GPT’s Role in Reducing Diminishing Returns in Amazon Marketing

April 4, 2024
By The Badger

ChatGPT, the newest AI content generator, has taken the marketing world by storm and threatens to take everything we know about marketing and copy generation and turn it on its head. In this blog post, Michael Facchin of Ad Badger and Joshua Rawe from eSpark dissect ChatGPT to reveal how you can incorporate it into your Amazon marketing strategies, ensuring steady growth even when facing the challenge of diminishing returns.

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How Can ChatGPT Beat Diminishing Returns on Amazon?

ChatGPT can help solve the problem of diminishing returns on Amazon in a few key ways.

First, ChatGPT can make product descriptions and ads better. By creating engaging and fresh content, it can help products stand out and sell more, fighting against the point where spending more on marketing doesn’t really pay off as much.

Second, by looking at customer reviews, ChatGPT can give insights on what to improve in products or how to market them better. This means businesses can focus on changes that really matter to customers, making sure every dollar spent improves sales or customer happiness, which is vital for beating diminishing returns.

Third, ChatGPT can help manage stock smarter. It predicts what will sell well, so businesses don’t waste money storing products that won’t sell. This is crucial for avoiding the extra costs that come when inventory doesn’t match up with demand.

Lastly, ChatGPT allows for marketing messages to be more personal, even to lots of customers. This approach helps combat the challenge of diminishing returns by keeping marketing efforts effective. It ensures that as the customer base grows, the impact of marketing doesn’t diminish, with each message tailored to the individual, thus maximizing the return on marketing investments.

What Is ChatGPT And What Does It Do?

GPT stands for Generative Pre-trained Transformer. It’s an artificial intelligence program with chat capabilities.

The reason why ChatGPT caused a storm is that it’s more than an AI content generator. GPT can take prompts and create content according to your prompts.

Here are some of the things GPT can do in general and on Amazon advertising:

Generate written content to your specifications
Generate ideas for product descriptions and advertising copy
Create social media posts
Analyze customer feedback and identify trends and insights
Organize and format text

How Will GPT Change Our Workflow On Amazon Advertising?

Traditionally, when creating a listing on Amazon advertising, you must first identify core keywords, do competitor analysis to find a differentiator for your product, develop a tone of voice, then write the listing copy.

Without GPT, this could take you 2-3 hours.

With GPT, this workflow can take about 30 minutes.

If you give GPT your core keywords, add your value propositions, and ask it to write in your preferred tone of voice, it’d generate a product description that would need only a few tweaks to make it Amazon-ready.

Making the most of GPT to create a more streamlined workflow is all about knowing your core tasks. For example, you can feed keywords into ChatGPT and ask it to prepare a product description, incorporating your USPs and keeping it within a specific character limit.

Will AI Change The Future Of Amazon Advertising?

Look back at the evolution of technology and its application in the workspace, especially considering the principle of diminishing returns. You’ll realize that software as a service was a ground-breaking solution for helping people automate repetitive tasks and have more time to attend to other tasks.

GPT operates under the same concept, but unlike software as a service which has more defined applications, GPT is versatile.

It can create anything from an Amazon product description to a basic program code. For example, if you download your search query performance report and have no idea where to start, you can chat with GPT to get ideas on analyzing the report.

Can Chat GPT Replace Copywriters?

Ah, the question that strikes fear into the hearts of copywriters worldwide. Well, GPT can’t wholly replace copywriters, but it will take on some of the tasks performed by copywriters.

For example, a copywriter needs to dive into a competitor’s listings to find the positives and negatives of the competitor’s product. This helps guide the general direction of an Amazon listing copy.

With GPT, you can ask what common complaints are about a particular product, and it’ll compile that information for you. It can even create product listing copy based on the necessary parameters, but a copywriter needs to tweak it to give it that human touch.

Watch Michael and Joshua experiment with many of the ChatGPT Amazon marketer benefits in this podcast snippet:

Elevate Amazon Listing Copy & A/B Testing With AI

Many Amazon PPC’ers aren’t good copywriters. (No shade! It’s a different skill!) As an Amazon seller or Amazon PPC manager, you already have your plate full with Amazon PPC management and other tasks that go towards selling on Amazon. You might not have the mental bandwidth to sit down and write copy after doing all these tasks.

When Chat GPT came out, Amazon sellers and PPC’ers gravitated towards it because it could do the heavy lifting when writing copy.

You can now give Chat GPT a prompt and feed it all your keywords and parameters, and it’ll come up with a fairly decent listing title or bullet points draft. The rule for Chat GPT is that the result is only as good as the prompts. With this in mind, you must be meticulous when crafting the prompt if you want excellent results.

For example, when creating your bullet points, you want the initial prompt to include your keywords, Amazon’s rules and guidelines, and SEO best practices. You can then save that prompt as a template to use when you need to create bullet points for other products.

Get Our Content Library to & Download Our Guide for Best AI Prompts

Checklist for Amazon PPC

Another angle to leveraging Chat GPT’s copywriting capabilities is when you’re doing A/B testing.

Without AI, you could find it difficult to create different versions of your listing copy to split test. But With Chat GPT, you can create different versions of something like a listing title, and A/B test them to find the best version.

Will GPT Replace Google Sheets And Excel?

GPT is a text-based platform, so it can’t support the functionality of Excel spreadsheets. It can, however, create Excel macros and formulas for your spreadsheet.

Excel and Google Sheets are crucial for Amazon advertisers to visualize and make sense of multiple Amazon PPC data points. If you have a spreadsheet formula you don’t understand, you can paste it into GPT and ask it to explain how it works. GPT can also help you create Excel formulas for comparing data sets in different spreadsheets.

