George Reid

 What I Learned About Amazon This Week
To: LaunchPod Readers

FEBRUARY 3

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🚀 Jeff Bezos putting on his slippers

1. Jeff is stepping down. I could write some ramble about this but there is going to be ample literature on the topic. IMO you fall into 2 camps: shareholders or non-shareholders. Shareholders might wonder whether this means up or down. Non-shareholders, well it’s just business as usual.

2. Most brands are losing 75% of their customers after the first order. That’s mad. I have talked in previous emails, see them here, about the importance of customer lifetime value. It’s so often overlooked on Amazon though. I ask on the podcast now whether data is widening or levelling the playing field. IMO, it’s widening it. Big firms with big budgets can go big on data. They can reap the rewards of it too. Josh Justice said he didn’t mind if his ACOS was 80% at Nordic Naturals, because he had data that showed customers bought 2-3 times more each year. Rael Cline of Nozzle is leading the charge in this space, but with that comes a fee that many cannot afford. But just because you can’t afford the data, or visualisation thereof, doesn’t mean you shouldn’t perform activities to increase LTV, that’s just fucking negligent.

3. Amazon advertising revenue was up 64% in Q4. I’d argue that 80% of brands are still under utilising it though. It’s just hard. There are no two ways about it. Unless it is your full-time role, you cannot keep up with all things Amazon advertising, therefore, you cannot capitalise on it to the full. You should seriously consider hiring an expert or heavily investing in your in-house training. I’m plugging both of my services there, full disclosure, but it will be beneficial to you.

4. Nivea hit a 100-year anniversary and they got some banging designers together to create something fine. Oh boy I do love a good anniversary, probably because I don’t know when mine is.

5. Amazon had $11bn in COVID expenses. And you thought facemasks and toilet paper was “feeling the pinch

6. Only 1 in 5 searches on Amazon include a brand name. If you’re not forced to do so, and you’re not Nike (I’d be surprised if any subscribers were), then don’t include your brand name at the start of your title. Complete waste of time. See where you fit in the range of AmazonBasics to Nike.

7. IntentWise are offering an interesting new service to do with the Amazon API. This stuff is above my paygrade. But in essence you can plug into Amazon’s backend via their API setup, then get reports pulled into Excel, Google Data Studio, or Tableau…to play with as you please. This is really nifty given that most SaaS products in the Amazon space force you to use their interface, then slam you with a massive fee or hefty % for the privilege. Perhaps this is a step in the right direction of data processing levelling the playing field.

8. Most of you only click when I give good examples, so here is one of someone banging out a great OFFENSIVE advertising strategy. Here’s a banging piece of A++ or A+ premium. Here’s a banging packaging design. Here are some banging boxes.

9. ECommerce in the UK is pumping. 31% of all UK retail sales were spent online in Q3 last year. Is now perhaps the time to start taking my advice on optimising your digital shelf and doubling down on your advertising strategy?

10. I’ve had a couple of shandies this evening so let’s finish with some humour.

Not 11. Here’s my most recent podcast episode on Amazon advertising.

Thanks,
George

 

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