By grouping complementary products together, you can offer added value and convenience, leading to higher conversion rates and increased order values. 

What are Amazon Virtual Bundles? 

Amazon Virtual Bundles are a feature of the Amazon marketplace that allows you to create a unique product offering by combining multiple related items into a single listing without physically packaging them together. Unlike traditional Amazon product bundling where products are grouped and shipped together, virtual product bundles are managed within Amazon’s system, offering flexibility and ease of implementation. 

Amazon’s eligibility requirements are:

• You must be the brand owner of the ASINs in Brand Registry
• The ASINs must have active FBA inventory in New condition (sorry, no Used or Renewed!)
• Although the bundle is virtual, the ASINs must be physical (no electronically delivered products like digital music, videos, and books)
• Gift cards cannot be part of Virtual Bundles
• Virtual Bundles can only be created in the US Amazon store

Key Features of Amazon Virtual Bundles

1. Digital Packaging: A virtual product bundle exists as a digital product offering, where the individual items are listed together on a single product page. Customers can see the combined value and purchase the bundle with a single click.
2. Individual Shipping: Each item in the bundle is shipped separately from your existing inventory. This means there is no need to repackage or reconfigure your products, making it easier to manage stock and logistics.
3. Complementary Products: Virtual bundles typically include complementary products that enhance the primary item. For example, a virtual bundle for running shoes might include a heart rate watch, and a training diary, providing a complete solution for an athlete preparing for an event.
4. Single ASIN: The bundle is assigned a unique Amazon Standard Identification Number (ASIN), which helps in tracking sales and managing inventory. This simplifies the listing process and makes it easier for customers to find the bundle.
5. Custom Pricing: With virtual product bundling, You can set a custom price that is often lower than the total price of purchasing each item separately. This creates an attractive value proposition for customers looking for a good deal.

Benefits of Amazon Virtual Bundles

• Enhanced Shopping Experience: Virtual bundling provide a convenient shopping experience by offering a curated selection of products that meet specific needs, saving customers time and effort in finding related items.
• Increased Sales and Average Order Value: By bundling complementary products, you can encourage customers to purchase more items in one transaction, increasing the overall order value.
• Better Inventory Management: Amazon bundles can help you move slow-selling items by pairing them with popular products, effectively managing inventory levels and reducing overstock.
• Improved Visibility: A bundled product will often rank well in search results and can attract more traffic due to their combined keywords and appealing value propositions.
• Competitive Advantage: Offering unique and thoughtfully curated bundles can help you differentiate your brand from competitors, attracting customers looking for comprehensive solutions and good deals.

Best Practices for Amazon Virtual Bundles

Implementing Amazon Virtual Bundles effectively requires a strategic approach. Here are some best practices to ensure your bundles attract customers and drive sales:

Choose Complementary Products Wisely

Selecting the right items for your bundle is crucial. Choose products that naturally go together and enhance each other’s value. Think about how the items can provide a comprehensive solution or fulfill a specific need for your customers. 

• Research Customer Preferences: Use customer reviews and feedback to understand what products are often bought together.
• Analyze Sales Data: Look at past sales data to identify popular combinations of products.
• Consider Seasonal Relevance: Create bundles that cater to seasonal needs or trends, such as back-to-school or holiday gift bundles.

Price Strategically

Pricing is a key factor in the success of your virtual bundle. Offer a discount compared to buying the items separately, but be mindful of your profit margins. The discount should be enticing enough to encourage purchases but not so steep that it cuts into your profits.

• Calculate Bundle Savings: Clearly display the savings customers will get by purchasing the bundle instead of individual items.
• Monitor Competitors: Keep an eye on similar bundles offered by competitors and adjust your pricing to stay competitive.
• Dynamic Pricing: Be prepared to adjust prices based on demand, inventory levels, and market trends.

Craft Compelling Descriptions

Strategic listing optimization and Amazon SEO can make a significant difference in attracting customers to your bundle. Highlight the benefits of buying the Amazon product bundle, focusing on convenience, savings, and added value. Use clear, concise language and bullet points to outline what’s included and any exclusive or limited-time offers.

• Emphasize Value: Explain how the bundle provides a complete solution or enhances the primary product.
• Use Keywords: Incorporate relevant keywords to improve search visibility.
• Highlight Unique Selling Points: Mention any exclusive features, such as limited-edition items or special discounts.

Use High-Quality Images

Visual appeal is critical for online shopping. Use high-resolution images to showcase all items in the bundle. Consider including lifestyle photos that show the bundled products in use, helping customers visualize the benefits.

• Consistency in Images: Ensure all images have a consistent style and background to maintain a professional appearance.
• Detailed Product Photos: Include close-up shots of individual items and the entire bundle.
• Contextual Images: Show the products in real-life scenarios to illustrate their use and value.

Promote Your Bundles

In addition to optimizing your bundle listings, actively promote them through various channels.

• Amazon Advertising: Use Sponsored Product, Sponsored Brand, and Sponsored Display ads to drive traffic to your bundle listings.
• Social Media: Share your bundles on social media platforms to reach a broader audience.
• Email Marketing: Include bundles in your email campaigns to engage existing customers and encourage repeat purchases.

How Canopy Management Can Help

For an Amazon seller, the key to success with an Amazon Virtual Product bundle lies in understanding customers’ needs and crafting offers that truly resonate with them. It’s about finding that sweet spot where customer value meets business growth.

Understanding the needs of our partners has been one of the reasons why Canopy Management has become the fastest growing Amazon agency in America. If you’d like to get a head start with your brand and take advantage of strategies that have fueled many of the top Amazon brands, you can find out more here.

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Amazon Virtual Bundles: An Ecommerce Seller’s Secret Weapon  appeared first on Canopy Management.

Sometimes, with all the focus on bidding tactics and granular placement settings, that big picture can get lost pretty fast.

We recently took the time to look more closely at 10 of Google’s top-ranked articles on PPC strategies for 2024. In doing so, we noticed a few critical optimization opportunities that even experts seem to consistently miss.

1. Purchases, Not Clicks

If you randomly picked ten paid search articles talking strategy, how many do you think would have headlines focused on “increasing clicks” or “improving click through rate (CTR)?”

I’d bet most if not all. 

A platform-wide focus on click-based metrics dominates the Amazon advertising space.

And it’s not necessarily bad advice. Clicks indicate interest levels, allow tracking customer journeys, and factor into your quality score. Highly-relevant, attractively displayed ads are designed specifically to draw clicks. But ultimately, clicks themselves don’t define campaign success or failure.

At the end of the day, what truly matters are purchases and conversion rate. Did your Amazon ad spend drive sales? When you have multiple options for how to bid or target, a significant part of your focus should be on purchases first.  

Keep a close eye on your return on ad spend (ROAS). On Amazon, your RoAS can be found under the Advertising tab. Here, you’ll find information about impressions, clicks, and your overall cost per sale. 

If you’re using an Amazon Sponsored Products ad, rule-based bidding can help take the guesswork out of adjusting bids to achieve your target ROAS. For any existing campaign running for at least 10 days, you can apply a rule with a guardrail of ROAS and Amazon Ads will be able to adjust your base bids up and down to increase conversions while maintaining your guardrails.

Consider viewing optimizations through the lens of whether it will drive more revenue, rather than getting stuck chasing click volume.

Design ads to get attention without being misleading. Then, adjust your bids and matching strategies based on conversion behaviors. This shift from clicks to purchases is overlooked more often than it should be.

2. Amazon Automation (The Good Kind)

Winning the Amazon Buy Box – and the PPC advertising needed to do it – is becoming more challenging every day. When it comes time to scale an Amazon brand, individual sellers simply cannot manage bids, ads, keywords, and settings across thousands of product listings or locations. 

Best practices like close variant matching, flexible bid strategies, and custom bids by segments are nearly impossible for a human alone when you hit a few hundred or thousand products.

If you’re not fortunate enough to have an Amazon agency doing this for you, this is where automation and advanced algorithms enter the game. Leveraging artificial intelligence, machine learning, and automation can help overwhelmed advertisers keep up.

