Customers are the lifeblood of Amazon and they seem to be doing a good job with it. With Amazon on its way to becoming a trillion-dollar company, it’s not a surprise that they have successfully maintained one crucial aspect of the business- customer expectations.
Effect of Amazon Consumer Expectations
One thing that Amazon succeeded in the market is because of their impact on customer expectations.
Before Amazon Prime two-day shipping came into the picture, it took more time to deliver a product ordered. When same day delivery was launched, customers were more than happy to get their orders the same day.
When product research started with Google, it took more time to sift through available search results. With Amazon, you can do the same quality of research using product reviews faster and conveniently using your smart phone.
How Consumers Research Products Today
Research has shown that 59% of consumer research begins on Amazon. What might be new to you is just how profound an impact Amazon has on your offline sales.
- 37% of searches start on Amazon.com and finish offline- Amazon does NOT cannibalize the offline sales as much as thought, but instead helps to support your other B&M storefronts!
- 22% of searches start in the aisle at a store where the buyer visits Amazon.com on their phone before completing the checkout in-store.
- 35% of searches start in other places and end up on Amazon
- Just 6% of searches start and finish on Amazon
Amazon’s Impact on Offline Sales
The table clearly shows that Amazon.com has a much larger impact on offline sales than most brands think.
Here are some very important takeaways.
MAP Violations are a HUGE Deal: If keeping your offline retail partners and/or associates happy is important to your business, you need to get online pricing under control (yes, this can be done). If you don’t, those offline retail partners will probably remove your products off their shelves.
Product’s Content Management is crucial: Amazon product listings are just like a wiki. If you don’t lock them down with Amazon’s Brand Registry, anyone can make any change anytime – making it virtually impossible to maintain your content. If you have products with FDA compliance issues, unauthorized content can even bring your listings down and wreak havoc on your earnings.
Giving an answer to Negative Reviews is also crucial: Consumers today actively use Amazon.com for product research. Product reviews play an important role in their purchase decisions. In the event that you (or your authorized Third party sellers) aren’t actively monitoring and answering/replying to critical product reviews, you are definitely leaving money on the table.
Actions You Should Take Today
Reduce the number of sellers on your products listings to a chosen few, as doing so will have numerous benefits
Choose to work with Third party sellers that do more than simply sell your products
If you’re selling directly to Amazon, consider working with a Third party seller instead as you will have a lot more control
We can Help!
At Jim’s Whims, we have demonstrated experience spanning years assisting brands with Amazon.
Additionally, we can bring value to our brand partners by improving Amazon listings optimizations and Pay Per Click (PPC) Advertising campaigns at a very reasonable cost while building your brand with your image. We’re upbeat about the future, and would love to talk further, call us at (469) 487 8221
About Jim’s Whims
We’ve built relationships on trust, results, and a long-term vision for growth and sustainability. Ultimately, we are passionate about creating a business of quality endeavor and connectivity. This is how we seek out partnerships with brands and distributors; a genuine, personal investment in the lives of customers. We will get to know you. You will get to know us. Let’s get to mixing!
By: The Team @ Jim’s Whims