What Does Amazon Advertising’s Australia Launch Mean for Brands?

Amazon Marketplace News, Strategies, and Insights

What Does Amazon Advertising’s Australia Launch Mean for Brands?

What Does Amazon Advertising’s Australia Launch Mean for Brands?

Amazon Advertising's Australia Launch


It wasn’t long ago Amazon opened its Australian marketplace. Now, Amazon Advertising has launched in Australia and has made it possible for brands to take advantage of this young market in a new way. Those who didn’t sell through Amazon Australia before may reconsider the possibilities advertising creates. Continue reading to learn how brands sell on Amazon Australia, what it costs, and consider whether it’s a fit for your brand.

Amazon Advertising Launches in Australia


In April 2019, Amazon announced its expansion of Amazon Display Ads, Amazon Video Ads and Amazon DSP options to its Amazon.com.au marketplace. The release of advertising capabilities to Amazon.com.au is in its early stages but isn’t far behind its 2018 launch of Fulfillment by Amazon (FBA) and Amazon Prime.
Although it didn’t disrupt the Australian market during the first year, Amazon is on pace to make a significant impact within seven years. This is a unique opportunity for brands to run ads on the typical platforms and on apps not owned by Amazon within the 13th-largest economy in the world.

How Brands Sell on Amazon Australia


To begin listing products, brands must register and provide both business and personal information. An international credit card and phone number are also required to be approved.

Is it Worth it to Sell on Amazon Australia?


The chance to advertise and sell in a new market appeals to many brands, but it does come at a cost. Here we break down what it costs to sell on Amazon Australia.

Guaranteed Costs:

  • $49.95 per month (subscription fee)
  • Referral fees based category
  • Selling fees

Possible Costs:

  • $1 closing fee if products sell within a media category
  • Refund administration fees


It’s also worth mentioning successful products in the United States or Canada may not have the same popularity in Australia. Brands need to keep in mind selling within a new culture may take time and necessitate adjustments to existing product strategies.  

Amazon Advertising’s Australia launch is making it possible for brands on and off its platform to reach customers through its marketplace. Amazon is expanding its footprint and capabilities. But, there is a lot for brands to consider when deciding to experiment in a new region.
Let us be your resource for all things Amazon, schedule a free consultation.


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What Brands Need to Know About Amazon Live

Amazon Marketplace News, Strategies, and Insights

What Brands Need to Know About Amazon Live

What Brands Need to Know About Amazon Live

Amazon Live

Livestreaming has become a part of our daily lives through just about every major social media platform. Next up to use this method is none other than Amazon, through Amazon Live. It gives brands a platform to engage with their audience. Although this isn’t Amazon’s first launch into livestreaming, this time around it’s giving brands more control. Continue reading to learn more about how brands are using Amazon Live and how to get started.

The format for Amazon Live is similar to an infomercial seen on popular channels like HSN or QVC. Vendors and Sellers use this platform to showcase popular products, demonstrate their quality and key benefits, and how they work. Brands are using Amazon Live through Amazon’s Live Creator app with three goals in mind:

Increase Sales Volume

Unlike Amazon’s first take at livestreaming with Style Code Live, brands now have the power to choose to promote any product from their catalog and host the video themselves. Before, Amazon had dedicated hosts for streaming and the program was restricted to fashion brands.
Amazon Live’s format includes a carousel shown beneath the video where brands can feature specific products. During the livestream, customers can compare products and instantly add them to their cart. A popular game sold on Amazon has already reported “significant” sales growth since using Amazon Live.

Provide an Interactive Shopping Experience

Similar to an Instagram livestream, customers can chat into a brand’s livestream and interact with the hosts. Customers can ask questions and gain a strong sense of what they will receive when they buy a product.

This is a unique opportunity for brands to engage with customers and influence their purchase decision. Otherwise, the chance to communicate directly with shoppers is limited on Amazon.

Build Brand Visibility

Amazon Live is an opportunity for products to be seen by more eyes in an engaging setting. Brands show how products work, are styled, or even used in recipes. Customers who like to see, touch, and have a connection with products will be more likely to purchase after watching an Amazon Live stream.

Brands use the Amazon Live Creator app to stream directly to desktop, mobile, and the app. The livestreams can be found on product detail pages, Brand Stores, and amazon.com/live. To reach even more customers than those who may see a livestream from a store or product detail pages, brands also can pay to promote them.

Amazon provides four simple steps to get up and running:

  1. Download the Amazon Live Creator app
  2. Log in with your Seller Central email address
  3. Follow the prompts
  4. Schedule a livestream or go live right away

No matter what kind of products a brand sells on Amazon, anyone with a Seller Central account can reach customers through Amazon Live. Amazon is constantly rolling out new updates and opportunities to increase sales and improve brand presence. Stay on top of these changes and new avenues to succeed.

