🕹️ Ranking as we know it will soon be extinct

MAJOR RANKING CHANGES are COMING SOONER THAN LATER
  • 🕹️ Ranking as we know it will soon be extinct

  • 🧧 Key Chinese New Year dates

  • 🇪🇺 How Europe is reshaping Amazon

  • 🏷️ Influencer pricing rules of thumb

  • 🎯 Amazon seller benchmark guide

  • 📖 Amazon success guide for 2024

STUMP BEZOS

Amazon is the #1 advertiser in the world by dollars spent on ads. What company is #2 in ad spend worldwide?

[ Answer at bottom of email ]

💰 BILLION DOLLAR STRATEGIES
what you need to know to make moolah

🕹️ RANKING as WE KNOW it WILL SOON be EXTINCT

In what could be a prelude to something similar to what Amazon may do, Google SGE, the Search Generative Experience, is testing a search carousel named "Here are some products to consider."

This carousel shows you products from different vendors that you can click on to engage with in Google Shopping.

As Khushal Bherwani posted on X - search for [crop tops] it will bring up this feature in the AI shopping snapshot:

94% of Google SGE links are different from organic search results

SEO as we know it will soon be dead

The AI-generated answers in Google’s Search Generative Experience (SGE) do not match any links from the top 10 Google organic search results 93.8% of the time a recent study found. 

Once rolled out, Google SGE is expected to reduce organic traffic significantly to websites for many keywords because searchers will be able to get the answer directly in Google’s AI-generated answer.

This will affect the 25% of Amazon’s traffic that currently comes from Google.

But it’s not just Google testing changes. Walmart earlier this month made a rare appearance at CES to promote its new AI-powered shopping.

Walmart President and CEO Doug McMillon and Microsoft Chairman and CEO Satya Nadella introduced new AI innovations to benefit Walmart customers.

Using a combination of Walmart proprietary data and technology combined with large language models like the ones in Microsoft Azure OpenAI Service, as well as retail-specific models built by Walmart, the new AI will serve up a curated list of personalized items a shopper is looking for.

Amazon is also testing a new generative AI tool to answer shopper’s questions.

The new feature in Amazon’s mobile app prompts users to ask questions about a specific item. It then returns an answer within a few seconds, primarily by summarizing information collected from product reviews and the listing itself.

Unlike OpenAI’s ChatGPT, Amazon’s new feature isn’t equipped to carry out a conversation, but it can respond to creative prompts. On a listing for a women’s vest, it could write a haiku about the product. It can also describe the item in the style of Yoda from Star Wars.

The next step is typing “good bike for a 5-mile commute with hills” into Amazon search and getting the best bicycles ranked by how well they fit the question.

Search is about to radically change on Amazon, and ranking as we know it is going the way of incentivized reviews soon.

The video below featuring Vanessa Hung and Amy Wees should be mandatory watching for every serious Amazon seller to prepare you for what is likely coming based on recent flat file changes.

You need to watch this video

Vanessa is an expert in Amazon flat files and problem-solving, and she recently notice some major changes in beta versions of Amazon’s new flat files that hint at the first steps to full AI search and listing analysis.

She believes Amazon is shifting from traditional keyword-focused SEO to an AI-driven contextual approach, signifying a major evolution in how products are presented and found.

As Amazon does testing, sellers are experiencing issues like changed titles, incorrect product colors and descriptions in their listings due to AI alterations in the backend.

NEW RANKING METHOD: SELL TO THE AI

Listings will soon need to be optimized for AI and not for keywords or phrases. This includes carefully crafted images the AI uses for contextual understanding of your products.

Vanessa says change is part of a larger trend where Amazon's AI system is evolving to understand products in a more holistic, contextual manner. It's not just about keywords anymore; it's about how products fit into consumers' lives.

As a result, sellers will need to optimize their product images and descriptions to cater to this new AI-focused approach, ensuring that their products are contextually relevant and appealing rather than keyword stuffed.

Additionally, AI changes will have a profound impact on Amazon's search engine functionality for consumers, altering how products are displayed and recommended based on consumer behaviors.

  1. Optimize for Context: Enhance your product listings by focusing on contextual relevance. Go beyond keywords; describe how your product fits into the consumer's lifestyle or use cases.

  2. AI-Adaptive Imagery: Use images that tell a story about your product. For example, if selling a beach accessory, show it in a beach setting to help Amazon's AI understand and categorize it appropriately.

🌎 STATS YOU SHOULD KNOW

🇪🇺 HOW EUROPE is RESHAPING AMAZON

Amazon is planning to introduce commercials on Prime Video starting January 29, which represents a significant shift in its business model. Amazon aims to use its extensive shopper data to target video ads effectively in the U.S.

However, the situation in Europe is markedly different due to upcoming regulations. Amazon sellers worldwide should be aware of these developments.

The changes in Europe could lead to similar regulatory pressures in other markets, including the U.S.

