E598: Amazon Charged You This Much More for Ads in 2025

Dave dives into Amazon's Q1 2025 earnings report and how it will impact sellers. He dives into Amazon's online store revenue growth, FBA fee growth, and the huge growth in advertising revenue, which is one of the major sources of income for the e-commerce giant. This is the earnings report right before the new tariffs start, so it's not indicative of how Amazon will be affected.  Struggling with tariffs? Unsure about upcoming changes? Let’s talk! With Portless, you only pay tariffs after your customers pay you – so your cash always moves faster than your costs. Schedule a risk assessment and leverage tariff deferment today. All new customers get $1,000 to reinvest in their business. Timestamps 00:00 - Understanding Amazon's Earnings and Its Impact 02:16 - Tariffs and Their Implications for Sellers 04:34 - FBA Fees: Trends and Insights 08:16 - Advertising Fees: The Growing Burden 11:10 - Market Reactions and Future Outlook As always, if you have any questions or anything that you need help with, leave a comment down below if you're interested.  Don’t forget to leave us a review on iTunes if you enjoy our content.   Thanks for listening! Until next time, happy selling!

In this episode, Dave shares some easy Amazon image hacks that can help you improve your click-through rates (CTR) and conversion rates. We'll talk about how important it is to show your packaging in your main images, how you can sneak in some keywords without alerting Amazon's ban hammer,  and how you can A/B test against your competition.    Struggling with tariffs? Unsure about upcoming changes? Let’s talk! With Portless, you only pay tariffs after your customers pay you – so your cash always moves faster than your costs. Schedule a risk assessment and leverage tariff deferment today. All new customers get $1,000 to reinvest in their business.  As an Amazon seller, you always have to be ahead of the competition. This means offering a better customer experience overall, but what does that look like in e-commerce?    This means better product imagery. Images are the only way for customers to truly know what they're getting and better images often means higher click-through rates and higher conversion rates.    How do you get better product images? Here's 7 easy ways you can make your product imagery better than your competition.  The Big Takeaways Include a keyword in your main image packaging and add your packaging to your main Amazon image. More items in the main gallery image convey better value. A/B test your product image against competitors using PickFu. Check Amazon brand analytics for the performance of keywords for your product. Regularly update product images to reflect trends. Do not fear Amazon's TOS when it comes to images. Review competitors' images in competitive categories. Sometimes, ugly images perform better than beautiful ones. Continuously refresh your images to avoid looking dated. Timestamps 00:00 - Introduction to Amazon Image Hacks 01:55 - Utilizing Packaging for Keywords 03:48 - Enhancing Product Images for Better Value 05:15 - A/B Testing Against Competitors 06:38 - Leveraging Amazon Brand Analytics 08:33 - Regularly Updating Product Images 09:59 - Pushing the Limits of Amazon's TOS 10:56 - Learning from Competitors' Successes And that's the 7 ways you can improve your images. If you have any questions, feel free to leave a comment below!  Thanks for listening and happy selling!   

In this episode, Gary Huang is on to discuss 3 potential predictions for the future of e-commerce within the next three years. Gary and I touch on topics like globalization, the impact of AI, and the potential return of aggregators while emphasizing how important it is to start moving manufacturing out of China.  Struggling with tariffs? Unsure about upcoming changes? Let’s talk! With Portless, you only pay tariffs after your customers pay you - so your cash always moves faster than your costs. Schedule a risk assessment and leverage tariff deferment today. All new customers get $1,000 to reinvest in their business.  Big Takeaways Globalization is shifting towards a model that may exclude China. AI will significantly impact businesses, potentially leading to many closures. Aggregators in e-commerce are predicted to return with a focus on credible brands. New challenges often give way to new opportunity. New marketplaces present opportunities for sellers to expand beyond Amazon US. YouTube has the opportunity to become a major competitor to Amazon in retail. Diversification away from Amazon is crucial for long-term success. The current economic climate creates both challenges and opportunities for e-commerce. AI tools can enhance efficiency but may also threaten traditional business models. Timestamps 00:00 - E-commerce Predictions and Global Sentiment 02:57 - Globalization 2.0: The Future of Manufacturing 05:50 - The Impact of AI on Business Survival 08:59 - The Return of Aggregators in E-commerce 12:09 - New Market Opportunities Amidst Uncertainty 15:02 - YouTube as Amazon's Biggest Competitor 17:57 - The Seven Figure Seller Summit and Future Trends Gary, thanks for joining us on the podcast today. It was great having you on to talk about your upcoming event and some of your predictions for e-commerce in the future!  If you're interested in 7 Figure Seller Summit which will be held on April 22 - 24th, you can get your limited time Free Pass by clicking on this link.     

