2023 Trends to Track: Amazon Moves and the Industry Shakes

SPECIAL EDITION ALERT!

I got the chance to sit down with fellow?Chief?and friend?Libby Rodney?and discuss the trends we can't stop talking about for 2023. What came from it were five great topics that will affect all business leaders in the coming year.??

Every day this week, I will release one trend that marketers and business leaders need to consider as we get closer to 2023.

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Trend?#1: Less is More. Sustainability & The Climate Crisis

Trend?#2:?The Painful Unwind of the Convenience Economy?

Trend?#3: Social Media is Reborn

Trend #4: Tight Chests and Tight Wallets

Final Trend #5: Amazon Moves and the Industry Shakes

Amazon has completely turned eCommerce on its head. Like it or not, they are a force to be reckoned with. They created a world where product searches no longer start on Google but on Amazon. In this new world, previously untouchable Google is losing search market share, and Amazon is recapturing it. More product searches happen on Amazon than on Google, and we are starting to see dollars flow away from traditional search engines and into Amazon.

They also re-wired the consumer to start holiday shopping earlier. In the past, Black Friday was the big start of the holiday shopping day, but that is no longer the case, with only?20%?of consumers saying they will shop on Black Friday compared to 60% in 2015. Amazon's Prime Day (or early access sale) was once again the kick-off of the holiday season. Around 30% of Prime Day shoppers used the event to purchase holiday gifts.?43%?of Prime Early Access shoppers also shop additional sales, including Target Deal Days, which launched simultaneously. Amazon has turned Prime Day into another Black Friday or Cyber Monday - another shopping day.

So what can we expect of them in 2023? While Amazon has dominated intent-based shopping for Amazon sellers, that will only get them so far. They have ambitions that will not be capped by how many people are searching on Amazon or by only allowing Amazon sellers to advertise. So in 2023, I expect a few moves.??

1. ?Amazon will continue to build out its brand offering and allow brands to create a true full-funnel platform from discovery to conversion to retention. They will make a case they are not just a search platform but a brand discovery destination and CRM platform. They will also continue to make the case that they can replace your website and will get closer to doing so. For brands, capturing intent on Amazon is no longer enough. Search on Amazon has gotten oversaturated and expensive. It has a place, but it can no longer stand alone. Brands must build a brand store and a brand presence to survive and thrive on Amazon. They must lean into the new Amazon or get left behind. Amazon is maturing, which means increased cost and competition so getting your brand to stand out is your only choice.??
2. Amazon will start allowing more DTC brands to advertise on Amazon even if they don't sell on it. They recently announced allowing non-Amazon sellers to advertise on Amazon but only if the brand uses Buy With Prime (Amazon's DTC fulfillment offering). Currently, it's a rather complex user journey from ad to brand website, but it does hint at Amazon's ambition to become an ad platform for all. It would be easy to see how Amazon would allow any brands to sell on Amazon if Amazon powers another part of their business (payments, fulfillment, borrowing, etc.). Offering brands an ad platform in exchange for Amazon handling some of the back end is a win-win for Amazon. For brands, it would offer access to Amazon's ad platform, where most product searches begin. With the challenges that advertisers are dealing with, starting with iOS14, the Amazon ad platform is highly coveted.??

Key Takeaway: Brands can no longer survive on Amazon by only capturing intent. Building a brand on Amazon will become a priority, and Amazon will start incentivizing those brands that do. Dive into your current Amazon campaigns and rethink some of your 2023 priorities for Amazon.??

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Megan Conahan is a 17-year veteran of the digital marketing industry. Over the last 17 years, she’s consulted with fortune 1000 brands on how to best negotiate the ever-changing digital marketplace demands and create unique solutions to set them apart. Megan is an EVP at Direct Agents, an independent and minority-owned digital marketing agency.?

If you want to hear more trends from?Libby Rodney, please subscribe to her podcast?America This Week.