For an Amazon agency, automation of standard practices is particularly impactful because it frees up the humans to attend to the volatile situations that require years of specific ecommerce experience to untangle.

We’d argue that automation alone isn’t enough to help you scale. That’s where advanced advertising management comes in. 

Sure, an AI program might help you to manage a few dozen product bids and produce just-ok performance. But it’s when the best Amazon agencies strategically combine cutting-edge, closely monitored automation with the latest advances in artificial intelligence that we really see exponential growth.

3. Amazon Ad Segmentation

The vast majority of paid search targeting still comes down to picking products, keywords, and match types. But there is a much wider world of options to precision-target the right potential customers. Variables like demographics, user intent, behaviors, and devices used allow customization at a person-by-person level. 

For example, “Similar to advertised products” product targeting for Sponsored Display is a dynamic Amazon ad segmentation option that allows advertisers to leverage machine learning to help reach hyper-relevant audiences.  

Advertisers can use dynamic segments through the Amazon Ads API by creating a contextual targeting clause of type “similarProduct”.

Using dynamic segments, advertisers can target additional products that are similar to those being advertised and help sellers reach relevant audiences most likely to click and help drive traffic to advertised products. 

Imagine you find mobile phone buyers from higher incomes households have exceptionally high conversion rates. You can create a specific ad group and set aggressive mobile bids just for this audience.

Here are three ways to boost segmentation for even better campaign results:

Leverage multiple data signals  

Combining variables like income and mobile users is more powerful than a single trait. It creates exponential benefits. You can build segments using site analytics, CRM data, and third party sources.

Test new variants frequently 

Customer data and behaviors evolve rapidly. Routinely build and experiment with new segments to catch trends. Take advantage of the rapid advances in artificial intelligence to move quickly. 

Assign dedicated budgets 

Rather than evenly spreading funds, dynamically shift budgets to your best performing segments to maximize ROI. Again, AI can help you filter through multiple accounts and ad campaigns to make changes quickly enough to affect your ROAS and ultimately, your bottom line.

4. Focus a Microscope On Your Ad Campaign With Dayparting

There are many aspects of everyday life that have been dramatically affected by the recent advancements to artificial intelligence. Ecommerce is at the forefront of that trend, with AI making quick work of the data-heavy complexities of Amazon ad campaigns.

Dayparting is an advanced PPC optimization technique where ads are scheduled to run only during specific times of the day or week. This strategy takes into account that consumer behavior and purchasing patterns can vary dramatically throughout a relatively short period of time. 

To implement a dayparting strategy:

1. Analyze Sales Data: Identify peak shopping hours for your products.
2. Review PPC Performance: Determine when your ads are most effective.
3. Set Up Custom Ad Schedules: Focus your budget on high-performing times in your Amazon PPC campaigns.

For example, if you sell office supplies, your ads might perform best during weekday business hours. If you sell entertainment products, evenings and weekends might be your prime time.

Benefits of Dayparting:

• More efficient use of your ad budget.
• Improved click-through rates (CTR) and conversion rates.
• Reduced ad spend during less profitable hours. 

5. Seasonal Keyword Strategies

Amazon sellers spend a lot of time preparing for seasonal events like Prime Day. That’s why it’s a little bit strange that most of the top posts don’t mention the required seasonal ad campaign adjustments necessary to be successful. 

Adjusting PPC strategies for seasonal trends and holiday shopping periods is crucial for maximizing sales during peak times. This involves creating separate campaigns and adjusting bids and budgets for seasonal keywords during high-traffic periods like Black Friday, Cyber Monday, or Christmas.

To implement a seasonal keyword strategy:

1. Identify Relevant Seasonal Events: Determine which holidays or events are relevant for your products.
2. Research Seasonal Keywords: Compile a list of keywords related to these events.
3. Create Separate Campaigns: Set up individual campaigns for each major seasonal event.
4. Adjust Bids and Budgets: Account for increased competition during these periods.
5. Optimize Listings: Use seasonal keywords and imagery in your product listings.
6. Plan Ahead: Schedule these campaigns well in advance of the seasonal event.

Key Considerations for Seasonal Campaigns:

• Start early to capture early shoppers and build campaign history.
• Gradually increase bids as the seasonal event approaches.
• Prepare for higher CPCs during peak shopping periods.
• Monitor inventory closely to avoid stockouts during high-demand periods.
• Adjust your main campaigns to account for seasonal shifts in search behavior.

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post The Top Posts on Amazon PPC Strategy All Missed These 5 Hacks appeared first on Canopy Management.

This post explores the top concerns that might be giving you nightmares and offers strategic solutions to help you not just survive, but thrive in this ever-changing landscape.

To begin with, first and foremost there’s the . . . 

1. Increased Competition On Amazon 

With the Amazon seller count skyrocketing past 9.7 million, competition in 2024 is fiercer than ever. Standing out in this crowded marketplace isn’t just a nice-to-have – it’s essential for survival.

The Solution:

Make Your Products Pop with Unique Features, Benefits, or Packaging

You know what selling on Amazon can be like. In a sea of sameness, you need to be the brand that stands out. To differentiate your products, focus on developing innovative features that address specific customer needs and pain points. 

Highlight unique benefits that set your products apart from the competition. For instance, if your product has superior functionality or is made from sustainable materials, make sure these points are prominently featured in your listings. 

Additionally, invest in eye-catching packaging that not only protects your product but also tells a compelling brand story. Packaging that reflects your brand values and creates a memorable unboxing experience can significantly enhance customer perception and loyalty.

Don’t Put All Your Eggs in One Amazon Basket

Diversify your sales channels to mitigate risks and expand your market reach. Yes, Amazon is a powerful platform, but relying solely on it can put you – and your brand – in a dangerous position. Explore other ecommerce platforms like eBay, Walmart, or Shopify to reach different customer segments. 

Embrace Social Commerce

Potential customers are already spending significant time on social commerce platforms like Facebook, Instagram, and TikTok. By integrating your products into these social networks, you can tap into organic reach and paid advertising options to create a seamless shopping experience that encourages impulse buying and customer interaction. 

Additionally, social commerce makes it possible for you to leverage user-generated content, reviews, and influencer partnerships to build trust and authenticity around your products. This diversified approach not only helps mitigate the intense competition within Amazon’s marketplace but also ensures a broader and more resilient customer base.

Prioritize Customer Engagement and Loyalty

Building strong relationships with your customers can set you apart in a competitive market. Provide exceptional customer service by promptly addressing inquiries and resolving issues. Encourage customer feedback and use it to improve your products and services. Implement loyalty programs or offer exclusive deals to repeat customers to drive long-term loyalty. 

Engaging with your customers on social media and through personalized email marketing can also strengthen your brand connection and encourage repeat business.

Stay Agile and Adaptable

The ecommerce landscape is constantly changing, and staying agile is crucial for maintaining a competitive edge. Keep a close eye on industry trends, competitor movements, and shifts in customer behavior. Be willing to pivot your strategies and adapt to new opportunities or challenges. Continuous learning and flexibility will help you stay ahead in a crowded marketplace.

2. How to Deal With Artificial Intelligence (AI) 

AI isn’t just coming – it’s here, and it’s reshaping the Amazon landscape. If you’re not leveraging AI for product research, marketing, or optimization, you risk being left in the digital dust. Embracing AI can significantly enhance your business operations and keep you ahead of the competition.

The Solution:

Put AI to Work Digging Through Data 

Use AI-powered tools to spot market trends, analyze customer preferences, and identify products with serious potential. AI can sift through massive amounts of data to uncover emerging trends and forecast future demand, giving you a competitive edge in selecting the right products. 

It’s like having a crystal ball for your product line, helping you make informed decisions and reducing the risk associated with new product launches. AI can also identify gaps in the market by analyzing competitor products, ensuring your offerings meet customer needs and stand out.

Automate and Personalize Your Marketing with AI

AI-driven platforms are able to create laser-targeted campaigns based on customer behavior. Personalization of your marketing is a great way to differentiate your brand. AI can also segment your audience with incredible precision, delivering personalized content that resonates with each customer. 

