Since its launch in 1994, Amazon has come a long way from its humble beginnings as an online bookseller. Let’s begin with a few numbers about this ecommerce giant, shall we?
- Each month more than 197 million people around the world get on their devices and visit Amazon.com. That’s more than the entire population of Russia!
- Amazon sells more than 353 million products and has just released the Amazon Marketplace Appstore in 2019 to help sellers optimize and automize their store.
- Millennials are Amazon’s largest audience and it generated $178 billion in sales in 2018.
- Online shoppers spend more time on Amazon than on the top 9 online retailers combined.
There’s a reason Amazon reflects such jaw-dropping numbers. This success took years to achieve and is due in part to Amazon’s strategic approach to growth. Any ecommerce business, regardless of where they start, can learn from Amazon’s example to grow their business and attract and retain more customers. The success of the e-commerce industry is unquestionable — global sales are expected to nearly double from $2.8 trillion in 2018 to $4.9 trillion in 2021.
Therefore, in order to thrive in today’s customer-driven e-commerce landscape, brands must build agile e-commerce strategies with Amazon at the very centre.
The reason is quite simple: Amazon already dominates every stage in the customer journey. In fact, more than 2/3rd consumers typically start their new product search on the platform and nearly 3/4th go straight there when they are ready to make a purchase. Amazon consistently delivers the seamless experiences consumers expect across every point of engagement, from advertising to product search to purchase.
Takeaways for businesses:
Holistic approach to tame Amazon
We know that venturing into something as big and unknown can be intimidating, but instead of resisting Amazon’s influence, brands should leverage it to fuel their own success. Amazon is a dynamic marketplace that requires reputation management, agile operations and brand visibility in order to be successful. By creating a holistic, adaptable Amazon strategy, brands can maximize their performance across pricing, inventory, brand management, customer service and more, all while defending their voice and equity.
Get known by millions
Advertising is another critical piece of this strategy. Though Amazon’s ad platform is not yet as sophisticated as veterans like Google and Facebook, household names are already using it to successfully reach customers. A recent analysis found that nearly every brand advertising on Amazon sees value in their investment and that is unlikely to change. Brands are attracted to the platform’s inherent ability to connect them with millions of customers discovering, comparing, and considering products at every stage in the purchase process. Also, with Whole Foods, Fire TV and Alexa, brands have the ability to experiment with innovative, multichannel advertising experiences that help generate insights and diversify inbound revenue streams.
With the rise of its advertising and branding services, and the fact that a significant majority of consumers are more likely to buy products from Amazon than other e-commerce sites, brands need to adopt an Amazon-centric strategy.
All of these capabilities demonstrate the urgency to integrate Amazon, and when they are working together can not only lead to untapped profits for brands, but allow them to have a robust presence where their customers of today and tomorrow are — a necessity in an age of e-commerce dictated by the shopper.