For example, if you want to compare Amazon PPC campaign performance reports for two different months, you could ask GPT to create an Excel formula that compares two separate lists of keyword performance. The formula would need to identify the common keywords in both lists and display the difference in click performance.

This would make it so much easier to work with bulk files and bulk sheets and save you a lot of time. This is helpful for anyone who isn’t using an Amazon PPC Software Tool, like Ad Badger.

Can ChatGPT Help Me Write Python Scripts?

GPT can read code and explain what it does, which makes it an efficient coding buddy. It can also create code from scratch for simple programs, and you can copy and paste it.

For example, if you ask GPT to create a Python script that will scrape the top 100 product search results on Amazon, it’ll give you code you can copy and paste and then run on your computer.

Python scripts come in handy when you want to automate some aspects of Amazon PPC advertising like data scraping, reporting, and visualizing. Coding is a skill you need to make a better Amazon advertiser, and GPT can flatten the learning curve.

You can also use GPT to flesh out a Python script for you or ask it for clarification. It’s a coding assistant that you can use to polish up your coding or generate simple scripts from scratch.

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Can ChatGPT Help Me With Client Communication?

Chat GPT can be your customer service assistant when properly applied. Let’s say you have a customer complaint email, and they’ve used some choice words that don’t sit right with you. Instead of firing back a rude email, you can enter the customer’s email into Chat GPT and ask it to draft a polite and professional reply. With that, you address the customer’s complaint politely without escalating the issue unnecessarily.

Sometimes, you may sell to a customer outside the U.S. If they have a complaint, they might email you in their native language. If that happens, you can use Chat GPT as your translator. Copy the customer email, paste it on Chat GPT, and then ask the AI to translate it into English. You can then generate a reply to the customer’s email and have Chat GPT translate it into the customer’s native language. Just remember to have a native speaker of the language proofread the email and polish it up a bit before sending it.

And speaking of emails, Chat GPT can also come in handy when you’re writing to Amazon. If you get into trouble with Amazon, you may be required to write an appeal letter. Chat GPT can help create a draft that you can tweak to adapt to your style.

In a nutshell, Chat GPT has your back when it comes to customer service, language barriers, and Amazon appeals. It’s your go-to sidekick for smoother interactions and problem-solving.

Can AI Help With Amazon Keyword Research And Campaign Structure?

Keyword research and campaign structuring are the bread and butter of Amazon PPC management. Chat GPT can do some of the heavy lifting for you in these areas. For example, let’s say you have a list of keywords from your keyword analyzer tool. You can add that list to Chat GPT, then ask it to segment the keywords based on your desired parameters — like the search volume.

And, just as Chat GPT helps you identify keywords for your product, it can also list the negative keywords you don’t want your product to appear in search for. This proactive approach lets you weed out the negative keywords early before they make it to your campaigns and waste your ad budget.

You can also delegate your campaign name creation to Chat GPT. Instead of racking your brain trying to come up with unique campaign names, you can Input a prompt on Chat GPT with your preferred campaign naming structure, and it’ll generate a near-perfect campaign name for you. And it doesn’t stop there — you can also use it to create a campaign structure by helping you group things by topic, search volume, number of keywords per group, or any other parameters you want.

Can Chat GPT Act As An Analysis Tool for Amazon Advertising?

Looking to gain a competitive edge in your Amazon business amidst the challenge of diminishing returns? With Chat GPT’s review analysis capabilities, you can uncover valuable customer insights by simply copying and pasting competitor reviews, allowing you to refine your product based on customer preferences. Plus, Chat GPT can revolutionize your inventory management with accurate sales forecasting, ensuring you’re always prepared for high-demand seasons.

Chat GPT Helps With Amazon Review Analysis

Chat GPT can analyze reviews and extract valuable insights, serving as a strategic tool in the face of diminishing returns. For example, you can copy your competitor’s negative reviews, paste them on Chat GPT, and ask it to summarize what customers don’t like about your competitor’s product.

You can then use the insights from Chat GPT to improve your product. You can also use this same approach with positive reviews to get insights into a product’s benefits and best-selling points.

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Chat GPT Helps With Amazon Seasonality Analysis

Inventory management becomes a delicate balance between overstocking and running out of stock during a high-sales season when selling a seasonal product. You need to forecast your sales accurately to know the inventory size you need. That’s where Chat GPT comes in.

You can feed your sales data to Chat GPT and ask it to extrapolate from past sales data to forecast future sales. Clément Hynaux ran this experiment for a client, and the forecast he’d gotten from Chat GPT was pretty good.

What Else Can ChatGPT Do For Amazon Marketers?

GPT’s knowledge cut-off is 2021. The AI program doesn’t know anything beyond 2021, yet it’s already powerful enough to cause ripples in the marketing world.

When GPT gets plugged into the internet, its applications will be endless. You could ask it to scrape Amazon for your competitors’ listings and list down the top customer complaints. This would completely automate the product research process for Amazon marketers.

Alternatively, you could personalize it to do tasks specific to your company. For example, you can feed it your company policies and connect it to your internal communications channels so your team can get quick answers to common questions.

You could also program it to train new employees, so you don’t use valuable man-hours running new hires through your company policies and systems.

The potential applications of GPT stretch as far as your imagination.

What’s Next For ChatGPT?

ChatGPT has caused excitement and dread in equal measure. On the one hand, some people think it’ll take their jobs and render them obsolete. On the other hand, we have people excited to incorporate it into their businesses to make operations more efficient.

GPT is a tool with massive potential to make research and copywriting easier for Amazon marketers. Think of it as a calculator. Calculators make mathematics easier, but they don’t render mathematicians obsolete.

Have you given ChatGPT a test drive yet? Trying it out could be the key to dealing with diminishing returns in today’s competitive market.