This level of personalization increases engagement and conversion rates. AI can also manage and optimize your PPC campaigns in real-time, adjusting bids and targeting strategies to maximize ROI. 

Get Your Pricing Right with AI

Repricing tools can adjust your prices in real-time based on market conditions, competitor pricing, and demand fluctuations. AI can ensure that you are always offering the right price at the right time, maintaining your competitive edge while optimizing your profit margins. 

Dynamic pricing strategies powered by AI can respond to changes instantly, helping you attract more buyers and increase sales volume. By balancing competitiveness with profitability, AI repricing tools can significantly enhance your pricing strategy.

Enhance Inventory Management with AI

Expert entrepreneurs always say that poor inventory management is a quiet killer of ecommerce brands. AI can revolutionize your inventory management by predicting stock needs and preventing overstocking or stockouts. 

By analyzing sales data, seasonal trends, and market demands, AI provides accurate forecasts, ensuring you have the right amount of stock at all times. This not only saves storage costs but also keeps your products available when customers are ready to buy. AI can optimize your supply chain by identifying the most efficient shipping routes and schedules, reducing delivery times and costs.

3. Am I Missing Out On Mobile Sales? 

By the end of 2024, it’s predicted that 190 million U.S. shoppers will make a purchase on mobile. Because of that, your listings need to look as good on a smartphone as they do on a desktop – maybe even better. The mobile shopping experience is critical, as it significantly impacts customer engagement and conversion rates.

The Solution:

Optimize Your Amazon Listing for Mobile 

Everything happens faster on mobile. That’s why you need to craft easy-to-read storylines that resonate with your audience, and make them stop scrolling and start buying. 

Here’s how:

Mobile-Friendly Product Titles: On mobile platforms, only the first 70-80 characters of a title are typically visible before truncation occurs. To maximize impact, place your most crucial keywords and product information at the beginning of the title. Incorporate key elements such as the brand name, product type, and primary features within those initial 70-80 characters. 

High-Quality, Mobile-Optimized Images: In the mobile shopping experience, images play a pivotal role as they often create the first impression. Use high-resolution photographs that clearly showcase your product against a clean, white background. Your main image should be particularly striking and easily discernible on smaller screens. 

Streamlined Product Descriptions and Bullet Points: The mobile layout differs from desktop, with the product description appearing above the bullet points. Craft your description to be concise and easily scannable. Remember that only the first three bullet points are immediately visible on mobile devices without scrolling. 

Amazon A+ Content is Critical: To optimize Amazon A+ content for mobile, create a dedicated mobile version with a strong, concise product description at the top. Use square images with captions instead of wide banners, and ensure high-resolution visuals with contrasting colors for text readability. 

Keep copy brief with compelling subheaders, and utilize mobile-friendly modules like videos, interactive hotspots, and navigation carousels for Premium A+ content. Design images for mobile ratios, use larger text, and balance visuals with information. 

This is where the help of an Amazon agency can make a big difference. When you only have a moment to make a first impression, this separates winners from the rest. 

4. What Happens if My Amazon Listing Gets Suspended?

Amazon is still number one. If you want to sell online, the path to success passes right through Amazon’s front gate. However, with its vast reach and influence comes a complex web of rules and regulations that you need to navigate.

Staying compliant with Amazon’s policies is not just a matter of good practice—it’s essential for the survival and growth of your business. Here’s why it’s crucial and some best practices to keep your account in good standing.

The Solution

Regularly Review Amazon’s Policies

Amazon frequently updates its policies. Make it a habit to review the Amazon Seller Central dashboard for any policy changes and updates. Subscribe to Amazon’s newsletters and updates to stay informed about new regulations.

Maintain High Product Quality and Customer Service

High product quality and excellent customer service are cornerstones of maintaining good standing on Amazon. Ensure that your products meet Amazon’s quality standards and that you respond to customer inquiries and issues promptly and professionally. Resolve any negative feedback swiftly.

Monitor Performance Metrics

Keep a close eye on key performance metrics such as Order Defect Rate (ODR), Late Shipment Rate (LSR), and Valid Tracking Rate (VTR). Regularly review your Account Health Dashboard and take proactive steps to address any areas of concern.

Use Automated Tools

Consider using automated tools to help manage your compliance efforts. Tools that monitor feedback, manage inventory, and track performance metrics can help you stay on top of Amazon’s requirements more efficiently.

Understand and Follow Category-Specific Guidelines

Different product categories may have specific guidelines and restrictions. Ensure that you understand and comply with the rules relevant to the categories you sell in. This includes knowing the restricted products list and adhering to product listing standards.

Handle Policy Violations Promptly

If you receive a notification of a policy violation, address it immediately. Understand the nature of the violation, correct it, and communicate with Amazon to resolve the issue. A proactive approach can help mitigate the impact of any infractions.

Canopy Management Can Help

As we navigate the twists and turns of the 2024 Amazon marketplace, addressing these top concerns isn’t just about survival – it’s about setting yourself up for long-term success. 

Increasingly, top Amazon sellers are taking an additional step; reaching out to an Amazon agency for help. It’s a little like the progression of pay-per-click advertising. In the beginning, it was just one of the ways to launch a product. Now, it’s almost a requirement to get ahead. 

Very quietly, Canopy Management has gained a reputation as the secret ingredient behind some of the top brands in ecommerce. 

Ever wonder what adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post What’s Keeping Amazon Sellers Up at Night in 2024? appeared first on Canopy Management.

This pivotal move is seen by many as Amazon’s response to the growing competition from Chinese ecommerce platforms like Temu and Shein, which have significantly increased their footprint in the U.S. market by offering a wide range of low-priced products.

Amazon detailed the specifics in a recent closed-door meeting with Chinese sellers, according to The Information, which first reported the news, supported later by CNBC. 

The strategic initiative indicates a shift in Amazon’s approach, as the company has previously avoided direct comparisons with their Chinese rivals. However, faced with increasing pressure on its home turf, it appears that Amazon is intensifying its efforts to attract Chinese vendors and offer similar services.

Three main points that Amazon sellers might find particularly interesting are:

Direct shipping from China

Amazon’s Fulfillment by Amazon (FBA) program has been an important component of their ecommerce success. This new section will allow Chinese sellers to ship products directly from warehouses in China to U.S. customers, bypassing FBA. 

Though experts have said that consumers are less concerned with shipping speed if the products are heavily discounted, this change could lead to longer delivery times (estimated at 9-11 days). 

Product testing opportunities

Sellers might be able to use this platform to test small batches of products before launching larger quantities, similar to Shein’s model for minimizing unsold inventory. This approach allows for more agile product development and market testing, potentially reducing the risk of overstock situations.

Pricing and product control

It appears that Chinese sellers will have the ability to determine pricing and product selection for this new bargain section, giving them more control over their offerings. This increased autonomy could lead to a more diverse and competitive product range on the platform.

How This Move Could Affect Global Ecommerce 

It’s worth noting that this new initiative could have significant implications for the ecommerce landscape:

• The move could serve to boost Chinese sellers’ presence on Amazon’s platform, potentially increasing competition for American resellers of low-cost unbranded goods.
• It could also impact Amazon’s reputation for fast shipping, as the direct-from-China model may result in longer delivery times compared to Prime-eligible products.
• The new section might help Amazon capture a share of the growing market for ultra-low-priced goods, which Salesforce estimates could command 21% of Western spending in the upcoming holiday season.

While an exact launch date for this new storefront has not been announced, reports suggest that Amazon will begin accepting inventory from sellers in the fall. This timeline indicates that the new section will likely be operational after this year’s Prime Day event in July, potentially positioning it as a key player in the holiday shopping season.

As the ecommerce landscape continues to evolve, this move by Amazon demonstrates the company’s adaptability and willingness to compete directly with emerging players in the market. If this comes to pass as predicted, it’s going to be interesting to see how Amazon’s new platform affects both sellers and consumers in the coming months.

Want to keep up with the latest news? The team at Canopy Management has our ears to the ground and will continue to report on the facets of entrepreneurship and ecommerce that affect online sellers. You can always read more of our trending reports here.

