[ BDSN ] 👀 Amazon sellers turning to Google Ads to drive FREE traffic

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SELLERS TURN to GOOGLE to EASE the PPC WALLET BURN
  • 👀 Amazon sellers turning to (FREE) Google Ads to drive traffic

  • 🚢 Ocean freight rates are skyrocketing, up 81% in last 3 months

  • ⚖️ Finding product ideas from expired patents & using AI to update

  • 🥊 How Shein and Temu are encroaching on Amazon’s turf

  • 📋 Amazon Prime Day checklist

  • 🖌️ Listify optimizes your Amazon listings with AI

  • 🇨🇳 Chinese sellers rapidly taking over Walmart.com

STUMP BEZOS

In 2015, 134 million de minimus transactions entered the USA. The tax free rate was raised in 2016 from $200 to $800.

How many de minimus entered last year (partly due to Shein & Temu too)?

[ Answer at bottom of email ]

👀 AMAZON SELLERS TURNING to GOOGLE ADS

More and more sellers are starting to shift their advertising efforts to Google Ads lately to help boost Amazon sales (19% of Amazon traffic originates at Google).

With Amazon's marketplace getting increasingly crowded and expensive to advertise in, sellers are looking for more cost-effective ways to drive traffic to their listings. And Google is a hugely powerful channel for this.

Check out these stats:

  • Google's organic search drives 18.70% of Amazon's traffic, making it Amazon's most important visitor source from external websites.

  • While a large portion (62.83%) of Amazon's visitors access the site directly, when considering external traffic sources, Google organic search stands out as the predominant contributor.

  • The data shows that Google is the dominant traffic source for major e-commerce brands across various niches, accounting for over 50% of all web traffic and eight times more than social networks combined.

  • For the e-commerce sector as a whole, approximately 43% of traffic is attributed to organic Google searches

Maybe the story below a few months ago in the Billion Dollar Sellers Newsletter wisely pushed a few savvy sellers towards using Google ads.

There are specialized agencies that can target high-intent buyers on Google and send them straight to your Amazon listings. By analyzing search queries and demographics, they're able to really hone in on the people most likely to buy.

The cost per click on Google can be a lot lower than on Amazon for many categories (especially after adding in the 10% brand referral bonus), making it potentially a much more profitable way to advertise.

On top of that, Google has started rolling out some new ad formats that are perfect for driving Amazon sales. The most exciting is Performance Max, which can send traffic from Google campaigns directly to your Amazon listings, without even needing your own website.

It's still in beta, but the potential is huge - you can basically run Google ads just like you would Amazon PPC, but at a much lower cost.

But there is another way cutting edge sellers are now using that sends traffic from Google to Amazon that costs nothing - seriously.

I've been hearing whispers about a totally legal "loophole" that allows Amazon sellers to get up to $120,000 per year in free Google ads. Yes, you read that right - $10k per month in ad spend without paying a penny.

This method takes advantage of a little-known program Google has been running for over 20 years. Google gives away a bunch of free ad spend to qualified organizations to offset their profits and reduce their tax bill.

And if you know how to get your Amazon seller account approved for this program, you can run $10k/month in Google ads to your listings absolutely free.

There are some sellers who have driven over $2M per year in free Google ad traffic to their Amazon listings!

It works like magic. If you want to learn more, I set up a FREE short 30-minute Zoom call exclusively for BDSN subscribers to explain it this
Thursday, June 6 at 2pm Eastern.

Register FREE here

Being able to run high-volume Google ad campaigns without worrying about ROI is an absolute game changer. Amazon PPC can be a margin killer, so getting this kind of "free" external traffic could literally transform your business.

I've been in the Amazon game a long time, and I've never come across an opportunity quite like this to affordably move the needle for sellers.

🚢 STATS YOU SHOULD KNOW

Ocean freight rates are skyrocketing. May spot prices for ocean shipments from Asia to North America are approaching $5,000 per 40-foot equivalent unit, as Red Sea conflicts and labor uncertainty at East Coast ports affect market dynamics.

Shippers should expect months of elevated rates and increased delays ahead of peak season if higher demand and restricted capacity continues.

“This is essentially pandemic-level disruptions we are now seeing in the market as it comes to the sustained pace of increases over 3 weeks. It is only during the pandemic we have seen similar extreme increases over a 3-week period,” Lars Jensen, CEO and partner at Vespucci Maritime, said in a LinkedIn post.

⚖️ FINDING PRODUCT IDEAS from EXPIRED PATENTS

At BDSS 10 a couple weeks ago, Dream 100 member Rich Goldstein spent a few minutes sharing how to find product ideas from expired patents.

