Don’t List Another Product Until You Read These Amazon Sellers’ Survey Results!!
Get an Inside Look at What Your Competition is Thinking, Where They’re Struggling, and How You Can Use That Info to Your Advantage!
The goal of this Canopy Management survey was at the same time, simple and wide ranging. We wanted to understand what it’s like out there for Amazon sellers working hard to scale up their brand, make more money, and thrive in an increasingly competitive selling environment.
That’s why we asked a cross section of successful Amazon sellers to tell us what’s working for them, what’s holding them back from greater eCommerce success, and the adjustments they might have planned for the next 12 months.
We know that there are a number of traditional factors that invariably contribute to eCommerce success. An expertly built product listing including fully-optimized copy and evocative Amazon A+ Content, images and video is just the starting point.
All sellers need a well-crafted Amazon PPC advertising strategy to establish momentum, fend off competition, and ultimately grow their brand.
Then, there’s Amazon DSP (demand-side platform) advertising, a great way to make sure that your ad campaign follows your prospective buying audience both on, and off of Amazon.
We also wanted to gather opinions and take an overall pulse of what the Amazon marketplace is like these days. — Are most of you taking advantage of Amazon FBA? 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 continue to level up our ability to support and assist our partners. And, we can’t do it without data.
Canopy Management’s industry-leading Amazon agency success came about in large part through the tremendous amount of research our specialists do to drill down into our partners’ specific selling niches. Now that we’ve begun helping Walmart sellers as well, understanding our partners’ Amazon and Walmart business concerns continues to be our first priority.
When establishing a relationship with our partners, we have the opportunity to hear about their pain points and their goals. Then, we dig deep to see what’s working for them and where their eCommerce roadblocks are.
With this survey, our goal is to be able to look over the shoulders of Amazon sellers (just like you) to get a better feeling of what it’s like out there for you. That way (if you haven’t yet joined the Canopy Tribe) we’ll be in a better position to assist you when you’re ready to reach out.
Comparing Notes with Amazon Sellers
Any form of entrepreneurship can be lonely. For a third-party seller on Amazon’s increasingly competitive marketplace, it can be even worse. 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 effort.
That’s another one of the reasons that we conducted this survey. We wanted to find a way to help Amazon sellers understand the terrain just a little bit better.
So, let’s begin 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 consistently moving to Amazon’s marketplace. The increase has been exponential. In 2022, Amazon continues to add 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. 23% of you are just starting your Amazon selling journey.
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 the industry-leading 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 a new Amazon product or marketplace, while continuing your Amazon product listing optimization is a great way to please an Amazon shopper.
When you add an Amazon Store 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 to tell you that tools for selling on Amazon have become a very big thing. After all, with data acquisition and utilization such a growing aspect 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.
Helium 10, Seller Tools, and Jungle Scout are right at the head of the list with Amazon PPC and chatbot flow tools filling in a little lower on the chart.
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 really belong to Amazon.
Still, selling on Amazon is where you want to be. There is no other place where you have such a captive online-shopping audience.
However, there comes a time when Amazon sellers decide that scaling up might involve taking advantage of external traffic to build their customer base. More importantly, off-Amazon traffic gives sellers an opportunity to grow their email lists at the same time.
Experts tend to agree that Amazon’s algorithm rewards sellers that bring external traffic back to their platform with additional ranking benefits. Now that Amazon has begun paying sellers to do it, cultivating your off-Amazon traffic seems like an obvious path forward for clever eCommerce sellers.
But, how many Amazon sellers are really taking advantage of this?
Do You Drive External Traffic to Your Amazon Listings?
The previous pie chart shows that 58% of you are not taking advantage of external traffic in your scaling efforts. Let’s look at how 42% of you are bringing unique eyes to your Amazon listings.
From the responses, it appears that there is an ever-growing list of ways that an Amazon seller can use external traffic to build their brand.
How Are You Driving External Traffic?
Over the last year, the bulk of eCommerce conversations could be split three ways: PPC, social commerce such as TikTok, and selling on Walmart. 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 exciting new eCommerce options for sellers.
What Other Marketplaces Do You Sell On?
Amazon Pay Per Click advertising has become THE way to launch and grow your business.
Where Amazon’s PPC advertising platform really shines is with its ability to allow sellers a peek behind the curtain. By taking advantage of Amazon’s recommendations, eCommerce sellers are able to build an advertising strategy on top of Amazon’s powerful algorithms.
It’s like being handed the answers to an important test before you sit down with a sharpened number two pencil.
So, Amazon sellers, what are you spending?
In An Average Month, What Do You Spend On Amazon Ads?
It’s clear that there’s really no middle ground. 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. Those that aren’t are probably struggling. Unfortunately, when it comes to advertising on Amazon, there’s a substantial learning curve to navigate.
That’s exactly where a Walmart and Amazon Management Agency like Canopy Management is invaluable to sellers. For the most part, a lot of Amazon sellers are comfortable selling. It’s the challenges involved with optimization and advertising that prevent them from keeping pace from the growing numbers of sellers that take advantage of agency skills.
On a Scale of 1-10 (10 Being the Best), How Happy Are You with Your Amazon Paid Advertising?
DSP (demand-side platform) is often described as the best-kept secret in eCommerce. It’s a little like having online-selling super powers.
Canopy has 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 to 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 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. Amazon demand-side platform does appear to 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 pertain to sellers with higher level skills, the rest of the advice is pretty standard eCommerce advice.
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 that this seller survey shows is how you might take the next big step with your eCommerce business. For Amazon sellers looking to level up, browsing through the responses to this survey will help you 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 your Amazon business relates to the larger eCommerce ecosystem.
As always, Canopy Management is here for you.
How Canopy Management Can Help
Canopy Management is a full-service marketing agency for Walmart and Amazon sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling online is much easier “under the Canopy.”
- Strategic Growth Planning
- Listing Copywriting Optimization
- Listing Photography
- Product Videography
- Advertising Management
- Customer Service
- Demand Side Platform (Amazon DSP)
- Amazon Posts
- Full Service Management
- Amazon Review Aggregation