Revisiting Amazon PPC in COVID crisis: Amazon Marketing Services


Amazon in the COVID-19 crisis

Amazon carved a dominant role in the corona crisis by remodeling Amazon Marketing Services. Every panic buyer turned to the leading tech brand for all kinds of essential buying from toilet paper to streaming services. The world was going through a recession. Retail outlets were shut down and employees were dismissed. Conversely, Amazon went on to hire 100,000 personnel for order fulfillment and 75,000 for grievance redressal (Source: Amazon report, 2020).Amazon further removed 0.5 million offers to control price gouging by sellers. It even suspended around 6,000 seller accounts responsible for the same. The retailer implemented over 150 process reforms for efficient operations and the welfare of the distribution team. FBA had no advantage anymore. Amazon was favoring those sellers who were able to ship and deliver quickly.  Also, learn more about: Amazon FBA – Everything About Selling on Amazon .Amazon is less accentuated on Google ads to meet the demand surge. It has also disabled shipment creation for sellers dealing with non-essential items.

Amazon Sellers and Changes in Amazon Marketing Services

Now, that the panic buying has reduced, shopping habits are adapting to the new normal.  It has created an equitable shot for all amazon sellers.  Sellers were slowly opening their revenue streams with strict regulations and control measures. But, new concerns came into light. Priority shopping for certain items, delay in supply chain operation, longer lead times, and heated competition among sellers are some of them. Also, Amazon Marketing Services are now more vigilant about their product listings. So, if it senses that a seller is trying to take advantage of the crisis, it immediately bans the brand and removes the account.  An Amazon seller needs to consider the following factors for their marketing strategies –   

  • Lockdown period in different nations
  • FBA restrictions for non-essential products
  • Delay in shipment
  • Reopening of FBA for non-essentials

 

Reasons to continue investing in Amazon PPC

  According to the Sellics analysis, Amazon advertising saw the following trends during the crisis – 

  • An increase in the volume of Ad revenue and Ad spend
  •  An increase in CTR (Click-Through-Rate)
  • Advertising efficiency has improved. Advertising cost (ACoS) decreased and Return on Ad-spend (ROAS) witnessed a significant improvement 
  • The cost per click (CPC) decreased as the competition was low
  • The conversion rate (CVR) remained unstable due to fluctuations in the buying behavior

These performance metrics were the result of the following factors-

Erratic Buying Behavior of Consumers

Many Amazon seller accounts observed tremendous sales growth. Brands, particularly across food items and perishables, witnessed high growth on Amazon.    Amazon sellers falling under the high demand category need an aggressive PPC strategy. PPC under Amazon SEO Services will enable sellers to stay ahead of the contenders and attain a quality position on the search results page. 

Fall in Competition

The COVID crisis caused several Amazon sellers to go out of stock. There were severe logistical problems. This provided an opportunity for sellers to improve organic rankings and product reviews. Amazon PPC is more credible as compared to other traffic acquisition methods. Sellers can change their bids with the demand. Amazon PPC provides practical scaling on the channel for every size of business. It is natural for competitors to pull back at this time. So, a seller making this bold move will be highly visible.

Emotional Buying

COVID 19 has caused panic across the globe. People are indulging in emotional buying. Although the initial panic phase has diluted, there’s still a struggle among buyers. Amazon sellers need to be prepared for such unprecedented behavior. People have more time to spare.Some buyers may indulge in shopping out of boredom. Some buyers might spend while looking for entertainment options.  Amazon PPC equips businesses to be prepared for any such situation. Also, it provides the option to fluctuate their bids. Sellers can increase their bids when the demand is high and vice versa.  

Consumers Trust Amazon

Amazon’s unique selling point is its speed of delivery. It has a highly automated fulfillment network that places it above every other online retail channel. This prompt service established enormous trust among consumers. Amazon is placed on top of the list for checking product prices.Every 9 out of 10 buyers access Amazon to check a price before buying the product.It is beneficial for sellers to remain associated with such an influential brand.  

Conclusion

In any case, a seller needs to keep in mind the following factors – 

  • Demand for the category of products
  • Supply and SKUs of products
  • Shipping liabilities and restrictions
  • Fulfillment agreement with Amazon- whether a business is listed under FBA or FBM

Times are tough. But, a business doesn’t have to go through it all alone. A professional digital marketing agency can ease the path. There are certain metrics to be considered while setting bids for keywords to derive maximum benefits from Amazon Marketing Services.  In such an uncertain scenario, a seller needs to be vigilant, creative, and willing to experiment to boost overall sales. A custom and smart Amazon PPC strategy is the best solution.


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