The appeal of selling on Amazon.com Inc.’s online marketplace is clear: Amazon has never been more dominant within ecommerce. The retail giant sold an Internet Retailer-estimated $344.71 billion worth of goods globally last year. In the United States, Amazon accounted for more than 40% of online retail purchases, according to Internet Retailer’s analysis. And it also dominates shopping-related searches, as more than half of U.S. consumers begin their product searches online according to a March 2018 Internet Retailer and Bizrate Insights survey of 1,082 consumers.
Even so, many brands have avoided selling on Amazon because of the platform’s drawbacks. Sellers don’t have access to customer data, they can’t remarket to shoppers that purchase their products and, until recently, they haven’t been given the tools to showcase their brands.
But as Amazon builds out its array of brand-building tools, the retail giant is making its platform a sales channel that’s difficult for brands to ignore. Amazon is giving more tools to marketplace sellers to promote their brands. In addition to paid options such as Sponsored Listings and Sponsored Brands (ads that feature the brand’s logo, three products and custom headline), marketplace sellers that are part of Amazon’s Brand Registry—a program that provides sellers that have a registered trademark with tools to help them control their brand’s representation on Amazon—can use Enhanced Brand Content, videos, have a branded storefront and more. However, while those tools are helping brands build awareness on Amazon, it isn’t clear whether those efforts are actually bolstering their bottom line…
This article digs into how sellers are using these enhanced branding tools and how it has impacted sales. To view this article, you must be a free Digital Commerce 360 Strategy Member. If you’re a member, sign in. To join for free, click here.
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