Most of the revenue comes from brand search, Amazon water cups are selling well and it has given up platform advertising to attract traffic

A top Amazon seller ( Bryan Porter ) said on Twitter that his company has spent more than $10 million on advertising on Amazon in recent years , but recently he plans to reduce the company's Amazon advertising budget to zero .

Bryan Porter founded Simple Modern in 2015 , specializing in water bottles.

The seller explained that Simple Modern spent 8% of its sales revenue on advertising , bought the first advertising position on the homepage, and from the sales results, the advertising has significantly increased sales, with an ACOS of less than 30%. This seems to be driving the company's business development ...

But in reality, Amazon’s ads are exaggerating the role of ACOS to justify spending more.

The seller said that the reasons for reducing the Amazon advertising budget to zero are as follows:

1. The profitability of advertising is exaggerated and does not actually drive sales growth . In other words, organic traffic customers will still buy through advertising positions. For example, "If the product's advertising position is at the top of the homepage and the organic position is at the fifth position on the homepage , many organic traffic customers will still buy through the advertising position .

2. Branding. According to Bryan Porter , a key difference between his company's business and many other sellers is that the company has already taken the path of branding and the brand has a certain degree of popularity. Currently, most of the company's sales come from brand searches.

3. Other traffic channels. After no longer using Amazon platform advertising to attract traffic, Simple Modern also has the advantages of email marketing programs and social media fans.

4. Participate in more "Deals". Unlike advertising expenditures, the company believes that Deals can better increase product conversion rates and natural positions.

However , Adam Weiler of Amazon marketing agency Sunken Stone disagrees with this approach , saying that abandoning platform advertising will eventually lead to a decline in the product's natural ranking.

At present, it seems that Amazon has fewer and fewer natural positions and more and more homepage advertising positions. The excessive inclination towards advertising may also undermine consumers' trust in Amazon.

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