You're giving this away to our listeners for free? Goodness
Speaker:By the end of 2026, Amazon Australia will represent 25% of
Speaker:Wow, that's huge. What KPIs matter most
Speaker:ROAS, really, really important. Total ROAS, in my opinion, even
Speaker:If you've got all these big brands coming into Amazon, are
Speaker:No, that's not going to happen because it hasn't happened in any other markets. You
Speaker:just have to be maybe a little bit clever about your category. What
Speaker:are you going to be selling? We did a bit of research on one of my guys and
Speaker:they were selling equipment for aged care facilities. That's
Speaker:I'm Matthew Fraser and this is Amazon Ecom
Speaker:Secrets. I'll be sharing with you the secrets that helped me go from
Speaker:millions in debt to an eight-figure entrepreneur. If
Speaker:you're ready to escape the nine-to-five and live life on your terms,
Speaker:let me show you the way. On today's episode, we're joined by Martin
Speaker:Hilleberg, a highly experienced Amazon expert and managing
Speaker:director of 2020 Consulting, an agency specializing
Speaker:in helping sellers be seen on marketplaces and
Speaker:grow their bottom line. With over 14 years of experience, Martin
Speaker:has achieved remarkable results for his clients. And
Speaker:in this episode, he breaks down the essentials of
Speaker:PPC that every seller needs to know. KPIs that
Speaker:matter most, click through and conversion rate, FAQs, common
Speaker:mistakes, and the best kept secrets in
Speaker:Amazon advertising. Let's dive in and learn from an expert who
Speaker:knows how to make PPC work for Amazon sellers
Speaker:of all levels. What do you mean Amazon verified partner agency?
Speaker:Why it's important is because We basically
Speaker:work quite closely with Amazon Australia. We
Speaker:get invited to events, we hold talks with them. We
Speaker:were just invited to Amazon Seller Summit. It kind of just shows
Speaker:that our team has gone through certain training and verification from
Speaker:Amazon to get the Amazon Verified Partner. So you can be
Speaker:an Amazon Sponsored Network Partner, which is one set, and
Speaker:then you have Amazon Ads Verified Partner, which as
Speaker:we both know, you have Seller Central, but then you have your Amazon Ads
Speaker:and Campaign Manager. They're two different systems. And
Speaker:same thing works with the verification. So you actually have to go through training for Amazon ads
Speaker:to go through that first. And then you open up your accounts, your client accounts to
Speaker:Amazon. They go through to show that you actually are running campaigns.
Speaker:And then that's how you become verified. You got to prove to them
Speaker:that you're doing it. Yeah. So you can't just make that up. And then
Speaker:you have to re-sit training for the team every year. It's
Speaker:very similar to Google certification. And I've actually done Google certification because
Speaker:in a previous job, 12 years ago, when I
Speaker:first moved to Australia, I was a campaign manager at
Speaker:Google and running Google campaigns on behalf of
Speaker:Census, Yellow Pages, White Pages. And we
Speaker:had to sit that training, and that training was easy compared to Amazon's
Speaker:ads verification training. So that's
Speaker:kind of where we as an agency, there's boxes that we need to tick
Speaker:because we do, if I talk about 2020 as a
Speaker:whole, like I come from agency media background.
Speaker:So I spent, before I started 2020, I spent 10 years working
Speaker:in the media industry. So I ran, I was a digital specialist. I
Speaker:worked for some really big agencies, but some really big clients, to
Speaker:name a few. So Adidas, Holden,
Speaker:Dan Murphy's, and the last agency I worked for, I'll
Speaker:give them a little shout out, which is Stratosphere. There
Speaker:I was the head of digital for Chemist Warehouse. So I came
Speaker:from a very, very retail performance-driven client and
Speaker:also sitting in supplier meetings. So supplier meetings means that
Speaker:when brands sit with Chemist Warehouse to negotiate, OK,
Speaker:what stock are we going to take in? How much will you spend with us?
Speaker:What price can we get, et cetera? And I thought that was really interesting to
Speaker:see how tough the negotiations could be. and
Speaker:what it means to brands and their bottom line. So that's
Speaker:when I then started looking at the digital space. And I actually, we didn't start
Speaker:as an Amazon agency. We started as a market, we are still a marketplace agency.
Speaker:I know that you mentioned that a few times that there's other channels. So
Speaker:we actually started with eBay. And then Amazon, we're
Speaker:announcing it coming. So we, of course, added Amazon. But we also
Speaker:do the Iconic, Qantas, Frequent Flyer, Woolworths, Kohl's.
Speaker:So someone can actually come to you now as an agency and if they have an eBay
Speaker:Within the one agency? Within the one agency. So
Speaker:we have built out the specialist teams in terms of around all
Speaker:these. Because as we know, the complexities of Amazon is
Speaker:one of the most complex out there. You have your seller central, that's,
Speaker:you know, really old technology and just, you know, navigating it can
Speaker:take time and working things out. And you have Amazon ads. But
Speaker:then, you know, eBay is now adding on their retail media section
Speaker:or their ad section. So is Kogan, so is Catch. So
Speaker:it's kind of growing here. You have Walmart as well? We do Walmart, we
Speaker:do Macy's, Amazon. Wow. In
Speaker:the U.S., they've taken a different approach. In Australia, we
Speaker:have 55 marketplaces or more. In the U.S., it was Amazon,
Speaker:Amazon, Amazon, Amazon. But what we're seeing now is these big
Speaker:retailers with huge databases are
Speaker:opening up to create their own marketplaces to kind of start competing
Speaker:with Amazon over there. And it's working. Walmart's grown quite
Speaker:significantly. So it's like, it should definitely be on anyone's radar. If
Speaker:That's exactly what I've done. I started with Amazon because
Speaker:it was the biggest platform there. I
Speaker:actually went from Amazon into Shopify because
Speaker:I made the move. Well, first of all, Amazon shut
Speaker:me down. You hear this a bit? Shut
Speaker:my account down. In hindsight though, Martin, that was
Speaker:actually the blessing. Because when I first did my
Speaker:Amazon training, it was like, hey, Amazon's the best thing ever. You just get
Speaker:to Amazon so easy. I thought, oh, brilliant. I'll just do that. But
Speaker:then shortly into that, I got suspended for, I can't remember, maybe
Speaker:too many returns or something. I can't remember. But
Speaker:I realized at that point, I can't have all my eggs
Speaker:in one basket. So then I thought I
Speaker:was probably doing about 200,000 a month or something like
Speaker:that at that stage. And
Speaker:obviously, having all my eggs in one basket was a problem. But
Speaker:what I realized too was, hey, if people are coming to Amazon to buy this product,
Speaker:maybe if I showcase it to them to their face
Speaker:through Google or at the time it was actually more Facebook, maybe
Speaker:they'll buy it. So then at the start, I did ClickFunnels
Speaker:and then I was using Facebook ads. And that kind of then just end
Speaker:up snowballing into then replicating that through other countries,
Speaker:UK, Canada, etc. And then during that early phase
Speaker:too, that's when Amazon Australia opened up. And
Speaker:so when people come to
Speaker:you, is it mainly for Amazon? Is that still like the biggest
Speaker:The shift has happened in the last two years here in Australia where Amazon's now,
Speaker:you know, They're not delivering on that delivery promise. They're not
Speaker:delivering? They are. That's the biggest shift I've seen in the last two years is
Speaker:when we first started, and when we first started in Australia, everyone
Speaker:told me that Amazon have failed. It's not a good experience.
