The ongoing Coronavirus pandemic that first exploded into the public consciousness in the U.S. around March 20th of this year has had both unfortunate and surprisingly beneficial consequences for Amazon sellers. Massive shipping delays and restrictions have put many sellers drastically behind budget, however stay-at-home shopping trends have led to increased sales and astounding Amazon pay-per-click (PPC) performance. Here are the three most fascinating Amazon Advertising trends we have identified since the start of the crisis:
- The overall volume of ad revenue and ad spend has increased (up to 52% and 26% respectively).
- This is underpinned by an increase in traffic (up by as much as 53%).
- At the same time, advertising efficiency (ACoS) has drastically improved (dropping as low as -31%). This can be explained to a large degree by:
- Lower cost-per-click (CPC) as competition decreased
- Higher traffic volumes
- Fluctuations in conversion rate (CVR)
Toward the beginning of the pandemic, average Conversion Rate (CVR) climbed significantly, as higher demand for online shopping—along with Amazon’s commitment to hiring 100,000 workers—led to astronomical gains on the platform. Although not long into the frenzy, restrictions for inbound shipments, as well as out of stock products discouraged order completion, and we saw CVR dip significantly. After a brief period of normalization, Amazon lifted shipping restrictions and more products were being stocked and shipped without delay. As inventory positions continue to improve, CVR will begin to climb once again, perhaps making it imperative for sellers to consider capitalizing on this unique opportunity.