For more information on Amazon Live and its developments, tune into our Q1 webinar.

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How Amazon Benefits from One-Day Shipping and What it Means for Brands

Amazon Marketplace News, Strategies, and Insights

How Amazon Benefits from One-Day Shipping and What it Means for Brands

How Amazon Benefits from One-Day Shipping and What it Means for Brands

Amazon benefits from one-day shipping

Key players across the industry fell in line with Amazon’s two-day shipping standard. Then, it announced free one-day shipping is on the horizon for Prime members. This requires a heavy investment with an end goal of increased sales and Prime members for Amazon. With these main goals in mind, one-day shipping will also help the marketplace giant make strides in more difficult categories. Continue reading to learn how Amazon benefits from one-day shipping and what it means for brands.

One-Day Shipping Helps Amazon Expand Its Market Share

Amazon has found product categories like books, apparel, and electronics, among others, to be very profitable. But, there are several categories Amazon has struggled to dominate to the same degree because of its two-day delivery standard.

Examples include:

  • Grocery and Snacks
  • Vitamins and Over the Counter Medicine
  • Toiletries

If consumers can receive a bag of chips, mouthwash, or ibuprofen from Amazon the next day, they will be less likely to take their business elsewhere.

Large Brands Have More Opportunity with One-Day Shipping Options

Big-name brands with established distribution strategies should be able to step up to this new customer expectation. Those who already succeed on Amazon will have even happier customers thanks to more convenient shipping speed.

One-day shipping also opens the playing field to brands who haven’t been able to leverage Amazon before. Now they can profitably sell to customers this way and provide Amazon shoppers with more options.

Third-Party Resellers will have to Make Adjustments

On the other side of the spectrum, third-party resellers who often pack and ship products on their own will eventually have to adjust to compete. It’s yet to be determined exactly how this change will impact the third-party landscape.

Likewise, smaller retailers off Amazon will have a hard time providing one-day shipping with their existing resources, making Amazon’s network a solution to this new problem.

This investment and new normal driven by Amazon will change the industry for competitors and brands of all sizes. And, it makes sense why Amazon benefits from one-day shipping. It helps Amazon truly dominate the markets it once wasn’t able to. One-day shipping will also provide those who shop on Amazon a greater selection of products to choose from and at a speed hard to find anywhere else.

It’s unclear where this move will lead Amazon in the future, but those who sell on its platform will have to continue to adapt to change. Our strategists are here for brands ready to take their Amazon strategy to the next level — schedule a free consultation today.


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5 of the Latest Headlines About Amazon’s International Efforts

Amazon Marketplace News, Strategies, and Insights

5 of the Latest Headlines About Amazon’s International Efforts

5 of the Latest Headlines About Amazon’s International Efforts

Amazon's international efforts

When Amazon went public in 1997, its main focus was the United States market. But, throughout the years with its astronomical growth and success, demand for its services has grown worldwide. In this blog post, we highlight five of the most recent headlines claimed by Amazon’s international efforts.

1. Virgin Media’s Integration with Amazon Prime Video

Virgin Media is a major cable provider in the United Kingdom, and it recently added the Amazon Prime Video app to its service. This partnership makes the Amazon Prime Video app available to about 4 million viewers.

2. Amazon Climbs to the Top in the U.K. as the Most Preferred Brand

Before Amazon’s partnership with Virgin Media, it made its presence known (and appreciated) in the U.K. According to the 2019 Consumer Relevancy Index, Amazon tops the list. Not only is the Amazon U.K. audience an engaged group, but it has a reach beyond the U.K., too.

3. An End to Amazon’s Marketplace in China

Recently, Amazon announced its decision to pull out of the Chinese marketplace. However, Amazon isn’t closing the door on China completely. It will continue to run cross-border operations; meaning, Amazon will focus on providing Chinese shoppers products from its global store rather than from local 3P sellers.

4. Amazon and French Food Brand Take Partnership to New Level

Amazon has enhanced its existing relationship with Casino, a French food retailer. As a result of this partnership’s upgrade, Amazon will install pick-up lockers in Casino locations, and more Casino products will be available on Amazon. This strategic decision will help Amazon establish a stronger presence in France’s grocery market. Amazon leads in e-commerce for France, but its presence in one of Europe’s largest country’s grocery segment is in its early stages.

5. Amazon Retail India Expands

Amazon has a food retailing subsidiary in India prominently active in more than 100 cities. In the next year, Amazon Retail India will add 60 more cities to the list. This expansion will lead to the creation of local food delivery programs and warehouses.

Each path and international market Amazon immerses itself into will evolve and lead to having a global impact down the line. We look forward to seeing where Amazon’s international efforts take the marketplace giant next!

