Amazon: What Does It Take To Win?

For brands today, Amazon.com is no longer just another retailer for selling products. Its a digital content provider, marketing channel, THE retailer and major starting point for all shopping research. 55% of product research leading up to a sale is now conducted on Amazon vs 28% on traditional search engines (BloomReach Survey—Sept. 2016). Because of this, brands can not treat Amazon like any other retailer. They have to take a Amazon-specific approach.

So what does an Amazon-specific approach look like? Well, we can’t give-away all of our knowledge and expertise over a blog post. But, here’s a starting point…

First, to orchestrate a winning plan, you need to start by knowing where you stand. What’s your Amazon.com Product Health Score? Understanding this allows you to build and adjust your actions and determine how to optimize.

Or, if you don’t know your Product Health Score, give us a call. We can help you determine where your product’s overall representation falls on the amazon.com health spectrum. Key elements of this include: evaluating your creative, SEO, inventory, third-party players, merchandising/AMS, and more.

Secondly, you have to build an experience based on the wants and needs of all parties: your target, brands and Amazon.com. That may sound like an simple and obvious thing and in some ways it is. But, if you get it wrong, you can quickly get off course.

YOUR TARGET

Create a plan that will engage your Amazon target in all her retail modes across the customer journey (consumer, shopper, buyer, influencer). Her mindset, behaviors and surroundings change in each so engaging in each will take the right plan.

YOUR BRAND

Understand you brand’s needs and presence on the platform, including your: Brand Position, Reach, PDP Impact, Conversion, Re-marketing, Influence and Overall Product Health.

 

AMAZON.COM

It’s imperative to know where your brand stands on amazon and we are talking about more than just sales – although certainly that is important. Talk to your customers, know how they are using amazon but also look at how they behave. Paint a broad picture that correlates your activities to action. Look at A/B testing, SEO, merchandising, traffic drivers and media segmentation, etc. More than anything, understand what your customer wants from your brand and translate that onto Amazon.com. It’s an environment where you can quickly become commoditized and understanding how it all works together is a full-time job.

Want to know more? Reach out to Joe_Scartz@tpnretail.com

The Amazon Effect on eCommerce and CPG Brands

The use of digital technologies in conjunction with changing shopper behaviors is making eCommerce an indispensable part of CPG omnichannel success. Brands seeking to convert online consumers should focus their attention on convenience, and how important it is in the shopper journey. According to Jennifer Silverberg, CEO of SmartCommerce, “Consumers might not care that something is more expensive, but if they can order it online and they don’t have to go to the store, they will.”

eCommerce and its ease of entry is growing and brands are taking notice. In fact, strong growth is forecast in several eCommerce shopping channels:

  • Computers and consumer electronics total $62.7B in 2017 and that number is expected to hit $97.6B by 2021[statista]
  • Apparel and Accessories eCommerce dollar sales come in at $86B and is expected to reach $96.4B by 2021[statista]
  • Auto and auto parts currently sit at $51.6B with growth projected to reach $57.4B in 2019[statista]
  • U.S. online grocery sales totaled $7B in 2015 and that total is expected to more than double to $18B by 2020[statista]

The biggest driver of eCommerce growth continues to be Amazon.  Amazon’s success isn’t just a byproduct of its huge inventory and rapid service. The online shopping behemoth, according to Yaakov Kimelfeld, Chief Research Officer for Kantar Media, “is not a retailer anymore; it is the largest behavioral marketing company in the world.” Amazon understands shopper motivation not just with purchases but with research. Fifty-five percent of product research that led to a purchase started on Amazon.com compared to 28 percent of the same on search engines. Amazon is now the preferred starting point for product research. How did that happen?

Amazon’s march toward eCommerce preeminence starts with its creative customer service model.  Amazon lives at the perfect intersection between shopper and brand. By understanding shopper behaviors and patterns, they’re able to create actionable plans that can make a more immediate impact for consumers. They’ve also built brand affinity and awareness by positioning brands in the immediate shopper path of purchase. With a heavy focus on the customer, Amazon can optimize constantly, giving their consumers more of what they’re looking for, and driving conversions and shopper loyalty for brands. The shared success model is a driver of Amazon’s eCommerce dominance.

Where does that leave retailers like Walmart?  The shopping giant is responding by spending more on mobile and digital technologies to expand their online shopping capabilities. They’ve strengthened their presence in the eCommerce market with their purchases of men’s internet clothing brand Bonobos, and the innovative online shopping company Jet.com.  Another recent Walmart acquisition is Parcel, a New York-based same-day delivery startup that specializes in perishable grocery delivery, an attempt to leverage the former acquisitions and compete heavily in a market where they have no brick and mortar stores.

CPG brands know that being competitive in today’s convenience shopping environment means the buying process needs to be as painless to the shopper as possible. Luring consumers into buying your product is only half of the equation. Giving them the easiest path to purchase the moment they want to purchase will win the day.

Competition Intensifies in the Voice Controlled Smart Home Market

Amazon, Google, and Apple battle it out for purchasing power in the smart home market. TPN’s Digital Marketing and Commerce Team monitor these brands and how their products continue to boost growth in eCommerce. Watch this week’s TECH+DMC minute below to learn more.

TechDMC October 10, 2017 from TPN on Vimeo.