Mike Jackness and Aymeric catch up on their e-commerce journey as friends and talk about how timing and luck are so important in entrepreneurial success. Success is always a mix of luck, tenacity, and grit.  It takes a bit of luck to be in the right place at the right time and some grit to keep going when things aren't as profitable as they used to. At the same time, success also involves balancing between trying new things and focusing on what works.  Knowing when to zone in on the one thing or when to test the waters only comes with experience and time.  My good buddy Aymeric who's been a friend of mine is on the podcast today to talk exactly about what it takes to be successful as an entrepreneur.  We've both had our fair share of successful and failed ventures, but that didn't stop us from trying and moving forward.  If you're a business owner looking at the tariffs right now and thinking about moving out of e-commerce, this episode might be eye opening for you. In the end, the choice is yours to make.  Aymeric, thanks for joining us on the podcast today!  If you'd like to outsource some work and get your social life back together, check out the VA Placement service he offers here.  

Tariffs are back again and stronger than ever. Things are still a little shaky at the moment because we never really know what will happen tomorrow but today, Dave discusses 5 ways you can deal with the new tariffs through DDP, diversifying, and negotiation.  Big Takeaways:  It is basically impossible to eliminate the effects of the tariffs but there are ways to minimize them.  DDP shipping puts risk on your supplier, not you. Diversifying sales channels can be a great way to keep your profit margins healthy.  Negotiate discounts with your suppliers to soften the blow.  Moving your manufacturing can reduce tariffs and contribute to a healthier business. Accept that the business landscape has changed permanently. Look for new opportunities that arise from these challenges. Consider manufacturing in Canada and Mexico as alternatives. Evaluate your product catalog in these new market conditions. Timestamps 00:00 - Introduction 03:03 - Strategy 1: Shipping with DDP 05:50 - Strategy 2: Diversifying Channels 08:59 - Strategy 3: Negotiating with Suppliers 11:48 - Strategy 4: Moving Manufacturing 15:09 - Strategy 5: Accepting Change and Finding Opportunities Thanks for listening! Until next time, happy selling!

In this episode, Chris Davey discusses his journey in e-commerce, the growth of his networking event at the Canton Fair, and insights into navigating the complexities of sourcing from China. We share our experiences about the safety concerns in China, travel challenges, and the importance of thorough research when attending trade shows.    We also talk about the networking opportunities going to China provides for Amazon sellers. We delve into the intricacies of product sourcing and development in the e-commerce space, particularly focusing on the advantages of Chinese manufacturing. We discuss strategies for identifying niche markets, the importance of building strong relationships with suppliers, and the rapid product development process that allows sellers to capitalize on emerging trends. The conversation also highlights the significance of differentiation in a competitive market and the benefits of being a first mover. The Big Takeaway Chris's product sourcing strategy involves developing accessories for popular products. The Canton Fair is divided into three phases, each focusing on different product categories. Networking is a key benefit of attending the Canton Fair. Post-COVID, there are fewer American attendees at the Canton Fair. Visa regulations for entering China can be complex and vary by nationality. Chris emphasizes how important of visiting suppliers' factories in China. Attendees should plan for at least 10 days to fully experience the Canton Fair. Designing accessories around popular products is effective. Predictive keyword popularity can lead to successful products. Niche markets can provide significant opportunities. Building relationships with factories is crucial for success. Rapid product development is key to staying competitive. Differentiation is essential in a crowded market. First-mover advantage can lead to increased sales. Networking events like FBA for You foster community among sellers. Timestamps 00:00 - Introduction to FBA4U and Chris Davey 01:57 - Chris's Journey to E-commerce and Canton Fair 06:02 - Growth of FBA4U and Networking Opportunities 09:56 - Safety and Visa Concerns in China 15:54 - Canton Fair Insights and Supplier Strategies 23:32 - The Speed of Chinese Manufacturing 24:15 - Innovative Product Sourcing Strategies 27:15 - Niche Markets and Competitive Advantages 30:02 - Building Relationships with Factories 32:10 - Rapid Product Development Process 35:13 - The Importance of CAD in Product Design 39:11 - Differentiation in a Competitive Market 43:24 - Leveraging First-Mover Advantage 44:55 - Managing Minimum Order Quantities 46:51 - Building Strong Supplier Relationships 50:18 - FBA for You: Networking and Community Thanks for listening! Until next time, happy selling!

