Amazon recently announced that it would be making large-scale layoffs in its advertising department. It is reported that the senior management of the advertising department has received internal notification! According to internal sources, the layoffs involve advertising department employees across the United States. The layoff news has been officially announced by Paul Kotas, vice president of Amazon's advertising business. As soon as the news was released yesterday, two advertising employees received dismissal emails. However, both of them signed confidentiality agreements and could not disclose the specific compensation and work content. However, it is still unclear how many people will be laid off this time. According to Andy's letter to shareholders last week, there will be a wave of layoffs involving about 9,000 people, distributed in retail, logistics and human resources departments, etc. Unexpectedly, the popular department of advertising business was the first to be laid off. Employees who received layoff emails will be given a transition period of about 60 to 90 days, the same as the previous layoff policy. If the laid-off employees can apply for positions in other departments internally, they can continue to stay at Amazon, otherwise they will leave after the transition period. Speaking of advertising, we have many sellers discussing advertising-related issues in the group, such as: Seller A: Why is the advertising budget automatically increased to several thousand dollars? Seller B: I advertised a new model but the order was placed on the old model. What should I do? After the epidemic, the advertising department has become Amazon's fastest growing business, surpassing AWS to become Amazon's hottest cash cow business. "1 The glory of advertising business In the first quarter of last year, when Amazon was suffering losses across the board and facing deficits, its advertising business soared 18% to US$8.76 billion, and AWS turned the tide and prevented Amazon from losing money. Among all retail platforms, Amazon is the most popular platform for advertisers for two reasons. First, the cost of advertising on Amazon is low, and second, the traffic is large. The platform can use data and positioning capabilities to accurately place advertisements, which makes Amazon a platform with a relatively high cost-effectiveness. Such a powerful department is now facing layoffs. Amazon or Andy is determined to reduce costs and increase efficiency. However, the advertising business itself does not have much redundant space, because unlike the front-line warehouses, there are a large number of grassroots employees. The advertising business is basically programmers who maintain and develop advertising functions. If these people are laid off, it will inevitably affect the stability of the entire advertising system. When it comes to the cost-effectiveness of advertising, our big selling circle has also seen a gradual increase in advertising bidding and budgets recently. Seller A: I don’t know what’s going on recently. My budget is often exceeded and I don’t have enough money to run. Seller B: Yes, with a budget of 3,000 US dollars, we can get 3,500. It is common for the budget to overflow within the normal range, but when it comes to the Amazon advertising bug, there has been an extremely exaggerated budget overflow bug in the past, with the budget overflowing by seven or eight times. "2 The advertising system used to have many bugs Amazon's advertising system is one of the sections in the entire backend where bugs frequently occur. In 2019, a major bug of budget overflow occurred. Sellers set a budget of US$10, but could spend US$70 to 80 in a single day. There was another time when there was a very serious data delay problem. A few days before and after Primeday, the Acos displayed by the sellers was super low. If you look closely, there were even cases where the number of orders was higher than the number of clicks. This data was not updated in a short period of time, and many sellers thought that they could not spend their budget, so they increased their bids . As a result, the real data was finally updated a week later, and the sellers' budgets were exceeded again. Therefore, it is inevitable that such an unstable system will require a large number of programmers to maintain it. Even Paul, the vice president of the advertising business, said, " This process (layoffs) will involve slowing down or even stopping the maintenance of certain programs and functions." He almost said that you can wait and see, and there are still bugs to come. So especially recently, everyone must pay more attention to the advertising data. "3 How to deal with ad bugs If you find any data anomalies, you must first preserve the evidence and take screenshots in time to prevent Amazon from making subsequent modifications. Then, when writing a complaint letter, be careful to write down the serious consequences of the problem. For example, explain to the customer service that this is a serious violation of the wealth law, and the exponentially increased budget also brings a bad shopping experience to customers. Attach your screenshots and ad group name and other information. If there are some chat screenshots that can prove that you plan to increase the budget after seeing the ACOs and low spending, you can also attach them. Amazon is a very cunning company. With a huge number of sellers, a single bug on Amazon can cost hundreds of millions of dollars, so it will not take the initiative to admit its mistakes and refund the money. Sellers who are affected can try to file a case with Amazon to appeal. Maybe the evidence will be conclusive and it will work. |
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