Speaker:A lot of stocks coming from the US. But what Amazon
Speaker:have done here is incredible. They've built up warehouses in
Speaker:every single state. They have at least three now. And the
Speaker:delivery promise is real. You order something on a Friday, you're sitting
Speaker:on your couch on Saturday, maybe a little bit hungover, and all of a sudden you
Speaker:And that's the switch that's happened. Over the last two years, that delivery promise
Speaker:is still so strong now. So clients
Speaker:of prospects that we've talked to, managing directors, four
Speaker:or five years ago, they weren't asking how, they were asking
Speaker:why should we be on Amazon? They're now calling back saying, how
Speaker:did we get on there? And that's the shift in terms of Amazon
Speaker:is now opening the doors for a lot of conversations. And then what
Speaker:happens with us is we get people going, get them set up
Speaker:the right brand and all that and keep on working on that. But then also adding
Speaker:on additional channels that make sense for that brand. Because I
Speaker:don't believe you should go the shotgun approach. Be
Speaker:And so what sort of client comes to you then? I mean you just mentioned before like
Speaker:directors or something I think you said. Does that mean you only deal with
Speaker:you know, clients that are, you know, doing $10 million plus, or
Speaker:It has shifted in the last two years, just because in
Speaker:terms of the strategic approach as an agency, but we do
Speaker:work with, you know, certain startups. And when we say startups, it's
Speaker:more like they might have a couple of years of trading, they're
Speaker:actually doing it more full, they're doing it full time now, it's a real business to them.
Speaker:That's kind of our qualifier. We have
Speaker:been kind of, you know, Amazon will come to us from time to time and say,
Speaker:hey, we have this brand that we believe in. They've kind
Speaker:of part of our incubator, et cetera, et cetera. Like one of
Speaker:them is called Bay Juice. It's like an anti-hangover drink,
Speaker:Korean pear juice. Done extremely well here in Australia. They've
Speaker:kind of also got ranging in like all the major supermarkets and
Speaker:et cetera. So those type of brands we kind of want to work with. But
Speaker:most important qualifier for us is are your
Speaker:brand, because we ideally only want to work with brands, because we
Speaker:want to be able to help you in a way we have access to
Speaker:brand registry, which we all know, unlocks brand tools
Speaker:So that's just let me pause you there, Martin, because, you know, someone
Speaker:who Traditionally, it was a bit
Speaker:like me. I started off with one product. I created a
Speaker:brand name. I trademarked it. Perfect. But
Speaker:I guess in hindsight, it was just a name that I just
Speaker:made up. I didn't really have any collateral behind that. I didn't have
Speaker:a Facebook page or anything like that. So how would you qualify then
Speaker:someone, you know, if someone came to you like, like me back
Speaker:in 2018, would that be classified as a brand? You say,
Speaker:Oh, I've got a trademark on a product. Would you say, Oh, that's a brand. We'll take
Speaker:If you were brand new with no sales history, we might not
Speaker:work with you, but I might give advice and help you. I'm
Speaker:very much like, you know, I get into
Speaker:a conversation, I hear someone's problem, I want to solve it. I'm
Speaker:very male in that way, as my girlfriend hates it at times, so
Speaker:I'm trying to be quiet. I really want
Speaker:to help, and I just see this opportunity for brands, and I know that
Speaker:sometimes you leave them with two, three, nuggets that you've
Speaker:learned over 10 years. And it's not just me. It's not my team. We
Speaker:just share information. And if I can share something to get you bypass headaches
Speaker:for the next three months, I will do that. But in your case, like
Speaker:you mentioned, you were doing revenue. You have proof there. Our
Speaker:approach is, OK, let's do an audit first. Before I start charging
Speaker:you money or anything, let's do an audit. Where are
Speaker:you at today? And can we actually have an impact? If we couldn't have an impact, I
Speaker:would just be honest. Hey, I think you're doing really, really well. we're not good enough
Speaker:to help you. And then that's an honest conversation. But if
Speaker:it's an opportunity to grow up together, then I'll be like, yeah, Matt, like
Speaker:this is what it looks like and this is what we found. Let's try this for the next six months.
