Last week CANOPY Management gave away $35,000 worth of managed services. The random, lucky winner was John Canetta from Blue Orchards. The team at CANOPY had announced a giveaway contest earlier in the month to everyone who filled out an online questionnaire designed to help us take a close look under the hood of the Amazon-selling experience.
Ultimately, this is one of those situations where there are a lot of winners. OK, yes, there’s one big winner who will take advantage of three months of full Canopy Management advertising and marketing services.
That includes the following:
- CANOPY Creative Services (Including Full Amazon Optimization and Professional Photography)
- Amazon PPC advertising
- Amazon Demand-Side Platform (DSP)
The survey itself was designed to gather opinions and take an overall pulse of what the ecommerce world of Amazon sellers is like these days. What software are you using? Have you dipped your toes into selling on Walmart? Are you advertising off of Amazon?
Because . . .
CANOPY’s goal, each and every day, is to get better. We are determined to constantly level up our support and assistance to our partners and we can’t do it without data.
Of course, we have a very clear understanding of our CANOPY Management partner’s businesses. As an Amazon agency, that’s step one. When establishing a relationship with our partners, we have the opportunity to hear about their pain points and their goals. We dig deep to be able to see what’s working for them and where their ecommerce roadblocks are.
Unfortunately (for both of us), you’re not all part of the CANOPY Management team (yet). With this survey, our goal is to be able to look over the shoulders of Amazon sellers to get a better feeling of what it’s like out there for the rest of you!
But, there’s someone else who will benefit from this data, you!
Comparing Notes with Amazon Sellers
Any form of entrepreneurship can be lonely. When you add to that the built-in competitiveness of Amazon’s marketplace, you might sometimes feel like you are all alone. That’s why at CANOPY Management, we’re big fans of Facebook groups, ecommerce meetups and conferences. They are all a great way to share ideas, solve problems, and develop a better understanding of the terrain that you’re navigating.
Any hike or bike ride is always easier the second time around. Knowing the terrain allows you to measure your efforts.
That’s the second reason that we ran this Survey/Giveaway. We wanted to find a way to help Amazon sellers understand the terrain just a little bit better.
So, let’s get started! We’ll start with an easy one.
How Many Years Have You Been Selling on Amazon?
Even though it might seem like longer during those conversations with Amazon Seller Central, almost 70% of you have started in the last few years.
Entrepreneurs have been flocking to Amazon’s marketplace. The increase has been exponential. In 2021, Amazon was adding an average of 3,700 new sellers every single day.
So, the next question is another simple one.
It’s clear that being your own boss, for better or worse has been the driving force behind the majority of Amazon sellers.
What Do You Like Most About Being an Amazon Seller?
There are many reasons why entrepreneurs have been drawn to selling on Amazon. But, it’s not all rainbows and unicorns. The next question explores the challenges and the frustrations that all sellers face. Want to take a guess what the number one thing that sellers like the least is?
Yep, and you’re not the only one. Amazon Seller Support is at the top of the list.
What Do You Like the Least?
Looking at the figures in the next chart tell me that over 35% of you are generating six figures in revenue a year with another 10% at six figures for a single month. Still, just over half of you are just starting to find some traction as Amazon sellers.
In An Average Month, What is Your TOTAL Amazon Revenue?
For an Amazon seller, it doesn’t take long before you hear the phrase, “growing your brand.” Building a strong Amazon brand requires that you do a few key things right and they’re all at the top of the next chart.
It’s really not much of a surprise that leading the list is everyone’s favorite, sourcing a great product with good margins. It’s nice to see that almost everything else on the list is what CANOPY Management achieves for increasing numbers of sellers as an Amazon agency.
What’s Been the BEST Thing You’ve Done to Grow Your Brand?
Successfully growing your Amazon business rewards ecommerce agility and balance. Maintaining the standards and procedures that got you to where you are now while expanding your brand is tricky. Combining new Amazon products, a new marketplace, while continuing your Amazon product listing optimization is a recipe for good things.
When you add an Amazon Storefront for your brand, A+ Content, and an Amazon agency, you probably want to buckle your seatbelt.
How Do You Plan to Grow Your Amazon Business In the Next Year?
All it takes is an internet search for almost anything Amazon ecommerce related to tell you that tools for selling on Amazon have become a very big thing. After all, with data acquisition and utilization such a big part of business these days, it’s no surprise that SaaS (Software as a Service) companies have found their way to the top of Google’s page one.
