Amazon released their Q3 2021 earnings on October 28, 2021. Here are a few takeaways on the eCommerce giant’s financial results and go-forward strategy:
As more business shifts to e-commerce marketplaces such as Amazon, understanding a brand’s 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.
It was a delight to be a guest on Tyler Wallis’s podcast, Think Like Amazon, talking about the #Amazon leadership principle “Bias for Action.” We discuss when bias for action is good (and not good!), how to know when you need to act quickly vs. being more thoughtful, and how I (almost) once fired myself from Amazon. Thanks for having me, Tyler!
Nearly every brand has faced enormous disruption to the ways they reach consumers during the past year. Online platforms and the sales they enable have grown in importance, beyond even the most vivid imaginations. This shift brings both hurdles and new opportunities for those who are prepared to try new strategies. But, without a cohesive cross-platform strategy, that evolution can be quite painful.
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.
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.