If you’re new to the platform, starting the process of advertising on Amazon can feel a little daunting. So, where do you start? Is it actually worth the investment? Is it only the big brands that succeed on such a popular platform? In this article we will discuss the pros and cons of Amazon advertising and whether it should be part of your ecommerce strategy.
Due to the COVID-19 pandemic guidelines, 2020 was spent mostly indoors with little to no access to retail for the majority of the UK; this pushed more people than ever before online. Our COVID-19 shopper report found that during the first lockdown, one of the brands people believed they would continue to purchase more from post-pandemic, was Amazon. The reliability, ease of access and fast or next day delivery for Prime members saw Amazon double its profit during the pandemic – something that cannot be said for other large businesses.
So, let’s take a closer look at the highs and lows of advertising on Amazon:
- Well-optimised and well-priced product listings appear at the top of the search results which can lead to a huge Amazon ROI
- Businesses of all sizes can find success with Amazon advertising campaigns – you don’t just have to be one of the big guys
- Amazon is now the fifth biggest retailer in the UK
- Amazon holds the lion’s share of UK ecommerce (30%), with its next competitor eBay having just 10% in comparison
- £4 of every £100 spent in retail during 2019 was on Amazon
- 86% of shoppers in the UK shop with Amazon
- 25% of the UK adult population are Amazon Prime members, that equates to 15 million people
- 54% of all product search is on Amazon, compared to 46% on Google
What to be wary of
- Small businesses need to ensure they have enough stock to meet demand otherwise Amazon product advertising cannot reach its full potential
- On average, an Amazon advertising account takes longer to set up than other advertising platforms such as Google or Facebook
- Advertising on Amazon is less automated than other platforms and requires slightly more manual assistance from the account manager
- Your product view count can impact product placement
From what we’ve seen, many the ‘cons’ of Amazon digital advertising are actually issues users have with the interface or technical issues such as problems with listing products, rather than results they achieve. Fortunately, our Amazon ad agency experts are trained to set up campaigns efficiently and regularly monitor performance to make any necessary manual changes to maintain your results. We ensure all the hard work is done for you.
Melody agency, part of Amazon’s Solution Provider Network, are an Amazon advertising agency with extensive experience and case studies highlighting our dedicated account management and tailored Amazon advertising services. We provide continuous optimisation and clear reporting so you know your spend and profit at all times. Want to see how Amazon can work for you? Get in touch.
This article was written by Matt Howes, Ecommerce Director at Melody agency.