Amazon ProductAds – Conference call tomorrow and details…

May 19, 2009

Marketplaces ChannelAdvisor By ChannelAdvisor

Gene Munster over at Piper Jaffray has a report out today detailing Amazon’s ProductAds program and he offers up some interesting views on the size of the program. You can download the entire file here: Download AMZN Product Ads May 19.

In the report, Gene covers two different ways to size the ProductAds opportunity for Amazon.  In the first model (Amazon ProductAds for just items that Amazon doesn’t offer), Gene shows that the 2 year revenue opportunity for Amazon is north of $200m.
ProductAds1
In the second model, where Amazon has ProductAds for both items it offers and doesn’t shows the revenue coming in at about $150m.
Productads2
For retailers, we’re finding that this program is a really big win because it allows you to get your products on Amazon for an economical rate and you get to own the customer.  The program ‘works’ for Amazon because it essentially extends their selection.
Call Tomorrow – May 20 @ 2pm ET
Gene is hosting a call tomorrow at 2pm where we’ll be discussing this program as well as his findings on Prime and other Amazon.  Gene has been kind enough to allow us to invite some retailers/blog readers to attend.  The details are:
  • Dial In #
    800-745-8951
  • Int’l Dial In # +1 212-231-2908
  • RES # 21425463
  • Replay will end 5/27/09


I hope everyone is able to make it!