Rich explained how …

1. Patents expire (Utility in 20 years, Design in 15 years)
2. They cannot be renewed
3. When they expire, they are fair game

The audience then broke into teams, and had 75 minutes to find a product idea from an expired patent and use AI to validate it, create a new updated version, and make an Amazon listing with photo and video assets.

Each team had 3 minutes to present their work and a panel of judges voted on the winning team, which won a couple tickets to BDSS Market Masters in Austin this September.

You can see all the presentations in the replays from BSDS 10, including the AI tools that were used. Some of the results are funny & very interesting!

🥊 HOW SHEIN & TEMU are GAINING on AMAZON

The significant growth and impact of Shein and Temu in the US e-commerce market, as well as their global expansion plans, are starting to pose a rising threat to Amazon's dominance.

The Chinese upstarts are becoming significant competitors to Amazon in the US market in some categories.

Take a look:

  • As of April 2024, Temu had 47 million US monthly active users, while Shein had 29 million. In comparison, Amazon had 66 million active households, down from almost 70 million in September 2022 when Temu launched.

  • Shein reportedly earned roughly $45 billion in 2022 and is currently trying to go public.

  • PDD Holdings, Temu's Chinese parent company, reported a revenue surge of more than 130% in the first quarter of 2024 and is now the most valuable e-commerce company in China.

  • The average American Shein shopper is female, in her early 30s, and earns around $65,000 a year. Temu's fastest-growing demographic in March 2024 was consumers aged 55 to 64, with the majority being women, and more than half making less than $50,000 annually.

  • Temu spent nearly $2 billion on Instagram and Facebook ads alone in 2023. In February 2024, Temu was reportedly running approximately 9,400 Facebook ads simultaneously, while Shein was running 2,200.

  • Temu ran six separate Super Bowl commercials in 2024, which may have cost PDD tens of millions of dollars in total. 88% of Americans now say they have heard of Temu, mostly through advertisements.

  • Shein works with thousands of garment suppliers in China and operates according to a model called "large-scale automated test and re-order" (LATR), allowing it to add thousands of new products to its website every day.

  • About 10% of Temu merchants also sell on Amazon, as reported in December 2023.

  • Temu has opened up shop in more than 60 countries, while Shein is expanding globally, finding early success in places like Latin America.

🇨🇳 CHINESE SELLERS RAPIDLY TAKING OVER WALMART

In April, a record-breaking 73% of new active sellers on Walmart were from China, surpassing the previous record of 67% set in March, according to data from Marketplace Pulse.

This trend is similar to what Amazon has experienced over the past decade, with Chinese sellers representing nearly 50% of top sellers.

Walmart has been making efforts to accommodate Chinese sellers by hosting a seller summit in Shenzhen, launching a Chinese-language version of the Seller Central dashboard, and allowing sellers to submit support cases in Chinese.

The company is also running a beta program to simplify imports into its fulfillment service, WFS.

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🖌️ LISTIFY OPTIMIZES YOUR LISTINGS with AI

Andrew Erickson has a pretty nifty GPT called Listify that will help you write optimized Amazon listings. Best of all, you no longer need a ChatGPT paid subscription to use it!

  • Creates keyword optimized titles and bullet points

  • Automated keyword integration and templates

  • Boost visibility and ranking on Amazon

Just give it your product info and watch it work!

⛲ SEE COMPETITOR BACKEND VARIATION SET-UP

The guys over at Selling from the Beach put out a 2-minute loom video showing you how to see the type and structure of your competitor’s variation groups.

Here it is:

It’s a an easy way to see if they are gaming the system, or to see how they setup complicated variation structures and what data they are using.

LAST TWO BDSN NEWSLETTERS …
May 30 → 🍹 Loads of fun, networking & actionable Amazon content
May 27 → 🙅🏼‍♀️ Rank #1 on Prime Day for top keywords

KEVIN’S LATEST AM/PM PODCAST:

📋 AMAZON PRIME DAY CHECK LIST

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It has everything you need to do to succeed this Prime Day.

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🔥 MORE HOT PICKS 🔥

🥃 PARTING SHOT

“Take a step back before reacting to a situation or challenge. Next time you want to make that snarky comment on social, respond angrily at an email or snap at your kids, take a pause first.”

✌🏼 Be sure to tell a couple friends about the newsletter so I can send you the 186 hacks pdf!

See you again on Thursday …

The answer to today’s STUMP BEZOS is
one billion packages (2.5 million per day)