Google vs. Amazon Advertising: What's the Difference?

Isaak Roundy

October 16, 2020

For years Google Ads has been the flagship when it comes to paid search advertising. However, Amazon is quickly becoming a force to be reckoned with in its own right as its advertising capabilities continue to improve.

As a digital advertiser, marketing manager, or business owner you’ll likely be utilizing one or both of these platforms at some point in your career if you haven’t already. If you already have experience, you might be wondering if your knowledge of one platform will translate to the other.

The purpose of this article is not to persuade you that one platform is better than the other or to tell you which one should get the majority of your marketing and paid search advertising budget. Instead we’ll focus on the similarities and differences that you as an advertiser can expect to see when using either platform for the first time.


Ad types: Comparing Amazon to Google

Both Google and Amazon offer a variety of ad types each with their own unique advantages that can help you accomplish whatever advertising goals you may have.

Here are a few of the most common ad types used on each platform:

Amazon Google
Sponsored Products Search Ads
Sponsored Brands Shopping Ads
Sponsored Display Display Ads
DSP Video Ads (YouTube)

For the majority of this article we’ll focus on the similarities and differences between the two most commonly used ad types: Amazon’s Sponsored Products and Google’s Search Ads.


The ad auction, explained

Both Google and Amazon use an auction to determine which ads are eligible to appear when a search is performed and the cost an advertiser will pay for a click on their ad. The idea is the same but executed differently by each platform.

How Amazon’s ad auction works

Amazon uses a “second price auction” which means that instead of paying your bid amount when someone clicks your ad, you’ll pay an amount slightly higher than the second highest bid. So if you bid $2 and the next highest competitor’s bid was $1.50, you’ll pay $1.51 or an amount slightly higher than $1.50 for a click.

This is pretty straightforward, but it doesn’t mean you can simply win an ad placement 100% of the time by having the highest bid. Amazon also uses an algorithm to determine which ads are the most relevant to the search and eligible to display, but what that entails is a bit of mystery.

Here’s what we do know from Amazon: “Ads selected to compete in the auction must first have keywords that match the search and meet a minimum relevance criterion.”

How Google’s ad auction works

Google uses a similar model but is more transparent about how ad quality affects the auction process. Google uses a variety of signals and real-time data to determine Ad Rank, which is a measurement of the quality of your ad for a given search. Your bid amount, ad relevance and expected click-through rate, and even the user’s location and device are used to calculate Ad Rank.

It’s important to note that Ad Rank is factored in when calculating CPCs, so you don’t simply pay a slightly higher price than the next highest bid for a click. It’s possible to win a better ad placement and pay less per click than your competition if you have a high Ad Rank.

Learn more about Ad Rank here.

Keywords and targeting on Amazon vs. Google

Keyword targeting

Both Amazon and Google use keyword searches as the main way to target consumers. Both allow advertisers to utilize Exact, Phrase and Broad keyword match types—and definitions of both are virtually the same between the two advertisers.

Both also include close variants for exact match keywords, although Google is again more transparent when it comes to their definition of a close variant.

Product targeting

One of the unique benefits of Amazon Advertising is the ability to use products instead of keywords as targets for ads. Advertisers can target specific products, whole categories, or a list of products that you refine based on brand, star rating, and number of reviews.

Automatic targeting

Amazon again has a leg up on Google here with its unique automatic targeting capabilities. Advertisers can use automatic targeting for their Sponsored Products campaigns and let Amazon do keyword research for them.

With automatic targeting, Amazon matches ads with similar keywords and products. You can then view a list of search terms and products where your ad appeared, allowing you to gain valuable insight into what keywords and products you should use or avoid in your manual targeting campaigns.

Audience and demographic targeting

Google wins here, and it’s not even a close race. Google has a vast library of user data that advertisers can tap into to enhance their advertising campaigns. Data such as age, gender, household income, hobbies and interests, device, relationship status, and more can be used to target and exclude users from your campaigns.

