Trending Predictions for Amazon Marketing in 2021
In Amazon StrategyIt was an unpredictable second half of the year for Amazon marketing across a large variety of platforms due to the ongoing COVID-19 pandemic. Recent events in 2020 forced marketers to reevaluate their current Amazon marketing plans and adjust to a new reality. In response, we created a list of trends related to Amazon marketing during COVID-19 to offer guidance to our clients and readers.
The global impact of COVID-19 also vastly increased the use of online shopping due to the current restrictions of non-essential in-store purchases. According to reports, there has been a 129% year-over-year growth in U.S. & Canadian e-commerce orders and a 146% growth in all online retail orders in North America.
What does this mean for small businesses and Amazon sellers?
1. Future success will require an interchangeable and diversified strategy.
To begin, many businesses found themselves retreating in 2020 amidst the rapid marketplace changes. From Chinese manufacturers shutting down to an excessive amount of vendors suddenly not receiving PO’s and maxed-out FBA centres delaying incoming shipments, it has become clear that future Amazon success will require a more nimble and diversified strategy.
2. Online shopping demand is expected to continue to grow.
Due to COVID-19 and the closing of brick-and-mortar stores, more people are shopping on Amazon. I expect this demand will continue even as the pandemic improves. Amazon may have struggled in the past to acquire shoppers in the Boomer age range, but this has changed as many consumers started shopping on the marketplace in 2020. These shoppers will likely continue to browse and buy on Amazon. Additionally, (post-COVID) I believe there will be a large portion of the population that continues to work from home into 2021 and beyond. If you have products that can fit a work from home lifestyle, 2021 is the year to really push the gas.
3. Brands need to leverage creativity to attract and retain customers.
Businesses have to get more creative in retaining customers on Amazon as more marketplaces evolve and grow. (For example, Walmart and Instacart are now competing with Amazon Fresh). Brands that currently offer products via Amazon “Subscribe & Save” should increase their Subscribe & Save discounts (and the frequency of those discounts) to attract consumers to their brand. From there, it is important to nourish those customers so they stay on Amazon to make their next purchase.
4. Prepare for self-serve and retail price compression.
Amazon will continue to create an unfriendly environment for small and mid-level Vendors/Brands to succeed due to pushing these Vendors to self-serve and retail price compression. Success on the Amazon Marketplace in 2021 will require Vendors to have an overarching ecommerce strategy of catalog management/differentiation, pricing, and distribution.
If you are in need of help in order to effectively market your brand on Amazon, feel free to contact us today!
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