Pop quiz: How much was Amazon’s market share in 2023?
It was a large number—which will surely get larger next week come Prime Day. But as you all well know, Amazon has giant competitors that will try to snatch the “best ecommerce sales host” award. And they’ve already started, as we’ll share on our weekend news plate today.
- Amazon vs. Temu vs. Shein vs. TikTok Shop 👑
- The secret to optimizing Amazon selling costs 💲
- Other retailers’ response to Prime Day 2024 🎒
BTW, whoever gets the correct answer will get a chance to be in the spotlight on our Wednesday issue. 😉
ECOMMERCE NEWS
Surprise, surprise: Amazon is still the reigning champion of ecommerce marketplaces.
But according to Markets Insider, competitors like Shein, Temu, and TikTok Shop are making notable strides. This is based on a survey of 1,000 U.S. consumers, which provided insights into recent shopping habits.
🔎 What’s up in the ecommerce scene?
- Temu has timing. Despite coming later than Shein (launched in the U.S. in September 2022), Temu has seen massive growth. 36% of respondents have purchased from the shop in the past 3 months alone and 23% plan on increasing their spending.
- Shein is shining. Shein has been steadily growing since its ecommerce debut in 2008. It launched in the U.S. in 2017 and opened its doors globally in 2023. 26% of respondents have purchased from the shop, up from 19% in the previous survey.
- TikTok is up by 2. TikTok Shop’s consumer share rose from 14% to 16%. Plus,9.2% of respondents are willing to spend more on the app in the next 12 months.
🕸️ And what’s up with Amazon?
Not surprisingly, Amazon still beats the competition, with 64% of respondents preferring the platform. The marketplace is constantly striving to be the most customer-centric platform, even taking a page out of its competitors’ playbook by launching a new bargain section.
That’s great news, especially if you’re participating this coming Prime Day. But of course, a good way to further widen your reach is to try out other channels. Do let us know your preferred ones by replying to this email! 📩
TOGETHER WITH EZ-COMMERCE
Why a good PPC strategy is key to optimizing Amazon selling costs
Almost everyone's telling you to sell on Amazon if you want to get rich. What they don't publicize is the initial costs you might shell out on your first year of selling.
So, we're here to tell you straight up what you need to prepare for financially.
- Product inventory: Initial inventory purchases can be expensive, particularly if you're ordering in bulk to get better pricing. It's recommended to canvas suppliers before signing a deal with them. Some manufacturers require a minimum order quantity (MOQ), and the number might be too high, especially if you're just starting. Don't be afraid to negotiate this with them!
- Price: Depends on the product, but you might need to invest at least $500-$1,000 just for stock.
- Amazon fees: Selling on Amazon comes with various fees, including referral, fulfillment, and storage fees. These can add up quickly and eat into your profit margins. For example, FBA fees cover the cost of storing, packing, and shipping your products, but they’re not insignificant.
- Price: The Individual Account costs you $0.99 per item sold, and the Professional Sellers Account is $39.99 per month.
- Marketing and advertising: To get your product noticed, you'll need to invest in marketing and advertising. Amazon PPC campaigns, social media advertising, and influencer partnerships can cost several thousand dollars annually.
- Price: This depends on your budget. But it’s best to start with a budget of at least $100 for a successful PPC campaign.
- Tools and services: Subscriptions to essential tools for product research, keyword optimization, and inventory management can add up. Additionally, hiring professionals for photography, graphic design, and copywriting to create compelling product listings can be a significant expense.
- Price: Depends on whether you’ll do all of these yourself or find someone reputable to handle this for you.
If you’re looking for reputable experts to do PPC management and listing optimization, EZ-commerce can do it for you!
Ez-commerce was established by Dvir Cohen, an eight-figure seller and the author of more than 100 children's Kindle ebooks. They help brands scale and transform to achieve real net success in the Amazon market.
Want to learn more? Click on the link below.
BITES OF THE WEEK
- No Generation Gaps: Amazon is bridging generation gaps by being the preferred market by all.
- Package Protection: Cases of rising theft push consumers to demand better product security.
- Request for Information: E.U.'s new RFI on Amazon's recommender systems signals shifts in advertising.
HOT TOPIC
Prime Day pressures other retailers to launch early back-to-school deals
Thanks to Amazon’s Prime Day, parents and kids will be enjoying early back-to-school deals. Fast Company relayed how retailers are already gearing up for the school season—primarily because of Prime Day!
Amazon’s annual deal event will be held from July 16 to 17. And to stay ahead, ecommerce platforms like Walmart, Target, and Shein are rolling out their back-to-school deals earlier than usual.
⚔️ Back-to-school battle
Last year, back-to-school spending hit a record $41.5 billion for K-12 students, $135.5 billion including college students. So, it’s no wonder retailers are jumping the gun to start their back-to-school sales before summer is even halfway over.
- Walmart’s strategy: Walmart hosted Walmart Deals, its “largest deals event ever,” from July 8 at 5 pm ET through July 11 at 11:59 pm ET. The retailer offered thousands of deals on electronics, home goods, toys, travel, and back-to-school essentials.
- Target’s approach. Target isn't far behind with its Circle Week event. They kicked off their week-long sale on July 7, which will last until July 13. They're offering 30% off on school uniforms and backpacks, including items from their in-house brand, Cat & Jack.
- Shein’s tactics. Shein is also in on the action. It’s starting a 7-week back-to-school sale on July 15, a day ahead of Prime Day.
⏰ Why earlier is better
Timing is everything; it's not just about offering bigger discounts. Launching your deals strategically before your rivals can mean capturing the lion’s share of shoppers’ budgets and boosting your sales.
