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- Amazon accidentally served $300K worth of useless ads... [MDSR #14]
Amazon accidentally served $300K worth of useless ads... [MDSR #14]
Million Dollar Sellers
March 21, 2024
This just in. The majority of MDSR readers are laser focused on one of two things right now:
Getting into a position to sell their business by the end of this year
Finessing their ad strategy for better ROI… ASAP
And we’re here to help with fresh industry intel and (free) million dollar advice. Let’s get into it.
Hot Off The Presses 📰
Groundhog day already happened, didn’t it? Because historical Amazon news seems to be repeating itself, with the launch of even more AI tools for product listings. And AWS and Nvidia’s announcement about extending their collab to keep advancing genAI. And of course, with FedEx and Amazon once again in talks about partnering to give Amazon customers more ways to complete those pesky returns.
Perfect timing, because the 58% of consumers who are cutting back on nonessential spending are quite likely to return any subpar purchases. Maybe that’s why Amazon is loading more buzzworthy essentials onto the marketplace — Oura fitness rings and the weight loss drug Zepbound, to name a few.
Other than that, it feels like all parties involved in digital advertising are flying by the seat of their pants at the moment.
TikTok, for one, is pushing forward with new ad features despite their looming ban. Meta just announced some major updates to Advantage + and Shopping Ads — meanwhile, their layoffs continue to impact advertisers as they replace account managers with AI.
And recently — and by total accident — Amazon served at least $300,000 worth of ads pointing to products that people couldn’t actually buy. They claim the incident impacted only a “tiny fraction” of sellers, and they’re only refunding a tiny fraction of the damages. The seller who was charged $300,000 for the useless ads is only getting $15,000 for their trouble.
Hopefully that’s just a fluke. Because once third-party cookies disappear Amazon will stand as one of the few and largest platforms where marketers can precisely target and measure their advertising.
Now over to you.Which ad platform are you focusing most of your time and budget on right now? |
Million Dollar Advice 💸
If you’re anything like the countless entrepreneurs who started selling on Amazon circa 2014, you’ve probably noticed that you need a whole new set of skills to run your store at the same level present day.
And you’re right — but it’s not a bad thing. Because the only constant in the world of Amazon (and eCommerce TBH) is change.
That’s why it’s so important to think of your store as a piece of real estate, and to focus your energy on keeping the foundation in tip top shape. And if you’re thinking “I’d rather be the real estate agent in this equation” — remember that nobody wants to buy a house without plumbing or electricity…
Cash Flow Cleverness 💵
When we came across this killer newsletter by Chew On This on the topic of optimizing cash flow, we knew that any of our readers dreaming of making big business moves this year could get something out of it.
The full post is worth the read, but here are some of the major takeaways:
🔄The cash conversion cycle (CCC) is the timing between spending cash and making it back — also known as the heartbeat of your business.
⚙️ Getting the cycle to spin faster is how you make money work smarter, not harder. And turbo boost your growth engine.
🤫 The secret is using tools to extend payment terms where your business spends the most (think: inventory and ads) so you have breathing room to grow.
💹 Because improving your CCC by just 10 days can increase cash flow by 20% according to the Harvard Business Review.
🪄 Don’t underestimate the impact negotiating better payment terms with suppliers — resisting the urge to chase short-term financial rewards — will have on your cash flow.
Want to know more? Read the full post here.
And if you think these are helpful?
Catalog Ads: The Key to Improving Return On Ad Spend Overnight 🔐
If you have 20 to 100 plus SKUs and you haven’t tried catalog ads (also known as dynamic product ads) yet — it’s time to get up to speed and start testing them on Meta, TikTok, Snap, and Pinterest.
Because according to a recent report from Marpipe, they may be the secret to multiplying your ROAS overnight.
And you don’t even have to break a sweat to produce the ad creative for them because they dynamically pull the images and description directly from the items in your catalog. But you can if you want to.