The post Amazon’s Bold New Program: Embracing Chinese Imports to Outshine Temu and Shein appeared first on Canopy Management.

Canopy’s rapid success highlights the transformative power of expert Amazon advertising management and the critical role it plays in driving growth and success on an increasingly complicated platform.

THE BRAND

Selling in the Amazon books and school supplies category, this recent Canopy partner had a number of SKUs and was making intermittent sales. Unfortunately, and despite their top quality, high value products, they simply weren’t moving enough volume to be sustainable. This was particularly evident with their top seller, a simple, traditional component of everyday student life. 

THE PROBLEM

So, what was the problem? 

As it turns out, it’s not that they weren’t using Amazon advertising. The problem was that their in-house ad campaign for their main Amazon product was knocking it out of the park . . . until it wasn’t.

Canopy Management had been working with a few of their peripheral SKUs and had created ad campaigns that were thriving. Their tent pole SKU had been doing fine, then, the wheels fell off. 

Their in-house ad campaigns stopped working. 

Over the last few years, the level of skill required to succeed with Amazon advertising has risen to the point that thriving entrepreneurs with above-average ecommerce experience are seeing their strategies fall short. 

To be honest, there wasn’t really one big thing that their in-house team was doing wrong. It was more the accumulation of little mistakes. In that way it was like death by 1000 cuts. Their main SKU was bleeding Amazon sales. 

THE SOLUTION

Most Amazon advertisers are using the same building blocks to assemble their campaigns. Success – or failure – comes from the way that the campaign is structured. Online sellers on Amazon’s platform all have the same ad pieces to move around the board; Sponsored Products, Sponsored Brands, Sponsored Display, and Demand Side Platform. 

What the very best Amazon ad experts are able to do is adjust the layering and sequencing of the individual ad groups to increase visibility, and drive sales velocity. 

The Canopy Management PPC Ads team create bespoke, specifically constructed Amazon campaigns that take advantage of the latest advances in artificial intelligence and dayparting strategies. More importantly, all of that technology and cutting-edge strategy is backstopped by dedicated account managers responsible for that account alone.

THE RESULTS

Four months ago in January of 2024, when Canopy’s PPC Ad team began working with the partner, the year-over-year organic sales growth had been relatively flat. 

The bulk of their SKUs are affected by seasonality, still, from the screenshot below, it’s clear that something special was beginning to happen – just 30 days later – in February, 2024. 

By March of 2024, sales of their main SKU were skyrocketing. 

This case study helps illustrate the critical role of expert ad management. Canopy Management’s custom built, data-driven approach to PPC advertising transformed a struggling product into a sales powerhouse. By focusing on strategic ad structuring and leveraging advanced AI tools, Canopy Management delivered remarkable results. 

For businesses looking to optimize their Amazon advertising and achieve sustainable growth, Canopy Management offers comprehensive services, including Strategic Growth Planning, Advertising Management, and more.

Visit Canopy Management to learn how we can elevate your Amazon business.

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post A Canopy Management Case Study: The Power of Strategic Amazon Advertising appeared first on Canopy Management.

One of the most effective ways to do that is through product listing variations. 

By leveraging Amazon listing variations, you can significantly improve the customer experience, increase product discoverability, and optimize your business operations. Here are five ways Amazon product variations can help succeed in what’s become a very competitive marketplace.

1. Improve Your Overall Customer Experience

It’s important to always keep in mind how much the customer experience matters to Amazon – and their vigilant algorithm. By allowing customers to easily view and compare different options such as size, color, or style on a single listing, you can make the shopping process much more convenient and enjoyable. Making Amazon’s shoppers happy should be job one. 

Easier Comparisons

When customers can see multiple variations of a product on one page, they can quickly compare the different options available. This is especially important for products that come in many sizes or colors. For example, a customer looking for a t-shirt can easily see all the available sizes and colors without having to navigate away from the listing. 

Reduced Navigation Struggles

By consolidating variations into a single listing, you can reduce the need for customers to navigate between multiple listings. This not only saves time for customers but also keeps them engaged on your Amazon page, solidifying your brand image and increasing the likelihood of a purchase.

2. Increase Your Product Discoverability

We all know that Amazon’s search algorithm favors listings that have higher engagement, better reviews, and more sales. Product variations’ ability to boost a product’s visibility and discoverability is all important. 

Consolidate Reviews and Ratings

Amazon reviews and ratings are becoming more important every year. With newer listings, it’s become one of the most impactful elements of a successful product launch. 

When all variations of a product are combined under a single parent listing, the reviews, ratings, and sales metrics are also consolidated. This can enhance the overall ranking of the product in Amazon’s search results, making it more visible to potential customers. 

A listing with numerous positive reviews and high ratings is more likely to catch the attention of shoppers, increasing the chances of a sale.

Improve Your Search Rankings

Because Amazon’s algorithm takes into account the aggregated sales and review data, a well-optimized parent listing with multiple variations tends to rank higher in search results. This increased visibility means that more customers will see the product when searching for related items, leading to higher traffic and potentially more sales.

With more variations available, there are more opportunities to match customer search queries with relevant products. For instance, if a customer is searching for a “blue small t-shirt,” having that specific variation under a well-ranked parent listing increases the chances of the product appearing in search results. That’s going to capture a broader audience.

3. Boost Your Conversion Rates

It’s not exactly rocket science. Making it easier for customers to find and purchase the right product means that product variations will almost certainly impact conversion rates. 

Create More Options on a Single Page

When shoppers are presented with multiple options on a single page, they are more likely to make a purchase. Because they do not need to leave the listing to explore other options, there’s much less risk of them getting distracted or losing interest.

Review Build Trust

As mentioned above, having all reviews and ratings consolidated under one parent listing builds trust and confidence in the product. Customers are more likely to purchase a product that has numerous positive reviews, as it signals reliability and quality. This trust factor can significantly enhance conversion rates.

4. Streamline Your Listing Management

Inventory management is well known amongst veteran Amazon sellers as a quiet killer. It’s responsible for the demise of many otherwise profitable ecommerce brands. 

Managing inventory and listings efficiently is crucial for any business. Product variations can simplify these processes, saving time and reducing the risk of errors.

Make Inventory Management Easier

With product variations, sellers can manage multiple SKUs under one parent listing. This simplifies inventory tracking and listing management, making it easier to monitor stock levels and make updates across all variations.

Save Time

Creating and maintaining separate listings for each product variation can be time-consuming and complex. By using product variations, sellers can reduce the need for multiple listings, simplifying their overall management process. This also ensures a more organized and cohesive presentation of their product catalog.

5. Simplify Testing of New Products

Amazon product variations can also serve as a valuable tool for testing new products and understanding market preferences without the need for a full-scale product launch. This strategic advantage can help you to minimize risks and maximize your return on investment.

Market Testing

By introducing a new variation under an existing, well-performing parent listing, you can gauge customer interest and demand without committing a bunch of money. This allows for real-time feedback and insights into whether a new product variation is likely to succeed. For example, if you already sell a popular black t-shirt, adding a new color like red or green as a variation can help you see how well these colors perform compared to the original. 

Customer Insights

Product variations provide a wealth of data on customer preferences and behavior. By analyzing which variations are most popular, sellers can make informed decisions about expanding their product lines or discontinuing less popular options. This data-driven approach ensures that inventory investments are focused on products with the highest potential for sales

Cost-Effective Launches

Launching new variations under an existing listing is more cost-effective than creating entirely new listings. It reduces the need for additional advertising and promotional efforts since the parent listing already has visibility, reviews, and sales momentum. This strategy allows for a more efficient use of marketing budgets while still expanding the product range. Instead of starting from scratch, you leverage the existing reputation and customer base of your main product. 

Enhanced Product Development

Feedback from variations can guide future product development. By understanding what features or characteristics customers prefer, you can tailor your new product designs to meet these demands. For example, if customers consistently praise the comfort and fit of a particular variation, you can incorporate these elements into future products.

