The Pandemic Has Been A Boom Time for Amazon Seller Canopy
Everyone’s aware that the pandemic of 2020 and 2021 has been a time of unprecedented growth for Amazon. Since the pandemic started in early 2020, Amazon’s profits have grown about 200 percent thanks to consumer wariness about visiting retail stores.
But the beneficiary of that increase has not only been Amazon, but its many partners. One such partner is Canopy, a self-styled “full-service Amazon management agency,” based in Austin, Texas.
Brian Burt, founder and CEO of Canopy, noted that there is a unique dynamic at Amazon right now. As more people have joined the platform as third-party sellers, competition has driven the cost-per-click ever higher. That has also made it tougher to man the top position, where the lion’s share of sales comes from.
Burt added that most sellers have no idea how to convert browsers into buyers. “Fun fact,” he said, “most sellers actually spend more on paid advertising within the Amazon ecosphere, then they do on product cost, shipping, all the Amazon fees, combined, packaging, all of that.”
A recent report from Jungle Scout, confirmed this finding that 34 percent of Amazon sellers are increasing their spend in 2021.
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Further, Amazon recently launched a program called DSP (Delivery Service Partners) that currently includes more than 1,500 such partners. Since Amazon is known for having a hands-off relationship with sellers, this creates an opportunity for firms like Canopy.
Canopy points to success stories like Rocket Pure, which sells foot and shoe deodorizing sprays on Amazon. In three months, Rocket Pure raised its conversion rate to 72.8 percent along with a 31 percent boost in sales revenues. Those gains came despite lowering their price during that period.
Burt said there are a few areas where Canopy focuses to make those conversions including good imagery, good reviews and engaging copy, plus it needs to be price competitive.
Though Amazon is a vibrant marketplace, Burt said that the world has changed in the two years or so since Covid hit.
“I can tell you this, my mom isn’t going to the supermarket anymore to buy toilet paper,” he said. “I don’t even go there anymore. I just that’s I click one button, it comes to the door the next day. It’s phenomenal.”
Burt expects some falloff in the next few months, but he expects Amazon to be the beneficiary in the long run. “Right now, people are sick and sitting in front of their computers,” he said. “They’re running back to the stores. They want to see people the mask mandate is gone. Everyone’s vaccinated. They want to get out. But nonetheless, I think we’re going to return to what’s easiest. Humans tend to just take the easiest route. And that easiest route nowadays is Amazon. The most reliable route is Amazon.”