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Your Amazon Store Is Stealing Your Website Sales!
11th January 2024 • The Google Ads Podcast • Solutions 8
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Is your Amazon store thriving but your Google Ads campaigns are falling short of expectations? It's possible that your ads are driving sales on Amazon instead of directing customers to purchase directly from you. So, what do you do in this situation?

Regina Bellows, Executive Director of StarterPPC, provides valuable insights in this matter. She breaks down the difficulties of advertising and pricing strategies so you can safeguard your website's conversions.


Furthermore, she dives into analyzing your numbers and analytics so you can gain control over your ad performance and increase sales on your site. Listen to this episode now.


This video is from StarterPPC’s YouTube channel, check it out if you want to maximize ad spend & achieve better results with a smaller budget:   

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0:00 Your Amazon Store Is Stealing Your Website Sales?!

1:32 Amazon store and website pricing discrepancies

4:09 Need help scaling Google Ads with a limited budget? Let StarterPPC help you!

6:58 Pricing Strategy Solution

10:25 Your Amazon store is not just getting organic sales!



Need help with Google Ads? Get your FREE action plan here: https://sol8.com/ap/


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Transcripts

Regina:

Hi everyone, Regina here with Starter PPC.

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I want to talk to you guys today

about your Google ads, possibly

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feeding sales on your Amazon

store , this is not ideal, right?

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Because when you're selling things on

Amazon, you're paying a commission to

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Amazon and probably some fulfillment

costs , that are not the cheapest, right?

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Cause I know that Amazon

sellers, you have to ship.

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Your inventory to an

Amazon fulfillment center.

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If you want it to be like prime eligible

and have fast shipping and basically win

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the sales, win the sale over competition.

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Those fulfillment centers charge a

premium for fulfillment services.

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And then on top of that, Amazon

charges commission for the

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opportunity to use their platform.

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So if you are paying for Google ads

and you're trying to send people

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to your site and you're trying to

convert them at a certain return.

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And you've calculated that return

that you need based on the profit

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margin you're getting on your website.

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It would be really bad, right?

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If your Google ads was somehow feeding

sales on your Amazon store instead of

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on your website, because on your Amazon

store, you need a much higher return.

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And so it's probably not a

profitable way to go about getting

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sales on your Amazon store, right?

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By buying Google ads clicks.

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We're going to talk about an example

of one of our clients who sells

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on Amazon sells on their website.

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We've been running Google

ads for them for many months.

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They came to us saying,

why are sales down?

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our Amazon store is doing great.

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Why can't we get a decent

return on Google ads?

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And so we did a deep dive into it.

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We found that their

product on their website.

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With shipping costs

49 , to get to customer.

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Whereas the same product on their

Amazon store costs only 45, right?

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4 cheaper.

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And it gets to their customers

overnight or depending on

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where people live in the world.

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Sometimes it might be one day

shipping or two day shipping, right?

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Not three day and not

three business days, right?

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Because Amazon.

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Nowadays they deliver on

Saturdays and Sundays three

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business days is a long time.

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If you hit a weekend, on Amazon for

me here in San Diego, I can buy that

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product for 45 overnight shipping

on top of that, Amazon as a customer

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is great for me because I don't have

to punch my email address into some

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unknown website, my phone number

into some unknown website, right?

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A Shopify store where.

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It's insecure.

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It could, my phone number could

be sold to a bunch of spammers.

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They can take my credit card information

and identity theft, et cetera, et cetera.

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So small websites doesn't happen

very often, but it's nerve wracking.

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So Amazon feels safer and easier

as a customer saves time, gets the

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product faster, costs 4 less, and

it doesn't expose you to unknown

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threats of sketchy websites.

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So we went to our client and said, Hey,

why is it cheaper on Amazon to order

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this product than on your website?

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Ideally it should be

cheaper on your website.

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I'm going to show you all the

data that proves that this is

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detrimental to your business return.

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Your Amazon store might be doing great so

first of all, here in Google analytics.

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I'm over here under landing pages

on Google GA4, and I've edited

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some of the fields so we can see

bounce rate, engagement rate.

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What I'm going to do is just search

for checkout so we can just see any

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page that has checkout in the title.

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Here's what's happening.

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Hi there.

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Quick interruption.

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Do you know the main thing that

prevents small business owners from

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getting their Google ads account

into a position to grow and scale?

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Budget.

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A lot of businesses, especially

those that are just starting

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out, have limited budgets.

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And so because of this, they're turned

away by most ad agencies because most ad

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agencies have minimum budget thresholds

that they're willing to work with.

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So what happens is the business owners

end up learning Google ads themselves.

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And the problem with that is

that most of the advice online is

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geared towards larger accounts.

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And the advice doesn't have any of those

strategies or tricks that can kickstart

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the algorithm into giving a small

account a leg up over larger competitors.

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So it often just doesn't work.

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And the business just ends up

losing money month over month.

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If this sounds familiar,

starter PPC can help.

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We offer Google ads management services

that are designed for accounts that

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have between 1000 and 5, 000 budgets.

