, Google Shopping, eBay, and Walmart. As such, recommendations are one of the few ways that online shoppers can connect with your products, and influencer endorsementsare one of the best forms of recommendation. Influencers spend years gaining the trust and respect of their followers, making them ideal advocates for your brand.
Nowadays, many brands run influencer marketing campaigns. That shouldn’t be surprising, as influencer marketing is one of the best forms of social proof. Their followers trust their actions and guidance within their particular niche. This trust is incredibly valuable to growing brands.
Influencer marketing campaigns can be challenging to manage and execute, but have no fear. In this post, we’re sharing seven tips for how to manage and maximize the results of your influencer marketing campaigns.
1. Create Goals for Your Marketing Campaigns
As with any project, a successful influencer campaign starts with clearly defining goals. Your goals should be tailored to your specific brand, as goals will differ depending significantly on your current social media development level. Common goals among brands include brand awareness, brand engagement, driving traffic to your listings or website, driving sales, or increasing followers for their social media.
2. Clearly Define Your Goals to Your Social Influencers
Now that you have clearly defined goals, they need to be communicated to your influencers. If your influencers are not on board with your goals, they are not the right fit for your influencer campaign. Additionally, if your primary goal is to drive traffic to your listings, they need to be aware of that so they can be sure to include all relevant links.
3. Engage with Your Social Influencers
Engaging with your influencers keeps them excited about your campaign. Before the campaign starts, message your influencers personally and see if they have any unanswered questions. Also, follow their account and like some of their posts. Start engaging with their brand, so they start engaging with yours. During the campaign, continually message them about their efforts, progress, and results. It is your role to keep them in the loop about changes or errors in their posting. After the campaign is over, thank them and discuss their results. Influencers are not Facebook or Instagram Ads; they’re people, and they need to be engaged to maximize efforts.
4. Allow Your Social Influencers to Be Creative
Micro-managing influencer’s content is how influencer campaigns turn into advertising campaigns. Influencers know their audience best. Let your influencers play around with styles, messaging, and so on. The best way to ensure they stay aligned with your goals is to give them the freedom to be creative.
5. But, Give Them the Specifics
There are a few specific details that do need to be communicated. This type of communication includes giving them a specific link for your listings or website, how many pieces of content they need to produce, whether the product needs to appear in the post, and so on. These communications should be made before you hire an influencer.
6. Track Post-Performance Metrics
Like any marketing campaign, you need to have metrics to see how the campaign performed. In the case of influencer marketing, tracking likes, comments, views, click-through rates, and so on can provide insights into overall campaign performance. Knowing the ROI on your influencer marketing campaigns will allow you to identify what is working and what is not working. If promoting products on Amazon, you can use Amazon Attribution links to associate performance metrics with individual influencers.
7. Create A Relationship with Your Highest Performing Influencers
Now that your influencer campaign is over, identify the highest performing influencers based around your goals and post-performance metrics. These are going to be the influencers you want to create long-term relationships with. You can do this in several manners, such as asking them to join other influencer campaigns, reposting their content, continuing to engage with their brand, and so forth.
Looking for Help with Your Influencer Marketing Campaigns?
Kaspien was the first major third-party seller to combine influencer marketing with Amazon marketing. We’ve spent over 4 years running over 150 influencer campaigns for our partners. Learn more about how we candrive traffic to your listings through influencers.
Social media marketing is the act of promoting products and brands to consumers on social media platforms, such as Facebook, Instagram, Twitter, LinkedIn, Triller, TikTok, and Snapchat. In today’s virtual age, social media marketing is one of the most powerful marketing tools that brands have at a relatively low cost.
When done in tandem with other marketing efforts, social media marketing can deliver extraordinary results. A great example of this is Häagen-Dazs’ Instagram and TikTok viral marketing campaign in the United Kingdom. In this campaign, Häagen-Dazs sponsored a weekly home-entertainment series, called “Secret Sofa,” which was promoted byinfluencers. They had numerous UK creators on TikTok and Instagram create videos around the sponsored series. From this campaign, Häagen-Dazs doubled its Amazon orders amid the COVID-19 pandemic.
There are two types of social media marketing: organic and paid.
Organic Social Media Marketing
Organic social media marketing is any activity that doesn’t require a budget, such as posting, commenting, replying to messages, or interacting with other accounts. Organic marketing is all about growing brand awareness and engaging with your audience. Building relationships and earning customer trust is just as essential for brands online as for brick-and-mortar stores. It’s about striving to achieve the familiarity and service of a locally owned business, but on a much larger scale.
The second type, paid social media marketing, is about reaching your consumer through paid efforts on social media. These can include influencers, paid advertisements, sponsorships, and much more. Paid marketing is meant to drive traffic and sales on websites or online marketplaces.
How to Use Social Media Marketing to Drive Amazon Sales
Social media marketing can seem like a daunting undertaking for brands new to the space. It can be complicated, but there are a few principles to guide you.
First off, engage with your audience. Use social platforms to create content, such as images and videos, that display your brand’s values and aesthetic. Do you want your brand to be seen as witty, earnest, fun, no-nonsense, etc.? You can reinforce your branding every time you engage with your audience with copy and visuals alike.
Second, include a call to action. Suppose your goal is to sell a product, point shoppers to your products and listings. Not every post should include a CTA, as that risks coming across as overwhelming or making the relationship feel shallow. Balance CTAs with organic engagement.
If you first engage and interact with your social network on the social platforms, directing them to your listing or website will be much easier. In many cases, shoppers need to connect with your brand long before they consider purchasing your products.
Promote Products Online: Amazon Marketing
Amazon is the largest online marketplace and shoppers on Amazon have a higher intent to purchase than those searching via Google. The problem is that Amazon advertising is getting more expensive. In addition to growing brand awareness and building loyalty, social media marketing can help brands grow their Amazon sales. Reaching shoppers off Amazon and directing them back to Amazon allows you to bypass competitors’ Amazon ads. Plus, if they’ve interacted with your brand on social media in the past, you’ve already gained their trust on Amazon.
Thanks to the Amazon Attribution Program, you can even attribute on-Amazon sales to off-Amazon promotions. If a consumer finds your products through your social media, and you’ve placed a trackable link created via the Amazon Attribution Program, you’ll gain insights such as clicks, Amazon listing views, and purchases. Amazon attribution is a necessary tool to gauge the effectiveness of your social media efforts.