Speaker:Okay. So basically, so you take some of these newer brands,
Speaker:which you mentioned, like the drink, for example, and do
Speaker:you find now that some bigger brands, I think you're kind
Speaker:of alluding this before, they now want to be on Amazon. So
Speaker:they're coming back to you, hey, we used to advertise in TV and
Speaker:sell through our coal stores or something. Now
Speaker:we want to be on Amazon. Have they got someone who's
Speaker:doing Amazon for them and then they come to you for ads or do you handle
Speaker:It's a mix. It's a mix depending on the organization. We've done
Speaker:some consulting for Mars. And then
Speaker:it's like they usually have an internal team because globally they
Speaker:understand the opportunity Amazon represents and also importance of
Speaker:representing your brand. These companies spend
Speaker:billions in advertising. Why wouldn't you make sure that your A-plus content,
Speaker:your imagery, everything around your brand is consistent? But
Speaker:they might come to us and say, OK, now we need help with ads or
Speaker:Amazon DSP, which is like the other form of advertising with Amazon,
Speaker:because we kind of combine it. And just for those who don't know, what does DSP mean?
Speaker:It's Demand Side Platform. It's a way of
Speaker:using Amazon's audiences. So not just sponsored ads,
Speaker:but also using the audiences to You know, Amazon has very rich
Speaker:data about you as a shopper, what you consume, etc. So in
Speaker:median, we kind of build these audience groups that then brands can,
Speaker:you know, target and use certain creatives. If
Speaker:anyone's watching Prime Video at the moment, a lot of doses are
Speaker:driven through DSP when you're getting ads served through there. You
Speaker:don't have to be a seller. Some brands just want to access that rich
Speaker:You just opened up something I didn't even think about, Martin. The
Speaker:Prime TV. Yeah, yeah. So do you do ads
Speaker:on that channel? Yes. You do? Yeah, there's opening up.
Speaker:And so how does someone then I've never advertised
Speaker:on there. I wouldn't even know the first thing about advertising on their channel.
Speaker:So do you have to be, I'm presuming you've got to be on
Speaker:the Amazon platform selling a product in order to be able to advertise there or
Speaker:No, that's the thing. So if you're watching Prime Video,
Speaker:you'll see that there's insurance companies running ads at the moment,
Speaker:sports bets unfortunately has already jumped on as well. But
Speaker:the word and everything has different words but it
Speaker:means the same thing. So you have endemic Brands, endemic
Speaker:brands means you're a seller on Amazon. Non-endemic, you're
Speaker:It just doesn't roll off my Swedish tongue either. So it's very annoying. But
Speaker:I basically said non-sellers or sellers. But
Speaker:brands will come and say, we're doing this big integrated campaign,
Speaker:and we want to make sure we're running very, very relevant ads. So
Speaker:I've been watching Amazon Prime and a bit of SBS. And at the moment, Queensland
Speaker:is running a lot of messaging around consent. And
Speaker:again, they would have then gone and said, we want to run specifically state-based messaging
Speaker:for Queensland. We want to use these audiences. And that's
Speaker:how they can use DSP and then access Prime Video. Wow. Yeah.
Speaker:That's amazing. Yeah. So it's a bigger scale, like you're looking
Speaker:at spending a lot more, but these are usually for bigger, more established
Speaker:sellers or brands. We're kind of going, you know, we're kind of maxing out
Speaker:our sponsored ads. How can we put it more into the funnel? So
Speaker:if you look, think about a funnel as a pyramid, the bottom is
Speaker:the, you know, the performance, that's where the conversion happens. What's happening and you
Speaker:need to start, keep on filling up. It's like prospecting for an agency. You
Speaker:have to be out there. You have to kind of do podcasts or talk
Speaker:to industry people or whatever you're doing, EDMs, just
Speaker:adding into the top funnel. DSP can do that, but also
Speaker:educate. But it's just more relevant because you know that, hey,
Speaker:these million people are shopping in the baby category. They're watching baby
Speaker:content. So they know they're relevant. So when they're running ads, it's
Speaker:If you've got all these big brands coming into Amazon, are
Speaker:they going to price out any If
Speaker:someone's thinking about, hey, I want to sell on Amazon, sounds like Matt's
Speaker:making money. I want to do that too. But
Speaker:is there still a window of opportunity, you think? Or is
Speaker:No, I don't believe. That's not going to happen, because it
Speaker:hasn't happened in any other markets. So, you have a brand, you
Speaker:just have to be maybe a little bit clever about your category. What
Speaker:are you going to be selling? I love the fact that you just said before, I
Speaker:I made my money in medical but actually started in
Speaker:automotive. My first two products didn't
Speaker:work out. But the one that became the winner was
Speaker:And I know because we did a bit a bit of research, and one of my guys
Speaker:used to work for someone else, and they
Speaker:were selling equipment for aged care facilities. And
Speaker:that was, honestly, I think it's still, that's a really good
Speaker:opportunity in terms of getting the right products, because what
Speaker:they were doing, they built the brand, they found a
Speaker:good manufacturer and sourcer in China who created this. Everything
Speaker:was great quality. But if we talk about, you know, cost
Speaker:Martin, wait. You're giving this away to
Speaker:our listeners for free, this information? Goodness
Speaker:me. This is going to be gold for them. So medical space,
Speaker:Yeah, potentially. But again, if you're going to go and create a candy bar, don't.
Speaker:Don't do it. Don't go to Amazon. Mars, Snickers,
Speaker:Dime, Kit Kat, they are going to steamroll you. Right. Because
Speaker:you cannot compete. Look, I'm sure I have to eat my words in a
Speaker:couple of years time. Some will come, hey, here, I created this. That's
Speaker:great. But then you have other supplements categories, like we've done
Speaker:a bit of work in consulting for some brands here. In supplements. In
Speaker:Oh, let's talk about this, because so many people I speak to,
Speaker:they see the numbers on Amazon, because obviously you've got
Speaker:the tools, things like Zonguru, et cetera. the
Speaker:numbers are outstanding, is there still room for
Speaker:Yeah. They're all
Speaker:my favorite clients, but one of our proudest case
Speaker:studies is the company called The Collagen Co. They
Speaker:specialize in collagen supplements. They're a startup. They're
Speaker:six years old now, three guys out of Melbourne who
Speaker:they had a little goal before and a couple other businesses and supplements until
Speaker:they came into this niche, which is collagen, which is now quite big. But
Speaker:they've kind of created this incredibly looking brand. I think it looks
Speaker:Has the collagen to become a bit sort of, it's kind of the, it's the thing,
Speaker:But you know, they were early on on the thing. So they do
Speaker:collagen products, they also do meal replacement products, but everything's collagen based.
