Data from performance marketing agency Tinuiti show that Amazon FBA pandemic restrictions have eased, showing the impact of the restrictions on sellers.
Readers may remember that at the start of the pandemic, Amazon stopped accepting sellers’ inbound shipments to its fulfillment centers for products other than high-demand goods such as household staples and medical supplies, forcing many to fulfill orders themselves, referred to as FBM (Fulfilled by Merchant).
Tinuiti’s Amazon Ads Benchmark Report for Q1 2022 found that the share of Amazon sellers using Fulfilled by Merchant is drawing closer to pre-pandemic norms:
“In March 2022, 56% of sellers used FBM for some orders, compared to 53% in January 2020. This share peaked at over 70% in April 2020, when Amazon was forced to restrict Fulfilled by Amazon (FBA) to just those sellers in essential product categories. FBA continues to be the primary fulfillment option used by sellers.”
The report also found that Amazon Sponsored Products spend growth slowed to 9% in the first quarter of 2022 as clicks fell 6% year-over-year and CPC growth decelerated to the slowest rate since Q1 2021. It found that for the first time since Q4 2020, growth in the sales attributed to Sponsored Products outpaced spend growth, though only slightly, as return on ad spend for the format was nearly identical year over year.”
A spokesperson for Tinuiti said if Amazon holds Prime Day in July this year, as many expect, instead of June as it did last year, it would limit ad growth in the second quarter (April, May, June) and would push it into the third quarter.
Note that last year, Amazon held Prime Day on June 21 – 22, officially announcing the event on June 2, 2021 – so we may still be a couple of months away from this year’s announcement.
The spokesperson explained the methodology of its findings as follows: “The Tinuiti Amazon Ads Benchmark Report is based on anonymized performance data from Amazon programs under Tinuiti management, with annual digital ad spend under management totaling over $3 billion. Samples are restricted to those programs that have remained active and maintained a consistent strategy over the time periods studied. Unless otherwise noted, all figures are based on same-client growth. The trends and figures included are not meant to represent the official performance of Amazon advertising or the experiences of every Amazon advertiser.”
The report is available for download on the Tinuiti.com website.