Run Amazon Giveaways via Social Media
One great example of how to utilize social media marketing to drive Amazon sales is through product giveaways. Amazon used to run a program called Amazon Giveaways, but Amazon retired giveaways in October 2019. We saw great success in running product giveaways, so the loss of the program was disappointing (BUT, we did create a list of low-cost marketing alternatives to Amazon Giveaways). However, through social media marketing, you can still run giveaways manually through your social media channels. Our partners have seen excellent results promoting their Amazon listings through giveaways held on their social media channels, as it’s a natural way to drum up interest in your products on Amazon.
Amazon Giveaways used to be an affordable and impactful way to increase traffic to Amazon listings and support sales growth. However, in October 2019, Amazon retired the Amazon Giveaways Program. We’ve noticed an uptick in searches for Amazon Giveaways as brands plan their holiday marketing strategy for Amazon.
Since Amazon Giveaways are no longer an option, we’ve put together a list of other cost-effective Amazon marketing services you can use to support Amazon’s sales growth this holiday season.
Giveaways on Social Media Utilizing the Amazon Attribution Program
Even without the Amazon Giveaways Program, you can still offer product giveaways. Instead of using Amazon’s program, you can offer giveaways through your brand’s social media channels. This tactic does require more work on your end, as you’re responsible for managing the giveaway from start to finish, but it’s a relatively low effort project and can be a great way to boost your visibility.
Consider partnering with an influencer to expand the reach of your giveaway on social media. The influencer can post the giveaway on their social channels while you cross-promote on your social channels as well, amplifying your giveaway’s reach while introducing thousands of new potential customers to your brand.
Thanks to the Amazon Attribution Program, you can track on-Amazon metrics, such as traffic, page views, and sales, generated from this off-Amazongiveaway. These tracking measures allow you to see the effectiveness of your giveaways on Amazon.
Amazon Coupons display on the search engine results page (SERP), on the Amazon Coupons page, and the product listing. Coupons are a great way to boost sales, especially on products where the price is differentiating.
Brands can enroll up to 50 ASINs into a single coupon and offer a dollar amount or percentage off. The coupon cost to the advertiser will equal the discount + $0.60, both of which are subtracted from the coupon budget. Each coupon must have a minimum of $100 for the budget; however, brands will be charged only for redeemed coupons. Within Amazon Coupons, brands get to dictate the duration, the discount, and the product selection. This variety of options makes Amazon Coupons very customizable to your marketing needs.
Back in 2019, Amazon revealed Amazon Live. Amazon Live allows sellers to use the app, Amazon Live Creator, to broadcast live streams where they demonstrate product usage, features, and benefits. Featured products appear directly below the live broadcast. While playing, the videos appear on the brand’s listings, Amazon store, and Amazon.com/Live. The service is currently only available to brand registered brands based in the United States.
Amazon Live is free and a great way to promote product launches or familiarize viewers with product features. These live events are the best time to allow for frequently asked questions or questions and answers.
Amazon Stores are digital storefronts for brands on the Amazon marketplace. These branded stores allow you to list your entire catalog of products. A+ Content (previously Enhanced Brand Content) provides the opportunity to share more product information through stylized content and additional images.
These services are a great way to help your consumer engage with your brand and your products. Creating Amazon Stores and A+ Content is a way to encourage customers to convert once they reach your listings.
Amazon Marketing is Alive & Well
Amazon Giveaways may be gone, but your options for cost-effective Amazon seller marketing tools are not. Amazon Coupons, giveaways on social media, Amazon Live, Amazon Stores, and A+ Content are fantastic alternatives to increase sales and conversions. There’s a rich combination of opportunities available that can deliver similar and even better results than Amazon Giveaways, especially when deployed in conjunction with one another.
We have a growing library of resources about Amazon services, including other blog posts, whitepapers, eBooks, podcasts, and more. Subscribe to our weekly blog to never miss a beat!
1. Dropship Vendor (DSV): A business model where sellers list their products on Walmart.com, but hold the products in their own warehouse or a third-party logistics provider’s warehouse.Walmart appears as the seller in the listing. When a customer orders a seller’s product from Walmart.com, the seller ships it to the buyer. Walmart requires the merchandise tobeshipped with a Walmart packing slip. If the customer chooses the “pick up in store” option, the seller must send the product to that Walmart retail location. As a plus, Walmart will cover the shipping cost. Learn More >
2. Everyday Low Price (EDLP): A pricing strategy by Walmart that promisescustomers that Walmart will have consistently lower prices than their competitors. Customers can access these prices without coupons, promotions, or special discounts. Everyday Low Price (EDLP) is one of Walmart’s key customer retention strategies. For sellers, this methodology ties into Walmart’s pricing parity requirement, which says that sellers must ensure that their price is the lowest price on the market or else they risk BuyBox suppression. Learn More >
3. Free & Easy Returns:Walmart allows customers to exchange or return an item within 90 days after purchase. Customers can return their items in-store, by mail, or by pickup at their home. All the customer needs is a receipt. There are some, but not many,expectations to this rule. Learn More >
4. NextDayDelivery: If a customer purchases a product with the NextDay delivery designation, the seller must deliver it by the end of the following day. For the customer, orders over $35 are free. Most products sold on Walmart.com are eligible for the program, but products sold by Walmart Sellers are not. Learn More >
5. Order Defect Rate (ODR): The number of orders with a minimum one defect divided by the total number of orders (both within the same period). Defects include cancellations, returns, delivery defects, and customer complaints. Sellers must maintain an ODR of 2% or lower to meet Walmart’s performance standards. Learn More >
6. Pricing Parity/Reasonable Price Not Satisfied: To ensure a great customer experience, Walmart set automated rules that eliminate non-competitive priced items from the Walmart.com marketplace. Walmart enforces this by identifying identical products on other platforms, such as Amazon, and seeing if they are listed at a lower price than listed on Walmart. The Price Parity rules unpublishes products when the offer price is higher than a competing website. The Price Parity rules are slightly different from the Reasonable Price Not Satisfied rule, which unpublishes products if the offer price is drastically higher than competing websites.
Amazon enforces a similar price parity policy, which is one reason it’s so important to maintain consistent strategy, marketing, promotions, and pricing across all online sales channels.
7. Referral Fees: Walmart charges a category-based referral fee ranging between 6%-20% (most common is 15%) for selling on their marketplace.
8. Seller Center/Seller Portal: A Walmart platform,similar to Amazon’s Seller Central, used by Walmart sellers to market and sell products to Walmart customers.
