> When you say 5x, are you considering the acquisition cost for each product sold, or the annual budget?
When I say 5x, I mean Google gets 5x the amount of money than Amazon does. I think that is more relevant than a "per item" basis.
> Unless you only sell through Amazon, then a global comparison wouldn't be fair, because Google is semi-monopolist in ads while Amazon is far from it in retail.
It isn't my fault Amazon can't sell more of our products. ;)
> You should compare your average user acquisition cost with the wholesale margin left to Amazon; eg: how much does it cost to acquire through ads a user that buys products for $100? And how much of those $100 are left to Amazon?
That is a bad way of comparing for purposes of this conversation.
Amazon has to pay for shipping, pick & pack, customer service, return shipping, etc. That isn't free.
When I say 5x, I mean Google gets 5x the amount of money than Amazon does. I think that is more relevant than a "per item" basis.
> Unless you only sell through Amazon, then a global comparison wouldn't be fair, because Google is semi-monopolist in ads while Amazon is far from it in retail.
It isn't my fault Amazon can't sell more of our products. ;)
> You should compare your average user acquisition cost with the wholesale margin left to Amazon; eg: how much does it cost to acquire through ads a user that buys products for $100? And how much of those $100 are left to Amazon?
That is a bad way of comparing for purposes of this conversation.
Amazon has to pay for shipping, pick & pack, customer service, return shipping, etc. That isn't free.