Even under this circumstance, the sales of Amazon’s advertising business continued to rise, recording a growth rate of 87.5% compared to the previous quarter, higher than in the first quarter.
Yet, this high growing trend in Amazon’s advertising business will not sound pleasant to most incumbent Amazon sellers. This is due to the growth of Amazon advertising sales means that the competition between sellers, who fiercely contend to occupy the single goal of ‘best exposure’ with ammunition of ‘advertising budget’ in the battlefield of the Amazon marketplace, is intensifying.
In effect, according to ‘Marketplace Pulse,’ the average cost per click for Amazon search ads was $1.20 in June 2021, an increase of 34% compared to the previous year. In addition, the ‘ACOS’ figure, which shows the ratio of advertising expenses to sales revenue, also increased from an average of 22% in 2020 to 30% as of June 2021.
Eventually, are maximizing product exposure on Amazon and getting a better advertising account the only ways to invest in more advertising budget at the cost of more money?
Fortunately, Amazon now offers features that allow sellers to enjoy highly efficient advertising effectiveness without spending extra budget. Today, I would like to share in detail the introduction and use of the Amazon Posts feature, which kills two birds with one stone: reducing advertising costs and maximizing exposures for sellers.
- 01Free to Use
Unlike Pay-per-Click (PPC) advertising, which is a pay-per-click method, Amazon Posts does not incur any charges for inflows to product pages. Sellers can freely post posts without any restrictions, enjoy free publicity, and maximize sales.
- 02Easy to Brand
A post with a sense of unity makes it easier for consumers to understand the identity of the brand. Through branding, you can go beyond simply consuming a product to consume a brand as a loyal customer.
- 03Increase Brand Awareness
Consumers’ interest in the main product group of a specific brand can be extended to even the non-mainstream product group of the same brand. Sellers will be able to market various product groups by attracting consumers to the brand store through ‘Amazon Posts.’
- 04Expose your Products on Competitor’s Product Pages
Amazon Posts also appear in ‘Related Posts,’ located at the top of the ‘Customer Question’ section of the competing product detail page. With just one great picture and phrase, you can steal your competitors’ traffic and consumers.
- 05Acquire Brand Followers
Consumers can see posts they like and follow brands. Sellers can expand customer touchpoints by sending marketing emails to their followers.
- 06Check Marketing Performance
For each individual post, Amazon provides data such as impressions, post clicks, flow to detail pages, and brand feed flow. It is possible to maximize the effect by identifying the commonalities of the posts that had good effects and applying them to post uploads in the future.
- 07Possibility of Changing to a Paid Service
Considering that the ‘Vine’ program, which provides products to reviewers and secures reviews, has recently been converted to a paid service, it is highly likely that ‘Amazon Posts’ will also be converted to a paid service someday. So, now is the right time to start ‘Amazon Posts’ as soon as possible, because there are relatively few competitors, and it is available for free.
First is the brand feed of the company. The brand feed is a collection of all posts uploaded by sellers, and consumers can understand all product groups and brand images of the brand at a glance.
Second is the category feed. As described above, Amazon automatically assigns categories related to products to individual posts. Customers can come across the company’s posts while searching for products to purchase within a specific category.
Finally, the company’s post is exposed on the competitor’s products detail page. It has a huge advantage in that it can attract customers from your competitor’s listings.
Reducing operating costs in Amazon selling leads to price competitiveness that is directly related to the success of a product. Running an Amazon business has unavoidable spending factors that are outside the seller’s control, such as selling on Amazon sales fees, FBA fees, and monthly subscription fees. However, ‘advertising’ and ‘logistics’ are areas in which the effectiveness of sellers is greatly affected by the seller’s knowledge, information, and experience. In the case of advertisements, through optimized advertising keywords that can clearly target potential consumers of my products and Amazon Posts introduced today, it is possible to derive completely different product exposure and sales results at the same cost.
In the case of logistics, by selecting a logistics company that provides logistics services optimized for e-commerce at reasonable prices, it is possible to reduce costs, secure logistics stability, and ultimately maximize profitability.
Product, marketing, and logistics are key to selling successfully on Amazon.
If you caught an advertisement through Amazon Posts, now only logistics need to be managed through an efficient forwarding service.
Samsung SDS digital forwarding service, Cello Square, is a digital forwarding service and has global logistics execution capabilities based on 37 countries, 58 bases, and 230 sites around the world. Based on large-scale logistics and strategic partnerships, we secure cargo and provide logistics services at reasonable rates. In addition, a dedicated logistics manager for each customer is assigned to provide support for logistics level diagnosis, consulting, strategy establishment, and operation optimized for each customer’s situation. It is based on a loading optimization service applied with AI technology and a safe transportation service for sensitive cargo using IoT technology and is creating a reliable logistics environment through blockchain technology. From IT-specialized services to packaging box recommendations, logistics costs can be reduced through cost-efficiency.
How about reducing operating costs and achieving successful Amazon business through logistics optimization with Cello Square? References  Amazon.com Announces Second Quarter Results
 Amazon.com Announces Second Quarter Results, Supplemental Financial Information and Business Metrics – Other
 Amazon Ads are getting more expensive, Marketplace Pulse
 Average Cost-per-Click of Amazon Ads in the U.S., Marketplace Pulse
 Amazon Posts Page
 Amazon Advertising page
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