You can also adjust bids by a set percentage for your audiences to be hyper-focused when it comes to keyword bidding. If you know that mothers between the age of 25-44 are more likely to buy your new running stroller, you can increase your bid for those demographics to ensure your ads are reaching your target audience as much as possible. Almost all of Google’s ad products allow you to utilize these capabilities, giving you quite a few options to play around with as you fine-tune your advertising strategy.

Amazon, however, only has similar targeting capabilities for DSP (Demand Side Platform), which is Amazon’s display network offering. Audience and demographic data is not supported by Sponsored Products, Sponsored Brands, or Sponsored Display campaigns.

Other Amazon vs. Google ad differences to consider

Conversion tracking

Conversion tracking is simple with Amazon: orders and revenue will automatically be tracked for any products you advertise.

Google Ads, on the other hand, requires you to create your own conversion actions for any event on your website that you want to track, whether it be a purchase or a lead form submission. This allows advertisers to track important events beyond just purchases, like when someone adds a product to their cart.

Conversion tracking setup can be a pain for first timers. Google offers thorough documentation to help you through it, and their customer support team can help you as well.

Automated bidding

Google Ads offers multiple fully automated bidding strategies that eliminate the tedious work that is bid optimization. When you use a bidding strategy like Target ROAS or Maximize Conversions, Google will automatically set keyword bids and make optimizations for you based on your goals and how your campaigns perform. This makes campaign management much more simple and eliminates the need to spend hours optimizing bids on a recurring basis.

Amazon does not offer fully-automated bidding strategies like Google, so you’ll need to manually set keyword bids yourself or use a software to manage bids for you, like Pattern’s Predict software. Amazon, however, does have two automated bid adjustment features that can dynamically increase and/or decrease bids for you based on the likelihood of a conversion.

Conclusion

Both Amazon Advertising and Google Ads are excellent advertising tools that can be an effective part of any online marketing strategy. While they certainly have their differences, they also share many similarities that make it easy to pick up one or the other, or even both if you’re just getting started with PPC advertising.

At Pattern we offer our advertising services to most brands at no additional cost. Find out more by contacting a Pattern representative here.

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Amazon's Sponsored Product ads
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What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Utilizing Amazon sponsored ads can be a smart way for a brand to drive greater traffic to a product listing and start increasing sales. While many brands still struggle to manage their advertising strategies, 30% of Amazon brand sellers increased their advertising budgets in 2022. As ecommerce executives (or even on the nose with VPs of ecommerce?)  approve their 2023 advertising budgets, it may be worth it to take a look at Amazon’s advertising products and the benefit they may have on increasing conversions. 

​​Pattern is the premier ecommerce accelerator with all of the expertise, data-driven insights, and technology brands need to gain control on Amazon and maintain their competitive niche. We know the high value of and how to utilize Amazon’s advertising products to drive the most traffic and conversions to benefit and accelerate your brand.

Here are Amazon’s three main advertising products you should know about in order to drive listing traffic to your products and increase conversions: 

For a brand executive who is selling their product on Amazon, you may not already know the differences between campaign type, so we will walk you through the differences and uses for each of these three ad campaigns.

Sponsored Product Ads

Sponsored Products are a mid-funnel advertising strategy that gives visibility to products above the top organic listings (see example below). This strategy uses custom keywords to get products in front of the consumers who are searching for them, however it can be used to capture new audiences as well.These cost-per-click (CPC) ads require no additional copy or images, but usually receive the most interaction of the campaigns and need to be monitored closely.

As you can see, these ads look just like an organic listing, however they say, “Sponsored,” on them. These types of ads can be especially effective forms of advertising because they tend to blend in with the organic results around them. With Sponsored Products, you can get your products in front of qualified customers who are searching for your product in such a way that doesn’t make them feel like they are being served an advertisement.

Sponsored Brand Ads

Sponsored Brand Ads are a top-of-funnel brand awareness tool and function on keywords. This ad format helps show a customer what they may be in need of and where to get it.  Commonly used to promote product lines or best sellers, a Sponsored Brand ad shows up as a banner above the search results (see example below). This type of ad requires that the brand showcase at least three separate products.