Speaker:But their brand looks amazing. They know, you know, they're using, you know,
Speaker:their channels, their own channels, which is like socials, EDMs, websites.
Speaker:And for them, they were entering Amazon going, okay, we don't know what to
Speaker:do, where to start the strategy, we want to avoid making mistakes so
Speaker:we can get going versus a year from now, we
Speaker:made the learnings, let's just bypass the learning. So let's work with 2020 to
Speaker:bypass that. They went
Speaker:into a category which was competitive. There's a company called Dose
Speaker:& Co, which is owned or
Speaker:co-owned by an investor company out of the US, which also Kim Kardashian owns
Speaker:into. Within four months, The
Speaker:They're involved in Dose & Co, the competitor. I see. So
Speaker:that's what I mean. It's not saturated. It's like, how can you work with your
Speaker:They've been around for five or six years. So not that long. No, but they started selling
Speaker:Wow, February last year. Yeah. And are you allowed to
Speaker:give us any behind the scenes numbers? Behind
Speaker:the scenes numbers? Can you give us top line numbers, like what sort of revenue they would do in a year
Speaker:I think it's easy to find for your listeners if they know how
Speaker:Here in Australia? That's
Speaker:For an Australian brand in Australian Amazon, which Amazon
Speaker:Australia is very much growing as well. That's what
Speaker:I was also saying, I've been trying to tell brands or sellers.
Speaker:Get in today, because in five years time, it's going to be so much more
Speaker:competitive. And the earlier you can start ranking, the better for
Speaker:you, even if you're not generating heaps of sales. Yeah, it's still
Speaker:starting to rank because I read a really interesting stats. Amazon
Speaker:Australia is going to represent by 2026, end of 2026, 25% of e-commerce sales in Australia. Whoa,
Speaker:can you say that again? The stat that I read is the prediction is
Speaker:by the end of 2026, Amazon Australia will
Speaker:represent 25% of online sales
Speaker:So if you're not on that platform, you're missing
Speaker:Exactly. And I think A few years ago, everyone
Speaker:was like, Amazon's the big bad wolf, et cetera, et cetera. But
Speaker:they've come in here and created this delivery promise. Convenience
Speaker:is king in Australia. We do have value shoppers, but more people
Speaker:shop on convenience. So many of my friends are going, I go to Amazon,
Speaker:I search my thing, I click Prime. If it's not available Prime,
Speaker:Right. So that's another key thing. You have to be prime, a prime
Speaker:seller. Yeah. And so can you explain prime
Speaker:Yeah. So prime is basically that you're using Amazon's fulfillment services. So
Speaker:you're sending stock to Amazon's warehouse and in order for
Speaker:them to kind of fulfill them, if it's next day or same day delivery, And
Speaker:it has a lot of benefits. And honestly, when we
Speaker:first started 2020, our first clients were
Speaker:Harley-Davidson and Crocs Footwear. And we
Speaker:used to do warehouse logistics for both of them because they didn't have
Speaker:their own DTC capabilities. And I
Speaker:was brand new to this world. But looking at the costs of
Speaker:sending a pair of Crocs from Melbourne up to the Northern Territory
Speaker:to some regional town, it could be sometimes up to $80 for a $40 pair of shoe.
Speaker:Amazon is only going to charge you roughly 20% to 25% of your RRP. As a seller? as
Speaker:a seller. And that's including FBA fulfillment, FBA
Speaker:warehousing, FBA returns. So it becomes a no-brainer. In
Speaker:my opinion, yes. But you know, everyone goes, oh, that's such a high fee. And
Speaker:I always ask them, how much do you get your warehouse, get
Speaker:Yeah, exactly. And you'll be like a small fish and you won't
Speaker:Yeah, you need to do like a million orders a year to be even considered
Speaker:Now, it's interesting because you know a lot about Amazon, not
Speaker:just from a PPC perspective. Yes, sorry,
Speaker:we have diverted a lot. But have you been a
Speaker:No, but I'm very, very passionate about everything we do in an
Speaker:agency in terms of, I want to understand every single step of the way of
Speaker:being Amazon. And sometimes, look, I
Speaker:can be sitting there in the middle of the night, checking like on
Speaker:the app to see how a new seller, how new seller is going, like, okay, how's
Speaker:the campaign going? Are we getting the sales? And then I'm sitting there slacking to
Speaker:the team going, guys, we need to look at this and this and this. So, and
Speaker:like we said before, Amazon sell is
Speaker:it's so easy to set up and sell. But we know with
Speaker:our experience, Matt, is like, man, there's so many things that can happen,
Speaker:go wrong, or you get whatever. The bot comes in. Yeah, yeah,
Speaker:yeah. And you get frustrated, and you get the same case message five times. So I've
Speaker:just experienced it, and I've experienced it with my team. And
Speaker:I just sit there going, if you want to be an Amazon seller, you
Speaker:Yeah. Oh, you need so much patience. I would say you need a
Speaker:lot of patience probably a PPC expert as well.
Speaker:You must be very, very frustrated with all the... Is there much
Speaker:changes, I guess, in the landscape? Because when we started, you
Speaker:know, I just mentioned before that I started doing my own ad in, what, 2017, roughly.
