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Over the years Amazon has established itself as one of the leading players in the e-commerce market. In 2023 alone, the e-commerce giant generated a straggering sales revenue of $373bn, which indicated a massive volume of orders placed on the marketplace. This explains why millions of sellers have chosen Amazon as their go-to e-commerce partner.
Amazon offers a lot of opportunities for sellers to grow and be profitable. However, much like any mode of business, mastering the e-commerce game is easier said than done. Many businesses have yet to optimize their Amazon marketing efforts to get the best results. In this blog, we will look at the Amazon marketplace at large and discuss how sellers can run great campaigns to quickly expand their customer base.
Amazon has attracted over 9.7m sellers globally, of which 2.3m are active sellers. What keeps these sellers coming to the marketplace is that 76% of them achieve profitability. More importantly, an impressive 63% of sellers become profitable in just a year – a remarkably quick breakeven time. Offering a huge audience to the sellers, Amazon is a huge enabler of growth when it comes to independent businesses. In fact, independent sellers are responsible for 60% of Amazon sales.
Amazon doesn’t just offer a huge array of products at just a click but also enables the buyer to shop from the comfort of their homes. Moreover, the fast delivery that Amazon Prime members enjoy is yet another factor that makes shoppers come back to the marketplace again and again. When it comes to ventures, particularly independent sellers, Amazon offers a window to a wide range of audiences that they otherwise would struggle to reach. This is why sellers must get an in-depth understanding of Amazon’s advertising ecosystem.
So, are you curious to know about running ads on Amazon? Let’s dive in!
Enabling brands to maximize their reach, the following are the different types of ads that the Amazon Advertising website offers:
Now that you know what Amazon advertising has to offer you, let’s discover how you can start your ad journey on the platform.
Looking to launch your Amazon Advertising Campaign? The first step is the easiest as the Amazon Advertising website has a user-friendly interface. Here is a step-by-step guide to an Amazon campaign:
For the retailers who want to maximize their profits strategically, here are some best practices:
For the campaign to perform well, continuous monitoring and optimization is a must. This includes regularly reviewing the campaign’s performance metrics and optimizing the keyword targeting accordingly.
To maximize traffic to your products, create a balance between the different ad formats. While Sponsored Brands and Sponsored Displays target the audience and get them to your brand, Sponsored Products improve the reach of your products.
Improve your product’s visibility and drive sales through strategic ad placements. For example, you can opt for top-of-search placement to increase the traffic from the browser to the product. Or you can persuade the audience to buy more from you with Sponsored Display via product page targeting. Product pages don’t just inform the readers about your products, also place them against the competitors, showcasing their value.
Implement A/B testing for ad creatives and copy, and identify the ones that perform the best to leverage them further
Stay updated with Amazon’s advertising policies and best practices and tap into the potential of new features and strategies as Amazon evolves.
Are you looking forward to mastering e-commerce sales in 2024? Here are some strategies for you:
Want to effectively manage Amazon advertising effectively? Browntape might be your answer. Our Performance Marketing Management Services help you streamline Amazon advertising by offering a centralized platform that has advanced analytics, inventory integration, reporting and competitor analysis capabilities.
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