The recent epidemic control in Shanghai has affected everyone's hearts. The huge world-class city was closed overnight, which is believed to bring enormous pressure to local companies and many people. Shanghai has always been an area with a large number of Hui.com members. We hope that this wave of epidemics can end as soon as possible, and will do our best to help our Hui members in Shanghai and other regions of the country through this difficult period.
Data from the Ministry of Commerce a few days ago showed that in the first quarter of this year, foreign trade thriving in almost all industries, still growing by 10% at such a difficult time for the national economy. In particular, due to the unique advantages of cross-border e-commerce based on the Internet and overseas markets, the market demand during the epidemic and isolation has not been affected too much. Now cross-border seller companies may need to adjust more about how to work from home and isolate at any time. Under the circumstance, overseas business can be unaffected.
At the same time, we also see that Amazon will increase all FBA shipping fees by 5% from the end of this month, which will undoubtedly affect everyone's profits, but as Amazon said in the announcement, in the global inflation environment , Amazon has indeed minimized the rate of increase in fees, and because this adjustment involves all products in all categories, Huiwang believes that the price increase of Amazon's existing products is already a problem that all sellers need to seriously consider.
On the other hand, Amazon also seems to be making adjustments to curb the vicious competition of on-site advertising, and is continuously launching automatic operation tools for on-site advertising. Because of this, Hui.com will introduce to you in today's article the Amazon advertising. Several stealth AI operational intelligence tools, and how to use them.
Real-time ad bidding strategy (based on real-time data)
This feature is actually not new, Amazon has been launching it for almost 2 years, but Huiwang's own feeling is that this feature is critical for conversion rate and advertising cost ACoS. It is difficult to say which bidding strategy is better, because the performance of the bidding strategy interacts with several other important factors that affect the success of your advertising, these factors include:
Are product keywords accurate?
You can know from the brand analysis panel of Amazon Seller Central that even a product with a large sales volume will not have many conversion words. And even for products with similar sales and identical sales, there will be many differences in the related conversion words.From this, we can know that we should not be greedy for big words, but need to constantly find precise words
Default bid level
Everyone knows that the default bid is the price you set for a click that you're willing to pay for a customer's click. I have to say that Amazon’s advertising is much better than Walmart and Google. The reason is that Amazon’s background does not 100% encourage each merchant to increase their bids to gain traffic, and your actual payment will decrease when the conversion rate increases. Therefore, if your default bid is set higher than Amazon's recommended bid, then you can choose "drop only", and if you set a hell Amazon's recommended bid, it is recommended to choose "raise and lower". However, judging from the current overall advertising performance, choosing "fixed bid" ads often brings uncertainty to ACoS and exposure.
Product cost performance
This is also a very important point in Amazon's advertising algorithm. If the price of a product is set high, it is likely that this product will immediately lose the shopping cart. And if you set it higher than your peers, you will find that your advertising conversion rate will be very low. Therefore, if everyone thinks that their products can be sold at a higher price than their competitors, because their products are of good quality, the problem you will often encounter is that the advertising costs are either not spent, or the conversion rate is very low, ACoS very high. The following bidding strategies won't help your ASINs much.
Budget rules (based on 7-day data)
After talking about the settings of the above bidding rules, let's talk about the adjustment of Amazon's daily budget rules.
From what we've seen, Amazon's daily budget is very sensitive to ad placement. Whether you increase or decrease your daily budget, you'll find that your ad performance will be "miserable" for about 2 days after the adjustment. The main reason is that Amazon's algorithm is very sophisticated. When an advertising campaign has a fixed budget, it will allocate a separate budget for each target keyword and product according to the conversion situation. But once you change your daily budget, Amazon's algorithm resets it again.
However, an ad group with a high conversion rate and a low cost of advertising (ACoS) will often experience the problem of the daily budget being used up and ads automatically stopping. This will undoubtedly lose a lot of orders that should have been received. In this situation, many companies are still accustomed to letting operators adjust prices manually, but in fact, through Amazon's "budget rules", you can basically let Amazon Advertising automatically increase and decrease the "daily budget" for you according to the advertising performance.
This one is actually not new, but since it is hidden very deep, we still introduce it to you.
After opening a group of ads, you can create rules in: Budget Rules – Add Budget Rules.
This feature from Amazon allows you to set it through 2 conditions, the first is based on a specific time, this includes:
Specific holiday dates and days of the week
Another kind of price adjustment is to set it based on the performance of existing ads. You can decide according to 4 conditions:
Advertising Investment Cost ACoS CTR CTR Conversion Rate CVR Return Rate ROAS
It should be noted that Amazon’s budget rules are based on the performance of the past week and are adjusted every 7 days, and your daily budget for related advertising campaigns cannot be less than $10.
Ad budget rules (based on 21 days of data)
The third Amazon automated ad serving rule we need to introduce to you today is Amazon’s recently introduced “Budget Rule.”
Please note that this feature is not visible when the campaign is created, you can only complete the settings by entering the campaign settings after the campaign is activated.
The purpose of Amazon’s launch of this feature is to help you automatically optimize advertising campaigns that currently have sales but have high ACoS. You can ask Amazon to make real-time adjustments to your ad auctions by setting your ROAS ROI.
But the premise of this function is:
The current budget for the ad is at least $10 per day The ad has been running for 30 days, and there are 30 ads in the past month, Amazon will have enough data to make automatic bid adjustments
Amazon will determine how to make real-time adjustments to the existing keyword bids by looking at the advertising keywords in the past 3 weeks (21 days), the target ASIN conversion rate, and the ROAS rate you set. This feature is believed to be helpful to most sellers with pure sales, no profit, or even loss of sales.
However, Hui.com also needs to give you a risk warning. This feature of Amazon has just been launched recently, so it is still in the testing state. Because the target ads are often mature ad groups where people place more orders, and the Amazon system is automatically adjusted to achieve When the ROAS goal you set will automatically stop the relevant rules, it is very likely that a good ad group will experience a decline in performance at that time.
I hope today's article will be more helpful for you to automate operations in Amazon, and at the same time, I hope you can see that the era of each company's own operation has passed, and you will see more and more companies will use Ai Automate deployment and outsourcing to increase your sales and profits faster.