Speaker:But I outsourced it from 2018. And so I
Speaker:really don't touch it at all now. And so, has
Speaker:there been a lot of development over that time? And in particular, has
Speaker:there been, like, has AI come into the space as
Speaker:There's, well, yes, there's been a lot of developments. I think the
Speaker:most important thing, though, is the fundamentals never go away in terms of
Speaker:your strategy thinking. It's just your execution and then more
Speaker:tools that you now have available. So it's all keyword based, basically. So
Speaker:it's keyword, but you still have, you know, a bit more. Our campaign
Speaker:structure is maybe a little bit different in terms of how we think about it. I
Speaker:know that, you know, if it's a new seller versus an existing seller, you
Speaker:have data to go off. If you're a new seller, you
Speaker:need to, you know, you need to acquire and start learning. Amazon
Speaker:ads has to start kind of getting data for you to actually have something to analyze. And
Speaker:that's why, you know, we think very much about if it's a new seller,
Speaker:we might run, you know, and one thing we would never do is we
Speaker:never group all products under one campaign. We run individual based
Speaker:product based ads, because they're
Speaker:all different, all products are different. And we might
Speaker:run three to four different campaigns for one product to
Speaker:make sure that okay, one might be automatic setting, because we're
Speaker:just trying to get, you know, an insight in terms of
Speaker:what are people searching? And when are your products popping
Speaker:up? And when are people clicking on that? Just to see, okay, the
Speaker:first set of engagement we're gonna have is, you know, a good CTR, that
Speaker:means okay, targeting is good. It's relevant. And
Speaker:then are people converting? So if you look at that aspect, it's
Speaker:like, you know, there's tools and AI's, but I'm like, it's
Speaker:still very, very manual what my team's team are doing. And like what I'm
Speaker:doing in terms of reading the data, pulling your search term lists, understanding
Speaker:Hey guys, I just want to break away from the episode for just one moment and let you know
Speaker:that I've just launched the Amazon Launchpad mini course. Now this is
Speaker:designed for people who want to get started on Amazon really,
Speaker:really fast. But guess what? I can get you launched your first product on
Speaker:Amazon with just five hours. You just have to click on the link below, join
Speaker:my community, and the course is absolutely free. All right, thanks
Speaker:guys, and back to the episode. So it's not as easy as, you know, you see some things
Speaker:right now. For example, create your own podcast. All
Speaker:you have to do is just press this one button. It's
Speaker:No, unfortunately not. Or actually,
Speaker:it's good that it's not, or else 2020 wouldn't exist. You'd be
Speaker:out of a job. I would be out of a job. But many times, the solution
Speaker:you'll find is people go, Amazon system told me, set up an automatic
Speaker:campaign. Put on your products, put in your daily budgets
Speaker:and your bids and let it go. You could do that
Speaker:for maybe a week, but then you need to kind of get in there to
Speaker:see, okay, where am I wasting money or where am I seeing great success?
Speaker:I've got a question for you, Martin, because this comes up all the time, particularly with
Speaker:new sellers. how much money should someone
Speaker:spend, like per day for example, when
Speaker:they're brand new, and let's say they've even gone through
Speaker:the Vine program, they've got some reviews, so the
Speaker:sales are trickling in. Is there a number
Speaker:in mind and is it based on their financial
Speaker:position or is it based on the retail price of the product? Have you got some insight
Speaker:Well, you should definitely, you know, with any business, you need to consider what's
Speaker:my costs and then what's my profit? What can you afford? And
Speaker:if you're a new seller, you know, we have a couple
Speaker:of slides that we show to our clients just to set expectations. As
Speaker:a new seller, you know, if you're getting, you might for the first two
Speaker:months only get a ROAS of 1 to 1.5, so return on
Speaker:ad spend. And that's just, you know, that's the way the game is.
Speaker:That's how it is. you have to earn your way in. It's like,
Speaker:you know, no one picks winners the first time. Of course, you
Speaker:can bypass some stuff, but you need to start somewhere. But
Speaker:with Amazon, what we try to look at, we look at ROAS as anything above a
Speaker:three, we consider good. But you need
Speaker:to look at the bigger picture. So when you look at your data, you also have total
Speaker:ROAS. So that's your total return on ad spend, which takes
Speaker:into account what your whole store is doing. So the way
Speaker:At the uplift there. And just to clarify, return on
Speaker:ad spend. And so if you're doing, when
Speaker:you say ROAS of one, that means you're spending $1 and you're getting $1 back
Speaker:in sales. Correct, yes. And your ideal is to spend $1 and
Speaker:That's where we want to sit for Amazon. But then we
Speaker:also look at the total ROAS. So you might have a ROAS
Speaker:of three, but your total ROAS is seven, which is
Speaker:your overall sales based on your ad spend. And
Speaker:the reason why this matters, and I understand that you might already have organic sales,
Speaker:etc, etc. But what I've explained to a lot
Speaker:of most people that are kind of new to this space is Amazon
Speaker:has an attribution window. An attribution means that they look back at
Speaker:a certain time point to see, OK, someone
Speaker:clicked on your ad, and then they bought. For Facebook and
Speaker:Google and all that, that can be up to 90 days. That's
Speaker:a lifetime in the digital world. Amazon only has eight days.
Speaker:So if I come, I click on one of your products, it's day
Speaker:one or day two, and I buy something 10 days later, that
Speaker:will count as an organic sale. to you or to Amazon.
Speaker:But in reality, the first interaction or the, you know, the education,
Speaker:the awareness happened with the ads. Right. So we have a
Speaker:way of reporting on the uplifts for both. And what we're
Speaker:seeing is when you run ads and you get sales
Speaker:from ads, you also see a return, a total return has been also
Speaker:And that's important to you as guests, because if you're not getting the attribution,
Speaker:you can't say, well, that sound came from our ad.
Speaker:Yeah. So when people come and say, oh, I'm getting five or eight ROAS
Speaker:on my Google ads, et cetera, et cetera, this is my
Speaker:Yeah, and that's because Google would have how much attribution then,
Speaker:You can set your windows from 30 to 90 days, like with Google.
Speaker:Okay. Which is a long, long time, like, and that's the way,
Speaker:you know, Google also then, you know, gets people to spend more
Speaker:because people think that everything is driven by Google. But us
Speaker:having a conversation today about milk and you
Speaker:Yeah. Now, I told my community that
Speaker:I was having an Amazon PPC expert come in
Speaker:to talk to me today. So first of all, thank you
Speaker:again. But I've got some questions. I
Speaker:put it out to the community. I said, what do you want me to ask this guy? Anything. I'm
Speaker:sure you're going to be able to answer this. This will be like child's
Speaker:play. But here's the first question. How
Speaker:should Amazon PPC campaigns be structured for
Speaker:new versus seasoned sellers? Is it the same?