Unlike other campaigns used on the Amazon platform, Sponsored Brand ads require ad copy and a unique logo. These ads also can take customers to a custom landing page, or a page on the brand store, that way they get a clear and overall picture about who your brand is, what other products you sell, and why they can trust your brand

Sponsored Display Ads

Sponsored Display ads can be a tactic for top, middle, or bottom of the advertising funnel due to its varying targeting abilities. Although most commonly found under the bullet points of a detail page, these ads can also show in emails, newsletters, and even more locations off platform.

Unlike the previous ad campaigns discussed, sponsored display ads can target shopping behaviors, like repeat purchasers, similar product purchasers, and even people who viewed the detail page but did not buy. Sponsored Display ads help customers discover your brand, drive awareness, and create loyalty. 

The example above shows just one of the many placements Sponsored Display has.

Accelerate Your Sponsored Products With Pattern 

Rather than competing with each other, each of the three sponsored ad products focus on a different section of the sales funnel, allowing you to target your customers and hit your sales numbers, all while edging out possible competitors. When brands use these advertising campaigns, they can better optimize their ad budget to improve ROAS and build revenue. 

At Pattern, we have all the resources to help your brand build successful advertising and digital marketing campaigns on Amazon so you can increase traffic and conversions, which will in turn increase your revenue

World Cup US Header
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How Global Soccer Scores with U.S. Shoppers