Competitive Advantage

Staying ahead of the competition is crucial in the highly competitive Amazon marketplace. Utilizing product variations to test new ideas and gather insights gives you a competitive edge. You can quickly adapt to changing market trends and customer preferences, ensuring that your product offerings remain relevant and appealing. This agility can set you apart from competitors who may be slower to innovate or respond to market changes.

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Why You Should Make Amazon Product Variations Your Superpower   appeared first on Canopy Management.

That’s why forward-thinking retailers are constantly searching for new ways to grow their ecommerce sales and engage customers across multiple platforms. 

Fulfillment by Amazon Gets All the Attention

While the Fulfillment by Amazon (FBA) program offers tremendous benefits, smart ecommerce brands know that overreliance on a single platform introduces risk.

Some entrepreneurs are expanding to other online marketplaces like Walmart.com. Others are building out their own websites and sales channels.

While FBA may drive the largest portion of your ecommerce revenue today, it’s a good idea to employ diversification strategies to mitigate risks and possibly unlock additional growth opportunities elsewhere.

But, there’s no reason that you absolutely HAVE to leave Amazon to do that. 

As Amazon continues to grow, the options for diversifying your ecommerce strategy have grown right along with it. So, without further delay, here’s a list of seven great new ways to make money on Amazon in 2024.

1. Subscription Boxes 

Subscription boxes offer convenience and just enough surprise by delivering a selection of curated products matched to each customer’s interests and needs. Subscribers save time and effort from not having to shop for those items themselves. 

For businesses, subscription boxes provide a way to reach new customers and generate recurring revenue from subscriptions.

 In 2023 subscription boxes were a $32.9 billion business. By 2027, they are expected to hit $65 billion. 

As usual, Amazon has been paying attention. Amazon Subscription Boxes enables qualified sellers to list, sell, and manage their subscription box products on Amazon.com. This is a perfect way to engage new customers, and boost Amazon sales. 

You can list and manage all of your Amazon business from a single Professional Amazon seller account. Because of that, the likelihood is high that – in addition to increased sales from the subscription boxes – you’ll be able to drive additional revenue through individual item sales.

Amazon says that, “Amazon Subscription Box sellers must be able to offer a fully-assembled curated subscription box with the ability to support free shipping directly to customers in all 50 states, Guam and Puerto Rico.

Sellers must also have an active Professional seller account on Amazon.com in order to start selling, although it is not required to apply to the program. With recent successes such as Dollar Shave Club, Hello Fresh, and Birchbox, it’s clear that this invite-only program is worth jumping through a few hoops to make happen!

2. Retail Arbitrage

Retail arbitrage is a business model where individuals buy products from retail stores at a lower price and resell them on other platforms like Walmart or Amazon for a profit. The profit is made by taking advantage of price differences between different markets.

It’s traditionally been a great way to get started selling on Amazon with low upfront costs and minimal risk.

To do retail arbitrage, sellers research products to check price variability, sales ranks, fees, and potential profitability. The trick is purchasing products with a high enough price difference to make a profit after Amazon’s fees. Once you receive the inventory, you create an Amazon listing and ship the products to an Amazon fulfillment center.

The key advantages of retail arbitrage are the low barrier to entry, fast start-up time, ease of sourcing products, and no need to launch your own product. The downsides include it being time-consuming to constantly source inventory, a lack of consistency in inventory supply, price wars with other resellers, and potential issues with inauthentic claims from brands.

However, retail arbitrage can provide a steady income stream, especially when combined with other Amazon business models like wholesale or private label. Proper use of product research tools and understanding pricing, sales history, and profit margins are critical for success.

Because there’s very little business infrastructure involved, it’s a quick way to scale up quickly. No overseas shipping challenges and limited storage requirements means that more of your money can be spent on inventory and building your business. 

Like its close relative, online arbitrage (that takes advantage of the same model, albeit online instead of in retail stores) it does require a good instinct for trends, and software tools to make it easier to quickly identify low-hanging product opportunities.

3. Sell Handmade Goods

Here’s another path towards the Amazon Buy Box. 

Amazon Handmade is a distinct artisan-only marketplace on Amazon that allows artists and crafters to sell their one-of-a-kind, handcrafted products to Amazon’s massive customer base. Because of the strong, creator-based model, it also offers a great opportunity to use social commerce to connect with a particularly niched-down audience.

To sell on Handmade, makers apply and go through an approval process to verify their products are truly handmade. Approved sellers can then create custom storefronts and list unlimited handmade products across 14 categories like jewelry, home goods, artwork and more.

The key benefits include no listing fees (just a 15% referral fee), optional Fulfillment by Amazon, and exposure to Amazon’s billions of shoppers.

When considering whether to sell on Amazon Handmade versus Etsy or other platforms, factors to evaluate include fees, product categories, seller requirements, advertising options, payment schedules, competition levels and customer bases.

To get started on Amazon Handmade, makers submit an application with details on their handmade process, upload product images, choose a category, and must pass Amazon’s verification of their handmade claims.

4. Merch by Amazon

Do you have an artistic streak? Maybe it’s time to become a Merch on Demand content creator. 

Merch on Demand’s print-on-demand platform allows artists, designers, and creators to upload their custom designs and sell merchandise like t-shirts, hoodies, phone cases, and more on Amazon without needing any inventory.

Here’s the amazing part, there are ZERO upfront costs! 

The key benefits include instant access to Amazon’s massive customer base, potential for passive income from royalties, and bypassing logistical headaches of traditional merchandising. However, it is an invitation-only program with requirements around intellectual property, design standards, and tax information.

To succeed on Merch on Demand, quality original designs aligned with popular trends and niches are crucial, as is effective marketing through optimized listings, promotions, social media, and building an audience. Researching demand, defining a pricing strategy, encouraging reviews, diversifying products, and adherence to Amazon’s policies are also important factors.

While competition exists, the platform offers a relatively low-risk avenue for entrepreneurs and creators to monetize their artwork and ideas by selling customized merchandise worldwide through Amazon’s powerful selling platform.

5. Kindle Direct Publishing

Have a good book idea or a great AI GPT prompt sequence? Amazon’s Kindle Direct Publishing might be the best way to get it printed!

Amazon Kindle Direct Publishing (KDP) enables authors to self-publish eBooks, paperbacks, and hardcover books directly on Amazon’s massive online marketplace for free. 

It offers several attractive benefits such as fast publishing within 48 hours, higher royalties up to 70%, complete control over rights and pricing, unlimited free publishing across formats and pen names, and the ability to leverage Amazon’s advertising platform.

KDP provides authors two royalty options based on pricing requirements, and authors can enroll in KDP Select for additional benefits like inclusion in Kindle Unlimited and promotional tools in exchange for exclusivity on Amazon.

To succeed with KDP, optimizing book listings with compelling titles, descriptions, cover images and relevant keywords is crucial for visibility on Amazon’s search rankings. Advertising through Amazon’s sponsored product ads targeting appropriate keywords can also drive discoverability and sales.

The sign-up process is simple, involving creating an Amazon seller account and uploading book content/details. Amazon advertising agencies like Canopy Management can further assist KDP authors with expertise in areas like sponsored ads, creative services, listing optimization and overall strategy to maximize visibility and royalties from their self-published books on Amazon’s massive retail platform.

6. Become an Influencer

There’s no denying that influencer marketing has become a very lucrative platform. In just five years social media marketing grew from $1.7 billion in 2016 to $21.1 billion in 2023.

The rapid growth of influencer marketing has been directly linked to the rising popularity of short-format video on social media platforms such as TikTok, Facebook, and YouTube. 

While big brands were the first to get on the influencer trend, there has been a proliferation of smaller, niche-influencers for brands with a more modest footprint.

A study by Lego showed that one-third of 8-12 year-olds aspire to become influencers. Why let the kids have all the fun (and make all the money)?

Once again, Amazon has put their stamp on the process. 

The Amazon Influencer Program allows social media influencers, bloggers, and content creators to earn commissions by promoting and driving sales of Amazon products to their target audience. 

Influencers apply to the program, create their own custom Amazon storefront filled with products they recommend, and earn a commission (ranging from 1% to 10% based on category) whenever their audience purchases through their influencer campaign links or storefronts.

