Amazon Goes For A Money Grab By Killing Unprofitable Ad’s

Amazon Profits are big enough to not have the company worry too much about some smaller unprofitable items.

Refocus

Apparently not! Amazon is hitting these vendors by killing off their PPC ads.

Is there anyone out there that thinks Amazon does not make enough money? Well, Amazon apparently! They are hitting vendors by killing off their ads for unprofitable items.

Amazon is looking at this creative way to boost its already huge profits. They are taking a swipe at vendors with unprofitable items and hitting them hard by killing off their Amazon PPC ads.

CNBC has seen emails that were forwarded to some Amazon vendors as well as some conversations from those involved in the matter.

As of Wednesday Amazon reached out to some of its sellers and politely informed them that will no longer be allowed to pay for the promotion of certain products as they do not generate a profit for the e-commerce giant.

There is one particular email that CNBC has obtained informing some vendors that they must sell them at a lower cost to Amazon to continue trading them through the site.

An Amazon spokesperson has stated that the company decides on which products to advertise based on a variety of criteria including availability and profitability.

The company has said that this is not a new thing, however, CNBC has said that Amazon as of yet has been unable to say how long this policy has been active.

It is one move of many by Amazon to boost its bottom line. The Wall Street Journal reported last year that the company was aiming for products it refers to as CRAP or (Can’t realise a profit). Nice!

According to the article as part of Amazon’s growth plan, they pressure sellers to update a variety of attributes on products that are not selling as well. Things like changing price, usually lower to higher, or changing packaging say from foil packaging to cheaper plastic packaging.

Another Amazon spokesperson informed Gizmodo that despite these reports their operations remained unchanged. Though he did concede that they reserve the right to stop selling items that are unprofitable over a while.

Amazon Prime Pantry seems to be the exception where known unprofitable products were made available to encourage participation. Sneaky!

Then there is the initiative to make its product packaging more attractive to its e-commerce customers. This has been around for years and has involved swaps likes using shiny laminated packaging pouches instead of dull corrugated boxes.

Amazon PPC & Ad practices that have come to light this week have raised questions about how far the company will go to improve Amazon profits even when it is detrimental to smaller brands without the muscle of the E-commerce giant.

Packaging Protects Products During TransportationIs about time Washington stepped in? Well, maybe. But what affects the saleability of a product? One of these factors is the packaging.

Amazon Goes For A Money Grab – How Packaging Affects Product Saleability
Packaging also affects the saleability of a product throughout its entire journey from manufacturing to a customer’s shopping cart. Furthermore, protective packaging is necessary to keep products safe during shipping and storage.

In addition, sustainable packaging can also be attractive for retail buyers because eco-friendly packaging demonstrates a commitment to sustainability. And, sustainability is becoming a major selling point in today’s marketplace.

Moreover, the product’s labelling is also extremely important as it displays key information such as usage instructions and product content information. Manufacturers should communicate this information effectively so that customers can easily decide which product best suits their needs.

Good packaging design ultimately ensures that consumers walk away happy with their purchase, knowing exactly what they are getting with each product.

Packaging Protects Products During Transportation
Packaging serves many purposes, and its main one is protecting the product so it reaches consumers in good condition. Items that are packed in weak packaging can easily break during transit or when left on a store shelf. To ensure items survive the journey to the customer’s door, manufacturers should use specialised protective shipping labels that limit vibrations and absorb shock. These materials are foam peanuts, hard cardboard boxes with partitions, bubble wrap, and plastic/polystyrene sleeves.

Of course, weight and size constraints play a role too. It’s no good to over-packaging items if it becomes undeliverable due to excessive weight or size restrictions. However, there are plenty of innovative solutions for these issues too. Ultimately, strong packaging will also reflect positively on a company’s business branding.

Customers often remember how their purchase was packaged. Just look at videos of unboxing experiences on Youtube to TikTok. Good product packaging creates lasting impressions. With something as simple as well-made packaging, it can lead to more business for companies in the long run.

As such, investing in strong protective packaging should be a priority for all businesses looking to capitalise on their investment in product design and production quality.

Packaging Reflects Quality
To be sure of getting a good return on your investment, you should pay close attention to the packaging. A product that doesn’t come in attractive or professional-looking packaging will give off the wrong vibe and could discourage potential customers from buying it.

  • Good packaging is important to reflect the quality of the product.
  • It can make a product look inviting, and dependable.
  • Quality packaging materials protect the item from damage before reaching the customer’s hands safely.
  • Quality packaging contributes to improving customer service as well as protecting a company’s reputation – as they say, first impressions last!


Packaging Contains Information
Your packaging should answer all of these questions, as well as provide all the necessary legal information. People don’t necessarily want to read a long instruction manual from the box, so all the information must be easy to access and understand.

To illustrate this point, you can use graphics, icons, labels, and banners – whatever will get the message across effectively and clearly. Additionally, put only the most important information on the front side of your package. Ancient wisdom dictates that less is more and with modern packaging designs you don’t need to cram every feature on one page.

To learn more visit the Valdamark Direct homepage.

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