**How Soccer Leagues & FIFA World Cup Influence U.S. Consumer Demand** In this analysis, Pattern evaluates changes in U.S. consumer demand for soccer products. This report will help uncover: * When are soccer products in highest demand in the U.S.? * Major League Soccer vs. English Football League * Does the FIFA Club World Cup influence consumer demand? * Do FIFA World Cup group announcements impact consumer demand? * Which soccer player jerseys are the most popular among U.S. consumers? * North American players * South American players * European players * How ecommerce retailers can prepare for the World Cup and more The [FIFA World Cup](https://www.fifa.com/tournaments/mens/worldcup/qatar2022) is hosted every four years, and the next tournament will kick off on November 20, 2022. With soccer top-of-mind for many consumers, we thought it would be a great opportunity to evaluate how consumer demand is impacted by soccer events in the U.S., Europe, and globally. To help ecommerce retailers and social media strategists better meet their consumers’ preferences, we also analyzed which player jerseys were the most popular among U.S. Amazon shoppers. **When are Soccer Products in Highest Demand in the U.S.?** Unsurprisingly, consumer demand for soccer products appears to be highest when league-specific events are in play. What is interesting to note, however, is which leagues have the strongest influence on consumer demand. Despite what one may believe, it isn’t North American activity that drives the most demand for U.S. shoppers. **Major League Soccer vs. English Football League** In the U.S., Major League Soccer is the official league for soccer players. Similarly, the English Football League is the official league in the United Kingdom. When comparing change in U.S. consumer demand month over month from 2019 – 2022, we found some noteworthy behaviors. As can be seen in the 2019, 2020, and 2021 charts below, there are moderate increases in consumer demand for soccer balls and jerseys when the Major League Soccer season starts across all years: <iframe title="Change in U.S. Consumer Demand for Soccer Products in 2019" aria-label="Interactive line chart" id="datawrapper-chart-Y5KoK" src="https://datawrapper.dwcdn.net/Y5KoK/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> At the start of the Major League Soccer season in 2019, demand for soccer cleats rose by 43%, demand for soccer balls rose by 38%, and demand for soccer jerseys rose by 28% compared to the month prior. <iframe title="Change in U.S. Consumer Demand for Soccer Products in 2020" aria-label="Interactive line chart" id="datawrapper-chart-byv7E" src="https://datawrapper.dwcdn.net/byv7E/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> Again, at the beginning of the Major League Soccer season in 2020, demand for soccer balls rose by 28%. During this same period, however, interest in soccer cleats and soccer jerseys fell by 46% and 38%, respectively. This is likely due to the fact that the Major League Soccer season’s 2020 start date nearly coincided with the formal announcement of the COVID-19 pandemic. <iframe title="Change in U.S. Consumer Demand for Soccer Products in 2021" aria-label="Interactive line chart" id="datawrapper-chart-cBDJT" src="https://datawrapper.dwcdn.net/cBDJT/4/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> In 2021, the start of the Major League Soccer season in the U.S. saw a 46% increase in demand for soccer balls and 16% increase in demand for soccer jerseys. However, demand for soccer cleats fell by 24% during this same period. While moderate changes can be observed each year at the start of the Major League Soccer season, even more significant increases can be seen when the English Football League season commences. Here’s how consumer demand was impacted across all three years at the start of the English Foot League season: * **2019:** 47% increase in demand for soccer cleats; 0% increase in demand for soccer balls; 10% decrease in demand for soccer jerseys * **2020:** 54% increase in demand for soccer cleats; 47% increase in demand for soccer balls; 19% increase in demand for soccer jerseys * **2021:** 66% increase in demand for soccer cleats; 38% increase in demand for soccer balls; 40% increase in demand for soccer jerseys Except for 2019, consumer demand for soccer products in all three categories was higher at the start of the English Football League season than at the beginning of the Major League Soccer season. This suggests consumers are more closely following the English soccer season than the American league. **Does the FIFA Club World Cup Influence Consumer Demand?** As aforementioned, the FIFA World Cup occurs once every four years. However, the [FIFA Club World Cup](https://www.fifa.com/tournaments/mens/clubworldcup) is held every year. In 2020, the FIFA Club World Cup was originally planned for December; however, this got postponed until February 2021. As we can observe in the graph below, demand across all three soccer product categories reached their peak for the year during this time: <iframe title="Change in U.S. Consumer Demand for Soccer Products in 2021" aria-label="Interactive line chart" id="datawrapper-chart-cBDJT" src="https://datawrapper.dwcdn.net/cBDJT/4/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> This same trend was not observed during the 2019 FIFA Club World Cup tournament. During the timeframe of the tournament from December 11 – 21, 2019, demand across all three soccer product categories was relatively low: <iframe title="Seasonal Change in U.S. Consumer Demand for Soccer Products in 2019" aria-label="Interactive line chart" id="datawrapper-chart-d4ECO" src="https://datawrapper.dwcdn.net/d4ECO/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> Several factors could explain why consumer demand increased coinciding with the 2021 FIFA Club World Cup compared to the 2019 tournament, including: * **Pandemic Worries:** While the global