Canada vs. USA Marketplaces
The described product is an example of Canadian and USA marketplaces’ distinctions. The table shows ad sales, ad spend, and total sales of the represented product on Amazon.com and Amazon.ca. Despite the significant result differences presented in the table, the product is a bestseller on both marketplaces. Ad sales of the product in Canada make up $80,388.00 and in the USA $535,185.00. It means ad sales profit in the USA is 565.75% higher than in Canada.
On the other hand, the product’s ad spend on Canadian Amazon is $12,950.40, when ad spend on USA Amazon is $129,086.00. In comparison, the seller invests 896.77% more in advertising on the USA marketplace than on the Canadian one.
Total sales profit in Canada is $150,650.40 and in the USA – $1,373,461.00. The total profit in the USA is 811.69% more than in Canada.
In general, the USA indicators are 7.5 times higher.
Even so, USA ad results seem more successful, Canadian advertising compared to the ad spend works better because of how much is spent and how much is made on ads. It is conditioned by the lower competition in the niche in Canada. Competition plays a substantial role in the business development of any marketplace, it affects clicks, conversion rate, organic ranking, etc.
The graphs down below illustrate noticeable profit and budget differences on two big Amazon marketplaces:
One of the reasons for such great result differences is the country’s population. The population of Canada is 37.6 million, and the population of the USA is 772.87% bigger, 328.2 million. However, by analyzing the effectiveness of the advertising on different marketplaces, have to be considered influential points like general demand for the product, target audience, niche competition, top-sellers etc.