💵 Price vs. Conversion: What's Key?

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🏭 BILLION DOLLAR STRATEGIES

HOW VIETNAM & MEXICO are RESHAPING GLOBAL SUPPLY

As the global supply chain continues to evolve, businesses are increasingly adopting a "China plus one" strategy, diversifying their sourcing to include countries like Vietnam and Mexico, and to some extent India and Indonesia.

This shift is driven by the need for resilience and agility in the face of geopolitical tensions and economic uncertainties.

In Mexico, decades of investments in logistics infrastructure and trade deals are paying off as shippers look to nearshore production. The country has seen significant growth in manufacturing sectors such as automobiles, electronics, and medical devices.

U.S. imports from Mexico, which accounted for 14% of all U.S. imports by value in 2022, have been driven by factors like the United States-Mexico-Canada agreement and Mexico's extensive network of free trade agreements.

The proximity to the U.S. market offers reduced shipping times and costs, making Mexico an attractive alternative for companies looking to reduce their reliance on Asian imports.

Vietnam, on the other hand, is emerging as a hub for semiconductor and advanced electronics manufacturing. The country's strategic focus on attracting foreign direct investment, competitive labor costs, and participation in free trade agreements has positioned it as a favorable destination for companies diversifying away from China.

U.S. manufacturers are increasingly eyeing Vietnam, with significant investments from tech giants and a growing number of factories. The country's manufacturing sector is becoming increasingly valuable to its GDP, and with aggressive goals for growth, Vietnam is poised to continue its rise as a key player in global supply chains.

Amidst these shifts, former President Donald Trump has signaled a starkly different approach if re-elected. His 2025 trade agenda includes plans to sharply expand the use of tariffs, potentially imposing a baseline fee of up to 10% on most foreign goods (will go higher for some countries).

This move aims to transform the economy by reducing dependence on countries like China and could significantly impact the dynamics of international trade and supply chain strategies.

The strengths and weaknesses of emerging supply chain hubs like Vietnam and Mexico, coupled with potential shifts in U.S. trade policy, will play a critical role in shaping the future of global trade and manufacturing.

🏦 PRICE & CONVERSION RATE RELATIONSHIP

Joel Shelerud analyzed 19,611 campaigns with 5.5 million orders to figure out the relationship between price and conversion rate.

For example, he found that a $20 product on Amazon will average about a 13% conversion rate, whereas a $50 product will average an 8% conversion rate and at a $100 price point you can expect about a 5% conversion rate.

In a vacuum, a rise in conversion rate or increase in price results in a concurrent improvement to both sales and ROAS. Brands don’t operate in a vacuum, however, and the two variables are intertwined. Shoppers are price-sensitive, so price increases tend to result in a decline in conversion rates.

Although every brand, category, and product is different, it’s important to understand that an increase in price may or may not drive more revenue/cost efficiency. Split-testing prices and analyzing the traffic and conversion trade-offs is important.

If you know your price points, conversion rate, and ROAS goals, you can back into the CPC needed to hit your goal ROAS. Similarly, if you know price, conversion rate, and typical CPC, you can get a rough idea of expected ROAS or ACoS.

📁 AMAZON RELEASES NEW FLAT FILE FORMAT

Amazon has just released in BETA a complete transformation of its flat files (not available in all accounts yet).

Amazon has radically changed the schema, added new rows, new columns and a whole new naming convention for attributes. They have also deleted some things, like the popular Inventory loader file and “X delete” feature.

Vanessa Hung, the queen of flat files, has released a Step-by-Step Guide on downloading the new beta category-specific files.

🧑🏾‍💼 FIND MATCHING ITEMS on AMAZON & TEMU

Listing Sniper is a Chrome extension designed to enhance your e-commerce experience on both Temu and Amazon platforms.

Instantly find matching products on Temu and Amazon, providing you with real-time price and profit data for the same products on both platforms.

How it Works: Simply go to a product page on either Temu or Amazon, and Listing Sniper will automatically find matching products on the other platform.

📈 TRACK WHAT’S TRENDING on AMAZON

Discover rapidly growing keyword searches on Amazon Marketplaces.

Trending Terms tracks over one million keyword trends, 5M+ ASINs, and 500K brands to help unravel the hidden trends on Amazon marketplaces.

1,000+ top Amazon sellers use Trending Terms to discover emerging trends with long-term growth potential and competitor insights.

Example:

🕍 ASGTG in BROOKLYN THIS WEDNESDAY

On Wednesday in Brooklyn, New York, 1000+ Amazon Sellers, 40 sponsors, 7 speakers, and the best food and buffet at any conference is going down for the 10th time.

The event draws serious sellers and heavy hitters, all there to network, learn and eat like there is no tomorrow.

It’s one of my favorite events to speak at and attend. Hopefully I will see you there! You can still grab a ticket at a very reasonable price.

🇮🇳 LET EXPERTS DO YOUR INDIA & VIETNAM SOURCING

Meghla and the team at India Sourcing have introduced a new done-for-you sourcing service.

They manage the entire sourcing process so you can get quality products from India and Vietnam at competitive prices.

The team has a cumulative experience of over 100 years in sourcing from Asia and have dealt with big brands like H&M, Pottery Barn, Superdry, IKEA, Abercrombie & Fitch, Roots Canada and more.

BDSN readers get a 5% discount on their standard sourcing fee of 10% of order value.

Want to be featured in this section? Use your referral link in this email to refer at least 10 active subscribers, then email me to get your event, course, webinar or tool “Shouted-Out” free to 7,000+ subscribers.

✌🏼 I am sending today’s BDSN from north of the 66th parallel. Reply to this email with your guess as to what country I am in, and the first person to get it right gets a free ticket to the BDSS 9 Virtual event happening next month.

See you again on Thursday …

The answer to today’s STUMP BEZOS is
India