Brands flock to Amazon: 78% of brands sell products through Amazon

Feedvisor, a brand optimization intelligence platform, recently released its third annual brand survey report "Brands, Amazon, and the Rise of E-Marketplaces". The report analyzed more than 1,000 US brands and their unique relationship with Amazon's e-commerce platform , and made detailed records of the brands' advertising and marketing strategies, expansion plans, the impact of the epidemic on their business, and the challenges and opportunities they faced.

Here are some key takeaways from the report:

Brands see the need to launch an Amazon strategy: Now more than ever, brands recognize the central role Amazon plays in their overall e-commerce strategy. Of the 1,000 brands surveyed, 78% currently sell on Amazon, up from 55% in 2020.

The epidemic has driven brands to quickly turn to Amazon's advertising platform: The survey shows that 41% of brands said that Amazon advertising marketing was one of the new strategies they deployed during the epidemic. Currently, 88% of brands are using Amazon's advertising platform, an increase of 21% from 2020.

（Amazon Advertising Introduction Page）

Amazon has become an omnichannel advertising solution: Brands have gradually realized the important role of the Amazon platform in marketing activities, which can attract Amazon's user base, and the amount of investment in Amazon advertising by brands is still increasing. The survey shows that 59% of brands spend more than $60,000 on Amazon advertising per month, compared with 38% last year.

More than half of brands have achieved at least 7 times return on Amazon advertising: Data shows that 51% of brands have achieved 7 times or more return on their investment in Amazon advertising, and 39% of brands have achieved 4 to 6 times return.

“The insights outlined in this report make it clear that brands can no longer ignore the importance of Amazon, nor rely solely on their own channels to achieve the market reach they need,” said Dani Nadel, President and COO of Feedvisor . “As Amazon continues to pave the way for stronger relationships between customers and brands and fuel brand growth, we can expect to see more brands capitalize on the opportunity and further increase their investment in the Amazon advertising platform.”

Amazon also earned $21.5 billion in advertising revenue in 2020. Among the advertising formats supported by Amazon, the most popular is its pay-per-click (PPC) advertising tool, which is adopted by nearly 3/4 (75%) of Amazon sellers; followed by Amazon Sponsored Product Ads and Amazon Sponsored Brand Ads ↓

However, while Amazon continues to penetrate and play an important role in brands’ strategic portfolios, competition from other e-commerce platforms is still inevitable.

Feedvisor 's report shows that 57% of brands on the Amazon platform also use other e-commerce platforms to build brand awareness, a 7% increase from last year; in addition, 52% of brands use other e-commerce platforms to promote sales.

Walmart is a major competitor that Amazon cannot ignore. Data shows that nearly three-quarters (71%) of brands are currently advertising on Walmart's e-commerce platform, of which 48% spend at least $60,000 per month. In addition, 87% of brands plan to increase advertising spending on Walmart's e-commerce platform in 2021, of which 68% plan to increase their spending by 50%.

Emerging e-commerce platforms such as Google, Target, Instacart and Kroger are also taking a growing share of brands’ e-commerce business. 27% of brands said they would consider expanding their e-commerce business to Google Shopping, and 21% said they would consider expanding to Kroger.

“In a complex, dynamic marketplace ecosystem, brands must leverage deep marketplace expertise and advanced technology to deliver personalized, engaging consumer experiences, optimize campaigns to reach the right target audiences, and drive sales and discoverability for their products,” said Victor Rosenman, founder and CEO of Feedvisor.

Therefore, only by embracing the digital revolution in the retail industry, investing in data and technology solutions, and optimizing its image on Amazon and the e-commerce market can brands achieve longer-term development!

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