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What is Amazon Advertising Accreditation and Why Does it Matter?

Amazon Marketplace News, Strategies, and Insights

What is Amazon Advertising Accreditation and Why Does it Matter?

What is Amazon Advertising Accreditation and Why Does it Matter?

Amazon Advertising Accreditation

In November 2018, the MPS advertising team was among the first to complete the Amazon Advertising Accreditation Program as early adopters of its learning console. In February 2019, the learning console became available to anyone with an Amazon account. Through the learning console, brands can learn the basics of Amazon Advertising and become accredited. We’re here to break it all down and explain how Amazon Accreditation sets our strategists apart.

Anyone can become accredited through Amazon, as long as they have an account. The concept is similar to other major advertising platform certifications (such as Google AdWords). However, our strategists, many of whom also hold certifications from Google and other advertising platforms, believe Amazon Accreditation holds more merit. The process is rigid and tactical, requiring those who take the test to be truly fluent within the platform.

Our team at Marketplace Strategy was invited through our agency relationship with Amazon, and we’re proud to be an active participant in Amazon’s agency partnership programs. Through this program, we were able to pilot and troubleshoot Amazon’s Learning Console before it came to market.

Since then, we’ve noticed a few updates, as Amazon Advertising Platform (AAP) evolved into Amazon DSP. Let’s take a look at what the learn console consists of today.

The Amazon Accreditation course takes several hours to complete and covers topics from within the learning console. Users can access practice exams and knowledge checks throughout the console before taking the accreditation exam.

Here are the topics currently covered within the learning console (as of April 2019):

  • Advertising Overview
  • Campaign Creation
  • Campaign Optimization
  • Reporting
  • Sponsored Brands
  • Sponsored Products
  • Stores

Besides earning new and useful knowledge, accreditation holds strong value. Anyone with access to the Internet, a budget, and something worth selling can advertise online. It’s important to be able to identify a seasoned advertising veteran versus a novice.

Finally, advertising on Amazon is different than advertising on another common outlet (Facebook or Google). Amazon Advertising is becoming more competitive, complex, and is accelerating at rapid speed. Recently, studies have reported Amazon starting to take advertising dollars traditionally invested in Facebook and Google. These shifts require Amazon advertising experts to adjust strategies for brands.

With advertising driving a third of Amazon’s revenue, it’s important to fully understand how to manage the nuances of the platform. We believe it’s vital for our team of strategic experts to stay up-to-date with Amazon Accreditation to provide the best results for our clients. We’re proud to have members of our team who hold early adopter badges and use their experience to directly benefit clients.

Our strategists are dedicated to advertising on Amazon. Schedule a free consultation to learn more about the potential your brand has to go to the next level.

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Important Ways Amazon is Embracing Small Businesses in 2019

Amazon Marketplace News, Strategies, and Insights

Important Ways Amazon is Embracing Small Businesses in 2019

Important Ways Amazon is Embracing Small Businesses in 2019

Amazon is embracing small businesses

It’s no secret Amazon is a vehicle used by brands of all sizes. You don’t have to be a major player to successfully use its marketplace and tools. In fact, Amazon has added 50 new tools (and counting) this year designed to help small businesses. A huge driver for supporting small businesses is based on Amazon listening to seller feedback. Continue reading to learn more about these new tools, how to use them, and why Amazon is embracing small businesses this year.

Why Does Amazon Care About Small Businesses?

One simple fact explains why Amazon invests effort and money into small businesses. They account for more than 50% of its sales. It’s also hard to ignore small businesses who sell on Amazon, according to Forbes, created almost one million jobs across the planet. Amazon cares and realizes that the major brands aren’t the only ones to make an impact.

What to Expect From Amazon’s Selling Partner Summits?

Although all currently scheduled sessions are sold out, Amazon operates Selling Partner Summits for Small Businesses to hear directly from them. You can add yourself to the waiting lists if you’re hopeful for a spot. This is disappointing to those who weren’t able to reserve their seat, but it’s a great sign for what’s ahead.

These summits will take place in four cities across the country in 2019, and will serve as a unique opportunity, as small businesses have the chance to tailor their experience to meet their needs and interests. Amazon’s agendas leave no stone unturned. If successful, keep an eye out for more events like these in the future, so your brand can be in attendance.

How Can Brands Access More Forms of Education?

Amazon recently overhauled its Seller University platform. Now, small businesses have access to live learning that can help them through challenges. Seller University provides the opportunity to self-service assistance when a brand is eager to learn or solve a problem.

Brands can also register for a webinar hosted by Marketplace Strategy. While our webinars focus primarily on strategies for Vendors, our strategists share a unique perspective and invaluable information. Our resources tab is always evolving with educational content for both Vendors and Sellers of all sizes.

