#251 – Amazon Takes a 50% Cut of Seller’s Revenue

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Amazon Takes a 50% Cut of Seller’s Revenue. Amazon is pocketing more than 50% of sellers’ revenue – up from 40% five years ago. Sellers are paying more because Amazon has grown fulfillment fees and made spending on advertising unavoidable. Amazon’s Total Seller Fees. According to P&Ls provided by a sample of sellers, a typical Amazon seller pays a 15% transaction fee (Amazon calls it a referral fee), 20-35% in Fulfillment by Amazon fees (including storage and other fees), and up to 15% for advertising and promotions on Amazon. marketplacepulse.com

Want to Drive Sales With Google Ads to Your Amazon Store? MaverickX helps Amazon sellers drive sales with Google Ads. Our expert Google Ads team has decades of experience managing 9-figure ad budgets and thousands of campaigns at a time. We use proprietary tracking and attribution tools to track all conversions. Also, we help your brand earn up to 10% of all sales driven from Google. Want to drive external traffic, boost your Best Sellers Rank and organic rankings, lower ACoS, and acquire more customers searching for your products off of Amazon? Contact us to get started. maverickx.io

Drive external traffic to your Amazon listing with UGC ads. 79% of people say UGC highly impacts their purchasing decisions, so what are you waiting for? Thrasio, an Amazon aggregator, uses Insense to get fast UGC assets and partner with micro-influencers to produce winning UGC ads that generated 3 million views for 25 Amazon products. Insense is a creator marketplace and UGC ads platform where you can find, brief, and collaborate with creators to promote your products. Visit Insense before Feb 28 and save up to $200 on your first campaign. insense.pro

Need cash to seize a great inventory deal? Maybe it’s time to boost your marketing spend? No matter what growth opportunity comes your way, Payoneer’s Capital Advance provides the working capital you need. No credit checks, just instant funding based on your store’s success, capped at 750K USD. Settle gradually as you get paid and keep costs low with one, attractive fixed fee. Visit Payoneer today and enjoy a special 10% fee rebate on your first offer. payoneer.com

Streamline your shipping and reduce costs. Tired of juggling multiple platforms and manual shipping processes? Look no further than OrderCup, a comprehensive shipping platform that seamlessly integrates with Amazon, allowing you to easily manage orders, print labels, and track shipments all in one place. With features like automatic order syncing, discounted shipping rates, real-time tracking updates and support for Amazon SFP and BuyShipping, it is the ultimate shipping solution for Amazon Sellers. Try OrderCup today to streamline your shipping and reduce your shipping costs, so you can focus on your customers. ordercup.com

Sales Growth Strategies

Amazon Transparency Badge – Proactively protect your brand from counterfeits. Amazon has launched the Transparency badge to indicate that your product is authenticated by Transparency on Amazon stores, reassuring customers that they’re protected from buying counterfiet products. If you’re registered with Amazon Brand Registry and participate in Transparency, your qualifying ASINs will automatically receive the badge in the Additional details section on the Product Detail page. For more information about the Transparency badge and the full suite of benefits available to brands that enroll their products in Transparency, you can submit a contact request. amazon.com

Learn how to price your products competitively. Join this session to learn how to set competitive prices for Amazon customers, understand how to earn Featured Offer placement, and learn how to use the Automate Pricing tool to maintain competitive prices. This webinar covers the following: Featured Offer placement and How to use the Automate Pricing tool to maintain competitive prices. The webinar is offered on three different days. To make the most of the question-and-answer session, you can submit questions when you register. sellercentral.amazon.com

Create case packs to help drive higher-volume sales – Sales grew 16% faster in 2022. Case packs contain multiple single units (for example, six keyboards) and offer customers a lower cost per-item and consolidated delivery. Using case packs helps you grow your sales to customers. In the first half of 2022, case packs sales grew 16% faster than single-unit sales in the US, with 15% higher conversion for Amazon Business customers than single units. Based on your catalog and customer demand, Amazon offer two types of case pack recommendations – Create new case packs: We assess multi-unit orders of your single products to indicate if there is demand for these products to be sold as case packs. Add offers on existing case packs: To suggest that you could add an offer on this existing ASIN, we review case packs for products from brands that you are registered. sellercentral.amazon.com

eCommerce Trends

FTC Charges Supplement Marketer with Hijacking Ratings and Reviews. The Federal Trade Commission took action today against a marketer of vitamins and other supplements called The Bountiful Company (Bountiful) for abusing a feature of Amazon.com to deceive consumers into thinking that its newly introduced supplements had more product ratings and reviews, higher average ratings, and “#1 Best Seller” and “Amazon’s Choice” badges. As a result of FTC’s first case targeting review hijacking, The Bountiful Company will pay $600,000. ftc.gov

A lot of brands call Amazon a “black box”. Maybe in some ways it is, but if we’re talking about availability of data for sellers, it’s definitely not. Here’s an example. linkedin.com

Amazon introduces a new “Previously Viewed” feature for sellers, giving more exposure to products. The text overlay on the first listing picture is now more likely to catch the eye of potential customers, resulting in more clicks, sales, and happy customers. linkedin.com