Margins are crunched, what can you do about it as seller or agency?

E-Commerce is in a perfect storm - this has become a consensus at least since K5 last week, even in the success-driven Linkedin Bubble. Nevertheless, from my point of view, too little is said in this context about the compression of margins and what we can do about it!

Even if we cannot officially speak of a recession: the economy is slackening, consumption is declining. The big platforms are therefore using every opportunity to shift revenue streams from the retail business to the advertising business.

This development can be seen, among other things, in the #amazon Q1 results: retail growth is clearly slower than advertising growth. A look at the search results pages on Google & Amazon also underlines this trend: within a very short time, paid placements have gained the upper hand over organic ones.

As a retailer, I have to spend a disproportionate amount on marketing in order to maintain my sales or even achieve growth. So what to do? 😒

At mokebo, our answer has been specially developed and is: MBP! The tool makes a weekly growth forecast based on current performance. The end result is a real-time rolling recommendation of our ad spend targets for the various performance channels. This helps us to stay within our target KPIs in good and hard times. Worth its weight in gold in times like these!

Of course, the rising advertising costs also mean that we have to look much more closely:

🔍 Where do we market?

🔍 Which advertising windows are we trying to get into? Where do we stay out of it?

🔍 How can we currently place especially the top converting products?

What are your tips for managing marketing in the current times?