This Issue's TLDR...

• The long-term viability of your Amazon business is a function of two key metrics: Customer Lifetime Value (CLTV) and Customer Acquisition Cost (CAC).
• I'm giving you a tool to quickly calculate your Amazon CLTV and CAC.
• Shopper intent is about to plummet. Some changes that you should be making to your PPC campaigns before signing off for the Christmas holiday.

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Quick Programming Note: No issue of Best@Amazon next week. I'll see you all again in 2024!

SPONSOR ASGTG People tend to talk about Prosper Show as the premier Amazon seller event. But, I'd argue that the O.G. of Amazon seller events is ASGTG, which will be celebrating its 10th(!) anniversary this year. In many ways, New York is the capital of the Amazon seller universe, and ASGTG is where some of the biggest sellers gather every January. I'll be there, and I hope you will too. Get 15% Off Your Ticket​

BEST from Me

We're juuust about at the holiday shut-down point, so I'm not going to jam a treatise of Amazon content down your throats.

Instead, I want to give you all a small holiday gift:

Why is this important?

Well, outside of unit economics and cash conversion cycle (CCC), CLTV and CAC are probably the next most important indicators of the health of your Amazon business. Especially over the long term.

Put simply, if you're spending more to acquire a customer than that customer is worth to you in future profit...you're not gonna make it.

A lot of DTC brands lose sight of this when they're drunk off of VC money.

But most of us don't have the luxury of institutional funding. So, it's worth regular check-ins on your CLTV:CAC ratio (I audit this monthly).

Now, with the CLTV-CAC calculator that I've added to the Amazon Private Label Pathway, you can regularly monitor your brand's CLTV and CAC too.

You're welcome.

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PS: If you want to read more about CLTV and CAC, I highly recommend this deep dive from sellerapp.

PPS: If you don't want to muck around with manual CLTV and CAC calculations, and/or want more real-time reporting, I highly recommend reaching out to my buddy Marc Blumberg at Kapoq. They have dynamic CLTV and CAC that looks like this:

SPONSOR LandingCube See how I use LandingCube to increase my CLTV ​ ​ Increase your LTV by building your email list with their one-click Amazon listing <> Landing Page generator. ​ Run targeted promotions and easily capture leads from off-Amazon traffic sources with our api enabled email opt in. Retarget your audience by including TikTok/Facebook/Google Pixels. Create a sales funnel that only the top 1% of sellers use, and watch your sales/profits skyrocket. ​ Sign Up for a Free 21-Day Trial​

BEST from Everyone Else

Best from the Best@Amazon Community

Remember last week when I talked about Joel MacPherson and his FBA Inventory Reimbursement service, TrueOps?

Well, I mistyped the promo code for the free $10k reimbursements promotion.

To pay only 10% commission on your FBA inventory reimbursements, use this sign-up link and enter code bestatamazon.

Mea culpa.

Best from LinkedIn (and X)

Shopper intent is about to plummet. My good friend Joe Shelerud from Ad Advance shared some hard data this morning on LinkedIn:

So, before you sign-off entirely for the upcoming Christmas holiday, make sure you adjust your bids and budgets.

My buddy Jake Martin from Levo Agency offers some good tips:

Jake Martin | Amazon Marketing 🛠 @jake_rm_ How to optimize Amazon PPC around Christmas🎄 What are the best practices for managing your ads when conversion rate suddenly drops? 👇 1) Be Aware of Conversion Rate Trends The first big drop in conversion rate will hit once the Christmas delivery window closes. Monitor your… https://twitter.com/i/web/status/1737898187359170844 12:9 PM • Dec 21, 2023 1 Retweets 2 Likes

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Best from Me (Holiday Bonus)

I've been mucking around with Amazon's different AI tools for sellers over the past 2-3 months, as they've become available.

Unsurprisingly, they're all still a bit buggy. But, most problematic was the AI listing creation tool in Seller Central.

I took my Twitter/X audience down the rabbit-hole in this thread.

Bearded Egg FBA 🛠️ @guyfosel Bloomberg published an article today about Amazon's generative AI product review summaries being...buggy. But that's just half the problem. The other half is Amazon's generative AI listing creation tool. Here's what I found in my tests: 👇 https://www.bloomberg.com/news/articles/2023-12-19/misleading-ai-product-reviews-on-amazon-spook-sellers-during-holiday-season bloomberg.com Amazon Sellers Say Misleading AI Product Revi... Customer feedback summaries created by generative artificial intelligence someti... 7:15 PM • Dec 19, 2023 0 Retweets 6 Likes Read 2 replies

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Updates to the Amazon Private Label Pathway

A small holiday gift from me to you:

A simple, user-friendly calculator that takes three inputs from Seller Central and gives you your brand's Customer LTV and Customer Acquisition Cost.

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Back Story on the Amazon Private Label Pathway, ICYMI...

A few months back, I had a small group of coaching clients that were at the same point in their Amazon seller journeys.

I found myself answering the same questions, and pointing them to the same resources, so, in true Amazon fashion, I asked myself "What's the 1-to-Many solution here?" and built a Notion page of helpful resources, which I've called "Amazon Private Label Pathway."

You can get access to it here: https://auxo.gumroad.com/l/amazonpathway (it's free; but if you want to buy me a beer, I won't object)​

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Amazon Questions? Amazon isn't easy. Everyone needs a little help from a friend sometimes. If you ever have a tough Amazon question, I'm only a phone call away. Let's Chat

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