Prime Day Membership Bump, Hybrid Selling Model, & Post-Pandemic Grocery Shopping
Our research suggests an uptick in interest among brands to pursue the hybrid model on Amazon. This means brands would maintain their 1P retail relationship with Amazon’s retail team while also offering assortment on the 3P marketplace, either via the brand itself or through a partnership with another 3P…
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Amazon DSP, BigCommerce Partnership & Post COVID-Consumer Survey
While Sponsored Products (paid search) remains the biggest focus for brands advertising on Amazon, brands continue to expand beyond paid search to leverage Amazon’s broader advertising capabilities, to reach consumers higher on the funnel, and as CPCs are generally rising (and therefore ROAS is relatively declining) within paid search.…
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Amazon Priority Catalogue and Supplier Pack Hierarchy
Our most recent eCommerce research report overs Amazon’s new Priority Catalog beta (aka “brand lock” or “catalog lock”). The catalogue is a part of an effort to minimize the ability of 3P sellers to disrupt product page content and create unruly variations. The program effectively “locks” the brand owner’s…
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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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Marketplace Sales Tax, AmazonFresh Expansion, 2020 Home Improvement Growth
During 3Q19, 14 states began enforcing changes to sales taxes, which require small out of state sellers with no local nexus to charge sales tax, collected by marketplaces. This caused a number of eTailers to see headwinds to Gross Merchandise Value (GMV) growth, and this is expected to worsen in…
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Amazon Ad Teams, 3P Pricing, Prime Day
Brands Increasingly Using External Resources to Manage Amazon Advertising Feedback from our recent Teams Benchmark indicates that brands are increasingly using external resources to manage their marketing on Amazon, with 54% of respondents indicating that a third party manages Amazon advertising, while 34% manage this function internally. While there is…
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