Why Brands Should Strategically Manage Their Presence on Amazon

In the dynamic landscape of e-commerce, the visibility and presentation of a brand on Amazon can significantly impact its market standing and competitiveness. While some brands may not actively engage in marketing on Amazon, their products often find their way onto the platform through resellers, leading to potential qualitative and structural deficiencies in product listings. This inadvertently strengthens the competition and poses a threat to the brand’s integrity.

1. Competition and Brand Weakening:

When well-known brands are not proactively represented on Amazon, competitors may exploit this void by placing ads on the brand name. This practice can divert sales away from the brand, weakening its market position and diminishing its perceived value.

2. Search Behavior on Amazon:

A crucial aspect to consider is that only 22% of Amazon customers search specifically for brands, while a substantial 78% use search terms to find products. Merely relying on brand recognition is insufficient on Amazon, where optimized listings are essential to capturing the attention of the majority of users searching for products rather than specific brands.

3. Amazon as the Premier Product Search Engine:

Amazon has emerged as the leading product search engine, surpassing even Google in terms of user reliance. Consumers increasingly turn to Amazon to research and inform themselves about products, relying on features such as reviews and detailed product descriptions. This shift in behavior emphasizes the need for brands to curate a compelling and accurate representation of their products on the platform.

4. Diverse Shopper Channels:

Understanding the preferences of diverse shopper segments is crucial. Amazon Prime members, constituting a significant portion of online shoppers, often exhibit loyalty to the platform. Approximately 50% of German households being Amazon Prime members underscores the importance of serving Amazon as a vital sales channel, especially for brands targeting the D/A/CH region with its 50 million Amazon customers.
In conclusion, it is imperative for brands to take an active role in controlling how their brand and products are displayed on Amazon. By recognizing the platform’s significance as a primary product search engine, understanding shifting consumer behaviors, and acknowledging the diverse channels through which shoppers make purchases, brands can strategically position themselves to thrive on the world’s most powerful e-commerce platform.
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