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Amazon Ad Clicks Declining in the US as Reopening Appears to Impact E Commerce Demand

We reported last week that Google sponsored search traffic has been decreasing for several United states merchants in previous weeks. While part of the slower growth can be ascribed to the wackiness around year-ago comparability and stimulus sequencing, it indicates that consumer preferences have shifted significantly as the US has reopened.

Looking at Amazon advertising developments, it shows that many companies active on the marketplace are experiencing a similar pattern, and Google Trends data appears to indicate that customers aren’t going to Amazon (or other big e-commerce firms) as frequently as they were a few weeks ago.

 

Amazon Sponsored Product and Services Clicks Sliding :

When looking at how the United States of America sponsored products clicking activity has changed over the previous few weeks for a group of long-term advertisers, it’s apparent that there’s been a movement in traffic for many companies active on the platform since late April.

This isn’t true for all categories of products; for example, certain travel companies are reporting increased clicking activity when the US began its operations and the number of daily TSA travelers through points rises.

It’s also worth noting that many marketers are also dealing with tighter inventory constraints, which is limiting certain merchants’ capacity to promote items outside of seasonal demand swings.

However, based on Google trends data for the search phrase “amazon,” it appears that customers are losing interest in the e-commerce behemoth, at least in comparison to the rest of the search universe.

In comparison, Google Trends revealed that search interest for the keyword “Amazon” increased significantly from late March to the end of May in 2019 (ignoring 2020 because it was a one-of-a-kind year).

The impacts of the March intervention, which may have pushed some momentum forward though, as well as probable consequences from the postponed filing taxation deadline, may have affected the negative movement this year. Meanwhile, discounting a small spike in interest on Easter Sunday, April 4, there hasn’t been a similar drop in search interest for the term “Walmart.”

Walmart is inherently less vulnerable to being severely impacted by a move back to in-store purchase now that regulations are being lifted and customers feel more secure purchasing in gatherings because of its large physical presence.

Furthermore, some well-known online businesses, such as eBay and Wayfair, have seen a noticeable drop in comparative search interest, while targets have seen no such reduction. If the biggest brick-and-mortar firms are seeing stable search requests and the biggest e-commerce businesses are also seeing lighter searching interest, it appears that a move back to physical commerce for some transactions is taking place right now.

 

What Does This Mean for Future Ecommerce Availability and Demand?

Overall, there’s a great deal of evidence that US electronic commerce has dropped at the beginning of the second quarter, just when limitations are being released around the country and many customers are eager to relive the activities they skipped during the epidemic.

We don’t know how long demands will decline or where an equilibrium price will emerge. Customers are likely experiencing a brief Rumspringa, wandering away from e-commerce for some time before resuming their pre-pandemic shopping patterns.

Amazon’s Prime Day event is slated to take place on June 21 and 22, which will undoubtedly enhance performance for many retailers and merchants. Was a drop in eCommerce demands a factor in Amazon’s decision to hold its presentation in June rather than July, as it has done in the past?

Newcomers can’t say for sure, but the scheduling will increase Second quarter figures above and above what they would have been otherwise.

When it comes to once-in-a-generation (thankfully?) changes back to regular retailing from a pandemic that flipped the United States upturned for more than a year and continued to rage in some parts of the world, Amazon brands can only go so far.

As a result, it’s critical not to blow it out of proportion to important amendments and to understand how your company and product offerings figure into the timeline for the official opening. Considering the current slowdown that many are encountering, companies will undoubtedly need a solid strategy to participate in Prime Day later in the month, and we’ve compiled several of the most critical factors for how businesses should preparing for Prime Day this year.

Regardless of previous patterns, Amazon will very certainly continue to set new sales volume records each year, and merchants and merchants should do all possible to capitalize.