9. Seller Scorecard: The Seller Scorecard,found in Walmart Seller Center,provides an overview of how well your products are performing under the Walmart Seller Performance Standards.
10. TwoDay Delivery: If a customer purchases an item with TwoDay delivery designation,then the seller must deliver the product by the end of the following day. For the customer, orders over $35 are free. Most products sold on Walmart.com are eligible for the program, but products sold by Walmart Sellers are not. Learn More >
11. Walmart 3P Merchant: An independent company that sells products on Walmart’s online marketplace.This can be a brand selling its own products directly or a dedicated wholesale retailer selling products to consumers on a manufacturer’s behalf.
12. Walmart Buy Box:A section on the product page near the “Add to Cart” button that shows from which seller shoppers will be buying. A seller earns sales only when they win the Buy Box. When multiple sellers are in the same listing, each will win the Buy Box for a certain percentage of time. Walmart awards the Buy Box to sellers based on product price, availability, and seller performance.
13. Walmart Enhanced Content: This Walmart.com feature allows sellers to create listings with additional media, such as more images, banners, comparison charts, descriptions, interactive product tours, and videos. These features help capture shopper interest and can lead to higher conversion rates. Learn More >
14. Walmart Fulfillment Center: A physical location to which Walmart sellers ship inventory. Inventory is stored in and fulfilled from the fulfillment center.
15. Walmart Fulfillment Services (WFS): A Walmart service in which third-party vendors keep their product at Walmart’s warehouses. Walmart will pick, sort, pack, ship, track, and handle product returns and refunds for a fee. Learn More >
16. Walmart Marketplace: The official name of Walmart’s online platform.The Walmart Marketplace allows Walmart and approved third partiesto sell goods online to Walmart customers. Learn More >
17. Walmart Media Group (WMG): Walmart’s first-party media branch. Brands who sell on Walmart can work with WMG to promote their products rather than hiring a third-party seller, marketing agency, or an internal marketing team to do it for them. Learn More >
18. Walmart Plus: A Walmart subscription-based service similar to Amazon Prime that gives members access to unlimited same-day delivery for eligible items, discounts at Walmart gas stations, and early access to Walmart deals. The current cost is $98/year, which is roughly $20 less than Amazon Prime. Walmart Plus is expected to officially launch in August 2020. Learn More >
19. Walmart Solution Providers: Third-party providers who offer a wide range of ecommerce services for the Walmart Marketplace. Services can include item setup, inventory, order fulfillment, pricing, marketing, and more. Walmart categorizes Walmart Solution Providers into three categories: Full-Service Solution Providers, Specialty Solution Providers, and Content Solution Providers. Kaspien is a Specialty Solution Provider. Learn More >
20. Walmart Sponsored Products: Similar to Amazon Sponsored Product Ads, these cost-per-click (CPC) ads are used to promote products on com website, mobile platform, and app. Learn More >
Want to learn about selling on Walmart.com? Check out our free eBook!
Download the eBook: “WFS: Walmart’s Gamble to Challenge Amazon FBA”
On August 4th, Amazon published a press release announcing the impending launch of Amazon Sweden. On August 11th, Amazon sent an email to sellers with more details about what to expect with the new marketplace.
In this email to sellers, Amazon stated that Amazon Sweden will be available within EU Seller Central accounts as Seller Central Sweden. All Professional Selling fees and referrals fees will stay the same with this expansion.
The email also outlined how products currently in Amazon’s European Seller Central will synchronize to Seller Central Sweden. Amazon has created the Build International Listings (BIL) tool to automate and accelerate this process. If a seller does not wish to have his or her listings synchronized, they must override it manually. Amazon notes that products subject to the Swedish Chemical Tax will be excluded.
It is uncertain when Amazon Sweden will launch. In January of this year, Amazon sent a similar announcement for Amazon Netherlands, which was publicly launched in March. If Amazon maintains a similar timeline for Sweden, we could see the marketplace publicly launch in October, though an official date has not yet been released. In the meantime, Amazon asks sellers to go into their EU Seller Central account and check to ensure all of their product listings are synchronized accurately.
If you’re interested in expanding your brand to Sweden, we can provide a full suite of Amazon services for marketing, brand protection, logistics, and more.
Amazon’s Email Announcement to Sellers
“Dear Selling Partner,
We are pleased to announce that we have started the work to launch the Swedish Amazon.se Store, to delight local customers and give Selling Partners the opportunity to expand their European business even further.
Seller Central Sweden will soon be available to you as a seventh country option in your EU Seller account. With the same monthly Professional Selling fees and referral fees, you can access all seven European Amazon Stores.
To support you with the expansion of your business, we will synchronize your eligible product selection with your Seller Central account for Amazon.se. You will be notified via email once Seller Central Sweden is available and the synchronization is complete. You can then revise your synchronized selection.
How will we synchronize the existing product selection:
We will enable the Build International Listings (BIL) tool in Seller Central, which allows us to list your eligible existing products from your Home Marketplace on Amazon.se on your behalf, to save you valuable time. You can edit the BIL connection between the Seller Central accounts of your choice afterwards at any time here by clicking “remove connection”.
Please note: When the BIL tool is active, it will regularly synchronize your existing listings and prices for all linked Seller Central accounts. Please check your preferred tool settings here after the synchronization is complete.
The product descriptions will automatically be translated to Swedish, using BIL’s Machine Translation functionality.
We will synchronize your eligible selection which is currently exportable to Sweden and prices that are active on Amazon.co.uk and Amazon.de. For your self-fulfilled listings, we will synchronize your prices from your BIL source marketplace, adjusted for exchange rate* to Swedish Krona.
For your Fulfilment by Amazon (FBA) Pan-European FBA (Pan-EU) listings, we will take into account:
VAT differences between BIL source marketplace and Sweden. Example: If you are selling a product on Amazon.de for 10.00€, we will synchronize the product price on Amazon.se as SEK 114.5, taking the VAT differences in Germany (16%) and Sweden (25%) into account.
Fulfilment fee differences between your BIL source marketplace and Sweden.
You will be able to benefit from the Fulfilment by Amazon (FBA) and Pan-European FBA (Pan-EU) programs with domestic fees and offer your products to local customers. You can find the promotional fees that are valid until June 31st, 2021 here.
*The BIL tool adjusts prices periodically to reflect currency conversion fluctuations in the target marketplaces’ currencies. The frequency of these updates might vary from daily to weekly. These updates will not show changes of less than 1%.
