Hi everyone, Regina here with Starter PPC. I want to talk to you guys today about your Google ads, possibly feeding sales on your Amazon store this is not ideal, right? Because when you're selling things on Amazon, you're paying a commission to Amazon and probably some fulfillment costs that are not the cheapest, right? Cause I know that Amazon sellers, you have to ship. Your inventory to an Amazon fulfillment center. If you want it to be like prime eligible and have fast shipping and basically win the sales, win the sale over competition. Those fulfillment centers charge a premium for fulfillment services. And then on top of that, Amazon charges commission for the opportunity to use their platform. So if you are paying for Google ads and you're trying to send people to your site and you're trying to convert them at a certain return. And you've calculated that return that you need based on the profit margin you're getting on your website. It would be really bad, right? If your Google ads was somehow feeding sales on your Amazon store instead of on your website, because on your Amazon store, you need a much higher return. And so it's probably not a profitable way to go about getting sales on your Amazon store, right? By buying Google ads clicks. We're going to talk about an example of one of our clients who sells on Amazon sells on their website. We've been running Google ads for them for many months. They came to us saying, why are sales down? our Amazon store is doing great. Why can't we get a decent return on Google ads? And so we did a deep dive into it. We found that their product on their website. With shipping costs 49 to get to customer. Whereas the same product on their Amazon store costs only 45, right? 4 cheaper. And it gets to their customers overnight or depending on where people live in the world. Sometimes it might be one day shipping or two day shipping, right? Not three day and not three business days, right? Because Amazon. Nowadays they deliver on Saturdays and Sundays three business days is a long time. If you hit a weekend, on Amazon for me here in San Diego, I can buy that product for 45 overnight shipping on top of that, Amazon as a customer is great for me because I don't have to punch my email address into some unknown website, my phone number into some unknown website, right? A Shopify store where. It's insecure. It could, my phone number could be sold to a bunch of spammers. They can take my credit card information and identity theft, et cetera, et cetera. So small websites doesn't happen very often, but it's nerve wracking. So Amazon feels safer and easier as a customer saves time, gets the product faster, costs 4 less, and it doesn't expose you to unknown threats of sketchy websites. So we went to our client and said, Hey, why is it cheaper on Amazon to order this product than on your website? Ideally it should be cheaper on your website. I'm going to show you all the data that proves that this is detrimental to your business return. Your Amazon store might be doing great so first of all, here in Google analytics. I'm over here under landing pages on Google GA4, and I've edited some of the fields so we can see bounce rate, engagement rate. What I'm going to do is just search for checkout so we can just see any page that has checkout in the title. Here's what's happening. Hi there. Quick interruption. Do you know the main thing that prevents small business owners from getting their Google ads account into a position to grow and scale? Budget. A lot of businesses, especially those that are just starting out, have limited budgets. And so because of this, they're turned away by most ad agencies because most ad agencies have minimum budget thresholds that they're willing to work with. So what happens is the business owners end up learning Google ads themselves. And the problem with that is that most of the advice online is geared towards larger accounts. And the advice doesn't have any of those strategies or tricks that can kickstart the algorithm into giving a small account a leg up over larger competitors. So it often just doesn't work. And the business just ends up losing money month over month. If this sounds familiar, starter PPC can help. We offer Google ads management services that are designed for accounts that have between 1000 and 5, 000 budgets. Because all of our clients are just starting out, we've come up with ways to keep our management fees significantly lower than most agencies. Because we know that every dollar saved on management fees just goes towards the ad budget, which is going to help the algorithm gather speed and power. So if you're serious about growing your business and you'd like a team of Google ads experts to help you without breaking the bank, check us out at starter PPC. com. Okay. Back to the video. Overall, for all the pages that have checkout in the title, which is basically Check out contact information and check out payment and check out. Thank you. The bounce rate from August compared with July, right? So month over month went up by 35%. So the bounce rate was 33%, which is a pretty high bounce rate to begin with. Now it's 45%. You guys, almost 50 percent of people are getting to the checkout and bouncing. And guess what? The Amazon store looks great. So you can imagine what happens, right? People are shopping on your website. They just interacted with the Google ad shopping on your website. They get to the part where they have to pull out their credit card, type in information, give away their email address, give away their phone number. They see the pricing, they see the shipping and they think, I wonder if I could just get this on Amazon, I'm already going to. Buy a few things on Amazon today. Anyways, I'll just bundle it all with the same order, right? So they open a new tab, go to Amazon, search for the same product name, and they buy on there instead. And your Google ad dollars just paid for a very expensive conversion on Amazon, where not only did you make less money because the pricing is lower, but you made less money because your profit margin is lower, right? The commission that you pay to Amazon and the fulfillment costs. So the client said, Oh yeah, I changed the pricing a month ago. That's why we were looking at month over month numbers here. A month ago, the pricing on Amazon was changed to be lower than the pricing on the website. What we're now asking the client to do is put the pricing on Amazon higher than the pricing on the website. This is going to deter people from bouncing. Even though you'll get a lot of people who get to the page and think, I wonder if I can buy this on Amazon and not have to wait three days for shipping and not have to enter my credit card information. There's a lot of people that will go check Amazon, see that it costs more money. And go back to the site because they would rather save those 4, right? So it should be the 4 less on the website, including shipping. Then the Amazon costs, so it needs to be much higher than Amazon. I know this is a tough thing to ask because I think on Amazon, oftentimes you're dealing with competition, right? You're dealing with people that are selling similar products for less money. And that's really tough. This is why Amazon makes it very difficult for small business to succeed. But if you want to build a brand and you want your website to work, I don't have any other advice for you. The website where you sell your product. Basically if you set your numbers to what they need to be on Amazon, your competitors will probably raise their pricing as well to match. So it's a race to the bottom, but you got to hold strong and know your numbers. Okay, let's look at a few other numbers while we're on it. So in addition to the bounce rate going up by 35%, let's see the damage that was done in the Google ads account just based on that number alone. So here I am looking at again, August compared to July month over month. And I can see that first of all, the cost stayed about the same, right? 2 percent decrease is pretty much the same cost. Now. Cost per click went up by about 6 percent and cost and click through rate went down by about 5%. These are minor fluctuations. You guys, I'm not exactly sure what's causing them, but a 5 percent increase or decrease here or there., definitely important to note, which is why I left these columns here, but it's negligible compared to what I'm about to show you. Average order value actually went up by 6%. Again, this is just a common fluctuation, 5 or 6 percent here or there. But the fact that average order value went up is usually a good thing, right? That's an easy way to get a higher return. CPC went up 5%, click through rate went down 5%, average order value went up 5%. Conversion rate went down almost 40%. Conversions went down 20%. This brings our ROAS to a decrease of 13%. And it brings our cost per acquisition, our cost per conversion up to by 22%. So bottom line, the biggest number that, that went down right here is conversion rate. And that affected our return conversion rate went down. Why? Because people are bouncing 35 percent more often on the checkout page and going and buying on Amazon. If you don't believe me, try an exercise where you decrease your Google ads spend and watch your Amazon stores revenue decrease by not a similar percent, but. You'll see a noticeable difference. If you decrease your budget significantly in Google ads for a few weeks you'll see that decrease in your Amazon revenue. So make no mistake. Your Amazon store is not just getting organic sales. It is being fed by your Google ads. And the only way to combat that is to set your pricing higher on Amazon store than your pricing on your website with shipping. All right. This has been a lesson in Amazon pricing and how to keep your. Amazon store from stealing your conversion, stealing your conversions from your website. Best of luck to you. If you liked this video, don't forget to hit and subscribe. Thanks for watching.