Speaker:Or is there something different about whether you're starting out new or you're further
Speaker:It definitely is a different structure. Okay. The biggest thought for
Speaker:new sellers is when you start a new ads account, you're
Speaker:basically starting from scratch, your ads account doesn't have any data. So
Speaker:what you want to do initially is, you know, don't try and put everything into
Speaker:one basket, perhaps. You might select a few of your
Speaker:Ideally, you know... Well, let me just say this to you Martin. Most sellers that
Speaker:I speak to, they've got one product. They've got one product. They're not launching a
Speaker:series of products. They're like, we put all of our time, we mortgaged the
Speaker:house or we sold the car. We've got this one product now
Speaker:and we invented it. And
Speaker:Yes, OK. So this one amazing product, what
Speaker:we try to do is that we have a crawl, walk,
Speaker:run approach. Basically meaning, don't
Speaker:go and set up a campaign and put your life savings into
Speaker:that first campaign. You start small, just to kind of start what we
Speaker:call feeding the algorithm and getting some data back from Amazon. It
Speaker:might be as simple as you just set up an automatic campaign with
Speaker:some restrictions around common sense, negative keywords. Just
Speaker:What would be an example of like negative keywords? So
Speaker:let's say I've got a yoga mat or something. Yeah. What
Speaker:would be like a negative keyword that you would, that would be? I mean, obviously
Speaker:it varies, but for people that don't know, like what's negative keywords? Something
Speaker:Yes. So exactly. So if you think about, you know,
Speaker:in the instance of yoga mats, which is a funny one, but say
Speaker:Maybe it's a car mat. A car mat. You want to show up
Speaker:Exactly. So if you have an automatic campaign, it might kind
Speaker:of identify, you know, other mats.
Speaker:And this is something you also learn when you get the data back. But if you know something like,
Speaker:I definitely want to come up for these if it's, you know, yoga mats or no car mats, no
Speaker:bus mats, whatever it could be, or front door mats. You
Speaker:can put those as negative keywords, and you won't be popping up for those type
Speaker:of search terms. And that's a good way to start. And you
Speaker:don't want to limit it too much, but just anything common sense. It might
Speaker:be four or five. Don't be too stressed. If you can think of 20, it's OK.
Speaker:And then you might just, if you are working and operating a slightly
Speaker:lower budget, you maybe want to start $10, $20 a day
Speaker:OK, so lower budget would be $10, $20 a day? That's
Speaker:Yes, I consider that lower. $5 a
Speaker:day? $5, no, $10 to $20 and maybe
Speaker:let that run for seven days. You just have
Speaker:to monitor it to see how things are kind of performing. And
Speaker:initially you can kind of follow Amazon's bid recommendations
Speaker:Okay. I think you've made something really, like
Speaker:a really good point today too, especially for new sellers, which is that
Speaker:they need to allocate a budget for advertising in the beginning because a
Speaker:lot of people who are like the mum and dad sellers come through and I
Speaker:say mum and dad sellers in a good way. I'm a dad, so
Speaker:I don't mean that in a negative way. That's not a negative word, but you
Speaker:know, they're not sort of a company so to speak, right? And
Speaker:a lot of people I see, they come in, they've maybe spent up to $10,000 developing
Speaker:this product. And they're just like, okay, that's it, I'm launching.
Speaker:And then it's, oh, hang on a second, PPC. And
Speaker:you've also said today, don't expect a three row
Speaker:ass. You're going to have to expect one, maybe two
Speaker:best for a period of time, which means you're going to essentially be
Speaker:forking out money. How long would
Speaker:Unfortunately, how long is a piece of string? This
Speaker:is where, with your launch, try and think bigger.
Speaker:Don't let Amazon live in isolation. So if you have an opportunity, if
Speaker:you have another platform, if it's your socials, if
Speaker:it's a website, if you have emails, EDMs, make a
Speaker:big splash around it. You go in and let everyone
Speaker:know that, hey, this is now on Amazon. And ideally, you
Speaker:should have it on Amazon prime. So basically, you
Speaker:know, FBA delivered. Yeah. Because two
Speaker:things, you are leveraging Amazon's brand
Speaker:trust. And Amazon is a much bigger brand than
Speaker:most brands in the world. And they've built, you know, trust around
Speaker:the whole prime delivery. Yes. So people know that two things, they can
Speaker:buy it. And if they don't like it, they can return it. And
Speaker:that's okay, because all feedback is good feedback.
Speaker:If you have a low return rate, you've created a good product. And
Speaker:they also show in the reviews. If you get high returns, and
Speaker:a lot of bad reviews, there's a problem, it's time to go back and look at
Speaker:Yeah. Okay, excellent. All right. Next question. Yep. How
Speaker:do you optimize bidding to stay competitive without
Speaker:How do you optimize bidding to stay competitive without overspending? I think
Speaker:yes and no. And then it comes down to your business.
Speaker:What you need to understand, when I say you, it's like you listeners, you sellers, is
Speaker:what is, you know, what's my costs here? What can I afford? So
Speaker:if you're selling a $10 product and your cost of goods is
Speaker:five, and then other fees, etc, etc. Maybe it leaves
Speaker:and you want to make a dollar return. Maybe you're only allowed to spend 15% of
Speaker:that budget on ad spend. So you
Speaker:don't go over that because as soon as you start doing that, you
Speaker:Yeah, so I just stop you there because this is so important. So
Speaker:many people come in thinking I
Speaker:can buy it from Alibaba for
Speaker:$0.80 and I can sell it for like $10. And then
Speaker:by the time they do shipping, I'm
Speaker:going to get it from China to the US or Australia. So
Speaker:you do shipping, I'm going to do obviously Amazon's
Speaker:commissions plus fulfillment fees. So it's going to be 15% plus
Speaker:probably another $4 on top of that. And then there'll be
Speaker:something else, but maybe it didn't include packaging. And
Speaker:then they might be left with, even
Speaker:if they're left with $3, they've got a
Speaker:30% of the total is their profit. And then they've got
Speaker:to do advertising. Exactly. And so you could, am I right
Speaker:in saying this too, Martin, that you could have a product where the one
Speaker:big could be like $2. So one person clicks on
Speaker:that ad, $2 is gone. So
Speaker:And what you said there is really important. Yes, one click is
Speaker:$2. And your conversion rate might be 10%, which is conversion
Speaker:rate of 10% is extremely high compared to a website, which maybe sits
Speaker:on one to 1.5%. But that means that you need 10 clicks
Speaker:to for one conversion, yeah, which is $20. Yeah, and then you're
Speaker:selling a product for $10. So the only one winning here
Speaker:Yeah. Okay. So anyway, the point is to be very careful with just
Speaker:Cheap products or don't devalue products. End of the day, just
Speaker:because you're able to source something cheap, like cheaper, and
Speaker:then you're able to create a brand around it, et cetera, you
Speaker:know, make sure you like your, your, you know, your pricing,
Speaker:it's, you know, a few hundred percent and above what you purchased it for.
