Understanding how sales are attributed is critical in the fast-paced world of e-commerce for sellers looking to maximize their advertising efforts and returns. In this article, we will look deeper into Amazon’s sales attribution mechanisms and the implications for sellers.

What is marketing attribution?

Before purchasing a product or service, the customer may see multiple advertisements for it. Attribution refers to which advertisement led to that purchase.
Marketing attribution is the way advertisers determine how marketing tactics and customer interactions contributed to sales, conversions, or other goals. Amazon associates conversions with the most relevant ad campaign traffic.

How is attribution determined?

Campaign sales are attributed based on product relevance and proximity to a shopper’s ad exposure. Each campaign type has its own definition of product relevance, eligible ad interactions, and lookback window.

• Lookback window: The maximum number of days for which a conversion is considered relevant to an ad click or view. Depending on the campaign type, it could take from 7 to 14 days on Amazon.
• Product relevance: Products advertised in the campaign are eligible for attribution. SP for sellers may attribute other purchases from your catalog. Sponsored Product (SP) for vendors, Sponsored Brand (SB), and Sponsored Display (SD) may attribute purchases of any product from the same brand (also known as the campaign’s brand halo).
• Ad interaction type: Certain campaign types will only track shopper ad clicks. Others will attribute clicks and views based on the cost type (CPC or VCPM).

Attribution mismatch.

The following factors can cause discrepancies in expected revenue when comparing attributed sales and retail data:

1. Time frame mismatch:
   • • Sales in campaign reports are reported on the date of the shopper’s ad interaction, which may differ from the date of sale. In other words, sales are attributed to the date of the click rather than the date of sale.
     • Update time. Updating your sales data can take up to 12 hours. As a result, same-day data is rarely accurate.
     • Canceled sales. If an attributed sale is canceled, returned, or declined within 72 hours of order creation, it will be deducted from the attribution report. This update may take up to 7 days after cancellation.
2. Attributed sales and retail data mismatch:
   • • Attributed sales do not include any discounts applied to the cart.
     • Taxes are not included in attributed sales.
3. Brand Halo (Halo Sales):
   • • Depending on the campaign type, attributed sales may include items sold by you, Amazon, or another seller.
     • Depending on the campaign type, attributed sales may include products that weren’t promoted in the campaign but that are from the same brands as the products that were promoted.

Other challenges with marketing attribution.

Statistics show that only one in every five conversions occurs within 24 hours of an ad click. And if you look at your data too soon, you may make rash decisions about your advertising, which will ultimately work against you. So, avoid the temptation to tweak and adjust your campaigns on a daily basis.

Cookie crumbs pose a challenge for attribution, as 20% to 40% of internet users regularly delete their tracking cookies. As a result, recent ad exposures will appear to be more effective than exposures that may have had an impact but are no longer trackable by cookies.

In our ever-changing digital environment, the customer journey is no longer a straight line. People are constantly switching between ads, social media, emails, blogs, and so on during the purchasing process. The entire customer journey cannot be followed. And it is difficult to say which of your advertisements had the greatest influence on their purchasing decision. So, keep this in mind as you analyze campaign performance.

Navigating the complexity of Amazon sales attribution necessitates a thorough understanding of its underlying mechanisms and implications for sellers. Sellers can improve their advertising strategies, increase brand visibility, and drive meaningful engagement with their target audience by leveraging ad campaign attribution insights.