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    October 19, 2020
    8 minute read

    4 Reasons Why Amazon Should Be In Your Brands Playbook

    by: Christian Hassold

    Christmas is coming and all signs are that Amazon is set to have another record setting holiday season. In the UK and Germany, the marketplace is increasingly dominating e-commerce paradigm, with new and old shoppers alike increasingly opting to research and buy on Amazon.

    And that is where brands need to be heading right now to make sure that they reap the biggest rewards from the Christmas peak and into 2021.

    Shopper habits have and continue to undergo significant change, not only moving online, but changing the platforms that they shop on. Now marketplaces and social media, both accessed largely via mobile, are driving e-commerce and will be what shapes the months and years ahead.

    Of course, we know that convenience is the top reason why consumers increasingly prefer Amazon, but we have done some of our own research and uncovered four reasons why the e-commerce forces are working in Amazon’s favour.

    1. It's a Destination of Choice for Consumers

    With shoppers increasingly flocking to Amazon as the pandemic e-commerce boom intensifies, it is becoming the place to browse and buy.

    In the UK, an August 2020 survey of consumers by Salsify found that consumers spend more than 50% of all their retail spend online – and they spend more than 50% of that online spend on Amazon. It also found that almost 70% of consumers purchase from Amazon between once a week and three times a month.

    In Germany, Amazon is becoming perhaps even more important to tapping into the e-commerce groundswell. Amazon.de – the dedicated German language version of Amazon that operates across Germany, Austria, Switzerland, The Netherlands and parts of Belgium – currently accounts for 35% of the total German e-commerce market, according to Statista.

    2. Optimised for Mobile

    Amazon is also an ideal on-ramp for tapping into mobile commerce. Data from AppsFlyer’s The State of Shopping App Marketing, 2020 Edition report shows that, in the UK, overall shopping app usage spiked to a reported 7.6% in May 2020 and increased to 8% in June 2020 – surpassing the 7.1% of shopping app usage in November 2019.

    The picture is similar in Europe, with overall shopping app usage spiked at 7% in May 2020 versus only reaching 6.7% at its peak in November 2019.

    A separate study by GlobalWebIndex finds that more than half (52%) of UK internet users have used the Amazon app in the last month alone, making it the most used app out of the 26 tracked by GWI.

    In Germany, even before the pandemic, downloads of the Amazon app to Android devices was peaking at around 300,000 a month.

    Tapping into this, Amazon is investing heavily in making its mobile proposition even stronger, adding enhanced augmented reality (AR) functionality.

    In August, Amazon revamped its AR offering, originally launched in 2017, to allow furniture sellers on the platform to let customers overlay their products. The move was novel as it allowed more than one item at a time to be placed – thus extending the ability to recommend products into the AR environment – but also tapped neatly into the lockdown DIY and home renovation boom.

    3. A Destination for Discovery and Inspiration

    Amazon is not just a selling platform, it is also becoming a force to be reckoned with in terms of being a source of inspiration for buying, rivaling social media as a place where recommendations, suggestions and search all lead.

    According to research from Bazaarvoice, Amazon is set to be a vital resource for consumers this winter season, with almost two-thirds (57%) of UK consumers using it for gift inspiration. More tellingly, three quarters (74%) plan to buy from the marketplace.

    A separate study by Rakuten Advertising 48% of shoppers now using online marketplaces such as Amazon as the primary source of inspiration during peak shopping. Referrals from friends and family (46%) and Amazon reviews (28%) are also hugely influential throughout the journey to purchase.

    4. Tapping Into Sustainability

    Another reason to have Amazon in your playbook is that it has rapidly shifted its stance on sustainability in retail.

    Consumers, especially Gen Z, Gen X and millennials, are increasingly making purchase decisions based on the eco-friendliness of the brands they interact with. Research by PFS and LiveArea, published in their ‘Selling Sustainability: Adapting to the New Conscious Consumer’, found that 75% of consumers want retailers and brands to use recycled and recyclable packaging.

    Sustainability and marketing expert, Thomas Kolster recently shared in his new book, that 65% of millennials believe they can influence companies to do better through a purchase.

    And Amazon is rapidly moving to capitalise on this shift, launching a climate-friendly programme that will see more than 25,000 products displayed with a ‘Climate Pledge Friendly’ label to help shoppers make sustainable choices when shopping.

    The marketplace is also introducing autonomous electric delivery vehicles and has created a $2 billion Climate Pledge VC Fund to invest in companies across industries to help reduce the impact of climate change and support sustainable development.

    Pitching itself as a place to not only get a good price, great delivery and inspiration, but also as a platform to sort out the eco-friendly brands and merchants is a masterstroke. Put simple, Amazon not only have the reach, products and branding, it now has the moral high ground.

    Conclusions

    Amazon may ‘only’ hold a small proportion of e-commerce markets across Europe – a 19.6% market share in the UK, according to Digital Shelf Institute – but that belies its significance to e-commerce across Europe.

    Consumers are clearly flocking to it to buy pretty much everything and those that aren’t buying are looking to it for inspiration of what to buy.

    Investing in technologies across mobile, AR, voice, autonomous delivery and more is slowly making it the ideal platform for merchants and retailers to try out these technologies on a live, paying audience.

    With shoppers increasingly heading to Amazon, with technology increasingly being brought to market through Amazon and with it leading the drive for sustainability, can anyone afford to ignore Amazon?

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