[ BDSN ] ↗️ Average PPC conversion rates

Sponsored by

🐶 AMAZON CUTTING COSTS & INVESTING in AI

Last week, Amazon CEO Andrew Jassy published his annual letter to shareholders. Here’s a quick summary:

Revenue and Profitability

• Total Revenue: Amazon's total revenue grew by 12% year-over-year from $514 billion to $575 billion in 2023.

• Segment Breakdown: North America revenue increased 12% from $316 billion to $353 billion, International revenue grew 11% from $118 billion to $131 billion, and AWS revenue rose by 13% from $80 billion to $91 billion.

• Operating Income and Cash Flow: Operating income improved by 201% from $12.2 billion to $36.9 billion. Free Cash Flow adjusted for equipment finance leases improved significantly from -$12.8 billion to $35.5 billion.

Customer Experience Improvements

• Stores Business: Amazon has focused on enhancing customer experience through selection, price, and convenience, adding tens of millions of new products last year. New premium brands like Coach and Victoria’s Secret have started listing on Amazon.

• Pricing Initiatives: Prime Big Deal Days and extended Black Friday/Cyber Monday events marked significant shopping events, saving customers nearly $24 billion across various deals.

• Delivery Speeds: Record-breaking delivery speeds were achieved, with over 7 billion items delivered same or next day in 2023, including significant increases in the U.S. and Europe due to improved regionalization and the expansion of same-day facilities.

Implications for Third-Party Sellers

• Increased Competition and Visibility: The addition of major brands may increase competition but also boosts customer traffic and platform credibility, potentially benefiting smaller sellers by association.

• Cost to Serve Reductions: Amazon’s reduced cost to serve, despite a dramatic increase in costs to Sellers, is down by more than $0.45 per unit in the U.S.

• Enhanced Fulfillment Options: Amazon’s focus on faster and cheaper delivery solutions, such as expanding same-day delivery capabilities, directly benefits third-party sellers by enhancing customer satisfaction and retention.

Future Projections and Innovations

• AWS Developments: Continuous improvements in AWS, including cost optimization and the introduction of more efficient chips, suggest ongoing support for businesses leveraging Amazon’s cloud services.

• Generative AI and Advanced Technologies: Investment in generative AI and other technologies is likely to continue evolving seller tools and customer interactions, offering new ways for sellers to engage and satisfy customers.

Key Omissions

• Serious Regulatory Issues in USA and EU

• Increasing competition from Temu, Shein and Tiktok

• Disgruntled Sellers (instead he said Amazon has good relationships)

And as they have always done, the original 1997 Shareholder Letter was included. What’s written there is as true today as it was in 1997.

🔫 AMAZON GIVING DISCOUNTS on your PRODUCTS

Amazon is testing a new feature called Quantity Discounts by Amazon as part of a limited four-week pilot within the existing Discounts Provided by Amazon program.

This initiative enables customers to receive discounts on selected products when they purchase multiple units of the same item in a single order, using a quantity selector either on the product detail page or during checkout.

The discount for these purchases is funded entirely by Amazon, meaning it does not cost the seller anything. Sellers benefit because they continue to earn the same amount as they would without the discount, while customers benefit from the lower prices on bulk purchases.

Sellers who prefer not to participate in this pilot due to reasons like maintaining a minimum selling price can opt out by contacting Selling Partner Support.

Amazon has the sole discretion to choose the products included in the pilot and may cancel or extend the program based on the pilot's results.

📺 YOUTUBE INTROS TIKTOK-LIKE SHOPPING FEATURES

YouTube has introduced several new shopping features:

• Shopping Collection allows creators to make shoppable collections based on a theme. The products will appear in their product list, Store tab, or in a video description.

• Affiliate Hub will list new Shopping partners, competitive commission rates, and promo codes, making it easier to connect brands and creators.

• Fourthwall integration is YouTube’s shop builder alternative to Shopify, Spreadshop, and Spring.

If you’re working with influencers and creators, these new tools could be worth playing around with for an extra bump in sales.

🤑 GET PAID WITHIN 24 HOURS for AMAZON SALES

Smartscout published the nifty chart below of some of the payment options you can consider if you need instant cash for your sold inventory rather than waiting for Amazon to pay you (typically about 3 weeks after you sell it).

LAST TWO BDSN NEWSLETTERS …
April 11 → 🔎 Blatantly violating Amazon TOS
April 8 → 💰 Crush Amazon product launches

LATEST AM/PM PODCAST hosted by Kevin …

🏆  FREEDOM TICKET 4.0 DEBUTS

In August 2017 I filmed the very first Freedom Ticket on how to sell on Amazon.

Every couple of years myself and the team at Helium 10 re-create it from scratch to update it, expand it and make it better.

The core of the new version 4.0 can be completed in a weekend. Plus, it’s FREE for anybody who has a Helium 10 account.

More than 200,000 entrepreneurs have gone through Freedom Ticket, many going on to create highly successful businesses on Amazon (including some doing $50+ million per year).

A bright and shiny new Freedom Ticket 4.0 is ready for you to check out. It’s a great refresher and ideal to have your team or VAs go through.

🗓️ Join me on Helium 10's Sellers Edge Webinar this Thursday, April 18th, at 10am PST to introduce the new Freedom Ticket

• Find your niche and stand out in the crowded marketplace

• Elevate your listings and skyrocket conversion rates

• Outsmart your competition with killer keyword strategies

• Master the art of product launches like a pro

• Get step-by-step guidance on building your Amazon empire

Register for FREE now

If you don’t pay your Amazon agency, this might happen to you too …

✌🏼 Happy Tax Day in the USA!

The answer to today’s STUMP BEZOS is
31%