Amazon SAS Program; Shop Pay Expands; Amazon 1Q21 Sales Growth
Amazon has increasingly pushed manufacturers to invest in what they now call their Strategic Account Services (SAS) resource [previously known as Strategic Vendor Services (SVS) and Amazon Vendor Services (AVS)]. In our recent manufacturer benchmark, 44% reported currently using the program (vs. 39% in our July 2019 benchmark), and 67%…
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Jeff Bezos’s Transition; Walmart Connect; Amazon 4Q Results
Amazon announced this week that Jeff Bezos would be transitioning from CEO to Executive Chairman, passing the baton to Andy Jassy, long-time CEO of Amazon Web Services. Based on reports, Jassy is a well-respected executive at Amazon, essentially starting and leading the industry-changing AWS business, which some estimate would be…
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Amazon Fresh Stores; Walmart Distribution Centers; eCommerce Growth in 2021
Amazon has launched five Fresh (“Mendel”) B&M stores to date, including four in California and one in Illinois. The Amazon Fresh team appears to have ambitious goals for store expansion this year (indicating to many brands that it plans to open 100+ stores this year), and has suggested these B&M…
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Amazon Advertising & Supply Chain Strengthened; Outlook for 2021
Brands continued to lean heavily into paid search in the fourth quarter as 56% reported increasing their spend compared to only 6% cutting back. Also, 33% of brands report spending more on media and DSP with Amazon in 4Q compared to their plans entering the year, vs. 13% that have…
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Walmart Media Group; Marketplaces; ’21 Amazon Forecasts
Our research suggests Walmart is expanding its advertising inventory meaningfully and asking vendors to significantly increase their investments with Walmart Media Group (WMG). With Walmart’s new integrated merchandising structure, WMG team members are beginning to join more meetings between the buyer and vendor and the pressure to invest greater funds…
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Annual Vendor Negotiations; Digital Advertising Spend; 4Q Amazon Sales Performance
Many vendors are kicking off the Annual Vendor Negotiation (AVN) process with Amazon. While the level of asks on basic terms like accruals and return allowances seem quite varied among brands, a common theme we’re seeing in our research is Amazon asking for greater participation in several supply chain programs,…
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4Q Demand Trends; Walgreens Advertising; Commerce Marketing Staffing
As we continue to gather insights on Turkey 5 performance on Amazon, our research suggests many brands have experienced a slight moderation in sales growth in November and early December compared to prior trends. This moderation is likely driven at least in part by pull forward demand from Prime Day…
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Amazon Updates; Prime Day, Pharmacy Launch; 2Q Share Gains
Our recent consumer study suggests that 51% of Prime members made a purchase during Amazon's Prime Day this year (vs. 45% last year). Our research also suggests that Amazon was able to add a great deal of members during the shopping holiday period and its device sales performed particularly well. However,…
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Amazon Fresh Investment; Alibaba Sets Record; Pandemic Savings for Consumers
The COVID-19 pandemic has dramatically altered how consumers are buying groceries with a major shift to online platforms. As a result, a net 64% of brands plan to increase their level of support for Amazon Fresh in '21 and nearly 30% indicate that Amazon Fresh is a clear winner among…
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