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Because all of our clients are just

starting out, we've come up with

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ways to keep our management fees

significantly lower than most agencies.

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Because we know that every dollar saved

on management fees just goes towards

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the ad budget, which is going to help

the algorithm gather speed and power.

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So if you're serious about growing your

business and you'd like a team of Google

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ads experts to help you without breaking

the bank, check us out at starter PPC.

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com.

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Okay.

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Back to the video.

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Overall, for all the pages that

have checkout in the title, which is

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basically Check out contact information

and check out payment and check out.

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Thank you.

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The bounce rate from August

compared with July, right?

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So month over month went up by 35%.

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So the bounce rate was 33%, which is a

pretty high bounce rate to begin with.

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Now it's 45%.

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You guys, almost 50 percent of people

are getting to the checkout and bouncing.

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And guess what?

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The Amazon store looks great.

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So you can imagine what happens, right?

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People are shopping on your website.

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They just interacted with the

Google ad shopping on your website.

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They get to the part where they have

to pull out their credit card, type

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in information, give away their email

address, give away their phone number.

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They see the pricing, they see

the shipping and they think, I

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wonder if I could just get this

on Amazon, I'm already going to.

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Buy a few things on Amazon today.

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Anyways, I'll just bundle it

all with the same order, right?

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So they open a new tab, go to Amazon,

search for the same product name,

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and they buy on there instead.

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And your Google ad dollars just paid

for a very expensive conversion on

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Amazon, where not only did you make

less money because the pricing is

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lower, but you made less money because

your profit margin is lower, right?

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The commission that you pay to

Amazon and the fulfillment costs.

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So the client said, Oh yeah, I

changed the pricing a month ago.

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That's why we were looking at

month over month numbers here.

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A month ago, the pricing on

Amazon was changed to be lower

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than the pricing on the website.

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What we're now asking the client to

do is put the pricing on Amazon higher

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than the pricing on the website.

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This is going to deter

people from bouncing.

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Even though you'll get a lot of people

who get to the page and think, I wonder

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if I can buy this on Amazon and not have

to wait three days for shipping and not

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have to enter my credit card information.

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There's a lot of people that will go check

Amazon, see that it costs more money.

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And go back to the site because they

would rather save those 4, right?

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So it should be the 4 less on

the website, including shipping.

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Then the Amazon costs, so it needs

to be much higher than Amazon.

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I know this is a tough thing to ask

because I think on Amazon, oftentimes

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you're dealing with competition, right?

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You're dealing with people that are

selling similar products for less money.

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And that's really tough.

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This is why Amazon makes it very

difficult for small business to succeed.

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But if you want to build a brand

and you want your website to work, I

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don't have any other advice for you.

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The website where you sell your product.

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Basically if you set your numbers

to what they need to be on Amazon,

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your competitors will probably raise

their pricing as well to match.

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So it's a race to the bottom, but you

got to hold strong and know your numbers.

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Okay, let's look at a few other

numbers while we're on it.

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So in addition to the bounce rate going

up by 35%, let's see the damage that

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was done in the Google ads account

just based on that number alone.

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So here I am looking at again, August

compared to July month over month.

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And I can see that first of all, the

cost stayed about the same, right?

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2 percent decrease is

pretty much the same cost.

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Now.

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Cost per click went up by about

6 percent and cost and click

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through rate went down by about 5%.

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These are minor fluctuations.

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You guys, I'm not exactly sure what's

causing them, but a 5 percent increase

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or decrease here or there., definitely

important to note, which is why I left

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these columns here, but it's negligible

compared to what I'm about to show you.

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Average order value

actually went up by 6%.

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Again, this is just a common fluctuation,

5 or 6 percent here or there.

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But the fact that average order value

went up is usually a good thing, right?

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That's an easy way to get a higher return.

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CPC went up 5%, click through rate went

down 5%, average order value went up 5%.

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Conversion rate went down almost 40%.

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Conversions went down 20%.

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This brings our ROAS to a decrease of 13%.

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And it brings our cost per acquisition,

our cost per conversion up to by 22%.

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So bottom line, the biggest

number that, that went down

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right here is conversion rate.

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And that affected our return

conversion rate went down.

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Why?

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Because people are bouncing 35

percent more often on the checkout

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page and going and buying on Amazon.

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If you don't believe me, try an exercise

where you decrease your Google ads spend

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and watch your Amazon stores revenue

decrease by not a similar percent, but.

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You'll see a noticeable difference.

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If you decrease your budget significantly

in Google ads for a few weeks you'll see

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that decrease in your Amazon revenue.

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So make no mistake.

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Your Amazon store is not

just getting organic sales.

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It is being fed by your Google ads.

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And the only way to combat that

is to set your pricing higher on

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Amazon store than your pricing

on your website with shipping.

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All right.

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This has been a lesson in Amazon

pricing and how to keep your.

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Amazon store from stealing

your conversion, stealing your

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conversions from your website.

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Best of luck to you.

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If you liked this video, don't

forget to hit and subscribe.

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Thanks for watching.

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