If a fair percentage of your buyers are already on Amazon, and if third-party sellers are reselling your products on the channel with less-than-optimal regard for your brand messages and profit margins, then it's where you need to be. If you have not yet dipped your toes into Amazon’s waters, you may want to think less about one channel cannibalizing another and look instead at maximizing the best channels to increase sales overall while giving you more control over your brand experience. This can lead to unsatisfied customers whose ire is directed back at the brand, rather than the seller. Many brands see significant misrepresentation of their products by resellers on third-party platforms, along with pricing that falls outside of minimum advertised pricing policies. This means that they have already lost control of their brand experience simply by not being present. Right now, many brands' products are likely being sold on Amazon even if they are not the ones selling them. Like it or not, brands must meet customers where they are, whether on their own website or on the leading e-commerce site. Yet many brands worry that selling on Amazon will cannibalize their existing e-commerce strategy, or that they’ll lose control over their brand experience. So where does this leave brands that are not on Amazon? Amazon has a thriving third-party seller program that accounted for 55% of the goods it sold in the last quarter of 2020. It’s no wonder Amazon Prime is expected to have more than 153 million U.S. That’s a whole lot of value that is unmatched by Walmart or any other e-commerce retailer and unlikely to be replicated. Prime also offers access to Prime Video, Prime Reading, Amazon Fresh, Prime Now, Prime Wardrobe, Amazon Key and much more - all seamlessly managed via a single account. Amazon Prime can be connected to an Alexa device, creating another convenient way for consumers to order their favorite products or stream music. But Amazon has taken its brand experience several steps further. The Amazon Prime membership and its shopping and shipping perks are just one example. The final reason Amazon will likely continue to snag market share is that it excels at ensuring it remains top of mind. Amazon Continues To Create Value For Customers When shopping for tennis shoes, many consumers aren’t searching for Nike they’re searching for options, and brands can benefit from being visible among the available choices.ģ. Consider that 78% of searches on Amazon are unbranded.
If brands aren’t on Amazon, they could be losing out to competitors who are. With Amazon, you know when you’ll likely receive a product even before you place an order.įor these reasons, Amazon seems to be the default shopping channel for many consumers. You might have no idea when your goods will ship or arrive. When you’re ready to buy, you may be required to create an account that you’ll likely use only once, input your credit card details, and then sit back and wait. If you have a specific brand in mind, you may have to go to its website, search for the product and even compare across websites. Say you’re in the market for a new pair of tennis shoes. Now compare this with other digital shopping experiences.
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With so many competitively priced products, a powerful recommendation engine, a one-click “Buy Now” option and free delivery on Prime goods, Amazon has removed many elements of friction from the buying experience. Amazon Isn’t Just Convenient It’s The Default Shopping Channel For Many Walmart is now the second-largest e-commerce retailer in the United States, but it still lags far behind Amazon.Ģ. That’s not to say Amazon doesn’t have competition.