Please note: If you are selling Consumer Electronics, we will not synchronize products that will become subject to the Swedish Chemical Tax that is expected to become effective in Sweden from 1st of October, 2020. We will provide you with more information in the upcoming weeks. Please reach out to your tax adviser for additional information.
What you need to do:
In the next few weeks, we will notify you via email once the product synchronization is complete. Check here under Account Notifications, if your email address for important Technical Notifications and Business Updates is still up to date.
Check your synchronized listings and prices under Manage Inventory in Seller Central.
If you are already using the Build International Listings (BIL) tool, you can edit the connection between the Amazon Stores of your choice and prevent product listings from synchronizing here at any time. If you wish to opt-out from selling on Amazon.se, click here to “remove connection”.
If you are not using the BIL tool yet, we will activate it on your behalf to synchronize your selection to Amazon.se. You can edit and remove the BIL connection here afterwards.
Once Amazon.se launches, your listings will become available to our local customers from the start of the new Amazon Store.”
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Amazon advertising represents one of the most cost-effective tools to advertise products. Experienced sellers and marketers know that every opportunity you get to optimize your ad spend and keywords is a way to increase your bottom line. This means it’s extremelyimportant to manage your Amazon ads properly. Due to the time and complexity of ad management, many businesses outsource their Amazon advertising to a third-party, such as a marketing agency, contractor, or freelancer. The amount of third-party Amazon advertisers is growing, and the market is getting crowded. The large number of choices can be overwhelming for anyone, let alone a brand entering the Amazon advertising space for the first time.
When you’re paying someone to manage your ad campaigns, you should know if they’re worth their price. Unfortunately, too often, they’re not. They may be charging you hundreds of dollars per month when they only check on your campaigns monthly. That’s not okay.
The problem is, it can be hard for business leaders to assess their agency’s or contractor’s true performance if they’re not versed in Amazon advertising fundamentals. To help, we’ve put together this blog post to help you determine if your Amazon search marketer is worth their salt.
Watch the video to learn how to create high-performing Amazon Sponsored Product campaigns.
5Questions to Ask Your Potential Search Marketer
1) How Often will Bids, Budgets, and Search Terms be Optimized?
Is it every day, every week, or every month? Is it every six months? Frequency of optimizations is a critical consideration. Some folks are going to be affordable, but they may only log in to “optimize” your Amazon advertising campaigns once a month. The reality is that’s not optimization. The Amazon landscape fluctuates too greatly and too frequently to implement optimizations that rarely.
On the other hand, some may say that they will optimize your advertising campaigns every day. At that point, they may be over-responsive and over-managing. Amazon changes frequently, but it takes time to see what effect your previous optimizations are having.The sweet spot is somewhere between these two examples, in many cases being two to three times per week.
2) What Cadence will WeReceive Performance Reports?
Your Amazon advertising agency or freelancer should provide reports regularly. As with the frequency of optimizations, there’s a sweet spot. Checking reports too rarely can result in poor performance and missed opportunities. Conversely, checking reports too frequently can lead to unnecessary stress and micro-management. Optimizations take time to take effect, so your reports should be spaced far enough apart to provide a true picture of what your last optimizations did.
Performance reports are like your child’s report card. If you review their report card only once per quarter, it may be too late to implement the changes needed to bring the grade up from a D to an A. Likewise, if you review their report card every day, there won’t be enough of a difference to suggest what, if any, changes are needed.
To start, we recommend a monthly cadence for performance reports. This prevents overreactions, while still being frequent enough that you can make strategic adjustments.
3) How Do You Plan to Manage Budget and How Will We Hold You Accountable?
Your budget may be based on a percentage of sales, or you may have a $10,000/month marketing budget. How is your Amazon advertising agency going to manage and optimize your budget effectively? Are they using an ACoS target? Are they going to try to reduce costs as much as possible? Are they going to be targeting only sales? Your Amazon advertising agency should have well prepared answers backed by data for these questions.
One type of relationship to watch out for is pay-for-performance oriented relationships. While your sales may increase, you may be increasing yourad spend by an inordinate amount, diminishing efficiency and ROI.
4) How Much of Our Budget is Spent on Branded Keywords?
Are there any high-value keywords that you’d like your products to place higher on the SERP for? Is it a branded term, a competitor’s term, an industry-specific term, or a category-term? If so, you should discuss that with your potential Amazon advertising agency or contractor because those types of targeted keywords may have a higher cost or higher conversion rate.
It’s easy to spend more than 50% of your budget on branded terms, but that can inhibit your advertising campaigns’ ability to reach new shoppers. Ask your partnerhow they will manage and optimize between your branded terms and non-branded terms. Ultimately, you’re trying to find consumers who aren’t only searching for your brand because that’s how you reach new people and acquire more customers.
5) What OrganicSales Lift can be Attributed to Your Marketing Efforts?
When you’re paying someone for a service, you have a right to know what results you can reasonably expect from their work. Excellent Amazonad management products, used with reasonable effort, proper inventory, good positioning, and excellent logistics, should raise sales by 30%. Some people will claim they can go even higher than that. If they say they can increase organic sales by 35%-40%, thatI’s not too crazy, but if any agency or marketer says they can guarantee 50%, 60%, or 70% organic sales growth, you should be worried.
Here at Kaspien, we offer AdManager to help businesses optimize their Amazon advertising campaigns. If you want to use it yourself, SaaS is available. If you want us to manage your ad campaigns for you, we can do that too.
6 Telling Factors You Can Check On
Once you have hired an agency or freelance search marketer to manage your Amazon advertising campaigns (or if you already have one currently employed), you should continue to monitor their work. We recommend checking the following 6 factors as a way to assess how well they’re managing your advertising campaigns.
1) AreAll Campaigns Set to AutomaticTargeting?
If they are, that means your search marketer is not actively managing the campaign. They’re letting Amazon’s autopilot handle the work while they collect a paycheck from you, and your campaigns are missing significant optimization opportunities.
2) AreAutomaticCampaignsGreater than 20% of TotalSpend without any Search Termsbeing Added to Other Campaigns?
You should always be running both automatic and manual campaigns. However, if your automatic campaigns are generating significant parts of your spend, you should be worried because it indicates your manual campaigns are not being properly optimized.(One caveat to this is if it’s a new campaign. For new campaigns, automatic campaigns may account for the majority of spend while they build relevancy.)