Why is Project Zero Important to Small Businesses?

Any size brand on Amazon can use Project Zero to fight against counterfeit listings. This is especially useful to small businesses because it offers automated protection, self-service tools, and the ability to serialize products. Project Zero saves small businesses a ton of time and extra resources. This tool helps ensure customers receive the product they expect and boost brand credibility. Small Business Trends dives deeper into additional tools Amazon released with small businesses in mind.

If you’re a smaller business once intimidated by the grandiose scale of Amazon, you have support from the most important resource of all: Amazon itself. We look forward to seeing where Amazon directs its support of small businesses in the future.

If you’re a brand who believes you can be doing more on Amazon and need support from a dedicated team, let us be your resource.

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Prepare for Amazon Prime Day Like Never Before

Amazon Marketplace News, Strategies, and Insights

Prepare for Amazon Prime Day Like Never Before

Prepare for Amazon Prime Day Like Never Before

Amazon Prime Day

 

Prepare for Prime Day – A Two-Day Virtual Summit

May 8-9, 2019

 

You’re invited to join Marketplace Strategy from noon to 4 p.m. ET on May 8-9 for two days dedicated to Amazon Prime Day tips and strategic insight. Marketplace Strategy’s panel of experts will host a series of webinars during the virtual summit, focusing on topics to help prepare brands for the biggest day of the year. Register now and to learn how to implement a successful Prime Day strategy.

Registrants who cannot attend each webinar will receive on-demand access.

Amazon Prime Day is one of the biggest opportunities of the year for brands to increase overall sales. Since the beginning, Amazon Prime Day is held in early July. This year, it’s rumored to be held on July 8, although an official date hasn’t been released. For the past few years, each Prime Day event has been extended past the original 24-hour timeframe, and it also is rumored this year could extend to a full 48 hours.

In any case, July is almost here and vendors and sellers need to set up Prime Day deals soon. During our two-day virtual summit, Prepare for Prime Day, registrants will have access to invaluable knowledge, including how to set up promotional deals, leverage creative assets, and synergize advertising efforts. Our agency partner, SocialCode, will discuss how to use social media to boost Prime Day sales.

We will also share our expertise on Prime-specific campaigns and how to manage the channel during Prime day. Here’s a look at the schedule for May 8-9. Registrants who cannot attend each webinar will receive on-demand access.

Gain an exclusive perspective of how our Amazon strategists work with clients to prepare for Amazon’s biggest event of the year. Register now to reserve a spot.

Prepare for Prime Day – A Two-Day Virtual Summit

May 8-9, 2019

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How to Make the Most Out of Your Opportunity to Meet with Amazon

Amazon Marketplace News, Strategies, and Insights

How to Make the Most Out of Your Opportunity to Meet with Amazon

How to Make the Most Out of Your Opportunity to Meet with Amazon

meet with Amazon

So, you’re going to meet with Amazon. How are you going to make the most out of this face time? Understand their perspective, ask the right questions, and prepare to have a productive discussion. Here we share our expertise to help you in your next meeting with Amazon.

Step Into the Shoes of an Amazon Vendor Manager

Understand who you’re speaking to and their goal for the conversation. Amazon Vendor Managers focus on the profitability of your products and growth potential. It’s possible that they will share opportunities that you can take advantage of. If you have a strategic Amazon Partner, they can help you interpret these opportunities and decide which to pursue.

Any Amazon Vendor Manager is busy, and their time should be respected. They will appreciate a shorter, more direct conversation. There’s also no need to wear a tuxedo. Amazon Vendor Managers will likely dress casually, and you can do the same (or, you can dress business casual to stay on the safe side).

Ask Your Amazon Representative The Right Questions

Use this time to ask meaningful questions. Learn about the top spenders and performers in your category. Try to gauge category size and growth rate while getting a sense for emerging sub-categories. It would also be helpful to ask if there are any new beta opportunities to take part in.

When you ask impactful questions, you’ll gain more than valuable answers. You’ll make a respectable impression with whomever you’re meeting at Amazon.

Before and After Your Meeting Matters

  • Preparation

Send an agenda in advance of your meeting with talking points and items you would like to have addressed. You want to be explicit in your expectations and include any tickets that make sense. If you do include tickets, add your Vendor Manager to them within Vendor Central.

  • Follow-Up

 Whomever you’re meeting with at Amazon will likely have more than one meeting that day. It’s crucial that you follow up via email with detailed notes, deadlines, and next steps so everyone is on the same page. This extra step will help both you and your Amazon representative to follow through in the days and weeks after you meet.

