Ask the Collective

Why are high-marketing-spend products underperforming on Amazon while lower-RSP products with no marketing spend are gaining traction?

Members have observed a recent shift in Amazon's algorithm where traditionally strong-performing products are slowing despite increased marketing spend, while lower-priced products without marketing support are outperforming. The exact cause remains unclear. **Key observations:** - High-marketing-spend products are underperforming across multiple sellers' catalogues - Lower RSP (retail selling price) products with minimal or no marketing spend are gaining algorithmic favour - Even top historical sellers have slowed down noticeably **Potential strategy if facing MoM (Marketplace Manager/competitor) buy-box pressure:** - **FBA should theoretically win the buy box** if your offer is compliant, so the focus should be on sustainable pricing rather than constant promotional spend - **MoM competitors typically price-match aggressively**, but they also increase their own prices to maintain margin when you stop lowering yours—you can regain the buy box by holding firm at a higher price point - **Selling to MoM as a wholesale partner** may earn better margins than selling via FBA after accounting for Amazon's fees, even if you lose the buy box - Note: If MoM wins the buy box and customers buy from them instead, you still make a sale as a supplier, though you lose direct customer data **Caveat:** The root cause of the algorithm shift is not definitively understood by members; this represents current observations rather than confirmed Amazon policy changes.