3) DoAutomaticCampaigns Have Negated Search Terms?
Negating search terms in automatic campaigns after migrating them as keywords in manual campaigns is a matter of good hygiene. Negating search terms from automatic campaigns prevents them from competing with your manual campaigns. If your search marketer is not doing this, that should be cause for alarm. Not doing this is bad etiquette and muddies your metrics, making it harder to manage the given manual campaign, your specific ideal customer acquisition rate, and ideal cost-per-click.
4) AreSmall Groups of ProductsUtilizing the Majority of Spend?
If a majority of your spend is from a small list of high velocity products, then you’re missing opportunitiesfor your other products. Your search marketer should be attempting to spread your ad spend across your whole catalog, rather than focusing it on a small group.
5) AreBranded Keywords Accounting for the Majority of Spend?
Branded keywords accounting for a majority ad spend is a huge red flag because it indicates your campaigns are not targeting new shoppers. Consumers will never search for your specific brand if they have never interacted with it before. For example, a consumer might search for “dog toy” or “soft dog toy”, but never “ZippyPaws” unless they have interacted with “ZippyPaws” before. Spending your money on branded keywords to attract new customers is wasting money.
6) What areYourHighestPerformingKeywords?
If you have a high cost-per-click (CPC) but you’re winning the bid for your generic competitive keywords,you’re in good shape. It does make you a target for competitors, but it’s a good problem to have.
Find the Right Amazon Advertising Agency
Don’t let someone take advantage of your trust. If you’re paying someone, make sure you have mechanisms in place to hold them accountable. Ask prudent questions and check on your campaigns.
While you’re here, here are some other resources you can use to educate yourself on Amazon advertising:
The DifferenceBetweenFirst-Party and Third-Party Sellers
If you’ve thought about selling online, you’ve probably heard of first–party(1P) solutions offered by top marketplaces, like Amazon and Walmart.But what does that mean exactly?
First-party simply means that the owner of the marketplace platform also has a retail entity that partners with brands and represents their products. For example, Amazon has a retail division called Amazon Retail, though in the Amazon community, it’s frequently just called “1P.”Amazon Retail buys inventory from manufacturers and distributors at wholesale cost, then sells the product on Amazon.com. They also offer additional services to their brands for online protection and digital marketing. Walmart also has a retail division that functions much the same.
What, then, is a third-party seller, or “3P”? A third-party seller functions similarly to a first-party seller, however, they do not own the platform on which they are retailing, hence the “third-party” name. A third-party seller can be a dedicated retailer, as is often the case, or it can be the brand itself, if the brand chooses to sell their products without assistance from another entity.
How to Decide if 1P or 3P on Amazon is Better for You
If you’re a brand trying to decide whether to partner with 1P or 3P, look at the data.Where doyou believe the market is going?At Kaspien, we look at this kind of market data quite frequently.For us, one of the most interesting pieces of data is howsales volume is oriented on Amazon. 2018 was the first time that third-party seller volumes surpassed Amazon volumes on the Amazon marketplace. In Amazon’s latest earnings report, they reported that 53% of overall gross merchandise value (GMV) was from third-party sellers. Compared toprevious years, GMVhas grown from 30% to 50%.
Based on this data, we can infer that Amazon wants their growth to focus on their 3P business. That leads to the ever-important question: Why would Amazon favor 3P growth over 1P when they operate their 1P business? The truth is surprisingly straightforward: Ultimately, having other sellers on their platform provides a better economic outcome for Amazon because they avoid inventory risk while still profiting from commissions and marketing fees.
Amazon Service Offerings
Another key consideration when comparing 1P and 3P is service offerings and performance.What sort of capabilities and expertise do these providers offerto meet your brand’s needs? Do they have a proven track record of success? Are they helping you grow or just maintaining the status quo?Maximizing success depends on finding a partner who can not only provide for your current needs, but also provide new opportunities for growth.
Brand Control on Marketplaces
One of the most important services, especially for larger, more established brands is control. Amazon has spent the last year under intense scrutiny due to rampant counterfeits and illegitimate sellers who threaten consumers and businesses, and this lack of control has made some major brands sever ties with Amazon.For example, Nike announced they are pulling off the Amazon platform because they don’t feel they have the control or creative freedom they want in their 1P partnership with Amazon.
If control of your branding, control of pricing, control of consistency, andcontrol of messaging are important to your brand, then you’ll likely be more satisfied by working with a third-party seller.
Learn More with Our Free Whitepaper
If you’re interested in comparing the costs associated with 1P versus 3P, check out our whitepaper, The Costs of Amazon. It compares expenses for 1P, 3P, and direct-to-consumer options.
The Costs of Amazon: 1P, 3P, and DTC
The Future of Third-Party and First-Party Solutions on Amazon
Judging by historical trends, we will continue to see third-party volumes grow at a higher rate compared to Amazon Retail (1P). As previously described, this is partly due to the economics being more favorable for Amazon when more sales come from third-party sellers, presuming of course that those third-party sellers are reputable and don’t harm Amazon’s reputation with consumers.
However, it’s unlikely that Amazon Retail will ever completely disappearbecause some top tier brands are more comfortable working directly with Amazon. Amazon has also been alleged to require top tier brands to work with 1P if they want to list their products on Amazon. Amazon would do this because, in the case of global brands, they may make more revenue through the 1P model than 3P.
How Does 1P and 3PApply to Other Marketplaces, like Walmart.com or eBay?
We’ve compared 1P and 3P for Amazon, but how do they apply to other major online marketplaces, like Walmart and eBay?
It comes back to consistency and control. When brands work with a 3P seller, they can have a single entity manage all of their channels in unison, ensuring that pricing, content, and marketing are consistent. This provides a clean and positive customer experience, while also mitigating the risks of competing marketplaces rolling up the Buy Box because of pricing inconsistencies across marketplaces. If brands partner with 1P for each marketplace, establishing that same consistency will be very difficult and require more active monitoring and communication on the brand’s part. Kaspien offers services for third-party retail, direct selling supported by an agency, and direct selling independently supported by self-service software.
If you’d like to learn more about any of these services, reach out through our contact form.
Stay Up-to-Date with Amazon Services
We have a growing library of resources about Amazon services, including other blog posts, whitepapers, eBooks, podcasts, and more. Subscribe to our weekly blog to never miss a beat!
