The 80/20 of Ecommerce – April 9, 2021

Amazon PPC Surpasses 10% of U.S. Digital Ad Market Share

According to The Wall Street Journal, “Amazon. com Inc.’s share of the U.S. digital ad market grew to 10.3% last year from 7.8% in 2019, according to a new report from research firm eMarketer.” 

This means that Amazon PPC which includes its Sponsored Products, Sponsored Brands, DSP and other advertising platforms is growing tremendously.  

Though representing a smaller market share than Facebook and Google ads, it is growing more quickly as a sign of its increasing importance in the ecommerce world.

eMarketer estimates Amazon’s U.S. ad revenue last year grew to $15.73 billion, up 52.5% from 2019.   Amazon’s U.S. digital ad share is still small relative to Google and Facebook’s, which accounted for 28.9% and 25.2% of the business, respectively, in 2020.

Amazon Is the Target of Small-Business Antitrust Campaign

Is Amazon becoming a monopoly? 

Last Tuesday, a new coalition of US small business groups launched a campaign for tougher US antitrust enforcement, specifically calling for the breakup of the biggest online commerce, Amazon.

This group includes the American Booksellers Association, National Grocers Association, and a number of local and regional business organizations.

Their goal is to enact policy that could separate Amazon’s retail product business from its online marketplace of FBA sellers.  

Will Amazon FBA sellers see the day where it no longer will need to compete against Amazon Basics in-house brands?  We will see what happens!

Amazon DSP Live Webinar (Free) – Presented by GETIDA & Buy Box Experts – 4/13/21

Our friends at GETIDA will be hosting a free webinar on Amazon Demand Side Platform (DSP).  This will be useful for larger Amazon FBA sellers who are already spending a lot on Amazon PPC.

According to Amazon, “The managed-service option (DSP) typically requires a minimum spend of $35,000 USD (minimum may vary per country)” 

If you are in the ballpark and would like to learn more about Amazon DSP, I recommend this free webinar on April 13th to learn: 

– What is Amazon DSP?

– What is the opportunity for Amazon sellers?

– How can Amazon sellers use DSP to get a real edge and advantage over their competitors?

– How can Amazon sellers retarget sponsored ads to shoppers who visited their listings and improve the overall ROI on ad spend?

– Can Amazon sellers convert the traffic of their competitors and gain new customers?

Sign up here: https://us02web.zoom.us/webinar/register/2916155736759/WN_q_7WoibBQhqCNhzqcTFP0Q

When a brand should go through a broker, PE firm, or buyer for a sale[Video training]

Before you sell your business, it makes sense to know who you can sell it to.  

That’s why I invited Kevin Flaherty, Thrasio’s Manager of Acquisitions to give you a rundown of the possible buyers for your Amazon FBA business.  

Kevin has been involved in a number of Amazon acquisitions and has a wealth of experience in  sourcing, evaluating, and negotiating acquisition deals. 

In this 60 minute training, you will learn:

• [7:54] Who’s who Brokers, Aggregators, PE firms

• [10:00] Major differences between them
• [12:51] What is SDE and EBITDA? 
• [18.48] Who should you go to?  Brokers Pros and Cons
• [23.43] Aggregators Pros and Cons
• [30.33] Importance of building SOPs 
• [35:49] Private Equity Pros and Cons
• [39:15] Which type pays the most?
• [40:36] What “multiples” are currently used to buy Amazon seller business?
• [43:06] Charitable causes – e.g. 10% proceeds support a charity – will this hurt or help my sale?
• [44:56] **Social media – how much extra money does social media bring to the sale.
• [46:59] What is the optimum time for selling an Amazon business and the key points to consider in taking this decision?”
• [51:41] Multiple brands within a larger business – positive or negative? 
• [52:43] Opinion on Lawyers 
• [55:57] How important is it for sellers to have additional off-amazon sales

As a bonus, Thrasio is offering a free consultation to help answer any questions you have about selling your Amazon FBA business.  You can book a time with them here: https://bit.ly/3fUB63j 

Also checkout Private Label Live to learn more about exiting your Amazon business and a chance to get your questions answered on their live show.  

Successful Sellers, Entrepreneurs, and Ecommerce experts in Season 3 every Friday, 1pm EST / 10am PST: https://connect.thras.io/private-label-live

Here are some things you may have missed from last week:

• Google is challenging Amazon in the game of E-commerce
• Covid-19 has changed online shopping, Corona Virus is impacting E-Commerce.
• The Simple 3-Step System to Transition from Operator to Owner in your Amazon Business [Video Replay]

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