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How to win on Amazon in 2020

The Drum 18 Mar 2020 02:00
By Jim Hawker-18 March 2020 14:00pm

The marketing sector can be a complicated place as new marketing tools and techniques are launched, almost on a weekly basis. Powered by The Drum Network, this regular column invites The Drum Network's members to demystify the marketing trade and offer expert insight and opinion on what is happening in the marketing industry today that can help your business tomorrow.

Threepipe remind marketeers of the importance of investing in an Amazon strategy and inhouse Amazon specialists.

I don’t need to tell anyone reading this how much the retail landscape has changed in the last few years and as I write this article, I am also taking in the news that Shoe Zone is warning of 100 store closures and that Groupon will stop selling physical products by the end of 2020.

The causes of this are complex, including the need for a refreshed approach to business rates and the need for a digital tax to allow a more level playing field. Until that happens though, brands need to adopt a more agile retail strategy, including understanding how better to work with Amazon. For too long, many brands have largely ignored it or been dismissive of it as part of a considered sales and marketing strategy.

As online penetration rates across most retail categories continue to rise, Amazon is in prime position to take advantage of the struggles of the high street retailer – for lots of reasons, some fair and some unfair.

Competition from all comers

Amazon's own label is also expanding into different categories and the company has access to a huge amount of data that it is using to fuel this product development. Instead of moaning about this, brands must build a counteracting strategy.

We are also seeing the rising importance of Amazon as a branding platform for companies not selling on the platform. The Amazon prime membership is mostly metropolitan and earn above average income. We have recently seen financial services companies that want to experiment outside of the duopoly of Google and Facebook running brand awareness campaigns to reach these affluent audiences.

Amazon will only get stronger. Relying on brand strength in other channels isn’t enough to succeed.

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