In many ways, the answer is simple. In the UK alone, consumers spent £113 Billion on online purchases throughout 2020 - a rise of 48% from the year before. During the global pandemic, an estimated 15 Million people used Amazon to buy a product they’d not purchased on the platform before. Now lockdowns have eased, it’s predicted that 97% of online shoppers will continue using Amazon for these new categories.
Based on this growth, it's no surprise that more brands than ever before are focusing on their Amazon growth strategies.
Our new infographic highlights the key stats and facts on achieving sustainable growth on Amazon, including:
- 77% of frequent Amazon shoppers used the site to buy a product they’d not purchased before during lockdown, meaning lockdown accelerated eCommerce growth.
- New markets can also be reached through international expansion, as Amazon has already expanded into 20 countries, and it is inevitable that they will successfully launch into more.
- To engage consumers throughout the stages of the purchase funnel, brands are exploring new advertising formats. Programmatic ad spend, for example, is expected to grow from $68.2 billion to $155 billion in 2021.
Navigating Complexity to Achieve Growth
But as our infographic shows, there’s still a fundamental knowledge gap about the mechanics behind how Amazon works.
And brands must also contend with market challenges: For example, increased shipping rates can impact product costs. The cost of shipping products from China has risen significantly, which has caused product prices to increase. In 2020, containers would typically cost between $3000 to $3500 to ship; right now, they’re currently at about $13000. With some analysts forecasting this, it could increase to $20,000.
Amazon wants to offer the most competitive price, quickly, and provide genuine products. However, this means that brands need to fit the Amazon mould. To discover more, download your copy of the Amazon Success Blueprint to learn more about achieving sustained growth on Amazon.