To become an Amazon Influencer, applicants need an active social media account with a significant follower base of roughly 20,000. The application process involves registering, linking social accounts, creating an Amazon store, and meeting Amazon’s criteria.

Influencer campaigns are promoted through channels like social posts, vlogs, blog content, and leverage tactics like stories, descriptions, and call-to-actions to drive potential customers to their Amazon recommendations. 

Tracking results focuses on content metrics like clicks, views and promo code usage. The program provides a lucrative way for influencers to monetize the reach of their ecommerce businesses.

Do you have a social media following? Maybe it’s time to monetize it!

7. Dropshipping

Dropshipping is an ecommerce fulfillment method where the seller partners with a third-party supplier who handles product sourcing, packaging, and shipping orders directly to customers.

You can run your dropshipping business from anywhere with an internet connection. All you need to do is make sure to align with your suppliers and follow up with customers. It’s legal and can be profitable if done correctly by following guidelines and best practices.

To stay on the right side of Amazon’s legal team, a dropshipping business must first set up an Amazon seller account, then be sure to carefully vet and partner with a legitimate dropshipping supplier. 

Suppliers should identify the seller as the seller of record, provide proof of authorization to sell products, and handle returns per Amazon’s policies. Sellers remain responsible for customer service, listings optimization, and tracking profitability.

Key tips for dropshipping success include selecting suitable non-perishable products, never giving suppliers account access, calculating all costs for healthy margins, utilizing tools like sales estimators, and considering combining dropshipping with FBA for certain products.

While low startup costs appeal to new sellers, comprehensive planning is still required – researching products, vetting suppliers, understanding policies, handling customer service, and monitoring performance. 

When done diligently, dropshipping can be a relatively inexpensive, scalable way to build an ecommerce business by leveraging Amazon’s vast customer base without the overhead of inventory storage.

How Canopy Management Can Help 

At Canopy Management, we believe you should be the hero of your own brand story and under the Canopy, you will be! Take a moment to read the success stories of real sellers we’ve helped. 

Then, consider one of these strategies, or take a closer look at the Amazon FBA selling platform. Over the last few years, it’s allowed a large number of entrepreneurs to quit their primary job and sell full time. 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post 7 (Different) Ways to Make Money On Amazon In 2024 appeared first on Canopy Management.

Temu, itself a rising star of Chinese ecommerce just made its own ecommerce power play.

A month ago, Temu began allowing sellers with local U.S. warehouses or 3PLs to sell on its platform. That was in addition to its existing consignment model where sellers ship inventory to Temu’s warehouses. Now, Temu has partnered with third-party warehousing and fulfillment companies WINIT and Easy Export to offer “Fulfillment by Temu” services similar to Amazon’s FBA or Walmart’s WFS.

Temu is also known for its innovative “shoptainment” model that gamifies the online shopping experience. By offering a treasure trove of affordable and quirky products, coupled with aggressive marketing spend, Temu has rapidly attracted millions of users. 

Now, for better or worse – and to the certain consternation of Walmart and Amazon – they’re right on the doorstep of North American shoppers. 

Leveraging Chinese Manufacturing and U.S. Demand

Temu capitalizes on the excess manufacturing capacity in China and the demand for low-cost goods from American consumers. By directly connecting these two entities, Temu offers a wide array of occasionally peculiar yet affordable products. 

The platform presents a wealth of items that shoppers never knew they needed, enticing them to explore and discover hidden gems. This carefully curated mix of affordability and excitement creates an irresistible allure for an increasing number of users.

Expanding the Marketplace Model

It was just a month ago that Temu started allowing sellers with local U.S. warehouses or third-party logistics (3PLs) to sell on its platform. This new “marketplace” model complemented Temu’s existing consignment model, where sellers ship inventory to Temu’s warehouses. 

At that time, according to research from Marketplace Pulse, 1,000 sellers, all based in China, took advantage of this opportunity by repurposing some of the existing us-based inventory they had intended to sell on Amazon.

This matters because it’s going to reduce complete reliance on the China supply chain alone while offering more pricing options and a greater selection and variety of goods. It’s also bound to help mitigate regulatory risks.

Partnering for Faster Fulfillment

That move by Temu allowed Chinese sellers with inventory in the U.S. to sell on their marketplace. It was the first big crux move in what’s clearly a long game. Now, Temu has taken the second step, and in doing so has created their own version of Fulfillment by Amazon (FBA), or Walmart Fulfillment Services (WFS). 

Temu has partnered with third-party warehousing and fulfillment companies WINIT and Easy Export. These partnerships offer “Fulfillment by Temu” services, and mirror Amazon’s FBA or Walmart’s WFS. 

This makes it possible for Sellers to ship bulk inventory to WINIT and Easy Export’s U.S. warehouses, where orders will be fulfilled and shipped to customers faster. This strategic move aims to provide a two-tier assortment – fast local delivery for popular items and a broader direct-from-China selection.

Temu’s aggressive expansion plans position the company as a formidable competitor to industry giants like Amazon, Walmart and Shein. By onboarding more Amazon sellers with U.S. inventory and targeting major brands, Temu aims to offer a compelling alternative to established players. 

Gamifying the Shopping Experience

Way back in 2016, Alibaba launched Taobao Live, which in large part threw open the doors to live shopping in China. Since that time, Chinese platforms have made huge advances in social commerce and the “gamification” of purchases. 

Increasingly, Chinese shoppers make their purchases after taking part in virtual exhibitions and performances that take advantage of the advances in artificial intelligence and virtual reality that we’ve seen over the past several years. 

Expert ecommerce watchers feel that a significant percentage of Temu’s success is through its embracing the still-innovative “shoptainment” model. It’s transformed the act of browsing into an exciting adventure with an online purchase the not-so-accidental result. 

Shoppers are greeted with spinning wheels that offer enticing coupons, creating an element of chance and anticipation. Temu’s algorithm skillfully presents products that cater to individual preferences, creating a personalized and immersive shopping environment. The combination of affordability and excitement keeps users hooked, eagerly anticipating their next unexpected find.

What’s In Store for Ecommerce Sellers

Temu’s innovative approach to ecommerce, combining gamification, affordability, and now, localized fulfillment, is revolutionizing the online shopping experience. By leveraging Chinese manufacturing, partnering with U.S. warehousing companies, and expanding its marketplace model, Temu is well-positioned to compete with industry giants. 

By continuing to disrupt the status quo and offering consumers an addictive blend of entertainment and affordability, Temu is going to be a force to be reckoned with.

How Canopy Management Can Help

To level up your own online-selling journey, check back here to stay in touch with the latest ecommerce news. The Canopy team is constantly updating blog content that also offers tips and strategies from some of the brightest minds in the Amazon marketplace. 

Want to find out more how Canopy can help you strategically scale your own brand? Reach out to the Amazon Management experts here.

The post Temu’s Ecommerce Evolution: Do Amazon and Walmart Have Anything to Worry About? appeared first on Canopy Management.

Amazon has not only grown their sales 10X – establishing itself in the process as a global ecommerce leader – Amazon’s gross merchandise volume (GMV) saw an increase of over 100% during the last four years.

To those keeping a close eye on entrepreneurship and ecommerce, it’s no surprise that the majority of this expansion came directly from Amazon’s explosive third-party marketplace.

This has provided sellers with an unparalleled opportunity to reach a massive audience and grow their businesses. With millions of active customers, a trusted brand reputation, and a wide range of tools and services designed to support sellers, Amazon has become the go-to platform for businesses looking to expand their online presence and increase sales.

Whether you’re a small business owner, an entrepreneur, or a well-established brand, selling on Amazon can offer numerous benefits that can help you take your business to the next level. If you’re considering selling products online or looking for ways to grow your existing ecommerce business, Amazon should be at the top of your list. 

But, beyond the simple fact that “everyone” looks to Amazon when they want to simplify the purchasing process, exactly why should online sellers focus their attention on Amazon? 

In this post, we’ll explore the top ten reasons why selling on Amazon can be a game-changer for your business, and provide insights into how you can leverage these advantages to achieve your goals and unlock your full potential as an online seller.

