The COVID-19-driven seismic shift to digital commerce has left many consumer brands reeling. The pace of change has put many consumer brands in reactive mode, ensuring they are simply set up and advertising across all platforms.
We are witnessing the rise of retail media networks designed by major retailers to deliver a targeted, personalized experience to shoppers. Walmart, CVS, Amazon and others are putting resources behind this trend, and marketers will need to sharpen their approach by addressing multiple critical factors, including their relevance, keyword targeting, negative targeting, and the shopper’s buying journey to be successful.
As more business shifts to e-commerce marketplaces for consumer brands, understanding the cost serve each marketplace is critical. What’s more, knowing how to drive efficiencies in each of these areas is key to maintaining profitability of this fast-growing channel.
As manufacturers prepare for recovery post-COVID, this article explores strategies companies should consider as they get back on their feet. The world we knew a year ago is drastically different than the one we see today. From daily commutes to family outings, life looks much different now than it did just 12 months ago.
If you’re a consumer brand, you’re likely finding yourself with a surprising amount of your business having shifted online as a result of the COVID-19 pandemic. Consumers have never bought so many things online. From groceries to beauty products to Peloton bikes, it seems consumers have gone ecommerce-mad.
The pandemic-driven seismic shift to e-commerce has caught many manufacturers by surprise. In 2015, an established CPG brand might have done a mere 3%-5% of its overall business (defined as brick-and-mortar plus e-commerce) online. During the peak of Covid-19, many consumer brand organizations have grappled with the consequences of 30%-40% of their entire business occurring online, and more specifically on Amazon.
Several years ago, to win on marketplaces, manufacturers simply needed a popular product at a good price. Customers would find the product and manufacturers would realize success. However, a popular product at a good price is simply no longer enough to win on marketplaces such as Amazon.com. In today’s environment, winning strategies are more nuanced and complex.
1. Life Lessons from Amazon’s Q4 2020 Earnings Release – Everyone cares too much about what others think of us. Amazon continued their focus on corporate image and positioning themselves as a sales enabler vs. a retailer.
In a few short months, brand-manufacturers and retailers have been under enormous pressure to change not only their channel and advertising strategies, but their entire philosophies on how to get goods to consumers who need them.
Wondering how to know when something has gone off-track with your Amazon business? Look and listen for these warning signs. Answer True or False to the statements below to assess your level of risk. More than one “True” in each category, and it’s time to seek help!