eCommerce Forecasts, P&L Credit for Amazon Advertising, Freight Update
eCom penetration likely returning to pre-COVID growth rates; estimated ~1 pt incremental improvement each year: Last week in our mid-year forecast report, we published our estimations for 2022 to 2024. Overall, it appears that since our last forecast report in January, eCommerce penetration has come down as shoppers return to…
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Amazon Advertising: Share of total retail media & 2021 performance by AMS ad type
For this edition of 3 Things, we are previewing some highlights and key considerations from our 2022 Amazon Advertising benchmark that will be published Tuesday, June 14th. The study was conducted in May 2022 and was completed by 112 brands and advertising agencies representing over $1.5 billion in advertising spend…
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Amazon Advertising Challenges; Amazon Store & Posts; Retail Foot Traffic
Increased cost to advertising on Amazon is top challenge for brands year-to-date: In our 2022 Amazon Advertising benchmark we found that over half of General Merchandise and Food & CPG brands reported that CPC/CPM increases have been the biggest challenge within Amazon Advertising since the start of 2022. For General…
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eCommerce Growth, Pull Back in Ad Spend & Consumer Spending
eCommerce growth moderating with digital penetration normalizing; retailers continue to make omnichannel investments: In our latest slide deck we take a look at 1Q22 results from some of the largest retailers and online marketplaces. Within these results we see online sales in the mid-single digit range with eCommerce penetration at…
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E-Grocery Consumer: Price Sensitivity & Future Usage Outlook; Live Shopping
How do consumers view e-grocery platform pricing compared to in-store? In our latest study tracking 1800 online grocery shoppers it was clear that the online grocery players fall into 3 tiers in terms of consumer price perception. First, is Walmart.com which is by far perceived as being most fair / cheapest…
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Retailer Capacity Constraints; Walmart Connect; Amazon Assortment
Retailers facing growing capacity constraints; Amazon looks well positioned vs. peers:Our team recently published a report focusing on the growing capacity constraints across retailers which we anticipate will likely drive markdowns and replenishment cuts across categories. Our research points to mounting capacity constraints impacting stores and distribution centers in recent…
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Amazon aggregators, Amazon labor capacity, Macro labor demand
Amazon aggregators: consolidation, layoffs, and leadership changes: Recently, there looks to have been an inflection in the aggregator space which has brought on consolidation, layoffs, and leadership changes. We believe a combination of factors including rising costs, elevated CACs, debt covenants, tougher fundraising environment, and more modest sales are leading…
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Amazon Price Increases & Instacart Consumer Insights Portal
Pricing action does not look to be enough to fully offset input cost inflation for majority of brands: In our latest benchmark we have found that Amazon price increases have not fully covered input cost inflation for brands, resulting in margin compression for 58% of brands surveyed. Given the significant increase…
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Stackline Brand Loyalty Data; Amazon Price Increases; Amazon’s 2021 Letter to Shareholders
Grocery category seeing highest brand retention rate at only 29%:Earlier this week CRC hosted our second installment of our 2022 Thought Leader Webinar Series where we were joined by Michael Lagoni, CEO of Stackline. During the session Michael touched on the importance of having a customer-centric strategy to build customer…
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