A chance to meet with Amazon is an opportunity to make strides for your brand. You can gain valuable insight and move your brand towards additional growth. It’s important to come prepared and then have a plan of attack once you wrap up the meeting.

We’re here to help you as your resource for all things Amazon. To learn more, schedule a free consultation with us.

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What Brands Need to Know: Amazon’s Earnings Report

Amazon Marketplace News, Strategies, and Insights

What Brands Need to Know: Amazon’s Earnings Report

What Brands Need to Know: Amazon’s Earnings Report

Amazon's Earnings Report

On Thursday afternoon, Amazon released its latest earnings report. Numbers broke records, projections, and analyst expectations. For example, the quarterly profit of $3.6 billion made headlines, but the report also includes information beyond the numbers important to the future of Amazon and those who sell on it. Continue reading for takeaways from Amazon’s earnings report and what they mean for brands.

Third-Party Sellers are Responsible for Growth

The third-party landscape has become a challenge for brands when developing their Amazon strategy. Whether a brand has to manage duplicate listings, inventory control, brand reputation, or other challenges, third-party resellers can’t be ignored.

Analysts concur growth reported is largely due to third-party sales. This is a huge reminder to brands; Amazon and its private labels aren’t the biggest competition or hurdle to overcome with their strategy. Jeff Bezos prefaced this in his letter to shareholders earlier this month.

Amazon’s Advertising Segment Reports Significant Growth

This time last year, Amazon reported growth in its advertising segment by near-double. However, in this earnings report, the advertising category reported 34-percent growth.

This isn’t as high as what has been seen in past reports, but is significant and reflects Amazon’s continued commitment to surpassing Google and Facebook advertising platforms. If brands want to remain competitive on Amazon, they will need to continue to shift dollars towards their Amazon advertising strategy.

Second Quarter Profits Won’t Compete

Amazon plans to invest a significant amount into cutting Prime delivery time in half. In other words, Prime shoppers will receive orders in just one day. Some products provide same-day or one-day shipping options now, but Amazon wants to refine the status-quo.

Brands will need to adjust their strategy to operate under this new standard once it rolls out. It’s not yet clear how catalogs and products who currently adhere to Prime will be impacted, if at all. But those who don’t will need to step up their efforts to remain competitive.

The core components of Amazon’s earnings report will direct the company’s next moves and future business. Each will play an important role in the way brands plan their Amazon strategy and succeed on the platform.

If you’d like to partner with a team of strategic experts who are on top of Amazon’s next move, schedule a free consultation. It’s important for brands to be ahead of the game in Amazon’s evolving landscape. We look forward to working with your brand to navigate the past, present, and future of Amazon.

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What We Learned From Amazon in Q1 and What We Expect to See Later This Year

Amazon Marketplace News, Strategies, and Insights

What We Learned From Amazon in Q1 and What We Expect to See Later This Year

What We Learned From Amazon in Q1 and What We Expect to See Later This Year

Amazon in Q1

We would like to thank everyone who tuned in to this week’s webinar. It was an hour packed with insight from our strategists on some new developments at Amazon in Q1 2019, and what we expect to see throughout the year.  For those who couldn’t make it, here we highlight stand-out takeaways that Ashley Long, Lead Amazon Advertising Strategist, and Sam Jennings, Co-Founder & Lead Client Strategist shared with registrants.

Platform Updates

Seller Central

  • Voice of the Customer (VOC)

This update is specific to Seller Central and is a beta test that helps sellers visualize a customer’s experience with their catalog. VOC helps sellers meet Amazon’s high customer service standards by providing them with post-sale data. For the first time ever, Amazon will provide data beyond what the seller can interpret from returns, reviews, and buyer messages.

Important Metrics Included in VOC:

NCX Rate: This shows how many orders from your total sales, from a specific ASIN, lead to negative customer reports. This metric helps to quantify the health of each ASIN in the eyes of the consumer.

CX Health: This metric compares NCX Rates against ASINs from competitive listings.

  • Amazon Live 

 This new ‘channel’ can be used by both Vendors and Sellers. Using Amazon Live, Vendors and Sellers are able to showcase their products in a format comparable to QVC or HSN. Beneath the video stream, there is a carousel of featured products that viewers can add directly to their cart. This time, Amazon is putting control into the hands of brands when it comes to live-streaming. Instead of Amazon focusing on a single category or using dedicated hosts, brands can promote any product themselves.

Vendor Central

For a few weeks during Q1, Amazon made a lot of Vendor Central account owners rightfully nervous through a series of surprises:

1. Direct Fulfillment Account Suspensions

In late February to early March, Vendors received communication from Amazon informing them they were being shut down temporarily for business and inventory management.

2. Vendors Missing POs

The Monday after Direct Fulfillment Accounts were suspended, thousands of vendors did not receive their weekly purchase orders. The only clear trend in a variety of unofficial communications from Amazon encouraged vendors to consider a move to the Seller Central platform.