Speaker:So you have that, you can actually like have something
Speaker:Yeah. Yeah. Really, really important that. Okay. What
Speaker:KPIs matter most for measuring PPC success?
Speaker:Matter the most? Well, end result is like everyone wants
Speaker:to get revenue and sales. So we touched on this before ROAS, really,
Speaker:really important. Total ROAS, in my opinion, even more important. Yes.
Speaker:Because it all kind of drives for the bigger outcome. Okay.
Speaker:How do you fix low click-through or conversion rates
Speaker:Yes, it's definitely possible. So it's a couple of things. What
Speaker:we look at is you can refine your targeting, your
Speaker:keywords, your relevance. And as I've mentioned before, it could be,
Speaker:you know, bringing out, running a manual campaign based on the
Speaker:top performing keywords that you found. That could be people engaging with them, but
Speaker:also purchasing. So you run them as a manual campaign. It
Speaker:could be that you're testing your creative, so A, B, testing your
Speaker:creative. So we run, if you look at the sponsored ads portfolio, you
Speaker:have your sponsored ads, you have brand display, and you have kind
Speaker:of your videos. We try
Speaker:to run a combination of everything. We found that if we run a combination of
Speaker:all formats, and we basically own the
Speaker:real estate, as we call it, on a search, we see much higher
Speaker:conversion rates. But then it's also swapping out the creatives. One
Speaker:video, maybe it's not working, or one display is not working, test something else.
Speaker:I've got another question then, just off the back of that. One of my own questions. Does
Speaker:your agency also handle the creative? So like if
Speaker:I'm doing videos, for example, I come to you and say, look, I want to obviously do
Speaker:video creatives. Do you say, we can handle all
Speaker:We prefer working with people who come with videos. We can
Speaker:make small edits, but we tend to leverage
Speaker:brands, you know, because and usually they have a graphic designer or someone
Speaker:making it where they go, we know the brand, we know the brand guidelines. 2020, just
Speaker:give us the specs or in some a little bit of a brief in
Speaker:Yeah, probably more important for smaller
Speaker:sellers. Yeah, I guess if Mars is coming to you, they're not going to say, hey, can you
Speaker:They're not saying that. They're not selling cars anywhere anyway. No
Speaker:Lucky I'm a Subaru fan. That was great. Yeah. They're
Speaker:still making cars, but they did drop the STI. Oh, really? Not so
Speaker:good. Yeah. Okay. Next
Speaker:question, Martin. How do you scale PPC while
Speaker:keeping the ACOS, which is average
Speaker:I think we've touched on a couple of times in terms of it's just making sure that you're
Speaker:running highly relevant campaigns. And
Speaker:you can scale says you just have to look at your bid optimizations. And
Speaker:this is where you know, what we call not a set and forget, you
Speaker:can't just set up your ad today and then go back and look at it in two weeks.
Speaker:It's a constant, you know, maybe daily that sometimes maybe
Speaker:every second day, just looking at I'm scaling, I put
Speaker:it in more budgets, but also maybe as other competitors coming
Speaker:in, so I have to adjust my bids. So it becomes, you know, a bit of mathematics,
Speaker:just kind of looking at and controlling it. But then also, always
Speaker:refine. So add negative keywords, find other high-performing
Speaker:keywords, start targeting them manually. And that's how we kind
Speaker:of keep on kind of feeding this machine. But it's, again,
Speaker:it's nothing easy here. So, you know, you have to actually check it quite often,
Speaker:Okay. And I misspoke then too. ACOS is advertising cost
Speaker:of sales, not average. Now, what
Speaker:common PPC mistakes do sellers make and
Speaker:I find that, I think I've said it in
Speaker:the previous one, they just set something up. They go on Amazon's, you
Speaker:know, campaign management recommendation, which
Speaker:is take all these ASINs or products or one ASIN, create
Speaker:an automatic campaign, put it as a bid, and then just let it
Speaker:How often should you monitor your advertising campaigns?
Speaker:Well, it depends on your budget, of course. If you're spending $5 a day,
Speaker:maybe you can come back and look at it five days later. You
Speaker:just have to remember the scale of the data coming through. But if you're spending $100, $200, $300 a
Speaker:day, you need to kind of be checking
Speaker:And you're just cutting, you know, ad campaigns
Speaker:No. So the way we do it, I think what we look at
Speaker:is we run a for one ace and we might be running, you know, three,
Speaker:four different campaigns with different with different
Speaker:metrics of success in terms of if we're running a video ad, and
Speaker:then we're running sponsored ads, and then brand display ads, we
Speaker:look at holistically, how are they performing together? Because
Speaker:your video ad might not drive heaps of sales if
Speaker:you look at it individually. But together, because when
Speaker:people search for, in this case, collagen, you're
Speaker:owning like a lot of real estate space on that search. All
Speaker:people are seeing is this amazing brand. and they might click
Speaker:the sponsored ads and buy from that, but everything's actually influenced
Speaker:that buy. So it's so much more that goes into it than
Speaker:just saying that campaign's bad because the ad causes it
Speaker:All right. What
Speaker:is the best? It's a good one, Martin. You're going to
Speaker:bring out all the gold. What is the best kept
Speaker:secret in Amazon ads that you have? Um,
Speaker:are you listening folks? The best kept secret and go.