1. Amazon’s Massive Customer Base

One of the most compelling reasons to sell on Amazon is access to its vast customer base. With over 310 million customers worldwide, Amazon provides sellers with an unrivaled potential market. 

By listing your products on Amazon, you can tap into this massive audience and significantly increase your sales potential. Amazon’s popularity and reputation as a trusted ecommerce platform make it easier for sellers to attract customers who are already primed to make purchases.

2. Brand Trust

July 5, 2024 will mark 30 years that Amazon has been selling online. Over those three decades,  Amazon has built a strong reputation for reliability and customer service, which can be invaluable for sellers. When customers see your products listed on Amazon, they are more likely to trust your brand and feel confident in making a purchase. 

This trust factor can help you gain credibility, attract more buyers, and establish a loyal customer base. By leveraging Amazon’s brand trust, you can focus on providing high-quality products and excellent customer service, knowing that the platform’s reputation will work in your favor.

3. Fulfillment by Amazon (FBA)

One of the most significant advantages of selling on Amazon is their in-house, Fulfillment by Amazon (FBA) service. With FBA, sellers can store their products in Amazon’s warehouses, and the company will handle the packaging, shipping, and customer service on their behalf. 

This service makes logistics more convenient for sellers, allowing them to focus on other aspects of their business. FBA also makes your products eligible for Prime shipping, which can be a massive draw for customers.

As impressive as Amazon’s FBA might seem to an outsider, for entrepreneurs already selling on their marketplace, it’s often singled out as the reason why online sellers chose Amazon first.

4. Amazon Prime Shipping

Prime shipping is like an online-selling cheat code. 

Over the last five years, ultra fast shipping has become a requisite part of a shopper’s ecommerce checklist. Amazon Prime is a subscription service that offers customers free and fast shipping, among other benefits. 

By selling through FBA, your products become eligible for Prime shipping, which can significantly increase your sales. Prime members – all 200 million of them – are more likely to purchase products that qualify for Prime shipping, as they value the convenience and speed of delivery. By offering Prime shipping, you can attract a loyal customer base and boost your sales potential.

Now, Amazon also offers Buy with Prime, allowing small businesses to sell merchandise on their own website, while at the same time taking advantage of one of the principal benefits of Amazon’s fantastic fulfillment service. 

5. Increased Visibility

When you list your products on Amazon, they become more visible to potential customers. Amazon’s search engine and recommendation algorithms are designed to help customers find the products they’re looking for quickly and easily. 

Now, the recent advancements to artificial intelligence are making that even more relevant. By optimizing your product listings with relevant keywords and providing detailed descriptions and high-quality images, you can increase your chances of being discovered by potential buyers. 

Additionally, Amazon features such as “Frequently Bought Together” and “Customers Also Bought” sections can help drive even more traffic to your products.

6. Easy Setup

As an entrepreneur, the last thing that you want to try to accomplish is navigating a complicated selling platform. Between product research, sourcing, and shipping logistics, you’ve got your hands full. 

Getting started as a seller on Amazon is pretty simple. The platform provides a user-friendly interface and step-by-step guides to help you set up your seller account and create product listings. 

Amazon also offers various tools and resources to help you manage your listings, orders, and payments, making it easier to streamline your operations. Whether you’re a new or experienced seller, Amazon’s setup process is designed to be straightforward and efficient.

7. Reduced Marketing Costs

Selling on Amazon can help reduce your marketing expenses, as the platform’s built-in customer base and search engine can drive traffic to your products. 

While it’s still essential to optimize your product listings and invest in some marketing efforts, namely Amazon’s powerful pay-per–click (PPC) advertising, you can leverage Amazon’s existing audience and tools to minimize your overall marketing costs. 

This can be especially beneficial for small businesses or those of you just starting, as it allows you to allocate more resources towards product development and customer service.

8. Competitive Pricing

Price is consistently mentioned as one of the main reasons that shoppers head to Amazon first. At the same time, getting pricing right has traditionally been a major challenge for entrepreneurs. 

Amazon provides sellers with pricing tools and analytics to help them stay competitive in the marketplace. These tools allow you to monitor your competitors’ prices, track your sales performance, and make data-driven decisions to optimize your pricing strategy. 

By leveraging these insights, you can ensure that your prices remain competitive while still maintaining profitability. Additionally, Amazon’s dynamic pricing feature can automatically adjust your prices based on market conditions and competitor activity, saving you time and effort.

9. Amazon’s Global Reach

Amazon operates marketplaces in multiple countries, providing you with an opportunity to expand your reach and sell products internationally. For example, with just one account you can reach customers across 28 different countries shopping in Amazon’s European stores.

By listing your products on Amazon’s global marketplaces, you can access new customer bases and increase your sales potential without the need to set up separate websites or logistics operations for each country. 

Amazon’s international fulfillment services can help you navigate the complexities of cross-border selling, making it easier to grow your business globally.

10. Diversify Your Sales

Multi-channel selling has increasingly become one of the most talked about – and impactful – components of online selling success. 

Selling on Amazon can help you diversify your sales channels and reduce your reliance on a single platform or your own website. By having multiple sales channels, you can mitigate the risk of potential downturns in any one platform and ensure a more stable revenue stream. 

Additionally, selling on Amazon can provide valuable insights into customer preferences and market trends, which you can apply to your other sales channels and product development strategies.

Amazon Is #1 for a Reason

Selling on Amazon offers numerous benefits for entrepreneurs looking to expand their reach, increase sales, and streamline their operations. From access to a massive customer base and brand trust to convenient fulfillment options and global expansion opportunities, Amazon provides sellers with the tools and resources you need to succeed in the competitive world of ecommerce. 

By leveraging these advantages and continuously optimizing your presence on the platform, you can unlock the full potential of your business and achieve long-term growth and success.

And, if you’d like to stand on the shoulders of giants, and take advantage of a shortcut that has fueled the success of many of the top Amazon sellers, reach out to the ecommerce experts at Canopy Management. 

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post The Top 10 Reasons Why Your Brand Needs to Sell on Amazon in 2024 appeared first on Canopy Management.

In this comprehensive guide, we’ll explore these metrics in depth, providing definitions, calculations, and proven strategies to help you maximize your Amazon advertising performance in 2024.

Understanding Amazon Advertising Cost of Sales (ACoS)

Amazon Advertising Cost of Sales (ACoS) is a vital metric that every Amazon seller should closely monitor and understand. It provides a clear picture of the effectiveness and profitability of your Amazon advertising campaigns. In essence, ACoS measures the relationship between your advertising expenditure and the revenue generated directly from those ads.

To put it simply, ACoS tells you how much you’re investing in Amazon advertising to generate one dollar of sales. For example, if your ACoS is 25%, it means you’re spending $0.25 on advertising for every dollar of revenue earned from your ads. A lower ACoS indicates higher profitability, as you’re spending less on advertising to generate each sale.

Calculating your ACoS is straightforward. You simply divide your total advertising spend by the total sales generated from those ads and multiply by 100 to express it as a percentage. The formula looks like this:

ACoS = (Advertising Spend ÷ Advertising Revenue) x 100

So, if you spent $1,000 on Amazon advertising and generated $5,000 in sales from those ads, your ACoS would be:

ACoS = ($1,000 ÷ $5,000) x 100 = 20%

This means you spent $0.20 on advertising for every dollar of revenue earned from your ads.

It’s important to note that ACoS only takes into account the direct sales generated from your ads. It doesn’t include organic sales or the potential long-term value of customers acquired through advertising.

For most sellers, the goal is to find the right balance between driving sales and maintaining profitability. A lower ACoS generally indicates more efficient and profitable advertising, but it’s essential to consider your overall business goals. For example, when launching a new product, you may be willing to accept a higher ACoS to gain market share and visibility.

By continuously monitoring and optimizing your ACoS, you can make data-driven decisions to improve your Amazon advertising performance. This may involve refining your keyword targeting, adjusting bids, testing ad creatives, or optimizing your product listings for better conversion rates.