Selling and marketing on Amazon involves dozens of moving pieces. To help with this problem, we’ve compiled a list of 100 terms every Amazon seller should know, including terms related to digital marketing, logistics, finances, and the fundamentals. For ease of use, the terms are listed in alphabetical order.
1. A9 Algorithm: Amazon’s proprietary search engine algorithm for determining search results on Amazon.com.
2. A/B Testing (Split Testing or Bucket Testing):An online marketing strategy used to see which of two versions of marketing collateral yields the best results. The difference between the two versions is typically limited to a single element, such as the subject line of an email, so that testers can confidently attribute differences in performance to the changed element.
3. Ad Management Software: Software used to streamline management of Amazon ads, typically by improving data visibility, the user interface, and automation. In the case of Amazon, most ad management software is for pay-per-click (PPC) ad types, such as Sponsored Product Ads. Learn More >
4. Advertising Cost of Sale (ACoS): The cost of ad divided by the sale. For example, if a product costs $10 and it takes $1 worth of ad spend to generate a sale, the ACoS would be $1 divided by $10, or 10%. ACoS is often used to assess the efficiency of advertising campaigns on Amazon.
5. Amazon A+ Content:An extra feature for product detail pages available to brands that are enrolled in Amazon Brand Registry. This feature allows brands to add additional copy and images below the bullet points in a product detail page. Amazon claims they increase conversion rates by up to 10%. Learn More >
6. Amazon Ad Groups: On Amazon, Ad Groups are a subsection within a sponsored ads campaign that contain ads, targets, and a default bid. Ad Groups can contain a single ad or multipleads grouped by like products, brands, or campaign goals. Targets can be either keywords, ASINs, or categories. Ad Groups are available for Sponsored Product and Sponsored Display campaigns.
7. Amazon Attribution:An Amazon service that allows sellers to measure the impact of different sales channels, such as email, video ads, and display ads, by creating unique URLs that enable attribution tracking. The Attribution dashboard in Seller Central allows users to see conversion metrics, such as “page views,” “add to cart,” and “purchases.” Learn More >
8. Amazon Best Deals: One of several types of promotions that sellers can run on Amazon where a product is offered with a 15% discount over a 2-week period. During the deal, the product is featured on the Today’s Deals page. The product must have an average rating of at least 3.5 stars and selling price of at least $10. Learn More >
9. Amazon Brand Gating: An invite-only Amazon program that allows manufacturers and private label sellers to control who can resell their products. This program helps prevent unauthorized third-party sellers from listing products. Learn More >
10. Amazon Brand Registry: An Amazon program that enables brands to gain additional protections and access to additional marketing services. Enrollment in Brand Registry is free, but requires a trademark registration number. Brand Registry provides access to Amazon’s infringement reporting tool, brand stores, A+ Content, Sponsored Display Ads, Sponsored Brand Videos, and more. Learn More >
11. Amazon Brand Store: A curated digital storefront on Amazon where brands can list their entire Amazon catalog in a convenient and branded experience. This feature is available only to brands enrolled in Amazon Brand Registry. Learn More >
12. Amazon Buy Box: The top right section on the product page where consumers can add items to their carts. The Buy Box is awarded by Amazon to sellers based on product price, availability, seller performance, and whether the product is offered with FBA or Prime shipping. Learn More >
13. Amazon Coupons: Advertisers can enroll up to 50 ASINs into a single coupon and offer either a dollar amount or percentage off. The coupon cost to the advertiser will equal the discount + $0.60, both of which are subtracted from the coupon budget. Each coupon must have a minimum of $100 for the budget, however, advertisers will be charged only for redeemed coupons. Learn More >
14. Amazon Damage Allowance: To cover the cost of handling and disposal of damages, Amazon charges vendors a damage allowance. Vendors can choose not to agree to this damage allowance, but they then must fund the cost of returning the item themselves.
15. Amazon Early Reviewer Program:The Early Reviewer Program is an Amazon-run initiative that can generate up to five new reviews on a selected product. Amazon randomly contacts verified buyers of an enrolled product and offers the customer an incentive to leave a review within the specified offer period. Amazon offers the buyer a small Amazon account credit (typically $1-$3) that can be used on future Amazon purchases. To qualify for the program, products must have a price point of at least $15 and fewer than five reviews. The product can remain in the program up to one year or until it receives five new reviews, whichever comes first.UPDATE: Amazon retired the Early Reviewer Program on April 25, 2021. Learn More >
16. Amazon Enhanced Brand Content: A feature offered to Amazon’s vendors and Brand Registered brands that allows them to add additional information to their product detail page. This extra real estate appears below the bullet points on a product detail page. Learn More >
17. Amazon Headline Search Ads:Renamed to Sponsored Brand Ads, this ad type displays a banner ad at the top of the search results page. The banner ad contains a brand image and features up to three products. This ad type is typically best suited for generating brand awareness. Learn More >
18. Amazon Lightning Deals: Deals that run for several hours on and appear on the Today’s Deal page. This deal type offers a limited quantity of units determined by the seller. To be eligible, the brand must have a proven track record of selling well, a minimum 20% discount off the lowest price in the trailing 30 day price or lowest price YTD (whichever islowest), sales history, and a 3–star rating or higher. Learn More >
19. Amazon Live:Through Amazon’s app, Amazon Live Creator, sellers can broadcast livestreams where they demonstrate products usage, features, and benefits. Featured products appear directly below the live broadcast. Learn More >
20. Amazon Marketing: Marketing services that are available on the Amazon platform, including Sponsored Product Ads, Sponsored Brand Ads, Sponsored Display Ads, Sponsored Brand Videos, Amazon Coupons, Deals, Amazon Live, Amazon Posts, DSP, Brand Stores, A+ Content, and more. Amazon continuously adds and retires marketing services. Learn More >
21. Amazon Product Categories: Amazon groups products by specific categories and has different selling requirements for each. These requirements can include additional fees, performance checks, and other qualifications. An example of a product category is “Apparel,” which includes Outerwear, Athletic Wear, Innerwear, Belts, and Wallets.
22. Amazon Prime Exclusive Discounts:A price discount exclusively for Amazon Prime members. Products with Prime Discounts display strike-through pricing. To be eligible for this promotion, a product must be Nationally Prime Shipping Eligible, have a rating of 3.5 stars or above or no reviews, offer 20% off current price, the discount must beatthe lowest price offered for the ASIN in past 30 Days by 5%, and the seller must have at least a 4-star seller rating.
