As businesses take time to reflect in the run up to Christmas and maybe even prepare to make their New Year’s resolutions, an Amazon specialist encourages businesses to add this platform to their January to do list.
Starting with Black Friday and Cyber Monday, brands are experiencing the busiest quarter of the year. The Covid-19 pandemic saw many brands move towards a D2C strategy to sell to customers directly ‘from factory to sofa’, some implementing ‘in-house platforms’ others choosing to go through third-party retailers or marketplaces. Since then, brands have continued to embrace D2C as a way of supercharging their growth, increasing their profitability and building their brand.
With this in mind, Matthew Peck, CEO of specialist Amazon Marketing Agency, Market Rocket explains that brands can successfully use the Amazon platform to boost a D2C strategy, support success during the peak season and accelerate future growth in the new year.
Matthew says, “If you have a product, however emotionally, physically or financially invested in it you are, if it is listed on Amazon at a suitable RRP and its sales are directly attributed to you in some way, then I can’t think of a reason why you wouldn’t want to be represented on the biggest consumer marketplace in the world.”
Third-party sales on Amazon began in 2000 when the company launched its Marketplace feature. Previously, Amazon had controlled all listings on its platform, which meant buyers were limited to whatever products Amazon happened to have for sale. But by allowing third-party vendors to list their products the company ensured that customers could get anything they were looking for in one convenient place.
Today, independent sales from third-party sellers make up more than half (58%) of Amazon’s total sales. With the level of success enjoyed by these third-party sellers, this number is constantly growing and adding to the already massive selection of products available on the Amazon platform.
This growth in choice has converted into sales traffic, with according to Mintel data, around 90% of people in the United Kingdom now shopping at Amazon, about 70% of people shopping on Amazon at least once a month, while 17% use the online marketplace at least weekly.
One of the counter arguments some brand owners have for not selling on Amazon is that it will cannibalise sales on their own web site, where they can earn a better margin, but Matthew argues that the audiences on brand web sites and Amazon brand pages are very separate.
He suggests that Amazon shoppers are Amazon shoppers, who don’t visit 20 different websites to purchase 20 different items, but instead use Amazon as a one-stop-shop which they feel fits nearly all of their requirements. Adding if your product isn’t part of the ever-expanding choice you are missing out on a lot more sales opportunities.
“I think the best argument for brands to be able to strengthen their position by entering into a relationship with Amazon is the recent move by Apple to sell their branded products on the platform. They are proof that brands with strong positioning on and off the platform are able to break through the clutter and thrive on Amazon.
“Apple has created a large, loyal customer base that is interested in buying genuine Apple-branded products. They are used to visiting apple.com or a brand store on the high street, but rather than see Amazon as a threat, Apple are now targeting consumers that use Amazon to search engines to buy laptops or smart devices and leveraging their off platform brand position to steal some on-platform audience as well.”
Some might argue that this is fine, for global brands with the size, wealth and infrastructure of Apple, but what of smaller, less established businesses who perhaps haven’t tested this marketplace?
Matthew argues the case for SMEs too. “Yes there are fees for selling on Amazon and margins are important, but the alternative is to create an ecommerce site, build a strong brand, drive sales by paying for Google or Facebook advertising and investing in SEO over a long period. All of these expenses add up, whereas Amazon charges a fixed fee, which if you factor in fulfilment by Amazon (FBA) that removes a lot of expensive storage, logistics and distribution costs, it represents a really good deal.”
Due to Amazon’s global reach and surging popularity, competition can be fierce for newer sellers who are less equipped for the market. However, with the right Amazon seller tools, savvy niche selection, and a unique product, there is no shortage of profit for solopreneurs or small businesses looking for a new opportunity in 2023.
Matthew Peck, CEO, founded Market Rocket in 2019 along with business partner Mia Briggs following a successful career in e-commerce that saw him create revenues over £50m annually.
In 2022, Market Rocket was acquired by FMCG investment house S-Ventures to boost the performance of its portfolio of brands.
As a verified Amazon SPN partner, Market Rocket specialises in listing optimisation and full-account management on the Amazon platform as well as offering a diverse range of skills, including PPC advertising, design, SEO and PR off platform.