  1. European Regulations: The European Union's new Digital Markets Act (DMA) is set to bring substantial changes to how tech giants like Amazon operate. One of the notable requirements is that Amazon must seek consent from customers before using their shopping data for video ads in Europe.

  2. Impact on Amazon's Growth: The DMA and other EU regulations are likely to slow Amazon's growth in Europet. Amazon's sales outside North America have been lagging compared to its North American market, with a 9% increase in sales outside North America compared to an 11% increase in North America.

  3. Challenges for Amazon: Amazon's main challenge will be to design changes to apps and websites like Prime Video to encourage customer consent for data sharing. Restrictions on ad targeting in the DMA will also affect Amazon's core ad business, potentially reducing the effectiveness of ads.

  1. Background Preparation: Amazon began preparing for the DMA in December 2020. The company adjusted its strategies, including reducing its private-label brands and focusing on third-party sellers.

  2. DMA's Specific Provisions: The DMA bans practices like using merchants’ data to develop their own products and “self-preferencing” in search results. Amazon will likely have to modify its practices regarding its devices and media businesses.

  3. Prime Badge and Fulfillment Services: Amazon can no longer discriminate against sellers not using its fulfillment services for the Prime badge. This change is part of the concessions made to end two antitrust probes in the EU.

🏷️ INFLUENCER PRICING RULES of THUMB

Wondering how much you should pay influencers per post?

Influencer Marketing Hub has published some basic guidelines.

Payment is often contingent on the size of an influencer’s following. With this in mind, social media influencers are often categorized by their audience size:

- Celebrities and Cewebrities (1m+ followers):
Famous beyond social media, i.e., movie, TV, music, or sports stars.
 
- Macro-influencers (250k–1m followers):
Became popular by leveraging social media.
 
- Mid-influencer (75k-250k):
Their reach extends to an audience size that’s middle-of-the-road.

- Micro-influencers (10k-75k followers):
Everyday people with a decent following and influence.
 
- Nano-influencers (<10k  followers):
Everyday folks with smaller followings but not necessarily less influential.

A bigger audience doesn’t always yield better results. Micro-influencers have the best engagement rates even if their number of followers is smaller.

Influencer fees can vary drastically depending on the influencer niche, gender, engagement rate, location, etc.

These are average costs of a post by platform & type of influencer:

INSTAGRAM:

- Nano-influencer: $25–$200
- Micro-influencer: $200–$1000
- Mid-influencer: $1,000–$3,000
- Macro-influencer: $3,000–$15,000
- Celebrity: $20,000+

TIKTOK:

- Nano: $50–$300
- Micro: $300–$1,250
- Mid: $1,250–$3,500
- Macro: $3,500–$12,000
- Celebrity: $12,000+

YOUTUBE:

- Nano: $100–$500
- Micro: $500–$3.000
- Mid: $2,000–$5,000
- Macro: $3,000–$20,000
- Celebrity: $20,000+

FACEBOOK:

- Nano: $25–$100
- Micro: $100–$800
- Mid: $800–$2,500
- Macro: $2,500–$10,000
- Celebrity: $10,000+

🎯 BENCHMARK GUIDE WORTH DOWNLOADING

Fortunet, a leading investment banking firm specializing in Mergers and Acquisitions for premium E-commerce businesses, analyzed over 150 of their Amazon clients to create benchmarks.

They dove into key metrics across a range of topics, such as Amazon Advertising, Sales and Financials, Customer Engagement, Market Share and Business Operations.

They then created a guide for you offering detailed methodologies, explanations, and buyers' perspectives, accompanied by relevant benchmark ranges and suggestions for improvement.

Download the full 35-page PDF guide for FREE (it’s good).

📖 GREAT AMAZON SUCCESS GUIDE for 2024

2024 isn’t just about setting goals - it's about shattering them!

You're not just running a business - you're writing a success story on one of the world's biggest stages on Amazon.

Right now is the perfect time for Amazon sellers like you to gear up for a stronger, more successful 2024.

To give you an advantage, Mina Elias of Trivium has created a free 4-Part Amazon Success Guide for 2024.

It breaks down what you need to know about the latest Amazon trends and top-selling products. 

Plus, it provides a clear explanation of the Amazon Algorithm. The guide will help you prepare for future platform changes and stay ahead of the curve.

🧧 KEY CHINESE NEW YEAR DATES
Courtesy of Burak Yoga at Forceget

  • End of January: Suppliers will begin to stop production

  • January 31: Last date to ship before Chinese New Year.

  • Early February: Employees start leaving the factories.

  • February 9: All employees have left the factory.

  • February 10: Chinese New Year.

  • Mid to late February: Employees start returning to the factories.

  • February 29: Most employees have returned.

  • March 8: Operations are nearly back to normal.

🔥 MORE HOT PICKS 🔥

🥃 PARTING SHOT

“To give anything less than your best is to sacrifice your gift.”

✌🏼 Make today a masterpiece!

See you again on Thursday …

The answer to today’s STUMP BEZOS is
Bytedance (TikTok)