Based on Marpipe’s analysis of 3500 Meta ad accounts, the average ROAS for catalog ads was 3.075x, compared to just 1.725x for static video ads — meaning catalog ads performed 78% better than any other type of ad for these accounts in 2023.
Some things to keep in mind if you’re going to try them out:
They won’t work if you don’t have a ton of SKUs. While categories like beauty and apparel, footwear, supplements, homegoods, and electronics can absolutely crush it with catalog ads, you don’t see catalog ads from single SKU brands, SaaS companies, or people selling digital downloads for a reason.
Optimize your product catalog to create a rich data feed. Keep product titles short and product descriptions meaningful so that your ad platform of choice has the context it needs to serve your catalog items to the right people.
Test one channel before you expand. Every ad platform has its own thing going for it, so it may be tempting to try out catalog ads on Meta, TikTok, and Pinterest all at the same time. But to avoid wasting your ad budget unnecessarily, you’ll want to validate your setup on one platform to start — and diversify your channels when you’re officially on the right track.
Out of curiosity, how many SKUs are you working with? |
Introducing the MDS Show with Nick Shucet and Rolando Rosas 🎬
Welcome to the MDS Show with Nick Shucet and Rolando Rosas, where trending entrepreneur news, Amazon seller challenges, and e-commerce lifestyle take center stage.
In our first episode, Nick & Ro discuss the importance of taking breaks, delegating tasks, and letting the team handle problems. They also discuss the benefits of finding the right people for your team and focusing on their strengths.
eCom Stock Watch 📊
AMAZON → Last earnings report on February 1, 2024, next earnings report on April 25, 2024
Amazon stock started 2024 at $151.94. Today Amazon traded at $174.48, up +9% this month and +15% from the start of the year. Their forecasted price for the end of 2024 is now $224 (+28% from today and +47% YoY). Prices are expected to hit $259 by summer 2025 and $263 at year end (+51% from the current price).
SHOPIFY → Last earnings report on February 13, 2024, next earnings report on May 2, 2024
Shopify stock was $77.90 at the top of 2024. Today they traded at $77.52, down -1.4% this month but with almost no change from the start of the year. By the end of 2024, their price is expected to hit $84.51 (+9% from today, and +8% YoY) — and $120.35 by the end of 2025 (+55% from the current price).
ALIBABA → Last earnings report on February 7, 2024, next earnings report date TBC
Alibaba stock started 2024 at $77.51. Today they traded at $73.52, up +.4% this month and down -5% from the start of the year. By the end of 2024, their price is expected to hit $74.51 (+1% from today and -4% YoY) — and $85.33 by the end of 2025 (+16% from the current price).
WALMART → Last earnings report on February 20, 2024, next earnings report date TBC
Walmart stock came into 2024 at $157.65. Today they traded at $60.86, up +4% this month but -61% from the start of the year. By the end of 2024, their price is expected to hit $86.47 (+42% from today and -45% YoY) — and $88.43 by the end of 2025 (+45% from the current price).
Even More Highlights From MDS Inspire + Prosper ✨
The highlights from MDS Inspire 2024 and Prosper keep rolling in.
That’s what happens when you get hundreds of elite sellers in the same room to network, exchange insights, reconnect with old friends, and get inspired…
If you’re feeling the FOMO, just know that it’s never too soon to secure your early bird ticket for MDS Inspire 2025…
Did you see that post 📲
And this is why you always have to add your own flair to whatever ChatGPT spits out.
How to write good copy for the internet (a guide):
Bad copy kills businesses, good copy makes them.
I think we’re entering an era where the best products don’t necessarily win, the best copy does.
Most people write copy like they are writing instruction manuals.
They got lost… twitter.com/i/web/status/1…
— GREG ISENBERG (@gregisenberg)
4:55 PM • Mar 8, 2024
Until Next Time ✌️
As always, thanks for sticking with us until the end.
If you’d care to share your thoughts on this newsletter, we’re all ears. Just hit reply to sound off.
See you next time with more of the latest and greatest content you need to succeed this year 🔥
Sincerely,
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