[ BDSN ] 🪤 Don't get tricked by Amazon's "new" algorithm

🏷️ THE POWER OF PODCASTING

The "New Heights" podcast, hosted by NFL stars and brothers Jason and Travis Kelce, has been acquired by Amazon's Wondery in a deal worth over $100 million even though they have released less than 100 episodes (Travis will make $17 million playing for the Chiefs this year).

• Deal Value: $100+ million for exclusive ad sales and distribution rights

• Podcast Ranking: 4th biggest podcast in the U.S. for Q1 2024

• Listeners: Part of an industry with 135 million monthly listeners

• Industry Growth: 47% growth in the past five years

• Expected Ad Revenue: $4 billion for the industry in 2024

• Taylor Swift Effect: Audience grew 4.5x after Travis Kelce's relationship with Swift became public

Amazon's Strategy:

• Global expansion: Plans to translate the podcast for international markets

• Merchandising rights: Potential for additional revenue streams

• Community building: Leveraging the strong fan base (called "92%ers")

Why Podcasts are Powerful:

1. Trust-building: Podcasts offer a unique window into hosts' minds and personalities

2. Time investment: Listeners spend significant time with their favorite shows

3. Emotional connection: Human voice conveys nuance and emotion effectively

4. Depth: Allows for in-depth, nuanced discussions unlike other media

5. Not good for direct selling, but great for relationship building

Industry:

• Other big deals:

  • Joe Rogan: $250 million (Spotify)

  • Call Her Daddy: $100+ million (SiriusXM)

  • SmartLess: $100+ million (SiriusXM)

  • Armchair Expert: $80 million (Wondery)

I’ve been monitoring 48 different podcasts in the Amazon and e-commerce space.

Starting next week, BDSN will be highlighting the top learnings from the latest podcasts.

I listen and find the good stuff so you don’t have to.

Here’s an example of what’s coming to BDSN (the best ones every week):

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🚛  WALMART EXPANDING MARKETPLACE & LOGISTICS

At the 2024 Walmart Marketplace Seller Summit this week, Walmart announced new product categories, including Premium Beauty and pre-owned merchandise, and introduced features to simplify cross-market selling.

• Logistics Services:

  • Walmart will offer warehousing, delivery, and import services to third-party sellers across various platforms, including rivals like Target and Etsy.

  • Launches on September 10, 2024, aiming to challenge Amazon’s Fulfillment by Amazon service.

  • Simplified cross-market selling for third-party sellers.

• Digital Growth:

  • U.S. marketplace sales have grown by over 30% for four consecutive quarters.

  • Walmart's eCommerce sales surged from $9.3 billion in Q1 2020 to $21.8 billion in Q2 2024.

🖋️ TWO POWERFUL CONVERSION TACTICS

Copywriting:

A powerful way to describe something is to avoid describing what it is, and instead, describe what it is not.

This works great if you’re selling a product that’s doing something compared to its competition.

For example: Let’s say you’re selling an electric toothbrush that features brand-new technology.

You could lead with the new tech, and that might be appealing.

Or, you can lead with what it doesn’t do, and use that to contrast it with the other alternatives out there.

Like this:

• OK version: A powerful, next-generation toothbrush.

• Better version: Doesn’t flatten, collect residue or need to be replaced for two months.

Images:

Halo Top's Redesign: A $347 Million Success Story

In a crowded market, identify your unique advantage and make it your lead message.

The key isn't flashy design—it’s prioritizing product attributes over brand name.

Before:

• Brand name prominent

• Benefits secondary

• "7g protein" highlighted

After:

• Calorie count as main focus

• "Good source of protein" claim

• Brand name less emphasized

Why it worked:

1. Instant differentiation in the ice cream category

2. Clear communication of unique selling points

3. Addressing consumer priorities over brand recognition

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🪤 AMAZON ALGORITHM CLICKBAIT

Two days ago My Amazon Guy published a blog post about how to understand the A10 Algorithm.

They are not alone.

The idea of an "A10 algorithm" is a term that has been falsely circulated by many in the Amazon e-commerce seller community, but it's not an official or accurate description of Amazon's ranking system.

Here’s the truth: There is no such thing as an A10 algorithm - that’s marketing clickbait. It’s the A9. It evolves over time like you did during puberty. But its name doesn’t change. 

Amazon uses a complex algorithmic system to rank products and determine search results, but it's not referred to as "A10" within the company.

The A9 was born in 2003 with a focus on producing technology for search and advertising. The legend goes that a few data nerds were sitting at a bar wondering what to call it. One guy says, “Hey fellas, there are 9 letters in ‘algorithm.’ Let’s call it the A9 since Amazon starts with an A.”

So the next time you see someone online touting the changes you need to make for the “new” A10 algorithm, I would proceed with caution.

Just keeping it real for you in BDSN.

The Professor knows how the A9 works better than almost anyone outside of the A9 team at Amazon:

🤟🏼 USE AI to CREATE YOUR A+ CONTENT

Ecomtent has released a new tool that lets you create A+ content for your Amazon listing using AI with one-click in just seconds.

Two real client examples on Amazon of A+ created using Ecomtent’s AI:

A+ Example 1

A+ Example 2

✌🏼 See you again on Monday …

The answer to today’s STUMP BEZOS is
There are more than 500K merchants on the US TikTok Shop