3. Brand Registry Note

Following the missed purchase orders, Amazon sent out a communication to many of these vendors stating its preference that brands pursue Brand Registry.

4. POs Resume

Although there was a scare for several weeks, everything seems to have returned to business as usual.

  • Protect Your Brand with Project Zero 

Counterfeit products have been a significant challenge over the last few years for brands who sell on Amazon. In the past, some brands have even removed themselves from Amazon entirely because they haven’t been able to protect their customers from counterfeit items.  Now brands can self-serve with Project Zero once they apply and make it through the waitlist. Instead of having to report a counterfeit product to Amazon and wait for action to be taken, Project Zero allows brands to remove counterfeit products themselves.

Advertising Updates

  • ‘New-to-Brand’ Metrics

These are metrics for ad-attributed purchases made by a consumer purchasing from a brand for the first time within 12 months. These metrics are available for display, video, and Sponsored Brand ads.

The specific metrics provided include:

  • Number of Orders
  • Percent of orders
  • Sales
  • Percent of sales

This is a fantastic new metric that allows brands to estimate the cost of acquiring new customers.

  • New Bidding and Targeting

For ASINs and categories, Q1 was a time for enhancing manual targeting opportunities. There are now more options to target and optimize bidding and placement for Sponsored Product Ads. Automatic targeting improvements also have been rolled out to give brands greater visibility into performance.

  • New DSP Audience Insights reports include:
    • Temporal Insights Report
    • Order Frequency Report
    • Audience Overlap Report

Industry Updates

  • Amazon Private Labels vs. Brands

Amazon’s Private Label (PL) brands account for one percent of all Amazon’s revenue, and it takes them only three months to roll out a new PL brand. Amazon is still a level playing field because 70 percent of searches on Amazon come from non-brand keywords. This means that brands have the power to control their destiny through a strong strategy.

  • A Shift in Focus

Amazon has shifted its focus from top-line revenue to profitability on a SKU-by-SKU basis. It’s being more discerning about the products sold through Vendor Central and putting more resources towards the third-party landscape.

  • Aiding Customer Research

Amazon is expanding its efforts to provide educational content for consumers to influence off-Amazon search engine results. For example, half of shoppers in the United States start on Amazon and use it for their product searches.

Q2 Lookahead

Here’s a quick rundown of what we expect to see in Amazon’s near future:

  • Enhancements to Amazon Business and Sponsored Brand targeting
  • Potential removal of Product Display Ad (PDA) targeting
  • DSP / Over-the-Top (OTT) inventory expansion
  • More cross-platform and off-Amazon beta tests
  • A focus on Brand Stores and building visibility through Google SEO
  • Other major online marketplaces continuing to roll out their pay-per-click ad platforms

We encourage you to join us next time for the chance to have some of your questions answered. Meanwhile, keep an eye on our social channels to register for exciting webinars coming up.

Watch this week’s webinar here.

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Amazon and Technology: How Much Can Your Brand Rely on Tech?

Amazon Marketplace News, Strategies, and Insights

Amazon’s Important Improvement to Direct Fulfillment

Amazon Marketplace News, Strategies, and Insights

Amazon’s Important Improvement to Direct Fulfillment

Amazon’s Important Improvement to Direct Fulfillment

Amazon Direct Fulfillmen

Effective April 18, 2019, Amazon will assign lead times at an ASIN level rather than at a cumulative account level for Direct Fulfillment (DF) products. The goal is to improve lead time approximations and give high-performing products more power. Learn more about this why this improvement is rolling out and what it means for your brand.

Traditional Lead Time Management

 

Originally, DF products were assigned lead time based on collective warehouse data across an account’s catalog. This meant that no matter how well an individual product performed, it displayed the same lead time as all other products from that warehouse. Amazon recognized that this wasn’t necessarily the most efficient way for brands to operate or delight customers.

The Benefit of ASIN Level Lead Time

 

Now, a DF product will have lead times set by the performance and shipping speed tied to the individual  ASIN. This lets products within a catalog have different lead times and remain competitive by meeting the standards that Amazon customers have for ship speed. It’s overall a more efficient way to manage lead time for both Amazon and its vendors using DF.

What You Can Expect From This Change

 

  • Vendors will receive a new report: Lead Time and Guaranteed Delivery Report
  • Find your DF warehouses in the ASIN-level program
  • Lead time is assigned by product performance and shipping speed
  • Required Ship Date (RSD or ExSD) is now a result of the lead time

 

The move to performance-based ASIN assigned lead times is set to take place on Thursday, April 18, 2019. With this, Amazon hopes to give brands the power to operate at a higher level. If you need help mastering technical changes to Amazon, let us be your resource.

