3 truths that will make you rethink what Amazon should be doing for your brand.
For too many brands, Amazon is an inconvenient truth. A placeholder to complete transactions, to burn through unsold and unpopular stock, and to redirect customers back to their .com. If that’s you, and your Amazon seller account is currently being managed by your nephew, you’re doing it wrong.
The reality is that Amazon’s technology is the biggest opportunity for E-commerce right now. Brands that are leveraging it will reap the benefit of short-term sales growth and increase long-term overall brand equity.
1. Your Customers Are Amazon Customers
With close to 50 million Prime members (44% of all US households), the volume of customers using Amazon to shop, research, and run in-store price comparisons is unprecedented. This towers over the membership numbers for Costco (34%) and Sam’s Club (31%), both of which are in decline. The real differentiator is that shopping with Amazon creates a personalized experience. The platform uses its members’ shopping and browsing history to make informed suggestions, serve better ads, and offer relevant content. Amazon is in the unique position to learn more about its customers than any other company and merge this with multiple layers of delivery. All of the best-in-class technology that creates this full-circle customer experience can be leveraged by brands. If you haven’t done this yet, your customers will be there waiting for someone else.
2. Retail Readiness is Key
If you frame the Amazon marketplace just like any other retail platform, try to consider what retail readiness looks like. Think about an Apple store. From the branding to the packaging design, every aspect of the Apple experience has been designed to make customers feel like they’re getting the best product available. Amazon offers the same opportunity to wow customers and makes a lasting impact. Do you want your products to be the first thing customers see when they walk in the door or crumpled up in a storage closet next to the bathrooms in the back? Amazon is the most customer-centric company in the world and haphazard content that’s thrown together is not going to hack it. Brands that have a very specific content strategy in place, designed for the Amazon marketplace, will position themselves at the front door.
3. The Marketplace Shift Cannot Be Ignored
There has been a shift in retail. It’s happened already, and change is accelerating. Brands that have built valuable equity through brick and mortar or e-commerce sites are in a position to transfer that to Amazon and leverage the momentum generated by customer demand. But it starts by seeing this shift as an opportunity. Not another option for your existing customers to complete a transaction. Guaranteed, someone else sees Amazon for what it is, and if you don’t they’ll start diluting your brand equity by taking advantage of its immense customer base.
E-commerce has been a silver bullet for brands and retailers, but the opportunity hasn’t been slain. It’s right there. The door is closing. 2017 might be the last chance to take action and do something before the emerging leaders pull away.
Is Amazon a part of your digital strategy?
If not, why not?