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3P Sellers Are Outspending the Big Brands
WhatsApp me directly
Welcome to Issue #42 of the EcomProductFinders Newsletter! š
š In Case You Missed This: Pure Gold Recommendation
I have a client who joined MDS just a year ago, and in that short time, heās tripled his revenue.
If youāre a 7-figure seller ready to scale to new heights, hereās your opportunity to take action.
WhatsApp me directly at +1 (904) 609-4748 (yes, itās my personal number) with a quick intro about yourself:
What youāre selling
How long youāve been in business
Your current revenue
If your story qualifies, Iāll personally connect you with the MDS founders.
šš Happy 2025: The Future Wonāt Wait
It's been a year filled with AI implementations, and 2024 has transformed the business strategies of many companies. However, many Amazon sellers still fail to grasp that simple SEO alone is no longer enough, and ranking on page one is no longer the primary key to success.
Some things wonāt change for a whileātake the car wash business, for example. It's not going anywhere, but eventually, people will be replaced by robots (and no, weāre not watching a sci-fi movie; those robots are already in mass production!).
I believe this transition wonāt take long.
After all, +/-$25K for a āworkerā who never complains, works 24/7, doesnāt ask for time off, avoids office drama, and whose maintenance costs less than a weekly salary is a compelling deal.
The same logic applies to industries like plumbing, roofing, hair and beauty salons, and even spas, where robotic masseuses are already being implemented.
For business owners, the opportunities are immense right now. Being the first to embrace technology that others fear is a true game-changer.
For those working 9-to-5 jobs, now is the time to think deeply and strategically about whatās next. Weāre in the middle of a 10- to 20-year sprint.
Nevertheless, Happy New Year!
Donāt fall behindāface reality and move forward.
And of course, cherish the people you love and have fun!
On another note, Iām diving into offline businesses and building AI-powered automation to make them more efficient and sufficient.
More updates are coming, but I wonāt reveal anything until itās ready.
š” Efficiency Toolkit for Amazon Sellers
Running your Amazon business can be overwhelming, but these tools are here to make your operations smootherāand save you money!
Need eye-catching product images?
Canva lets you design like a pro without hiring an expensive graphic designer (saving $200/month). Want a functional website?
10Web handles it for a fraction of the cost of a developer (up to $500 saved). For product videos, CapCut offers professional editing features free of charge (bye-bye $100/month video editors).
Need content ideas? ChatGPT and AbacusAI, along with tons of other AI tools, are included for just $10/month.
Theyāre your ultimate brainstorming buddiesāno need to hire copywriters anymore (saving you up to $300/month).
Create a standout logo with LOOKAdesign instead of hiring freelancers ($100/logo saved).
Add lifelike AI voices with ElevenLabs, cutting voiceover costs ($50/project saved), and enhance your ads with MixKit for free sound effects ($25/project saved).
By integrating these tools into your business, you could save over $1,200/month on operational costs!
Why spend more when efficiency is just a few clicks away? š¼
š” 3P Sellers Are Outspending the Big Brands on Amazon AdsāHereās Why
A recent SmartScout study revealed something surprising: 3P sellers on Amazon are now outspending even the largest 1P brands. For sellers generating over $1 million in revenue, hereās how 3P ad spend compares:
ā 127% more on Sponsored Products
ā 34% more on Sponsored Brands
ā 146% more on Sponsored Video
Why the big divide? Hereās Max Hoffmanās take:
1ļøā£ All-in on Ads: Many smaller 3P brands are pouring everything theyāve got into Amazon ads, focusing heavily on performance advertising to drive direct conversions. Itās their way of competing with household names and clawing their way into the spotlight.
2ļøā£ Big Brands Have Backup: Established brands like Pampers and Huggies have built-in recognition. They donāt have to go all-in on Amazon because theyāre already winning the offline game. For them, Amazon is just a secondary channel, not the main battleground.
3ļøā£ A Level Playing Field: Amazonās updates to advertising toolsālike more accessible DSP (Demand-Side Platform) and AMC (Amazon Marketing Cloud)āare giving 3P brands a real shot. With DSP costs down nearly 50% year-over-year, smaller sellers can now afford brand-building and upper-funnel ads that used to be reserved for the big dogs.
Hereās the kicker: this high-stakes, performance-driven strategy is working for 3P brandsātheyāre growing almost twice as fast as 1P brands.
But hereās a thought: with all these tools now in reach, isnāt it time to shift some of that ad spend toward brand-building? Long-term visibility and loyalty donāt happen by accidentāitās a strategy. š
š” Get Your Amazon Problems Solved Faster
If youāre stuck with an issue on Amazon and want a quicker resolution, hereās a pro tip: create a topic in the Amazon Seller Forums.
Amazonās U.S.-based team actively monitors these forums and often steps in to assist, especially if your problem is solvable.
Itās like cutting through the red tapeāpost your concern clearly, and you might just see a speedy resolution coming your way!
š” Selling on Amazon: Solving the Puzzle
Selling on Amazon is like putting together a puzzleāevery piece matters. When brainstorming your next product idea, donāt just jump in.
Think about how you can validate the idea and connect the dots between the numbers: market demand, competition, and profitability.
Proving your idea is good enough isnāt just about gut feelingāitās about building relationships between data points that mitigate your risk while maximizing your potential.
The more effort you put into validation, the clearer your path to success becomes. š
š” Kick Off the New Year with Confidence
Before I wrap up, as we step into a brand-new year filled with opportunities, feel free to reply to this emailāor text me at 904-609-4748āif youād like my personal assistance with product research, validation, or development.
The best way to solve a problem is to find someone whoās already solved it
š Time to Chill!
And thatās a wrap for todayās issue! Now itās time to kick back, grab your favorite snack, and let your mind wander into the land of possibilities.
Whether you're dreaming up your next product idea or just enjoying the little wins, remember: balance is key.
Take a moment for yourselfārelax, recharge, and, of course, have some fun! Youāve earned it. Spend time with your loved ones and cherish the moments that matter most.
Talk soon,
Izabella š