A new study from Feedvisor, which describes it self as an “AI-driven … company that helps brands and retailers optimize their e-commerce businesses with Amazon at the core,” suggests that Amazon plays a significant and expanding role in how brands market themselves.
Excerpts from the study:
• “Over half of brands (54 percent) are already selling on Amazon today, and nearly three-quarters (72 percent) of brands will be selling on the platform within the next five years. “
• “For 44 percent of brands selling on Amazon, more than half of their total e-commerce sales come from the platform. One-third of the brands (32 percent) selling on Amazon said it accounts for up to three-quarters of their overall e-commerce sales. It is evident that for the remaining brands, a significant opportunity exists to increase their share and capitalize on the platform’s profit potential.”
• “A significant majority of brands both selling on Amazon (97 percent) and not currently selling on Amazon (84 percent) agree the most compelling benefit to selling on the platform is acquiring new customers.”
• “Of the first-party brands surveyed, more than four in five (81 percent) want to expand to Amazon’s third-party channel. The majority of brands (61 percent) interested in evolving their relationships with Amazon said their primary reason is to get in front of a larger audience.”
Excerpts from the study:
• “Over half of brands (54 percent) are already selling on Amazon today, and nearly three-quarters (72 percent) of brands will be selling on the platform within the next five years. “
• “For 44 percent of brands selling on Amazon, more than half of their total e-commerce sales come from the platform. One-third of the brands (32 percent) selling on Amazon said it accounts for up to three-quarters of their overall e-commerce sales. It is evident that for the remaining brands, a significant opportunity exists to increase their share and capitalize on the platform’s profit potential.”
• “A significant majority of brands both selling on Amazon (97 percent) and not currently selling on Amazon (84 percent) agree the most compelling benefit to selling on the platform is acquiring new customers.”
• “Of the first-party brands surveyed, more than four in five (81 percent) want to expand to Amazon’s third-party channel. The majority of brands (61 percent) interested in evolving their relationships with Amazon said their primary reason is to get in front of a larger audience.”
- KC's View:
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One interesting thing about this story is how it says two-thirds of the brands jumping into bed with Amazon acknowledge its relentless push into private label is causing them some level of pain. But they see no option to working with Amazon to grow their brands and sales … which tell us something.
