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Amazon deal to buy Roomba maker iRobot hitting roadblocks

European Union regulators have sent a statement of objections to Amazon about the company’s proposed $1.7 billion acquisition of Roomba maker iRobot.

⬇️ Who needs a Roomba when you have a ruffba? 🐶 ⬇️

😃 USE EMOTIONAL MARKETING to SELL NON-ESSENTIAL GOODS at HIGHER PRICES

Perry Belcher, who is speaking at BDSS Level Up in May in Hawaii. recently shared a short 9-minute video he says is important for all marketers and product sellers to watch (you should watch it).

He says marketing is about emotions and mathematics.

Commodities are necessities with little price elasticity, meaning consumers will opt for the cheapest option, like a mop or gasoline. Conversely, non-essential goods allow for emotional marketing and higher price flexibility.

People purchase items that enhance their self-perception, tapping into emotional needs rather than practical ones.

Emotional triggers appeal to a consumer's feelings. Using emotion you can also drive sales without making exaggerated claims (ie supplements).

High-value items like luxury cars or premium wines are often sold based on their emotional appeal or the story behind them, rather than their practicality.

• Commodities are necessities with little price elasticity, unlike non-essential goods where price and emotion play a larger role.

• People buy non-essentials to feel better about themselves; emotional connection is key in marketing.

• Marketing is a blend of emotion and mathematics; understanding emotional triggers can lead to sales without making grand claims.

• By creating an emotional connection and telling a compelling story, you can elevate your product’s perceived value.

😍 STUNNING PRODUCT VIDEOS in SECONDS
Holy cow → cool for product & brand videos

Rolling out now to users on the web and Discord, Pika Labs has taken video editing and creation using AI to the next level.

With Pika 1.0 you can:

• Create realistic product videos from text prompts

• Create videos for your brand using reference videos you like

• Embed your company logo into exiting video

• Insert your photos into a video, or make photos move and come to life

• Customize camera angles and movements

Send products to Influencers and 5X revenue!

Drive traffic to your Amazon store with influencer partnerships and 5X revenue. Boost your sales with our unique approach to influencers and UGC. Carefully selected micro influencers purchase your product and get reimbursed for their expenses only if they complete a social promotion.

See how brands like Unilever and Magic Spoon have been able to 5X revenue in 2 months and decrease ad costs using Stack Influence.

🕵🏽  TWO NEW FEATURES in SELLER CENTRAL

Two new features in the advertising console in Seller Central to check out:

#1 FAST PRODUCT TARGETING FILTERS
In Sponsored Display Product Targeting you can now view up to 50 individual product targets filtered into these 4 groups:

1. Higher-Priced Similar Products (50)

2. Similar Products in your Catalog (50)

3. Lower-Rated Similar Products (50)

4. Most-Viewed Similar Products (50)

#2 RE-TARGET SAVED ADD TO CARTS
You can now customize columns on your advertising dashboard to see things such as branded searches and add to carts. Add to carts help in keyword ranking and enable you to re-target shoppers who have your product in their cart saved for later.

🏦 HOW AGGREGATOR ROLLUPS CAN GO WRONG

The story about Thrasio and the rise and fall of aggregators in the November 20 edition of BDSN was a popular story.

Investment banker Alexej Pikovsky wrote an excellent article worth a read.

Summary of key points he makes:

1. Rapid Growth and Investment Attraction: The Amazon aggregator space saw over $15 billion in funding, lured by the massive $4.3 trillion eCommerce market, with Amazon FBA brands representing over $490 billion in Gross Merchandise Value (GMV).

2. Multiple Arbitrage Strategy: Aggregators raised capital at high valuations (10x Revenue, >50x EBITDA) and acquired FBA brands at lower multiples (2-5x EBITDA/SDE), expecting significant valuation uplifts.

3. Market Shifts Post-2021: The sector experienced its first downturn in summer 2021, marked by key events like the departure of Thrasio's founding team and failed SPAC deals, leading to a series of bankruptcies and lack of significant exits.

4. Impact of Monetary Influx and Cheap Debt: The post-Covid era's influx of central bank capital and low interest rates fueled aggressive acquisitions, but resulted in overextension and the "winner's curse."

5. Sales Drop and Margin Compression: A decrease in consumer spending and marketing inefficiencies, coupled with rising costs in raw materials and supply chain, led to lower sales and EBITDA margin compression.

6. Forced Mergers and Bankruptcies: Financial pressures, especially from debt repayment schedules starting in early 2023, have led to more negative news like bankruptcies and forced mergers in the sector.

7. Fragmented Market Opportunities: Despite challenges, the market remains highly fragmented, with over 35,000 Amazon FBA brands generating more than $1 million in revenue, offering opportunities for strategic acquisitions and expansion.

8. Diverse Value Creation Strategies: Aggregators aimed to create value through various means, such as optimizing Amazon listings, expanding internationally, and leveraging SEO, paid traffic, and influencer collaborations.

9. Future Outlook and Regulatory Concerns: The sector is at a crossroads, facing challenges in market saturation, technological advancements, and diversification needs. Additionally, navigational legal and regulatory concerns, including antitrust laws and Amazon's evolving policies, are crucial for sustainable growth.

🧳 TO TRAVEL IS TO LIVE 
→ here’s looking at you kid

My “why” has led me to visit 94 countries and all 7 continents. I create my life and work around my why. Not my why around my business.

I hope to inspire you in your journey of business and life with photos, a short video I filmed, and a brief description of my time there.

CHRISTMAS MARKETS of EUROPE

Christmas is my favorite time of the year. So a few years ago I embarked on a festive journey through Europe's renowned Christkindlmarkt, or Christmas markets.

Starting in Budapest and moving by train through Vienna, Salzburg, Munich, Nuremberg, Cologne, and Frankfurt, I experienced the heart of European Christmas traditions.

Many of the cities in Europe come to live with bustling markets, set in quaint cobblestone squares and medieval alleys, adorned with festive decorations and filled with the sounds of Christmas music and caroling.

Wooden stalls overflowed with regional specialties, from hot Gluhwein (mulled wine) to an array of traditional foods like grilled bratwurst, gingerbread, roasted chestnuts, and sugared breads. Each market, unique in its offerings, also showcased intricate crafts, toys, and the famous Nutcracker figures, a symbol of European Christmas markets.

The essence of a traditional European Christmas, filled with warmth, joy, and the spirit of the season, is something everyone that loves the holidays should try to experience at least once.

✌🏼 Have a great weekend. Holler back at you again Monday.

The answer to today’s STUMP BEZOS is
Kim Kardashian