Trends & Evolution: Amazon Is No Exception
Like many companies, Amazon has experienced growth due to the pandemic. With the changes in consumption and the increase in online shopping, the eCommerce platform noted a 38% increase in turnover for the year 2020. Amazon is obsessed with customer satisfaction, so it’s not surprising to see several changes to the Amazon platform in Canada and the United States.
Brand image: a priority
Amazon already offered several ways of presenting your brand to the consumer using Brand Stores or A+ Content. However, Amazon wants to look more like a social platform while still being a marketplace. With the arrival of Amazon Post on the American market, brands now have the opportunity to create content worthy of their social networks to present their different products. The tool is currently available in beta version for free, but the features are limited for the moment. The tool will become increasingly important in 2021.
By acquiring Twitch in 2014, Amazon is becoming a major player in the streaming industry. In order to prioritize brand image, it makes sense to see new features such as Amazon Live appear in the marketplace. The giant is offering this new feature to registered trademarks. This is a platform that allows them to present their products live to consumers. These broadcasts will become increasingly important over time. They allow companies to answer questions from consumers about their products live, but above all, to present them properly.
With Amazon Live, we will likely see more and more partnerships between brands who sell on Amazon and influencers.
Fewer Amazon private labels
Amazon owns a large number of private labels that compete with sellers on the platform. AmazonBasics, which offers essential household items, quickly comes to mind, but the giant owns more than 350 brands. However, due to a lack of profitability, Amazon has announced that they will reduce or possibly even totally stop their brand creation. Amazon also wishes to encourage the sellers that are already on the platform.
Amazon’s private labels can also be seen negatively by sellers. Many companies don’t want to sell on the platform out of a fear that their product will be copied by Amazon after achieving a certain level of sales success. By changing the strategy for its private labels, Amazon therefore prioritizes its sellers and will likely earn the trust of new companies.
Improved food offerings
The food industry is not yet well-represented on the Canadian platform. Other giants such as Walmart and Costco possess a large share of the market, and Amazon wants to carve out a place for itself among them in Canada. Currently, it is possible to buy via Whole Foods Market on Amazon.ca, but this is in no way comparable to the Amazon Fresh offering, which is available elsewhere in the world. As a result, Amazon Fresh should be available in Canada by 2022. A shift in the online food market is anticipated in the coming months. Competitors such as Walmart and Costco, but also all types of grocery stores, will have to adjust their strategies.
For big and small!
Amazon wants to put more emphasis on local businesses. With the creation of Amazon Storefronts, they are allowing SMEs to present their brand story and be redirected to their product. This storefront is still in its infancy, and Amazon wants to continue showcasing the smallest businesses. This initiative also aims to demonstrate that the platform isn’t just for large companies, but that it wants to welcome small local brands that offer interesting products.
“The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.”
It is by following the wishes of its customers that Amazon is offering these new features on its platform. It will be possible to observe:
- Better product and brand visibility with Amazon Post and Amazon Live.
- Healthier competition and a wider variety of product offerings thanks to the reduction in the number of Amazon private labels.
- An improved experience and a growth in the presence of food products with Amazon Fresh.
- A shift toward local consumption and emerging brands with Amazon Storefronts.
- Local brands that offer interesting products.