pandemic was not officially announced until March 11, 2020, initial reports on the coronavirus outbreak began in December 2019. Consumers may have been less interested in recreational activities and more focused on the emerging updates coming out of Wuhan, China. * **Tournament Planning:** The 2019 FIFA Club World Cup was formally announced on September 30, 2019 (only about two months from the tournament start date). By contrast, the 2021 tournament was announced in September 2020, originally slated for December 2020, and finally postponed until February 2021. The added anticipation and game delay could have contributed to more buzz around the tournament. * **Seasonality:** Since December marks the height of the basketball season in the U.S., consumers were likely more focused on basketball-related events than on soccer. This could also explain why more consumers were interested in soccer products during the FIFA Club World Cup in 2021 than in 2019. **Do FIFA World Cup Group Announcements Impact Consumer Demand?** We were able to take a look at how U.S. consumer demand changed following the 2022 FIFA World Cup group announcement. As it turns out, U.S. consumers actually experienced decreased demand following the announcement on April 1, 2022: <iframe title="Change in U.S. Consumer Demand for Soccer Products in 2022" aria-label="Interactive line chart" id="datawrapper-chart-lX0B6" src="https://datawrapper.dwcdn.net/lX0B6/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="400"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> Since the FIFA World Cup announcement coincided with the end of March Madness and the start of the 2022 National Basketball Association playoffs, this could explain the decreased demand in soccer products among U.S. consumers. **Which Soccer Player Jerseys are the Most Popular?** Our team wanted to see which soccer player jerseys were most popular among U.S. consumers. To find this, we compiled a list of the most searched-for players in North America, South America, and Europe. From there, we tallied up all the searches in each category for all players from 2019 – 2022. Then, we compared the total searches for each individual player to the total for all players in their category. **North American Players** When it comes to soccer player preference for North American players, U.S. consumers have a clear favorite. According to our data, 95% of all searches for North American player-specific soccer jerseys between 2019 – 2022 were for American soccer player, Christian Pulisic. <iframe title="U.S. Consumer Demand for U.S. Soccer Team Member Jerseys 2019 – 2022" aria-label="Bar Chart" id="datawrapper-chart-fBlO2" src="https://datawrapper.dwcdn.net/fBlO2/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="255"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> While Pulisic is an attacking midfielder/winger for the United States national team, he currently plays for the Premier League club Chelsea in the United Kingdom. Since U.S. consumer demand for soccer jerseys is highest at the start of the English Football League season, this could explain Pulisic’s extreme popularity among U.S. shoppers. **South American Players** Consumer preference for South American players is a little less cut-and-dry; however, there is still a clear winner in the category. It turns out that most U.S. consumers (49%) prefer to support Lionel Andrés Messi of Argentina when it comes to South American soccer jerseys. Since many of these players also play in Europe, it makes sense that U.S. shoppers would be more interested in their jerseys than in U.S.-based players: <iframe title="U.S. Consumer Demand for South American Soccer Team Member Jerseys 2019 – 2022" aria-label="Bar Chart" id="datawrapper-chart-0dK9s" src="https://datawrapper.dwcdn.net/0dK9s/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="255"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> **European Players** When observing the top searched-for European players, we were surprised to see that no players from the English Football League appeared at the top. However, there was a clear favorite again in this category for U.S. consumers: Kylian Mbappé. With 88% of total searches for European players, Mbappé’s popularity among U.S. consumers is undeniable: <iframe title="U.S. Consumer Demand for European Soccer Team Member Jerseys 2019 – 2022" aria-label="Bar Chart" id="datawrapper-chart-cIRiH" src="https://datawrapper.dwcdn.net/cIRiH/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="279"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> **How Ecommerce Retailers Can Prepare for the World Cup & More** Understanding how U.S. consumers follow and respond to soccer leagues, both nationally and internationally, is essential for ecommerce retailers to anticipate and satisfy changes in demand. Using this data, online sporting retailers now understand the relationship between higher consumer demand for soccer products and gear to the start of the English Football League season. Empowered with this information, they can plan their supply chain and marketing calendars more effectively, ensuring all inventory, advertising, and customer support needs are met. Here are the top takeaways ecommerce retailers should prepare for based on our knowledge: * While demand is higher during the English Football League season start than the Major League Soccer season start, demand for soccer products is higher than the seasonal average at both times, so prepare accordingly. * The top three most popular soccer player jerseys among U.S. consumers are for Christian Pulisic, Kylian Mbappé, and Lionel Andrés Messi. * The FIFA Club World Cup may also have an impact on soccer product sales, so it’s a good idea to ensure products are well-stocked during this time each year. **If you’re interested in uncovering more data like this to empower your ecommerce strategy, [request a demo](https://pattern.com/contact-us/) from Pattern today!**

