3P Sellers Are Outspending the Big Brands

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Welcome to Issue #42 of the EcomProductFinders Newsletter! šŸŽ‰

šŸŒŸ In Case You Missed This: Pure Gold Recommendation

I have a client who joined MDS just a year ago, and in that short time, heā€™s tripled his revenue.

If youā€™re a 7-figure seller ready to scale to new heights, hereā€™s your opportunity to take action.

WhatsApp me directly at +1 (904) 609-4748 (yes, itā€™s my personal number) with a quick intro about yourself:

  • What youā€™re selling

  • How long youā€™ve been in business

  • Your current revenue

If your story qualifies, Iā€™ll personally connect you with the MDS founders.

šŸš€šŸŽ‰ Happy 2025: The Future Wonā€™t 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 wonā€™t change for a whileā€”take the car wash business, for example. It's not going anywhere, but eventually, people will be replaced by robots (and no, weā€™re not watching a sci-fi movie; those robots are already in mass production!).

I believe this transition wonā€™t take long.

After all, +/-$25K for a ā€œworkerā€ who never complains, works 24/7, doesnā€™t 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 whatā€™s next. Weā€™re in the middle of a 10- to 20-year sprint.

Nevertheless, Happy New Year!

Donā€™t fall behindā€”face reality and move forward.

And of course, cherish the people you love and have fun!

On another note, Iā€™m diving into offline businesses and building AI-powered automation to make them more efficient and sufficient.

More updates are coming, but I wonā€™t reveal anything until itā€™s ready.

šŸ’” Efficiency Toolkit for Amazon Sellers

Running your Amazon business can be overwhelming, but these tools are here to make your operations smootherā€”and 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. 

Theyā€™re your ultimate brainstorming buddiesā€”no 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? šŸ’¼

šŸ’” 3P Sellers Are Outspending the Big Brands on Amazon Adsā€”Hereā€™s 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, hereā€™s how 3P ad spend compares:

ā— 127% more on Sponsored Products
ā— 34% more on Sponsored Brands
ā— 146% more on Sponsored Video

1ļøāƒ£ All-in on Ads: Many smaller 3P brands are pouring everything theyā€™ve got into Amazon ads, focusing heavily on performance advertising to drive direct conversions. Itā€™s their way of competing with household names and clawing their way into the spotlight.

2ļøāƒ£ Big Brands Have Backup: Established brands like Pampers and Huggies have built-in recognition. They donā€™t have to go all-in on Amazon because theyā€™re already winning the offline game. For them, Amazon is just a secondary channel, not the main battleground.

3ļøāƒ£ A Level Playing Field: Amazonā€™s updates to advertising toolsā€”like more accessible DSP (Demand-Side Platform) and AMC (Amazon Marketing Cloud)ā€”are 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.

Hereā€™s the kicker: this high-stakes, performance-driven strategy is working for 3P brandsā€”theyā€™re growing almost twice as fast as 1P brands.

But hereā€™s a thought: with all these tools now in reach, isnā€™t it time to shift some of that ad spend toward brand-building? Long-term visibility and loyalty donā€™t happen by accidentā€”itā€™s a strategy. šŸš€

šŸ’” Get Your Amazon Problems Solved Faster

If youā€™re stuck with an issue on Amazon and want a quicker resolution, hereā€™s a pro tip: create a topic in the Amazon Seller Forums. 

Amazonā€™s U.S.-based team actively monitors these forums and often steps in to assist, especially if your problem is solvable.

Itā€™s like cutting through the red tapeā€”post your concern clearly, and you might just see a speedy resolution coming your way!

šŸ’” Selling on Amazon: Solving the Puzzle

Selling on Amazon is like putting together a puzzleā€”every piece matters. When brainstorming your next product idea, donā€™t 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 isnā€™t just about gut feelingā€”itā€™s 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. šŸš€

šŸ’” 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 emailā€”or text me at 904-609-4748ā€”if youā€™d like my personal assistance with product research, validation, or development.

The best way to solve a problem is to find someone whoā€™s already solved it

šŸŒŸ Time to Chill!

And thatā€™s a wrap for todayā€™s issue! Now itā€™s 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 yourselfā€”relax, recharge, and, of course, have some fun! Youā€™ve earned it. Spend time with your loved ones and cherish the moments that matter most.

Talk soon,
Izabella šŸ’™