Year after year, Amazon manages to consolidate its place as a major player in the digital business arena. From online sales to digital advertising, the participation of this firm in this field of competition has made it a necessary ally for brands. For a sample it is enough to provide some information about it. The e-commerce giant will see its advertising business grow by 50 percent in just one year. Its market share will go from 6.8 percent to 8.8 percent this year. In fact, it is expected that during 2020, its share in the segment will reach 10 percent , according to eMarketer data.
Similarly, according to The New York Times, over the next few years, more than half of online purchases in the United States will be made on Amazon.
The position of brands in the face of the phenomenon is complex. Amazon will be the next window to look at in terms of advertising; not being on Amazon would mean being one step further from the consumer. Added to this position, which leaves the bulk of firms at a Ghana Mobile Database disadvantage, is the blurred figure that brands have on this platform. Users who search for products through this service forget that brands exist. This is one of the great conclusions reached by a study signed by Marketplace Pulse, which points out that more than three-quarters of searches on Amazon do not include a brand. In other words, 78 percent of the queries made by users are made under generic terms.
In other words, instead of searching for “Nike Tennis”, for example, the most frequent search will be “running shoes”. In this way, when evaluating 100,000 search terms on the platform, you can determine that on Amazon most of the time consumers look for products to meet a need.
A big problem for brands
These generic searches are not only a problem for brands in terms of presence and better chances of being chosen. The real problem lies in the amount of information with which these inquiries feed Amazon and its line of products and private labels. The retail giant has capitalized Brother Cell Phone List on these generic search terms to launch many successful private label products. In fact, it is estimated that Amazon could sell more than $ 25 billion worth of private label products in the foreseeable future. All of this will be at the cost of the learnings gained from your advertisers and brands who use your platform to market their products.
The balance will be vital to avoid falling into a dependency that will become a burden in the future inside and outside of e-commerce actions. One piece of information could make the risk clear: Nike sells 30 percent of its products through Amazon; However, the sports firm will not be able to capitalize on the more than 70 thousand references of the brand (according to Morgan Stanley) that appear on the online platform for future actions.