?? How much is needed to make $X on Amazon?

SPECIAL NOTE: The Billion Dollar Sellers Summit just wrapped up (look for a full report next week) and the BDSS Level Up event starts today in Kauai, Hawaii.

I’m busy with the event prohibiting me from writing a fresh newsletter. So today will be Part 2 of the “Best of” BDSN featuring the most popular stories of the past year.

BDSS 11 is April 2-7, 2025 in ICELAND

The next in-person event, BDSS 11, will be in Iceland April 2 - 7, 2025, followed by BDSS Level Up at the Retreat at the Blue Lagoon in Iceland April 7-10.

You can score an early-bird discount if you reserve now (only 50 early bird discount tickets are available). Click here for details.

??? RANKING as WE KNOW it WILL SOON be EXTINCT

Originally published in BDSN on January 22, 2024

In what could be a prelude to something similar to what Amazon may do, Google SGE, the Search Generative Experience, is testing a search carousel named "Here are some products to consider."

This carousel shows you products from different vendors that you can click on to engage with in Google Shopping.

As Khushal Bherwani posted on X - search for [crop tops] it will bring up this feature in the AI shopping snapshot:

94% of Google SGE links are different from organic search results

SEO as we know it will soon be dead

The AI-generated answers in Google’s Search Generative Experience (SGE) do not match any links from the top 10 Google organic search results 93.8% of the time a recent study found.

Once rolled out, Google SGE is expected to reduce organic traffic significantly to websites for many keywords because searchers will be able to get the answer directly in Google’s AI-generated answer.

This will affect the 25% of Amazon’s traffic that currently comes from Google.

But it’s not just Google testing changes. Walmart earlier this month made a rare appearance at CES to promote its new AI-powered shopping.

Walmart President and CEO Doug McMillon and Microsoft Chairman and CEO Satya Nadella introduced new AI innovations to benefit Walmart customers.

Using a combination of Walmart proprietary data and technology combined with large language models like the ones in Microsoft Azure OpenAI Service, as well as retail-specific models built by Walmart, the new AI will serve up a curated list of personalized items a shopper is looking for.

Amazon is also testing a new generative AI tool to answer shopper’s questions.

The new feature in Amazon’s mobile app prompts users to ask questions about a specific item. It then returns an answer within a few seconds, primarily by summarizing information collected from product reviews and the listing itself.

Unlike OpenAI’s ChatGPT, Amazon’s new feature isn’t equipped to carry out a conversation, but it can respond to creative prompts. On a listing for a women’s vest, it could write a haiku about the product. It can also describe the item in the style of Yoda from Star Wars.

The next step is typing “good bike for a 5-mile commute with hills” into Amazon search and getting the best bicycles ranked by how well they fit the question.

Search is about to radically change on Amazon, and ranking as we know it is going the way of incentivized reviews soon.

The video below featuring Vanessa Hung and Amy Wees should be mandatory watching for every serious Amazon seller to prepare you for what is likely coming based on recent flat file changes.

Vanessa is an expert in Amazon flat files and problem-solving, and she recently notice some major changes in beta versions of Amazon’s new flat files that hint at the first steps to full AI search and listing analysis.

She believes Amazon is shifting from traditional keyword-focused SEO to an AI-driven contextual approach, signifying a major evolution in how products are presented and found.

As Amazon does testing, sellers are experiencing issues like changed titles, incorrect product colors and descriptions in their listings due to AI alterations in the backend.

The new ranking method is selling to the AI.

Listings will soon need to be optimized for AI and not for keywords or phrases. This includes carefully crafted images the AI uses for contextual understanding of your products.

Vanessa says change is part of a larger trend where Amazon's AI system is evolving to understand products in a more holistic, contextual manner. It's not just about keywords anymore; it's about how products fit into consumers' lives.

As a result, sellers will need to optimize their product images and descriptions to cater to this new AI-focused approach, ensuring that their products are contextually relevant and appealing rather than keyword stuffed.

Additionally, AI changes will have a profound impact on Amazon's search engine functionality for consumers, altering how products are displayed and recommended based on consumer behaviors.

1. Optimize for Context: Enhance your product listings by focusing on contextual relevance. Go beyond keywords; describe how your product fits into the consumer's lifestyle or use cases.

2. AI-Adaptive Imagery: Use images that tell a story about your product. For example, if selling a beach accessory, show it in a beach setting to help Amazon's AI understand and categorize it appropriately.

?? HOW MUCH DO YOU NEED to SELL to MAKE X$?

Originally published in BDSN on April 29, 2024

Most folks selling on Amazon have no clue how much they need to sell in order make a minimum amount of personal income.

For example, let’s say you are considering going “all-in” on Amazon but you need to clear $75,000 per year in your pocket to take care of your bills and family from your e-commerce business.

With just 3 pieces of data, the good people over at Bookskeep and Profit First for E-commerce have a fill-in-the-blank spreadsheet you can use to estimate what you need to do in sales to meet your target income goal.

Download the free spreadsheet here.

Then take a look at Replay Online Banking, which was built with e-commerce sellers and a Profit-First mentality in mind (for example, you can have up to 20 individual checking accounts to bucket your money and up to 50 virtual or physical debit cards).

Relay is a financial technology company, not a bank. Banking services and FDIC insurance are provided through Thread Bank, Member FDIC. The Relay Visa? Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa? debit cards are accepted.