In this episode, Dave interviews Steve Chou, who shares his journey of growing his YouTube channel from virtually nothing to over 400,000 subscribers in just a 2 to 3 years. We discuss the biggest ways you can make creating video content for e-commerce easier, the importance of SEO, and the differences between short-form and long-form video content.  In this episode, Steve emphasizes the significance of watch time in video ranking and shares his strategies to engage audiences effectively. Finally, Steve shares what's in store for the upcoming Seller Summit, happening on May 6th. Need funding for your Canadian Amazon business? Not sure if you should use a Canadian corporation or U.S. LLC to form your company? We'll cover these questions and more in our new course, Start and Grow Your FBA Business as a Canadian. Get early access now!  Want to learn more about video from experts, or learn about new strategies for Amazon? Seller Summit covers everything content creation and e-commerce at Fort Lauderdale, Florida this May 6th. Check out Seller Summit here!  The Big Takeaways Starting with reading blog posts out can help ease into video. Joining a YouTube mastermind group was a turning point for Steve. A "hook" in the first 30 seconds are crucial for engagement. Watch time is a key factor in YouTube SEO. Short form videos can attract a wider audience quickly, which could be useful for brand awareness. Your video content should align with audience interests to avoid confusion from the algorithm. "Social selling" is becoming increasingly important for e-commerce. Faceless content creation is possible but requires a personal touch to get a "human" element in your content. Building a subscriber base through contests or giveaways can be effective. Video content takes time to gain traction. Short-form videos can be chopped up from long video content, which contributes to a broader content strategy. Consistency in content creation is key to success. Investing in good audio equipment is the bare minimum for good videos. Thumbnails with very exaggerated facial expressions can increase click-through rates. Timestamps 00:00 - Introduction 05:07 - Steve's Journey to YouTube Success 10:01 - Content Creation Strategies 14:58 - Short Form vs Long Form Video 19:52 - Building a YouTube Channel for E-commerce 20:45 - Creating Stories with AI 24:20 - Faceless Content Creation in E-commerce 28:10 - Launching a YouTube Channel for E-commerce 30:57 - The Power of Video in E-commerce 32:23 - Essential Equipment for Video Creation 35:20 - Thumbnail Tips for Higher Click-Through Rates 37:09 - Overview of Seller Summit 2025 Thanks for listening! Until next time, happy selling!

Tanya Huang shares her entrepreneurial journey, from her experience on Dragon's Den to running a successful ring business. We talk about how customization is another barrier from the competition and how she decided to move on to customized products. We also compare Amazon vs Etsy, and how the two shape up for customized and handmade products.  Need funding for your Canadian Amazon business? Not sure if you should use a Canadian corporation or U.S. LLC to form your company? We'll cover these questions and more in our new course, Start and Grow Your FBA Business as a Canadian. Get early access now!  The Big Takeaways Customization is a really big consideration to customers and helps your products stand out in e-commerce platforms. Understanding customer needs drives product innovation. Etsy provides valuable insights into market research for customized products. Amazon's interface may not be ideal for customization. Etsy's sales have declined but are still higher than pre-COVID levels. New competitors like Temu are changing the e-commerce landscape, bringing Etsy's market share down. Etsy shoppers seek unique, personalized items over mass-produced products. Customization on Amazon is possible but comes with certain challenges. Etsy's decline may be due to increased competition and changing consumer preferences. Sales dynamics differ significantly between Etsy and Amazon. Etsy requires more attention to customer service and product uniqueness, while Amazon requires quick deliveries and cheaper products.  Timestamps 00:00 - Introduction to Tanya Huang and Her Business 02:45 - Experience on Dragon's Den 06:01 - Transitioning to Silicone Rings 07:47 - Customization and Manufacturing in Canada 11:16 - Engraving Process and Challenges 18:10 - Investing in Engraving Technology 21:34 - Market Research for Customization Ideas 24:01 - Exploring Amazon Custom and Handmade 25:42 - Etsy's Decline: Analyzing the Trends 29:09 - The Impact of New Competitors 32:34 - Etsy vs. Amazon: Sales Dynamics 36:30 - Philosophical Insights on Selling Strategies Thanks for listening! Until next time, happy selling!

