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Brands on Amazon are struggling to figure out how to adapt to the Amazon advertising ecosystem in the age of coronavirus. Supply and demand -- both for products and ad units -- have become volatile. Meanwhile, brands are struggling to figure out how best to remain profitable and plan for the future.
It seems like every day Amazon is changing the rules for its sellers. Some are seeing huge gains, others are seeing huge losses. What's clear, however, is that the platform has dramatically changed over the last few weeks and many brands feel left in the dark.
Two weeks into the age of coronavirus and Amazon third party sellers still feel in the dark. Those considered non-essential are trying to figure out ways to stay afloat while Amazon de-prioritizes their products. Some are trying to get their products re-categorized, others investing in new fulfillment resources. Risks abound for all the options.
Everyone is trying to get their hands on hand sanitizer and other cleaning products in the wake of the coronavirus. One top brand on Amazon is retooling its strategy in the height of the increased demand. Modern Retail chatted with its head of e-commerce about how it's approaching this dramatically changing retail landscape.
Selling on Amazon can be tricky. The company’s sheer scale means the key to getting the most out of Amazon as a retailer is the details. That was the major takeaway at Digiday Media’s recent Amazon Strategies event.
Reviews have been on Amazon for decades. But big and small brands alike are noticing more players gaming them. While Amazon claims that it's trying its best to fight the problem, it is only becoming a bigger headache as the e-commerce platform continues to grow.
Reviews have been on Amazon for decades, and so too have fake ones. But as Amazon has become a more dominant e-commerce force, the problem review fraud presents has become more clear. Here is a look at how Amazon has approached its review ecosystem, and how it's led to dark network of bad online actors.
This week, Digiday Media hosted its very first Amazon Strategies event. There, retailers, brands, marketers and others got into the nitty gritty details of what keeps them up at night. Competition -- both from others and Amazon itself -- was a frequent topic, as were data difficulties and problems keeping a clean brand presence. Here are some of the top observations overheard at the event.
During the Holiday season, Amazon abruptly announced that it wouldn't let merchants use FedEx to fulfill Prime orders. Now, the e-commerce giant has made an about face and let the parcel service back in. What's behind these moves is a complicated ecosystem of logistics competition and customer expectations.
Alibaba is making a big push to U.S. retailers. While much of its pitch is focused on entering the large Chinese market, Alibaba is also making one thing crystal clear: It is not Amazon has no plans to become like it. At a recent panel with Allbirds, the e-commerce company talked about this. Christina Fontana, Alibaba's Tmall's head of fashion and luxury, said the company is "building technology platforms and services that allow brands to speak directly to their consumers." She highlighted the data the company shares with companies selling on the platform, as well as the various opportunities to promote products -- be it via live-streaming or during events like Singles Day. Her pitch was clear: China is "the largest retail market in the world," she said, and Alibaba is an obvious way to access that population. It currently exceeds 755 million active users.
Large national retailers are all trying to grow out their own advertising businesses. Part of that is convincing brands that they have a unique platform that will lead to more sales. Modern Retail obtained Target's pitch deck, which shows how the retailers is positioning itself as a treasure trove of customer data.
FedEx and UPS are imposing new fees for heavy items. For the time being, this impacts individuals and companies that ship their own items. Overall, it's part of a changing shipping ecosystem where parcel carriers are trying to increase margins and rely less on Amazon. Online retailers, as a result, aren't sure how big the changes will be or when they will stop.
Amazon has long been touted as the "sleeping giant" of online advertising, and the retail giant showed further signs of fully awaking from its slumber in 2019. The company made significant improvements to its ad products over the course of the year -- particularly around data and analytics -- and ad-buyers say the company is getting more serious about making its tools more accessible and less confusing to understand and use.
The rise of retail media in recent years has unlocked new options for brands' digital ad dollars beyond just Google and Facebook ads.
Everyone loves to hate on Amazon. The e-commerce juggernaut ranks low on trustworthiness, DTC brands don't want to sell on it, and even Nike is no longer going to be working with Amazon Retail.
With in-person sales largely out of the picture this holiday season, brands must adapt to deliver the frictionless experiences that online consumers expect and demand.
At the same time as retailers are racing to perform ever-faster shipping times, they also appear to be upping the incentives for slow delivery. Retailers, including Amazon, Target and Macy's are all offering shoppers discounts in exchange for longer shipping times. And that split might signal a changing mindset for some retailers -- rather than focusing on speed at all costs, some are taking a more nuanced approach to logistics.
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