On Amazon Prime Day, 150 million Prime subscribers worldwide were on the hunt for the latest deals. In fact, the event was the biggest in its six-year history with shoppers purchasing more than 250 million items worldwide – saving more money than any Prime Day before. But why was it so successful…?
With the pandemic causing havoc on the high-street due to periods of prolonged store closures, the demand for online shopping has sky-rocketed over the past 12 months. Indeed, millions of consumers have now become privy to the ease, efficiency and variety that eCommerce platforms offer, and this shift in behaviour was seen during Prime Day on the 21st and 22nd of June.
But, the 48-hour shopping bonanza also presents an opportunity for brands to capture the heart of Amazon’s vast audience, both before, during and after the event.
Gaining traction in an Amazon world
If brands want to be successful in today’s retail landscape, integrating an Amazon strategy into their business model is key.
Traditionally, brands are reluctant to invest in Amazon, out of fear that their brand will be diluted by, or risk losing conversion over, Amazon’s own branded products. However, consumers think differently – they see Amazon not only as a place to purchase high-quality brands, but as a place to engage, build relationships and create stronger connections with products and services.
Long gone are the days where Amazon’s own products were considered the end of the funnel, the solution to shoppers’ needs. They are now an option, alongside many others, that customers seek out for in their online experience. Brands need to alter their mindset and view Amazon as an audience focal point that can provide a global reach.
In fact, Amazon has taken steps to support this collaborative approach through the ‘Brand Store’, which enables retailers to design their own virtual storefront and create a seamless shopping experience. This new feature must be utilised by brands wisely and the uploading of rich media content such as product tutorials, before and after demos and lifestyle imagery is a fantastic, vivid way to grab consumer attention in a saturated market.
Creativity and the consumer at the heart
Amazon doesn’t only offer a vast global network that some brands cannot simply replicate – it also presents an opportunity for brands to be creative when it comes to paid media to connect with audiences. This is especially true as an external study found that close to three quarters (70%) of campaign performance is down to creativity, despite only 10% of campaign budgets going towards creative development; the disconnect here is something that Amazon can help plug.
Sponsored display ads that build on the agility of the brand store, by connecting shoppers back to it, is another way that brands can expand their reach. For example, a new product launch can be brought to life if the brand store and sponsored advertising reaches audiences at the right time, on the right platform and with the right product. What’s more, if brands have a wealth of products that they want consumers to browse, they can set up a multi-page store that replicates a small-scale version of their own website within the confines of Amazon’s worldwide platform.
It’s this level of innovation, with creativity at the very centre, that will set brands apart; not only on a popular shopping moment like Prime Day but all year round.
Amazon Vs AND the brand
Amazon presents an opportunity for growth for thousands of retailers. But without a strategy behind it, no brand will thrive and succeed. Retailers need to look under the hood of its Amazon webpage, to analyse back-end metrics and leverage consumer insights, which enable them to pivot their strategy quickly and quantify their efforts.
Traditionally Amazon was a place to buy and buy only. Now, it’s a virtual shopping centre that can connect brands with influencers, customers, services, partners and more. Three quarters (75%) of shoppers visit the site to discover new experiences – a figure which likely increased during Prime Day. Shoppers can also ‘follow’ a brand, while Amazon Posts allows sellers to share unique lifestyle images and product-related content through a ‘feed’ that is akin to popular social media platforms.
Amazon’s own strategy has always been about putting the consumer at the heart of the business. Shoppers are the judges, the people that determine a product’s worthiness with consistent and quality reviews on the platform a must, not a nice to have; Amazon shoppers often do not purchase a product that received less than 3 stars.
Getting the basics of the product right, along with a stellar advertising strategy, is the combination brands must strive for.
Back to basics
Still in doubt?
Just look at the results: brands that have three or more pages have an 83% higher shopper dwell time per visit, while the presence alone can generate a 61% increase in average order value.
As the world begins to look more like it did pre-pandemic, the shift in the retail landscape is here to stay. Brands are no longer diluted by Amazon, but must instead find a way to benefit from its vast customer network and continue to grow.
It is a win-win situation for all parties involved.
Marjorie Borreda-Martinez, Client Partner/Hub Lead Amazon at Jellyfish