This episode explores the performance of Amazon advertising accounts across various average order values (AOV) and spending levels in January and February 2025. Against the backdrop of limited benchmark data from Amazon, the hosts analyze data from 1,000 US brands using their AdLabs software, revealing a strong inverse correlation between AOV and conversion rates. More significantly, the analysis shows that higher spending brands tend to have higher conversion rates, not because spending directly causes higher conversions, but because successful brands can afford higher ad spend due to their established market position and higher margins. For instance, the hosts discuss how a 4% conversion rate can be highly successful for a high-AOV product. The discussion then pivots to analyzing conversion rates across different product categories, highlighting the high conversion rates in beauty, personal care, food and beverage, and supplements, largely attributed to repeat purchases and brand loyalty. In contrast, the garden and outdoor living category showed a significant seasonal increase in conversion rates in February. Ultimately, this data analysis provides valuable benchmarks for Amazon sellers to assess their performance relative to competitors and understand the nuances of AOV, spending, and category-specific trends.
