DTC Podcast Ep 500: Why Spending Too Much on Amazon Ads Could be KILLING Your Organic Results + Tariff Strategy for Amazon Sellers | AKNF
Apr 18, 2025
Discover how new tariffs are reshaping Amazon selling strategies, creating customs backlogs and influencing pricing decisions. Learn why high ad spending might hurt your organic rankings and how balancing paid and organic placements is key. Get insights on boosting conversion rates without increasing spend. Plus, hear amusing tales about streaming services sneaking in ads, and the speakers' gambling victories in Las Vegas. Perfect for brands navigating the complex Amazon landscape!
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Price Raises Hurt Amazon Rank
- Raising prices on Amazon often hurts your ranking because you will likely be priced higher than competitors.
- Despite cost pressures, brands hesitate to increase prices due to Amazon's ranking algorithm effects.
Inventory Stockpile as Strategy
- A brand with China manufacturing stocked up six months or even a year's worth of inventory.
- This inventory stockpile is used strategically to gain competitive advantage amid tariff uncertainty.
De Minimis Removal Increased Backlog
- The removal of de minimis exemption means many small shipments now face tariffs and customs fees.
- This will create massive customs backlogs and higher restocking costs for Amazon sellers, especially drop shippers.