Dave breaks down the huge fee increases for the Amazon Warehousing and Distribution program that takes effect on April 1st, 2025. He talks about the changes in warehousing and distribution fees, specifically on how much the fees have increased from previous iterations.  Need funding for your Canadian Amazon business? Not sure if you should use a Canadian corporation or U.S. LLC to form your company? We'll cover these questions and more in our Start and Grow Your FBA Business as a Canadian Webinar on March 12th, 10am PST! Today's episode is sponsored by Autron. Maximize your ROI with Autron’s real-time algorithmic bidding, optimizing every ad dollar for smarter spending and higher returns. Start optimizing today and get 30% off for 3 months!   Amazon Warehousing and Distribution (AWD) was one of the biggest programs that Amazon introduced in 2022, and pushed a lot of sellers into using AWD by increasing prices on the FBA side of inventory.    Back then, it seemed like an attractive alternative because of the low prices despite the shove to get everyone into the program.    That is until today where Amazon announced a fee increase to the AWD program in the most confusing way possible.    Luckily, Dave is here to break it all down for us and how these fees impact your e-commerce business.  Big Takeaways Amazon is increasing fees starting April 1st, 2025. The fee increase is not like previous fee announcements; they've given sellers only three weeks notice. AWD storage fees will increase by 20%. Amazon has changed the name of their "integrated rate" to "smart storage rate". To qualify for the smart storage rate, 70 days of inventory is required. Processing fees will increase from $2.50 to $2.70 per box. Transportation fees will rise from $1.00 to $1.15 per cubic foot. Overall, expect a 15-20% increase in fees. Amazon's tactics make it hard to plan for these increases. Sellers need to increase prices to maintain margins. Timestamps 00:00 - Introduction to Amazon Fee Increases 03:12 - Understanding the New AWD Fees 05:51 - Impact of Storage Fee Changes 09:10 - Processing and Transportation Fee Adjustments 11:03 - Conclusion and Final Thoughts Thanks for listening! Until next time, happy selling!

In this episode, Dave interviews John LeBaron, the Chief Revenue Officer of Pattern.com, the biggest third party seller on Amazon. They discuss Pattern's unique business model and how they help brands grow their presence on e-commerce platforms. The episode covers the importance of unit economics, advertising strategies, and how you can use AI to analyse your competition.  Today's episode is sponsored by Autron. Maximize your ROI with Autron’s real-time algorithmic bidding, optimizing every ad dollar for smarter spending and higher returns. Start optimizing today and get 30% off for 3 months! The Big Takeaways Pattern operates as an accelerator, not a traditional DTC brand, helping brands manage their inventory and online presence. Unit economics are crucial for brands looking to partner with Pattern. Advertising strategies significantly influence organic ranking on Amazon. Pattern leverages patented AI technology to improve conversion rates and predict organic ranking. The company manages over 300 brands, focusing on their growth. Off-Amazon marketing strategies are essential for brand success. Timestamps 00:00 - Introducing Pattern: The Biggest Amazon Seller 03:02 - Understanding Pattern's Unique Business Model 06:01 - The Role of Accelerators vs. Aggregators 08:59 - Expanding Brand Presence Across Marketplaces 11:50 - Target Demographics: Brands Seeking Help 15:09 - Unit Economics: What Matters for Brands? 18:06 - Advertising Strategies and Organic Ranking 21:01 - Off-Amazon Marketing Strategies 24:04 - Leveraging AI for E-commerce Success 26:59 - Improving Conversion Rates Through Data 29:52 - Future Innovations and Conclusion Thanks for listening! Until next time, happy selling!