What Brands Should Know About Amazon
Amazon is the world’s largest e-tailer, accounting for a quarter of e-commerce purchases in the U.S. So how can brands improve their performance on the e-tailer?
L2’s series of Amazon-focused Insight Reports answers that question. Based on the new Commerce IQ, the reports examine topics like search and product listing structure in addition to delving into the specific experience of Beauty and Hair Care brands. Here are a few key takeaways:
Work on your Amazon presence. Brands investing in merchandising features like product images and clippable coupons show up first in the retailer’s search results. But as more brands become cognizant of that fact, scoring the top rank will become increasingly expensive and competitive. Seventh Generation is a case in point.
Get your SKUS together. By grouping related SKUs under a parent listing, brands can leverage bestselling products to improve the sales rank of newer or less popular items. Who’s doing this right: Febreze, L’Oréal Paris. Who’s doing this wrong: Almay.
Don’t avoid Amazon. A few Luxury Beauty brands refuse to engage with the e-tailer out of concern for brand equity. But this is a losing strategy: LVMH’s Prestige Beauty products are more popular than those of any other major Beauty enterprise, and because they’re sold by third-party merchants, the brand doesn’t get to control the customer experience. By officially distributing with Amazon, brands have been able to minimize the visibility of third-party merchandise.
For more on brand performance on Amazon, read L2’s relevant Insight Reports:
Senior Project Engineer at New York Power Authority
9 年It is definitely true that some retailers need to work on their respective Amazon strategies. I believe there could be some strategies that work for some and for some it may not. The problem is the reviews structure. Same listings get same reviews. So if you have two or more different cosmetic products, they will have same page reviews. This can get confusing for customers. However, if they are looking for a certain product, it will be easy to bring them to a single listing and there is a higher chance they will add more same brand products in the cart. So, it goes both ways. Brands shall definitely not ignore Amazon. There is a lot of potential and continuous innovation by Amazon will make it an ecommerce leader for years to come. So, the brands need to work on their strategies and be the first seller of their respective products.
Business restructuring and turnaround enabler in the automotive parts aftermarket with a knack for digital channels.
9 年Would be great to see your analysis on Amazon's top categories too.