The digital shift during the pandemic indicates that the e-Commerce market share could double by the end of 2020. Who remembers the time when e-Commerce was a ‘nice to have’ for many businesses? The pandemic has accelerated e-Commerce growth by 3 years and predicts the UK e-Commerce will grow a huge 19% vs the predicted 11% pre pandemic. The survival of many businesses will hinge on their adaptability in stepping away from traditional bricks and mortar stores and transitioning into digital markets that can interact and sell to customers around Europe and the Rest of the World. And despite Amazon French warehouses closing for a considerable time, it is estimated that in France e-Commerce sales will grow by 17%.
Bricks and Mortar vs Online?
In spite of an underlying hurry to physical stores because of individuals needing social association after the lockdown closes, a potential downturn will prompt a further change in shopper conduct. Customers may well spend less but will search for products with full intention of purchasing. ‘Browsing’ for products will become less and therefore bricks and mortar stores that create experiential shopping experiences will loose importance. The focus will increasingly be shifted to online shopping.
How can brands help conversion of their products?
As customers will spend less money post pandemic, the Amazon machine will see an increase in people doing research into products. Thus making your products more discoverable by using product specific and relevant keywords will be extremely important. Research shows that over 70% of Amazon product searches are generic product searches and do not include brand names. If this trend continues, Amazon’s DSP program will be a fundamental strategy for targeting customers looking for your products. Amazon’s DSP uses customer purchasing data and targets these customers with a simple creative advertisement or video. Coupled with a great brand store, the customer can be bought into the brand story which will strengthen brand loyalty and showcasing your full range.
Is your Prime Day strategy correct?
It’s hard to ignore that last year July was the month with the most amount of traffic for amazon globally. Prime Day 2020 may have been delayed for the current year as opposed to the standard month of July but with rumours that it will be in Q4*, brands will need to re-evaluate their strategy for both Prime Day and Q4. Prime Day will kick off the Q4 sales season and with Christmas sales getting later and later every year, will Prime Day being in Q4 cannibalise Christmas sales?
That said, it is a bigger opportunity than before, and the changes mean brands must rethink 5 things:
- The size of the opportunity
- Who the online shopper is
- How to gain early traction on key Christmas products
- How to protect your brand and products
We’re getting into that crucial period in Toys where key Christmas items will be launching. Typically, new products are hard to grow rapidly on Amazon. With big TV advertising being cancelled for later this year, many brands will need to create a clear product/brand launch plan with Amazon. ‘Born To Run’ is an interesting concept launched by Amazon last year that could be part of how to quickly gain traction on your new products.
e-Commerce Skills
Reflecting on the last 12 weeks and the impact COVID has had on businesses commercial structures, what has been clearer than ever is how under resourced e-Commerce and Amazon teams are. Looking at recruitment trends already it is clear that this is now the focus point, the majority of roles recruiting across Sales, Marketing and Digital have an online responsibility.
Hiring talented specialists to fill commercial gaps and future proof long term revenue clearly make sense, however are we at risk of trying to run before we can walk?
Your approach to online needs to be personal and individual, Amazon highlights this more than anyone. There is no “one size fits all” and businesses should be prepared to challenge the norm to unearth how to grow in a supercharged e-Commerce environment.
If you would like an audit of your Amazon and e-Commerce strategy then please get in touch with Etopia Consultancy.
*Prime Day date correct at time of writing
