Revealed: The real living conditions of sellers during the epidemic

Revealed: The real living conditions of sellers during the epidemic




Affected by the COVID-19 pandemic, Amazon sellers have had a difficult time in recent months.

To study the changes caused by the epidemic on Amazon US sellers, Teikametrics’ data team analyzed the advertising spending, clicks, conversion rates, advertising sales, and organic sales of 1,500 sellers from January to March.

In order to more intuitively reflect the changes before and after the epidemic, the team combined the data from January and February to take the average value, and compared and analyzed it with the data from March.




Sales volume change comparison


Total sales of surveyed sellers increased by 14% overall, but there were large differences in sales between sellers.

48% of sellers saw an increase in sales in March compared to the average of January and February, while 52% saw a decrease. Moreover, there was a large gap between the growth rate and the decline rate, with some sellers seeing an increase of more than 100% and some sellers seeing a decline of more than 51%.

             


As can be seen from the above figure, the impact of COVID-19 on sellers has both positive and negative effects.

The epidemic has affected sellers' supply chains. Amazon has also previously restricted the categories of goods that can enter FBA warehouses, which has had an impact on sellers' sales; while some categories have seen a surge in demand due to stay-at-home orders.


As advertising spending increases, so do sales.


Sellers who do not have supply chain crises or logistics and distribution issues can use advertising without any worries.

It is understood that half of the sellers surveyed increased their advertising spending in March, and as can be seen from the figure below, as advertising spending increased, sales also increased. For products with strong demand, advertising is more likely to drive a significant increase in sales.

         

    


Which categories benefit most from advertising?


As can be seen from the figure below, Grocery & Gourmet ads had the largest sales increase in March , up 60% from the average level in January and February, and the click-through rate also increased by 34%, so ACOS decreased by 20%.

             


Advertising sales and click-through rates in categories such as Toys & Games and Sports & Outdoor also increased, and ACOS also showed a downward trend.

Although ACOS increased in the Tools & Home Improvement, Baby Products, and Home Health categories, they remained positive overall.
 
But increasing ad spending won’t necessarily increase sales in all categories. Factors such as supply chain, changes in consumer buying behavior, and changes in Amazon’s FBA policies have a greater impact on some categories than others.
 
It can also be seen from the figure that although Amazon’s previous policy did not restrict the entry of pet supplies into warehouses, sellers were affected by the supply chain and their inventory was unstable, resulting in inflexible advertising and a negative trend.
 

Keyword changes


Here are some of the category keywords with the largest changes in click volume:

            

 

In the shoes, clothing and jewelry category, clicks on men's T-shirts increased by 1909% . We can also see that due to the stay-at-home order, clicks on some home and office supplies have also increased , including conference microphones, dehumidifiers, room dividers, etc.
 
The above is some of the impact of the epidemic on sellers’ sales. The market is constantly changing, and sellers need to constantly improve the supply chain, closely track the market performance of products, and actively optimize advertising and other resources.
 
The epidemic is a challenge for any seller, but by staying vigilant and making wise decisions, sellers can even turn crises into opportunities.
 
Compiled by ✎ Mary/
Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained.

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