Amazon Sellers Adapt As Ad Costs Surge
Amazon sellers are struggling with soaring advertising costs, with ad spending quadrupling in five years. This is driven by a surge in seller numbers, intense competition during peak seasons, and platform crackdowns on fraudulent practices. To combat this increasing competition, 30% of sellers are turning to off-Amazon advertising. Their goals include clearing inventory, promoting new products, and testing product viability, all while seeking more cost-effective traffic sources. This shift represents a strategic move to diversify marketing efforts and alleviate the pressure of rising advertising costs on the Amazon platform.