23. Amazon Seller Central: An Amazon platform used by Amazon sellers to market and sell products to Amazon customers.
24. Amazon Sponsored Brand Ads:Formerly called Headline Search Ads, this ad type displays a banner ad at the top of the search results page. The banner ad contains a brand image and features up to three products. This ad type is typically best suited for generating brand awareness. Learn More >
25. Amazon Sponsored Brand Videos: An Amazon ad type that displays a video on the Amazon home page and in the search results. The videos display on mobile and desktop. Amazon recommends including subtitles in the video. Learn More >
26. Amazon Sponsored Display Ads:Pay-per-click (PPC) ads on Amazon and Amazon-owned websites and apps that target shoppers by searches, views, purchases, or products. Learn More >
27. Amazon Sponsored Product Ads:Pay-per-click (PPC) ads that appear in strategic areas on Amazon, such as the top of the search results page and within a product detail page. These ads give brands’ products more visibility and increase the likelihood of purchase by consumers. Learn More >
28. Amazon Spotlight Deals: Deals that run for 24 hours on the Amazon Today’s Deals page or until stock runs out. These Deals are subject to minimum revenue and units sold thresholds. Criteria for Spotlight Deals include whether the item is Top Selling Product, the lowest price trailing 365 days, and a 4-star rating.
29. Amazon Standard Identification Numbers (ASINs): A unique alphanumeric code for a product listed on Amazon. The ASIN can typically be found in the URL of an Amazon product detail page and in the further details section of the product detail page.
30. Amazon Vendor Central:The Amazon platform used by manufacturers and distributors to sell product directly to Amazon’s first-party (1P) retail division, Amazon Retail. Learn More >
31. Amazon Vine:An invite-only program for Amazon customers who regularly leave reviews marked helpful by other customers. These customers are deemed trusted reviewers and gain access to free products, for which they provide customer reviews. These reviews are identifiable by a green stripe and labelled withAmazon Vine Program.
32. Amazon Web Services (AWS): Amazon’s cloud computing platform that offers services such as infrastructure as a service (IaaS), platform as a service (PaaS), and packaged software as a service (SaaS). AWS also offers solutions for database storage, compute power tools, and content delivery services.
33. Automatic Campaigns: A campaign type within Sponsored Products in which the advertiser sets a default bid at the Ad Group level and Amazon places ads automatically for customer search queries it deems to be relevant. These are commonly used to find new keywords that Amazon’s algorithm views as relevant for the products being advertised.
34. Average Order Value: The average amount a customer spends at a digital storefront in a single order. You calculate this by dividing sales revenue by the number of orders taken.
35. Average Time on Site: The average amount of time a visitor spends on a website. Usually defined within a specific timeframe.
36. Bid: The maximum amount an advertiser is willing to pay in order to get an ad to place for a specific search term.
37. Bid Optimization: The act of adjusting the bid for keywords in Amazon ad campaigns in order to improve performance. Bids may either be increased because ads are not competitive enough for important keywords, or they be can be decreased because ads are utilizing budget too quickly. Learn More >
38. Brand Awareness: The degree of consumer recognition of a brand based onthe brand’s copy, colors, logo, products, qualities, and style.
39. Business to Business (B2B): A transaction in which a business sells products or services to other businesses.
40. Business to Consumer (B2C): A transaction in which a business sells products or services to an end consumer.
41. Call to Action (CTA):The action that marketing materials are trying to encourage the audience to take, such as “subscribe,” “add to cart,” or “sign up.”
42. Certified Service Providers (CSP):A person or organization that is certified under the Streamlined Sales and Use Tax Agreement to perform sellers’ sales and use tax duties (excluding the obligation to remit tax on its own purchases). Learn More >
43. Chargebacks:When a customer contacts their bank about a charge they don’t recognize or dispute, rather than contacting Amazon or the seller about the issue.
44. Click-Through–Rate (CTR): The percentage of visitors on a page who first view then click on an advertisement.
45. Copywriting: The writing of marketing, advertising, and promotional materials. Learn More >
46. Conversion Rate: The percentage of visitors to a page who take a desired action, usually in the form of purchases.
47. Cost of Labor: The sum of employee wages that have been paid. This also includes employee benefits and payroll taxes.
48. Cost-per-Click: A method of billing determined by the number of times a visitor clicks on an advertisement. This is Amazon advertising’s primary billing model.
49. Demand Side Platform (DSP): Amazon’s advertising platform that enables advertisers to use Amazon’s consumer data to target shoppers on Amazon and Amazon-owned websites and apps with display and video ads. Learn More >
50. Dropshipping:A method of retail fulfillment where the seller does not keep product in stock.Instead, the seller waits until a consumer purchases the product online, then the seller buys the product from the manufacturer and has the product shipped directly from the manufacturer to the consumer. This method is often used for products not eligible for preferred fulfillment methods, like FBA. Learn More >
51. Discount Code (Coupon Code or Promo Code): A code that shoppers use during checkout to redeem special offers or discounts.
52. First-Party Seller: A seller who owns the marketplace upon which they sell. Amazon Retail, for example, is the one and only first-party seller on Amazon.com. Learn More >
53. Fulfillment by Amazon (FBA): An Amazon service in which third-party vendors keep their product at an Amazon fulfillment center. Amazon will pick, sort, pack, ship, track, and handle shipping, returns, and refunds of these products for a fee.
54. Fulfillment by Amazon (FBA) Fees:A fee charged by Amazon for each unit processed through FBA. The fee is based on the product’s size and weight.
55. Fulfillment by Amazon (FBA) Storage Fees: A fee charged by Amazon for your inventory that occupies space in an Amazon Fulfillment Center. This fee is based on the daily average volume (in cubic feet).
56. Fulfilled by Merchant (FBM):A fulfillment method where the seller manages and controls their handling and shipping process, as opposed to Amazon or a third-party logistics provider.
57. Fulfillment Centers: A physical location where third-party logistics (3PL) providers, like Amazon Fulfillment, fulfill customer orders for online sales.
58. Gross Margin:The revenue a business retains after subtracting costs, calculated by subtracting cost of goods sold from net sales revenue. The higher the gross margin, the more working capital a company has.
59. High-Converting Keywords: Keywordsin a pay-per-click (PPC) advertising campaign that drive high conversion rates. Identifying these keywords and adding them to sponsored ad campaigns is an essential part of optimizing an ad campaign.
