Detailed explanation of Amazon financial report data analysis and listing optimization strategies
Interpretation of financial report data
The latest financial report shows that Amazon’s fourth-quarter revenue was US$137.4 billion, a year-on-year increase of 9.4%, lower than market expectations of US$137.8 billion. This is Amazon’s first single-digit revenue growth in five years. For the whole year, Amazon’s total revenue in 2021 reached US$469.8 billion, a year-on-year increase of 22%. In terms of net profit, Q4 net profit was US$14.3 billion, a year-on-year increase of 98%. But it is worth noting that about $11.3 billion of the net profit came from the appreciation of the stock of the electric vehicle company Rivian.
Specifically looking at each business segment, e-commerce revenue was US$119.7 billion, accounting for 87% of total revenue; AWS cloud service revenue was US$17.8 billion, a year-on-year increase of 40%, contributing 13% of revenue; advertising business brought Revenue reached US$9.7 billion, a year-on-year increase of 32%, accounting for 7%.
Several key signals were revealed in the financial report: First, the growth of online e-commerce revenue slowed down, especially the growth of online store revenue was only 1%; second, the growth momentum of sellers’ business was insufficient, and the growth rate of third-party sellers’ business fell to 11%; again, the cash flow situation is not optimistic, with operating cash flow falling by 30% year-on-year, and free cash flow net outflow of US$9.1 billion; finally, the self-operated business has encountered challenges, including antitrust pressure in the European and American markets.
Common mistakes in Listing optimization
To achieve higher conversion rates on Amazon, sellers need to avoid some common listing optimization mistakes. The first is an incomplete keyword search. Proper keyword research is the foundation of Amazon SEO. Amazon’s algorithm determines a product’s organic ranking based on its likelihood of converting to a specific search term, so sellers should first research the keywords used by competitors, and then ensure that your listings cover these keywords and their variations.
Second is the underutilization of indexing opportunities. When writing product titles, descriptions, and back-end keywords, you should use as many relevant keywords as possible, but be careful not to stuff keywords. For some less common spelling errors, you can optimize them through back-end keywords.
Furthermore, titles that are overstuffed with keywords will affect the user experience. Although you need to include important keywords in the title, make sure it is concise and easy to read. It is recommended to place the most important keywords within the first 72 characters.
Misunderstandings in on-site advertising operations
In addition to Listing optimization, Amazon in-site advertising is also an important means to increase sales. However, many sellers tend to make some mistakes during the advertising process. For example, turning off automated ads too early. In fact, automatic ads can bring high-quality traffic to products and should not be turned off easily.
Also, some sellers may confuse the purpose of different ad types. Amazon advertising is mainly divided into three types: product promotion, brand promotion and display promotion. Each advertising type has its own specific goals, and sellers should choose the appropriate advertising format based on their needs.
In manual ad placement, sellers need to carefully choose the matching method. Exact match, phrase match, and broad match each have their own characteristics, and exact match usually has the highest click cost. At the same time, reasonable use of the negative keyword function can help save advertising budget.
To sum up, through in-depth analysis of Amazon’s financial report data and understanding of Listings optimization strategies, sellers can better formulate operational plans to cope with the challenges brought about by market changes.
The above content is compiled from.