The 2019 year-end peak season in the eyes of big sellers: stop being jealous of others’ booming sales

The 2019 year-end peak season in the eyes of big sellers: stop being jealous of others’ booming sales



How to prepare for the 2019 year-end peak season? Through a survey of 218 sellers with annual revenue of more than 5 million, this article will show you how these big sellers prepare for the year-end peak season, hoping to bring some inspiration to sellers and discover some potential problems.

1


Question: How was your brand’s revenue in November-December 2018?
result:
(Statistics of Amazon sellers’ year-end revenue)


The simple data is as follows:

  • >100,000 USD: 60%

  • USD50,000-USD100,000: 5%

  • USD 10,000-50,000: 10%

  • < US$10,000: 25%


From this data, we can see that in the 2018 year-end peak season, sellers with revenue exceeding US$100,000 accounted for half of the total, which shows the marketing opportunities in the year-end peak season.

The fastest-growing categories during the 2018 year-end peak season were electronics, toys and games, and apparel and accessories.

2

Question: What are your expectations for Amazon’s peak season marketing in 2019 compared to 2018?
result:
(Amazon’s expected year-end marketing growth in 2019)


  • Growth rate more than 20%: 50%

  • 10% to 19% growth rate: 15%

  • Unchanged: 30%

  • -10% and above: 5%


During the year-end peak season, sellers' sales expectations should not remain unchanged or even decline. Unless it is because of reducing SKU inventory or abandoning unprofitable categories. Amazon's total revenue grows by more than 20% on average each year, of which third-party sellers generate more than 50% of the profits.
Sellers who feel that they cannot make money on Amazon should try to understand consumers' shopping psychology and promote product combinations appropriately, for example, products priced below $10. Including shipping costs, products at this price basically make no money. Therefore, consider the products you sell. Is it possible for consumers to buy 2-3 bundled product sets? If possible, the sales commission for each product will be greatly reduced, and the relative shipping costs can also be reduced.

3

Question: What do you think of Amazon's competitive environment?
result:
 
(Statistical chart of Amazon market competition as perceived by sellers)


  • Market oversaturation: 20%

  • Competition is fierce: 40%

  • High competition: 30%

  • Not enough competition: 10%


Brands who think that competition on Amazon is fierce generally do so because their products have too many distributors, and this usually happens because they do not monitor these distributors.


Brands should protect their retailers. In offline physical stores, brands can understand and protect the market position of their products relative to competitors and promote their products.
But online, brand sellers often can’t protect their products. There are many distributors, retailers and other sellers who are allowed to sell their products on Amazon, eBay and other platforms, which leads to the emergence of copycat sales.
Competition in the Amazon market is fierce, but Amazon is currently able to control it.
Sellers who have registered for brand registration are the only compliant sellers of goods on Amazon. Therefore, in order to avoid being taken advantage of by others, sellers should register for Amazon brand registration as soon as possible, raise the brand threshold, and limit the number of sellers selling your products. At the same time, closely manage your supply chain to minimize market competition.

4
Question: What is your ROI for Amazon advertising?
result:
(ACOS indicator for Amazon sellers)


  • ACOS=0: 30%
  • ACOS<10%:35%
  • ACOS=15%-20%:20%
  • ACOS>20%:15%


Surprisingly, many brands don’t advertise on Amazon. In fact, Amazon advertising works pretty well. Just manage your ads carefully and pay attention to Amazon advertising reports.


Amazon provides Brand Analytics for sellers who have registered for brand registration, allowing sellers to select appropriate search terms and target audiences to optimize product listings and advertisements and increase exposure.


Amazon Advertising now has tools to optimize where and how ads are displayed, even for ads outside of Amazon. If you plan to sell on Amazon, it is recommended to promote your products on the Amazon Advertising platform.

5
Question: How often should you review and modify your Amazon product listings?
result:
(How often sellers modify product listings)

  • Weekly: 35%

  • Monthly: 35%

  • Quarterly: 5%

  • Rarely: 25%


Listings greatly affect your product sales. Optimizing listings is not something that can be done overnight. To optimize product listings, sellers are advised to pay attention to advertising reports. The report will give corresponding optimization suggestions, such as adding the correct search terms and audiences. Optimizing listings will help improve search result rankings, which will then promote the effectiveness of your advertising and gain more sales.


Recommended Reading


The Ultimate Guide to Setting Up Vacation Mode on Amazon
10 Tips for Optimizing Text in Amazon Listings
Essential tricks for sellers: Tips and tricks for bidding on Amazon ads



Text ✎ Mary/
Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained.

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