We all know Amazon is great for selling non-branded products, all shoppers want are products that solve their problems at an affordable price. But what about branded products or even household names? At Magnet AMS we have found that Amazon can be a great channel for household names and newly launched brands. Continue reading to learn why!
Inspiration driven shopping
Amazon shoppers were previously very transactional, i.e. they were looking for a specific product(s), and once these goods were found and purchased they jumped off the site. Not that unusual for online shoppers right? Not entirely, many people enjoy online shopping, almost as a pass time or form of entertainment. So when the pandemic hit and consumers could no longer shop or window shop in local malls or high streets, Amazon became the main shopping destination. Today 52% of customers get inspiration about products to purchase from Amazon, which indicates that it’s a great way to discover new products and ideas of new things to purchase.
Purchase intent searches
What about shoppers who know what they want? Well, Amazon now has a larger % of purchase intent searches than Google with 63% of searches starting on the platform. According to Insights Future Shopper Report, this trend is particularly pronounced in Germany and Spain, with 82% and 83% of searches starting with Amazon respectively. What does this mean for you? 63% of the online shopping market is on Amazon and you have an opportunity to expose your brand to an audience whose shopping journey would never lead them to your website.
Price is not the only factor
We all know that price is the predominant factor for online shopping, but if shoppers are only concerned about price then it’s a race to the bottom, and what is the point? Price is an important factor but not the only factor, other factors such as availability and delivery come to play and of course, in different product categories, there will be different purchasing criteria. Know what these are and play to them.
More frequent purchases
Frequency is not something people discuss but for most e-commerce companies, profitability lies behind lifetime value and repeat purchases. So how often are people repeatedly buying from your website? Significantly less than they are buying from Amazon, on average shoppers order 6.5 times a month in comparison to other marketplaces (4.9 times), other retailers (3.8 times), social (in apps) platforms (3.5 times), and from branded sites (3.4 times). Amazon attracts repeat customers because of the convenience and breadth of products, so at Magnet AMS we encourage brands we work with to focus on getting more customers to transact more often. And in the meantime take advantage of the marketplace's loyal customers.
Buyers are looking for branded goods
Although shoppers are not purchasing as much from brand websites, they are actually looking for branded products on Amazon because they can purchase with ease, convenience, and quick delivery times. According to Insights report in the UK, Amazon was cited as the best at “access to brands” by 47% of consumers, this grew by 10% from 37% last year, this shows there is an appetite to find and purchase branded goods by consumers and a willingness from Amazon to sell brands.
Amazon is a channel all brands need to have a strategy for. If you are looking for ways to expand your reach or promote your brand’s discovery, at Magnet AMS we would love to speak with you, book a call with this link here.
Head of Client Services | Magnet AMS
Magnet AMS helps small businesses and e-commerce brands become Amazon category leaders. They help new and established Amazon sellers exponentially grow their sales and increase their profitability using systems and tools they have designed to drive product discovery and deliver recurring sales. Book a free strategy call with Connie here.