Over the last two decades, Amazon has evolved from a purveyor of goods to a conglomerate active in other areas like digital media, devices and logistics. Since its founding in 1994, Amazon has continuously redefined commerce and now holds the title as the world’s largest internet retailer. In fact, Amazon and its third-party merchant business accounted for nearly one-third of all goods sold online in the US and nearly one-fifth globally, according to the latest data from Euromonitor International.
Amazon’s vision to be a place where people can find and discover anything they might want to buy online means that commerce brands that want to stay relevant in the digital era have to win on Amazon. A variety of digital commerce executives offered strategies for doing so at an “Amazon and Me” workshop held this week as part of the Internet Retailer Conference and Exhibition in Chicago. Below are six key insights for winning in Amazon’s world:
Before launching on Amazon, it is important to prioritize goals. Jamie Dooley, who heads e-commerce for Dorel Juvenile, said sellers need to understand its leadership’s expectations in terms of sales, profit margins and brand exposure. With regard to selling a product as a third party or pursuing wholesaler relationships with Amazon Retail, he advised attendees to start with the third-party marketplace. While working directly with Amazon provides opportunities to control product detail listings and drive traffic, Amazon Retail maintains the first right of refusal for any goods on the marketplace that it already sells through the wholesale relationship.
Second is as good as last
There is an expression in Amazon circles that explains the power of its search: The best place to hide a dead body is on the second page of Amazon’s search results. In fact, less than one-fifth of clicks by an Amazon shopper are for the second page, according to data from One Click Retail. Eric Heller, who is the CEO of Marketplace Ignition, explained that brands must format the description, speak about product benefits in concrete terms and include product features to maximize search relevance. Sellers also need to…