Speaker:Um, I think definitely it's kind of the growth of the, the, the sponsored brands
Speaker:section in terms of really utilizing that so many people just rely
Speaker:on the sponsored ads, those little shopping ads. Uh,
Speaker:but there's so much value in terms of running those sponsored displays, sponsored video.
Speaker:And then when you're hitting a certain, when
Speaker:your product's booming and you feel like I can't take it any further, that's
Speaker:when you need to add in Amazon DSP. Start filling in
Speaker:and finding more people who are shopping in your category, but
Speaker:I guess these days, I was going to say, why do you think people don't do video ads?
Speaker:But now though, with obviously AI and
Speaker:the video tools that are around, you can pretty much knock out a video pretty easily.
Speaker:Yes, it's a bit easier. Again, it all depends on your own
Speaker:brand guidelines. It's like, you know, we play around with a bit of AI, you
Speaker:know, and sometimes it just looks AI. And, you know, but
Speaker:I'm sure that will kind of improve and then Amazon sponsored
Speaker:Amazon ads section actually has an AI now you can so if you only have
Speaker:a hero product image, you can actually run it through that and it'll give you some
Speaker:lifestyle and kind of help you with that. And also create like a simple
Speaker:video. So, that's a good place to start because it's free, it's
Speaker:Now, it's obviously going to be a lot of people listening to this who are new to Amazon or
Speaker:haven't even started Amazon yet and they're going to want to know more
Speaker:information. Where can people find information about your
Speaker:services and perhaps do you have a YouTube channel or something out there that
Speaker:No, we don't have a YouTube channel. You keep all the secrets for this podcast. Just
Speaker:for you, it's exclusive. No,
Speaker:like a lot of our information comes in terms of catch ups
Speaker:with kind of clients. But, you know, we do share some stuff through
Speaker:our, you know, through our website, which is, you know, 2020.com.au. But
Speaker:yeah, maybe I should start a YouTube channel. You could start a YouTube channel. I don't want to compete
Speaker:Yeah, the best tips on PPC. But you do more than PPC though,
Speaker:right? You do a whole range of things across all these different platforms, Amazon, Walmart,
Speaker:So Google, we don't really do Google PPC, but we've been experimenting
Speaker:or running a lot of TikTok at the moment. TikTok, oh my goodness.
Speaker:Can people now go on to TikTok Australia? Because I've heard that only
Speaker:Yeah, it's not available here yet. So UK, US first. But
Speaker:Australia is very much usually a test market for tech companies. So
Speaker:Facebook will test a lot of new features here in AU first,
Speaker:because we're very similar to the Americans. But it's
Speaker:a smaller market, so it's easier for them to control. So I wouldn't be surprised if
Speaker:No, we're mainly using it not for the shopping side of it, but
Speaker:to work with influencers or run ads that drives to
Speaker:the Amazon platform. For example, Here's a good tip.
Speaker:If you do have brand registry and you're selling in US, you
Speaker:can then leverage Amazon's kind of
Speaker:brand referral program. So if you run an
Speaker:ad or you work with an influencer and you drive traffic from that
Speaker:channel to Amazon and they purchase, you can get up to 10% discounts
Speaker:Yes, but this is separate. If you actually go in and look into the seller central, I
Speaker:can't remember the exact where to click on it, but it's a different
Speaker:section, but it's like an affiliate, but you have to have brand registry to
Speaker:Okay. And I want to also get your thoughts just finally on
Speaker:Teemu. Teemu. Yeah. What do you think about that platform and are
Speaker:No, we don't work with Teemu. It's
Speaker:an amazing app that they built. And it's almost like
Speaker:being on the pokies. I don't play pokies, and I find it really distracting. I
Speaker:believe Teemu, this is my prediction. I don't
Speaker:I think there will be a lot more restrictions in the future on Teemu, just because
Speaker:of the court cases coming out for the counterfeits. Doc
Speaker:Martens was one of the first ones to sue them. I've bought some
Speaker:what's supposed to be HP headphones and
Speaker:they looked okay, but they were completely wrong and didn't work. So
Speaker:a lot of crap is coming out of it. And I think
Speaker:Amazon will find, I think they're only working on an alternative to
Speaker:a team competitor. But the team is not going away. You can
Speaker:You can? Okay, I don't know. Let me just say this though. From
Speaker:a seller's perspective, we kind of get a bit whingy about
Speaker:the high bar that Amazon sets for sellers. But
Speaker:from a consumer point of view, that's great. Because you
Speaker:know that when you go to Amazon, you're not buying fakes, counterfeits.
Speaker:You're getting real legit products, quality products,
Speaker:and Amazon's going to stand behind those products. Obviously, if it's no good,
Speaker:you can send it back. People hate
Speaker:buying counterfeit stuff, especially if they know that they're expecting it real. Hence
Speaker:Yeah, definitely, if you're looking for something real. And
Speaker:that's the thing, we just said, it might be difficult for a seller
Speaker:on Amazon. And that's the thing, they always put the shopper first. That's
Speaker:how they built what they built. Because, you know, without shoppers, they
Speaker:You started off in the beginning of our conversation with Amazon has
Speaker:built up a lot of trust. Yeah. Yeah. And that's one of the reasons. Yeah. Yeah,
Speaker:amazing. So I'm going to just finally say
Speaker:we can find some more details about you on your 2020 website. Yeah,
Speaker:we'll leave a link to that in the in the show notes. I want to say
Speaker:thank you so much, Martin. You gave away so much gold today and appreciate you
Speaker:Thank you so much, Matt. It was really, really nice to be here and some great questions and
Speaker:Thanks for tuning into Amazon Ecom Secrets. If
Speaker:you enjoyed this episode, the best way to show your support is
Speaker:to give a five-star review on Apple Podcasts and Spotify, and
Speaker:make sure to subscribe on YouTube so you don't miss an
Speaker:episode. You can also find more at I'm
Speaker:Matthew Fraser on all social media platforms. Thanks