Factors That Influence ACoS

Several factors can impact your Amazon ACoS, including:

• Product price: Higher-priced items generally have a lower ACoS, as they generate more revenue per sale.
• Conversion rate: A higher conversion rate means more of your ad clicks result in sales, potentially lowering your ACoS.
• Click-through rate (CTR): A higher CTR indicates more relevant and engaging ads, which can lead to increased sales and a lower ACoS.
• Competition: Higher competition in your product category may result in higher cost-per-click (CPC) and ACoS.

Strategies to Optimize ACoS

To improve your Amazon ACoS, consider the following tactics:

• Optimize product listings: Ensure your listings are informative, engaging, and keyword-optimized to improve organic rankings and conversion rates.
• Refine keyword targeting: Regularly analyze your search term report to identify and target high-performing keywords while eliminating or adjusting bids for underperforming ones.
• Adjust bids strategically: Increase bids for keywords generating sales with a low ACoS, and decrease bids for keywords with a high ACoS or low sales.
• Utilize negative keywords: Add irrelevant or poorly performing keywords as negative keywords to reduce wasted ad spend and enhance ACoS.
• Continuously monitor and analyze: Regularly review your Amazon advertising data to identify trends, opportunities, and areas for improvement, making data-driven optimizations.

Mastering Total Advertising Cost of Sales (TACoS)

While ACoS focuses specifically on the direct return from advertising spend, Total Advertising Cost of Sales (TACoS) offers a more comprehensive perspective on your Amazon advertising performance. TACoS takes into account your total revenue, including both organic and paid sales, providing a holistic view of how your advertising efforts contribute to your overall business profitability.

To calculate TACoS, you’ll need to sum up your total advertising spend across all Amazon ad types (Sponsored Products, Sponsored Brands, and Sponsored Display) for a given period. 

Then, divide that total ad spend by your total revenue (including sales from both organic and paid traffic) for the same period. Finally, multiply the result by 100 to express TACoS as a percentage.

The formula for TACoS is:

TACoS = (Total Advertising Spend ÷ Total Revenue) x 100

Let’s consider an example to illustrate the calculation. If your total advertising spend for a month is $2,000 and your total revenue (including both organic and paid sales) is $20,000, your TACoS would be:

TACoS = ($2,000 ÷ $20,000) x 100 = 10%

In this scenario, your advertising spend represents 10% of your total revenue. In other words, for every $100 in total sales, you spent $10 on advertising.

Analyzing your TACoS provides valuable insights into the overall efficiency and profitability of your Amazon advertising strategy. A lower TACoS indicates that your advertising spend is generating a higher proportion of your total sales, suggesting a more effective and profitable approach. Conversely, a higher TACoS may indicate an overreliance on paid advertising or an opportunity to optimize your campaigns for better returns.

It’s important to remember that an optimal TACoS will vary depending on factors such as your profit margins, industry benchmarks, and business goals. Some businesses may be comfortable with a higher TACoS during periods of growth or when launching new products, as they prioritize market share and brand awareness over short-term profitability.

How to Improve Your TACoS Strategy

• Optimize your ad campaigns: Continuously monitor and refine your targeting, keywords, bids, and ad creatives to maximize relevance and conversion rates while minimizing wasted spend.
• Improve your organic rankings: Invest in Amazon SEO to increase your organic visibility and sales without relying solely on paid advertising.
• Expand your product mix: Diversify your product offerings to appeal to a wider audience and reduce dependence on a single product or category.
• Enhance your overall conversion rate: Optimize your product listings, pricing, and customer reviews to improve your overall conversion rate and generate more sales from both organic and paid traffic.

Best Practices for Managing ACoS and TACoS in 2024

Set Realistic Targets

To effectively manage your Amazon advertising performance, it’s crucial to set realistic targets for your ACoS and TACoS. Start by calculating your break-even ACoS, which represents the maximum ACoS you can sustain while still covering your product costs and Amazon fees. To determine your break-even ACoS, divide your profit margin by your selling price and multiply by 100.

For example, if your product costs $30, your selling price is $50, and your Amazon fees are $10, your profit margin would be $10 ($50 – $30 – $10). Your break-even ACoS would be 20% ($10 ÷ $50 x 100).

Once you know your break-even ACoS, set realistic targets that align with your business objectives. If your goal is to maximize profitability, aim for an ACoS lower than your break-even point. If you’re focused on growth and gaining market share, you may accept a higher ACoS temporarily.

Similarly, set achievable TACoS targets based on your overall profitability goals and benchmark data for your industry. Regularly review and adjust your targets as your business evolves and your margins change.

Leverage Advanced Analytics

To make data-driven decisions and identify optimization opportunities, leverage the wealth of data available through Amazon’s built-in advertising reports and third-party analytics tools. 

Amazon provides a range of reports, including the Search Term Report, Targeting Report, and Performance Over Time Report, which offer valuable insights into your ad campaigns’ performance.

Analyze these reports to identify top-performing keywords, ad groups, and products, as well as areas for improvement. Use the data to inform your bid adjustments, keyword targeting, and ad creative optimizations.

Additionally, consider using third-party Amazon advertising tools that provide advanced features such as bid optimization, keyword research, and competitor analysis. These tools can help you save time, automate tasks, and gain deeper insights into your advertising performance.

Adapt to Market Changes

The Amazon advertising landscape is constantly evolving, with new ad formats, targeting options, and best practices emerging regularly. To stay ahead of the curve, keep yourself informed about the latest Amazon advertising updates and adapt your strategies accordingly.

Monitor changes in consumer behavior, such as shifts in search trends, product preferences, and shopping habits. Use this information to refine your targeting, ad creatives, and product offerings to better align with customer needs.

Stay attuned to your competitors’ activities, including their product launches, pricing strategies, and advertising tactics. Analyze their strengths and weaknesses, and adjust your approach to differentiate your brand and capitalize on opportunities.

Continuously Test and Refine

Successful Amazon advertisers are always testing and refining their strategies to optimize performance. Regularly experiment with different ad formats, such as Sponsored Products, Sponsored Brands, and Sponsored Display, to determine which ones resonate best with your target audience.

Test various targeting options, including keyword targeting, product targeting, and audience targeting, to identify the most effective approaches for your products. Continuously refine your keyword lists, adding high-performing search terms and removing irrelevant or underperforming ones.

Experiment with different ad creatives, including images, videos, and ad copy, to identify the elements that drive the highest engagement and conversion rates. Use A/B testing to compare the performance of different ad variations and iterate based on data-driven insights.

Consider External Factors

When planning and executing your Amazon advertising strategy, consider external factors that can impact your performance. Seasonal trends, such as holidays, back-to-school, or summer sales, can significantly influence consumer behavior and advertising competition. Plan your budgets and campaigns accordingly to capitalize on these opportunities and maintain efficiency.

Monitor your competitors’ activities during key sales periods and adjust your bids, budgets, and ad placements to remain competitive. Analyze their ad copy, images, and promotions to gain insights into effective strategies.

Develop flexible advertising strategies that can adapt to unexpected changes in the market or competitive landscape. This may include having contingency plans for supply chain disruptions, sudden shifts in demand, or new competitors entering your product category.

How Canopy Management Can Supercharge Your Amazon Advertising

Maximizing your Amazon advertising potential requires expertise, strategic planning, and continuous optimization. Canopy Management, a full-service Amazon marketing agency, can help you take your advertising efforts to the next level.

Our team of former Amazonians, multi-million dollar sellers, and award-winning experts specializes in:

• Strategic Amazon advertising planning
• Comprehensive keyword research and targeting
• Proven bid optimization strategies
• Engaging ad creative development
• In-depth performance analytics and reporting
• Continuous testing and refinement

With Canopy Management as your partner, you can unlock the full potential of your Amazon advertising, driving unparalleled results:

• 84% average year-over-year profit growth for our partners
• 2.7 billion in revenue managed
• 99.1% partner retention rate

Don’t let bad Amazon advertising hold your business back. Reach out to Canopy Management today to learn how our team of experts can help you master ACoS and TACoS optimization to boost your sales and profitability in 2024 and beyond.

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