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Don’t Miss This Year’s Amazon Q1 Recap and Q2 Preview Webinar

Amazon Marketplace News, Strategies, and Insights

Don’t Miss This Year’s Amazon Q1 Recap and Q2 Preview Webinar

Don’t Miss This Year’s Amazon Q1 Recap and Q2 Preview Webinar

Amazon Q1 Recap

Join us for a discussion important to all those who use Amazon as a part of their brand strategy. You don’t want to fall behind the curve when it comes to understanding the latest, greatest, and future of Amazon. It’s coming up, so make sure you have the details for this year’s Amazon Q1 Recap and Q2 Preview webinar.

Tuesday, April 23, 2019, at 1:00 pm EST/ 10:00 am PST

View the webinar now.

In this webinar, Ashley Long, Lead Amazon Advertising Strategist, and Sam Jennings, Co-Founder & Lead Client Strategist will revisit Amazon’s recent developments and new functionality. We will also discuss the latest tactics to navigate Amazon’s shifting marketplace.

Hear our predictions for the next quarter based on strategies we’ve executed across more than 60 clients and hundreds of brands.

Here’s a rundown of what you can expect:

  • An Amazon Q1 recap
  • An update on the status of One Vendor rumors
  • Changes and updates to Amazon Advertising and what’s next
  • An overview of Amazon’s new live-stream video shopping service, Amazon Live
  • A discussion of Amazon’s continued fight against counterfeit products using Project Zero
  • A look ahead into what Q2 may bring for sellers, vendors, and consumers

 

Whether you’re already active on Amazon or you’re considering taking the plunge, this webinar is for you. Together we’ll stay on top of the ever-changing landscape of Amazon and prepare for the future.

If you have a friend or colleague who would enjoy this webinar, share the registration information with them. Everyone is welcome, and we look forward to seeing you there!

You’ll be in good hands during this webinar. Ashley Long, Lead Amazon Advertising Strategist, and Sam Jennings, Co-Founder & Lead Client Strategist will be leading the charge.

 

Tuesday, April 23, 2019, at 1:00 pm EST/ 10:00 am PST

View the webinar now.

 

In the meantime, check out a few of our top posts from Q1:

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Traditional Apparel Companies Adjust to Amazon This Year

Amazon Marketplace News, Strategies, and Insights

Traditional Apparel Companies Adjust to Amazon This Year

Traditional Apparel Companies Adjust to Amazon This Year

traditional apparel companies adjust to amazon

Welcome to 2019, where the leader in clothing sales is Amazon. To compete in the new world of retail, apparel companies adjust to Amazon this year in a big way. It takes guts to shut hundreds of storefronts and change in ways you never envisioned. Discover how and why brands are making changes to involve the marketplace giant.

 traditional apparel companies adjust to amazon

Back in early 2018, TechCrunch claimed that Amazon would overtake the apparel industry. Turns out, they were spot on. According to Reuters, Amazon surpassed WalMart as the destination for apparel in the U.S. So, what does this mean for our favorite brands that we’re used to visiting the mall for?

To name a few, Chico’s, Under Armour Inc., and J. Crew is embracing Amazon as a vital part of their distribution strategy. Changes in consumer behavior have had a strong hand in this. But, now to reach new and existing customers, you have to be on Amazon.

There are a few different ways traditional retailers use Amazon as a distribution channel. Some have opted to digitize their outlet stores and sell their brands at a lower ticket price. Others have begun a wholesale relationship with Amazon or have become third-party (3P) sellers.

Marketplace Strategy’s CEO Drew Kraemer shares his take on the benefit of apparel retailers embracing Amazon and why they’re finding it essential.  

“Apparel brands (most brands) are beginning to view Amazon as a marketing platform rather than only an e-commerce site. Customers use Amazon as the product search engine and brands can’t afford to not be seen in the results. Also, apparel brands have competitors only on Amazon. So, it’s impossible to ignore as part of their strategy. There is no better time than now to scale a brand on Amazon. A full-funnel, customized approach will lead your brand to success on Amazon and subsequently in brick and mortar locations.”  

However retailers decide to use Amazon as a tool to reach their customers it’s a necessity. Competition is no longer the boutique down the street, an up-and-coming online retailer, but Amazon itself. It’s hard to overlook the more than $30 billion in apparel sales that Amazon raked in during 2018. That statistic alone has retailers lining up to become a part of the largest apparel marketplace in the United States.

If you shop for clothing online, you’ve likely used Amazon to browse, compare prices, and buy your next wardrobe piece. If you haven’t yet, we’re confident that you will.

Apparel, accessory, and other traditional retail brands are teaming up with partners who can help them conquer their Amazon efforts. Learn how Baggalini achieved success with our team and schedule your own free consultation.