60. Influencer Marketing: The promotion and selling of products or services by having people withsocial influence and followings promote the product on their social media accounts. Learn More >
61. Invoice: An itemized record of a transaction between a seller and a buyer.
62. Key Performance Indicators (KPIs):Metrics that are actively tracked in order to gauge a company’s long-term overall performance. These are usually set to compare the company’s performance to other companies within the same sector and to previous years’ performances.
63. Keywords: Words or phrases that shoppers frequently use when searching for a given product. Including keywords in the copy on the product detail page or in Amazon sponsored ad campaigns helps products place higher in the search results and drive more traffic to listings.
64. Landing Page: A webpage created solely for an advertising campaign. It is where visitors “land” after clicking on an ad or a link.
65. Listing Optimization: The process of revising the copy and images on a product detail page in order to improve organic placement in the search results and conversion rates. This process often includes adding keywords to the listing title and bullet points, revising copy to improve readability and highlight key features, and including images that demonstrate product use, features, and benefits. Learn More >
66. Low-Converting Keywords:Keywords that drive particularly low conversion rates within a pay-per-click (PPC) advertising campaign.Identifying and negating these keywords is an essential step in improving the efficiency and performance of a sponsored ad campaign.
67. Minimum Advertising Price (MAP): The minimum price for which sellers can advertise a product, typically issued by the manufacturer.
68. Minimum Order Quantity (MOQ): The minimum number of products or units that a supplier will produce at one time. This number helps ensure that the supplier is producing enough products or units to drive a profit after the costs of production.
69. Marketing Campaign Management:The planning, executing, tracking, and analysis of marketing campaigns from the beginning to the end. Learn More >
70. Marketing Co-op: An agreement between a manufacturer and a seller where the manufacturer pays for a portion or the entirety of paid marketing efforts for their product.
71. Marketplace Facilitator: Businesses or organizations that arrange with third parties to sell products and services on its platform. Through this they can facilitate retail sales. Learn More >
72. Marketplace Facilitator Laws: Legislation around sales tax responsibilities of Marketplace Facilitators. Learn More >
73. Manufacturing Cost:The cost of materials and production borne by the manufacturer.
74. Media Gallery: The section at the top of an Amazon product detail page containing images and videos. Learn More >
75. Net Profit Margin:The percentage of revenue that a company retains as profit after subtracting all costs.
76. Net-Terms: The amount of time that passes between a seller acquiring inventory from a manufacturer and the seller paying the manufacturer for that inventory. This delayed payment enables sellers to generate revenue to help pay for the purchase order.
77. Paid Social: Paid targeted advertisements run on social media platforms, such as Facebook and Instagram. Learn More >
78. Pay-per-Click (PPC): A type of digital marketing in which marketers pay a specific amounteach time their ads are clicked. This model is used in most types of Amazon ads.
79. Purchase Order (PO):The order a retailer places with a vendor to acquire product. This includes the quantity of productordered and the price paid for it.
80. Product Description: A section near the bottom of the Amazon product detail page where additional product information can be shared.
81. Product Detail Page: Also called a “listing,” the page featuring a specific product that includes a title, bullet points, product description, media gallery, enhanced brand content, and customer reviews. Learn More >
82. Product Profit Margin: The difference between how much the product sells for and the actual cost of the product itself. This is sometimes referred to as a “markup.”
83. Product Rank: A product’s rank compared to other products in each category as determined by Amazon’s algorithm. A lower rank is better, indicating higher customer reviews, more traffic, more sales, and better organic placement on the search results page.
84. Production Costs:The cost for manufacturing products or services. These can include labor, raw materials, supplies, delivery costs, and general overhead.
85. Retail Arbitrage:The practice of buying products from distributors, wholesalers, retailers, and so on, then reselling those products at higher price. The resale usually takes place online. Learn More >
86. Retail Price: The price of product when sold to an end consumer.
87. Return On Advertising Spend (ROAS): A measurement of the effectiveness of a digital advertising campaign. Very similar to ROI, this metric is specifically for paid advertising campaigns and helps online business determine best methods and improvements for future digital advertising campaigns.
88. Return-On-Investment (ROI):A comparison of the amount invested to the amount generated by that investment. ROI is frequently used when measuring the value of paid marketing in generating overall revenue. To calculate ROI, divide the amount generated by the cost of the investment. 89. Sales Tax:A tax on a sale, transfer, or exchange of a product or service. Usually this tax is applied to the end consumer and not the seller.
90. Search Engine Optimization (SEO): The science of making web pages more attractive to search engines by implementing highly searched keywords in a page’s frontend content and meta content, optimizing content length, and more. On Amazon, SEO typically involves implementing keywords into product detail pages to improve their organic placement on the search results page. Learn More >
91. Search Engine Results Page (SERP): The page that is generated from a system after the user inputs their query. An example of SERP would be the Google results page.
92. Seller Agreement: A contract signed by businesses that sell on Amazon wherein they agree to comply with all of Amazon’s policies.
93. Social Media Marketing: A type of marketing conducted on social media platforms such as Facebook, Instagram, Twitter, LinkedIn, Pinterest, Snapchat, and more. This marketing typically seeks to connect brands with their target audience, build brand name recognition and loyalty, increase sales, and drive website traffic.Social Media Marketing often involves content creation, engagement with followers, analysis, and running paid social media advertisements. Learn More >
94. South Dakota v. Wayfair, Inc.: A landmark supreme court decision that holds sellers responsible for collecting and remitting sales tax in any state where they surpass a certain sales threshold, even if the business lacks a physical presence in the state. Learn More >
95. Third–Party Seller(s): An independent company that sells productson a marketplace they do not own, such as Amazon.Third-party sellers are common on Amazon, accounting for over 50% of all sales on Amazon.com. Learn More >
96. Third-Party Logistics Providers: A business that provides services for inventory management, distribution, warehouse storage, product preparation, labelling, and fulfillment for other companies. Learn More >
97. Today’s Deals: A page on Amazon that features products currently running Deal of the Day, Lightning Deals, or Best Deals. This is the second most visited page on Amazon. Learn More >
98. Use Tax: A tax on a storage, use, or consumption of a product or service which has not had sales tax applied to it.
99. Vendor Fees: A fee collected by vendors to cover the cost of processing sales taxes and transferring them to state and local governments. Learn More >
100. Wholesale Costs: The price of products purchased in bulk from the manufacturer, as opposed to the retail price, which is an increased price charged to end consumers commonly used by retailers/resellers.