What Software Do You Use In Your Amazon Business?
Most ecommerce sellers understand that there’s one very tricky part about selling on Amazon’s massive marketplace. All those customers that you work so hard to satisfy aren’t really your customers. Instead, they’re Amazon’s.
Sure, there is no other place where you have such a captive online-shopping audience, still, there comes a time where Amazon sellers decide that it’s time to take advantage of external traffic to build their customer base. More importantly, it gives sellers an opportunity to build email lists at the same time.
But, how many Amazon sellers are really taking advantage of this?
Do You Drive External Traffic to Your Amazon Listings?
From the last pie-chart it’s clear that less than half of you are taking advantage of external traffic in your scaling up efforts. Let’s look at how the 42% of you are bringing unique eyes to their Amazon listings.
From a quick look through the responses, it appears that there is an ever-growing list of ways that you probably should be following the lead of that 42%.
How Are You Driving External Traffic?
Over the last year, the bulk of ecommerce conversations could be split three ways, PPC, Amazon business aggregators, and selling on other platforms. From a quick peek at the following chart, I see two main things. Walmart still has a way to go before it’s even in Amazon’s rear view mirror, and that there is a growing number of ecommerce options for sellers.
What Other Marketplaces Do You Sell On?
Amazon says themselves that “only ten dollars a day can help increase sales!” Allowing Amazon to make financial decisions about how you spend your ad dollars might feel a little bit like entrusting the care of the canary to the cat. Still, Amazon Pay Per Click advertising has become THE way to launch and grow your business.
So, Amazon sellers, what are you spending?
In An Average Month, What Do You Spend On Amazon Ads?
I just won a bet with myself. As you can see below, the majority of Amazon sellers are either very happy with their paid advertising, or not happy at all. That tells me that those of you who are using it effectively are reaping the benefits. Unfortunately, there’s a substantial learning curve to navigate.
On a Scale of 1-10 (10 Being the Best), How Happy Are You with Your Amazon Paid Advertising?
If Amazon advertising was a swanky club, picture DSP (demand-side platform) as the extravagantly decorated tables behind the velvet rope.
CANOPY has recently written about the impending loss of Amazon sellers’ ability to access third-party tracking.
Amazon knows what people are buying and searching for on their site. By using DSP you can leverage Amazon’s powerful data and unmatched targeting capability, and reach customers wherever they are online—from browsing their favorite news sites to watching tv from their Amazon Fire stick.
Are You Using Amazon’s Newest Ad Type, DSP (Demand-Side Platform)?
The previous pie-chart shows that DSP (while pricey) might be an untapped way to take your Amazon brand to the next level. Now let’s take a look at what sellers are spending off of Amazon.
In an Average Month, What Do You Spend On OFF-Amazon Advertising?
The chart above seems to reinforce one common theme associated with DSP. While not exactly, “Go big or go home,” Amazon demand-side platform does reward an upgraded level of investment.
The last chart is something of a microcosm of selling on Amazon. While two of the suggestions, “starting with as many SKUs as possible,” and “drive external traffic” might reward certain sellers with higher level skills, the rest of the advice is ecommerce 101.
Which of These Answers is the Best Advice for a New Amazon Seller Looking to Find Success?
- Use a launch strategy to rank for keywords
- Pay to have your listings professionally optimized
- Vet your suppliers well
- Only start with one SKU
- Pay top dollar for high quality photography
- Don’t drive external traffic (focus on Amazon)
- Pay an agency to run your PPC
To be honest, we couldn’t say it better ourselves. It’s clear that our respondents are a pretty clever bunch. And, like CANOPY Management, they’re looking to get better every single day.
This Could Be Your Competitive Advantage
One thing shown by this seller survey might be exactly what you need to take the next big step with your ecommerce business. For Amazon sellers looking to level up, take a moment to identify what the competition is NOT doing!
Based on this data, your competition is probably not driving external traffic, selling on other marketplaces, using DSP, or taking advantage of an Amazon agency. This might be the perfect time to use one or all of these strategies to your advantage.
I hope this information will help you have a better understanding of how you and your Amazon business relate to the larger ecommerce ecosystem.
As always, CANOPY Management is here to help.
CANOPY Management’s team leverages experience from across all corners of the Amazon industry to help you scale your business and gain market share. This allows you to keep your hands on the wheel of your Amazon business while at the same time benefiting from the wealth of experience and expertise of the CANOPY Management team.