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5 Highlights from Amazon’s 2018 Letter to Shareholders

Amazon Marketplace News, Strategies, and Insights

5 Highlights from Amazon’s 2018 Letter to Shareholders

5 Highlights from Amazon’s 2018 Letter to Shareholders

Jeff Bezos

On Thursday, April 11, 2019, Jeff Bezos shared his annual letter to shareholders of Amazon. Each year, he shares a letter followed by the original 1997 Letter to Shareholders. This comparison makes it clear how far Amazon has come. To start for 2018, Jeff Bezos shares “remarkable” numbers of third-party seller growth. We’ll elaborate on what the letter had to say about 3P sellers and highlight other important details. Amazon's Letter to Shareholders

1. Third-Party Sellers Outperform First-Party Sellers

According to the letter, third-party sales have increased by 55% over the last 20 years. And, although first-party sales numbers are impressive, they’re exceeded by third-party sellers by $43 billion.

2. Amazon is Better for Third-Party Sellers than eBay

This year’s letter provided dollars made from 1999 to today. Now we compare how Amazon’s third-party sellers measure up to independent sales made on eBay. The difference crowns Amazon’s 3P sellers with the highest compounded annual growth over eBay by $65 billion.

There are many reasons why sellers prefer Amazon to another marketplace. Amazon’s customer-first mindset and a team of inventors have been a powerhouse combination to provide sellers with tools to compete and succeed.

3. Machine Learning is the Past, Present, and Future

Machine learning has become a term that companies either embrace or run from. It’s Amazon’s mission to help companies take advantage of it. Amazon plans to continuously enhance its existing SageMaker service that customers use to embrace machine learning.

4. There’s More to Come From Amazon Go

Admittedly so, Amazon Go was an undertaking. Amazon’s response from customers has made that hard work and investment in the future worth it. There are 10 stores now but as the customer-first team of inventors continues with this venture, we can expect to see many more.

5. Progressive Investment Isn’t Slowing Down

Amazon has made a variety of investments in areas we’ve already mentioned. One that it believes is very important is the investment they’ve made in its people. Minimum wages have raised and tuition reimbursement and professional development programs have rolled out. As a company, Amazon pays it forward to train students and veterans, too.

Amazon remains thankful for its customers, shareowners, and employees. This letter serves as a promise for a bright future for those who buy, sell, and work for or with Amazon. We look forward to the journey ahead that will lead us to next year’s annual letter.

 

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What to Consider When Choosing the Right Amazon Partner

Amazon Marketplace News, Strategies, and Insights

4 Ways Amazon Stores Improve Brand Potential

Amazon Marketplace News, Strategies, and Insights

Conquer Every Detail in Your Amazon Strategy

Amazon Marketplace News, Strategies, and Insights

5 Changes to Amazon Advertising and Why They’re Important

Amazon Marketplace News, Strategies, and Insights

5 Changes to Amazon Advertising and Why They’re Important

5 Changes to Amazon Advertising and Why They’re Important

Amazon Advertising

During Q1 of 2019, Amazon’s advertising sales surpassed $2 billion. Growing at more than 100%, advertising is its fastest-growing segment. As a result, Amazon is investing in and offering more sophisticated advertising options. It’s imperative that you invest in your product and brand via Amazon Advertising.

Recently, there have been some changes in their platform that will allow you to better target your customers. Let’s dive into the changes and why you need to take advantage of these tools.

amazon advertising

Amazon retired Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP). With these going by the wayside, they introduced Amazon Advertising and Amazon DSP.

There are many ways to improve visibility, customer loyalty, and your bottom line on Amazon. The new and improved Amazon Advertising serves as a one-stop shop for sponsoring your products or brand, and other media ad options.

Amazon DSP is a subset of Amazon Advertising designed for advertisers that want to programmatically reach customers. This addition to Amazon’s arsenal is right in line with the projection that this year, 65% of ad spend will become programmatic. This approach to advertising has made waves for brands willing to take advantage of it. In fact, a leading consumer goods brand saw astronomical growth thanks to our optimization through Amazon DSP.

Brands can no longer overlook Amazon as a viable option to acquire and retain new customers. It has made stepped up to the plate to make a difference for sellers, and it’s here to stay. In fact, according to CNBC, Amazon is going to claim 8.8% of digital ad spend this year alone. This year, Amazon is a must to invest digital media dollars.

Make sure you allocate your advertising budget wisely and use Amazon’s tools to the best of their ability. We understand it’s easier said than done and have dedicated Advertising Strategists here to help you shift your focus.

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Why You Need to Master Your Competition and 3P Marketplace

Amazon Marketplace News, Strategies, and Insights