How Pricing Changes on Walmart.com Affect Your Brand
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How Pricing Changes on Walmart.com Affect Your Brand

Walmart.com has announced important changes regarding the “Was Price” and promotions on the digital marketplace. These updates make it more important than ever to optimize your price through implementing proper strategies, controlling your distribution channels, and being intentional about your pricing strategy.

And, as with all digital marketplaces, succeeding on Walmart.com requires performing well in all areas of The Ecommerce Equation. Which means as you optimize your listings’ pricing, as well as traffic, conversions, and availability, your revenue increases.

Pattern has the resources ecommerce brands need to optimize on marketplaces for each factor in the ecommerce equation. We have the technology and strategists to help you improve your traffic, the brand dedication and passion to help you achieve greater conversions, connections to econtrol specialists who help brands regain marketplace control, and the data you need to be able to make smart forecasting decisions for better product availability.

Below, we’ll cover how Walmart.com’s recent platform changes impact ecommerce brands’ ability to drive traffic and conversions for their products and how to strategize around them to work best in your brand’s favor. But first, let’s go over the changes themselves.

Walmart.com’s “Was Price” and Promotional Changes

Walmart.com’s newest changes reflect their mission to be the leader in low, everyday pricing. Therefore, Walmart’s customers come to the platform and expect low prices no matter what. Overall, these updates give consumers more visibility into the value they’re experiencing and hold brands more accountable in the pricing information they display.

Promotional Policy Changes

  • Due to Walmart’s updates, in order for your products to qualify for a strikethrough and show “Reduced Price” or “Clearance” flags on Walmart.com, your product’s promotion must be at least 10% off the “Was Price.” (Note: “Reduced Price” is the most common type of badging. Your teams can request this badge when filling out promotion upload files.) 

  • To specifically qualify for “Clearance,” the product needs to be discontinued and no longer replenished after selling through the remaining inventory.

  • Although “Rollback” is sometimes seen on site, it is a form of 1P-only badging.

  • Walmart now prohibits promotions lasting longer than 365 days.

“Was Price” Changes

  • Walmart’s “Was Price” was previously loosely defined and manually inputted on Walmart.com as an MSRP. Now, stricter rules are in place with regulations in the broader market to encourage enforcement and protect consumers. 

  • The “Was Price” is now defined by these terms on Walmart:

    • Either the 90-day median price paid by customers for the item on Walmart.com (excluding special promotions like holiday campaigns, limited time deals, rollbacks, and clearance);

    • Or the median price offered by Walmart or Marketplace sellers for the item on Walmart.com for at least 28 out of the last 90 days (excluding special promotions like holiday campaigns, limited time deals, rollbacks, and clearance).

How to Strategize for Success

1. Plan for Promotions Well in Advance

To protect your “Was Price” from price erosion, be intentional when planning promotions. To be most effective in your promotion, you’ll want to be able to give your customers a large enough discount to qualify for the slash-through and reduced price badging. 

Without the right pricing strategy in place, your products are in danger of falling into deeper and deeper discounting as you chase the ability to achieve slash-throughs and proper badging. Without the slash-throughs and badging, you’ll lose the ability to easily communicate the increased value of your product and the traffic and conversions you’re trying to earn by running the promotion in the first place. 

2. Keep Pricing Consistent

It’s important to keep your products’ prices as steady as possible to protect your promotion periods. As you prevent high-low price fluctuations, you’ll be able to use slash-through prices and promotional badges like “Reduced Price” and “Clearance” to your advantage in driving better traffic and conversions for your listings.

Without the ability to display badging, a promotion falls flat even if the price has been dropped. With steady pricing over time, you’ll be able to keep a stable “Was Price” and ultimately enjoy more rewarding promotional periods long-term.

3. Establish Excellent Brand Control

It’s important to remember that the “Was Price” policy also applies to 1P and other 3P sellers representing your products on Walmart.com. Unfortunately, your other strategies will be ineffective if other sellers are breaking your MAP policy or playing the high-low price game. So, it’s more important than ever for brands to be conscious of their distribution channels and keep rogue and unauthorized sellers in check.

Find Marketplace Confidence with Pattern

By allowing Pattern to be the authorized seller of your brand’s products and working with Vorys eControl law firm to eliminate rogue sellers, you can be confident in creating and executing a powerful  selling strategy on Walmart.com and other digital marketplaces. As a 3P seller partner, Pattern is truly invested in our partners’ success, we’ll help you to create and execute a strategy that truly prioritizes the long-term performance of your products on digital marketplaces.

Contact us today to learn more about the changes on Walmart.com and how you can optimize your performance.