Food and CPG Sales Surge; Amazon Warehouses; Purchase Order Declines
Our recent COVID-19 benchmark indicates that food & consumables manufacturers are seeing a surge in demand on Amazon during March and are increasing their 2020 growth forecasts on the account. All food manufacturers and two-thirds of consumables manufacturers have seen higher demand than expected under normal conditions, with nearly 70%…
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Amazon Pantry, Amazon Go at Airports, Profit vs Growth
After years of varying strategies and performance, Amazon is looking to revamp Pantry by expanding it to more customers and seeking meaningful support from manufacturers. According to our research, Pantry has been reinvigorated with a new team that is looking to expand it to a greater set of customers, offer…
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Amazon Posts, Target’s Same-Day Services, Walmart’s New Omnichannel Team
We continue to hear more manufacturers testing Amazon's new Posts feature, which essentially looks similar to an Instagram post and can be found on various different areas of the mobile site, such as on brand-owned detail pages, related brand detail pages, related post feeds and category feeds (Amazon chooses where…
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Premium A+, Go Grocery, Vendor Negotiations
Amazon has rolled out another form of enhanced A+ content that allows manufacturers to include richer content on their product detail pages. The program, while initially free, is now being presented to vendors in the $500k range to have portfolio-wide access. However, to-date, Amazon has not shared enough data with…
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SIOC Update, One Tap Reviews, Amazon Advertising
Several members of our eCommerce Council emailed us recently asking if we had heard of Amazon updating the SIOC requirements. Our understanding is that most members with non-sortable products have received communication from Amazon indicating the specs that determine if an item is “eligible for the chargeback” are moving from…
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AVN’s, World’s Largest Advertiser, FC Buildout
Despite Amazon looking to be price competitive and offer the best assortment online, it is continuing to seek out the best terms from manufacturers. While each AVN experience is unique, a couple of commonalities stand out this year. First, several manufacturers have indicated Amazon appears more eager to wrap up…
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Amazon’s Growth, YouTube and Instagram, FC Investments
Amazon’s 4Q19 results came in very strong, with 1P sales growing 15% Y/Y (vs. 22% last quarter) and 3P sales reaching 30% Y/Y (vs. 27% last quarter). This translates to an estimated $12B in gross merchandise value in N. America on a Y/Y basis. Much of what is driving this…
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Amazon’s Future, Government Counterfeit Recommendations, Amazon Earnings
In our recent eCommerce Forecasts report we looked into Amazon over the next several years and saw several key changes occurring for the eTailer. The most notable is likely the continued shift towards 3P sales, which, as we noted previously, will likely account for nearly 70% of GMV in 2024.…
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$1 Trillion in eCommerce Growth; Amazon Expands B&M Presence
eCommerce growth is likely to continue to far outpace overall consumer growth over the next several years, although it will likely moderate to some degree from current levels. More nascent categories like food, CPG, and home improvement are expected to help support digital growth over the next five years. This…
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