ClickZ Amazon Insights Newsletter - 02.06.2025

PLUS: Stay ahead with Amazon’s latest inventory and AI innovations

Author

Nandini Sehgal
February 06, 2025 • Estimated Reading Time: 7 minutes

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Welcome to ClickZ Amazon Insights, an essential newsletter crafted for e-commerce professionals navigating platforms like Amazon and similar marketplaces. This week, we're bringing you exclusive CES highlights and opportunities to share your vision for the new year with ClickZ at events in the upcoming weeks!

Editor’s Pick🌟

ECOMMERCE INNOVATION INSIGHTS

Amazon’s “walled garden” has kept brands guessing—until now. Fospha’s latest research reveals the true impact of DTC ads on Amazon sales by measuring Unified ROAS (Shopify + Amazon revenue):

🔹 TikTok: +80% higher ROAS when Amazon is included

🔹 Meta: +46% higher ROAS (a major shift at scale)

Paid Social drives purchase intent—consumers click today but buy on Amazon later. Now, for the first time, it’s measurable.

The Insight Track

INVENTORY MANAGEMENT

Amazon UK has introduced a new Inventory Defect and Reimbursement (IDR) portal to enhance transparency and efficiency in managing Fulfilment by Amazon (FBA) inventory issues. This centralized platform offers comprehensive insights into defects, reimbursement opportunities, and defect resolution, excluding inbound, removals, and warehouse disposals defects.

AMAZON INNOVATION

Amazon's record-breaking delivery speeds for Prime members, with over 9 billion items arriving in 2024 on the same or next day, highlight a pivotal shift in consumer engagement strategies. This progress offers valuable insights into enhancing platform performance by meeting evolving customer expectations with unparalleled efficiency in delivering everyday essentials.

AMAZON INSIGHTS

In a breakthrough, Letaya, the Chinese brand renowned for its steel storage solutions, quickly ascended in the U.S. metal office furniture market. This rise is attributed to their adept use of Amazon Business ads, which harness emerging trends and consumer insights to better engage lucrative business buyers. The precise audience filtering based on company size, industry, and demand not only enhanced conversion rates but also optimized ad spending, setting a benchmark in platform performance.

Armed with Amazon Business's bespoke B2B tools, Letaya systematically expanded its market, leveraging these features to identify and engage key high-value audiences with pinpoint accuracy. As they anticipate further growth, Letaya plans to utilize advanced features like Sponsored Products bid enhancements, positioning themselves as a dominant force in the global steel furniture arena.

AI MARKETING INNOVATIONS

AI is reshaping marketing landscapes by adding depth to consumer engagement, crucial for those navigating Amazon’s marketplace:

Precision in Personalization: As demand for tailored experiences rises, with 75% of consumers deserting non-customized brands, AI's capacity to segment and target high-value subscribers becomes vital. By honing personalized messaging within the Amazon ecosystem, brands can elevate engagement and ROI, leveraging context-specific tactics for enhanced consumer connections.

Comprehensive Data Utilization: Cohesive data gathering unveils profound insights into consumer behavior, crucial for trend prediction and responsiveness. AI scrutinizes interaction histories and browsing behaviors, empowering brands to exceed consumer expectations. This data-driven approach fosters a shift towards individualized shopper experiences, pivotal for boosting revenue in the Amazon landscape, particularly through targeted SMS and Email strategies.

Influencer Corner 📣

Daniela Morosini on LinkedIn: What could a slimmed-down Estée Lauder Companies look like?

Earlier this week, Bloomberg reported that the company has hired an advisory firm to undertake a strategic review of its portfolio. The ELC we know today was built by buying brands (it has more 20) and for much of the 2010s, the more-is-more strategy worked. This was the heyday of indie beauty, and exciting, founder-led brands could fetch quite a premium — Too Faced was acquired for $1.4 billion.

Alex Cooper on LinkedIn: Here's how to use psychology to design static ads that stand out in the feed. 🧠

I asked psychology expert Sarah Levinger for her take and I was not expecting this answer...

www.linkedin.com/posts/alexgoughcooper_heres-how-to-use-psychology-to-design-static-activity-7290492013219663873-2YQE?utm_source=share&utm_medium=member_desktop

Performance Pulse 📈

PRECISION MARKETING INSIGHTS

Amazon DSP Performance utilizes AI to refine programmatic advertising, driving superior results. It identifies and re-engages key consumer segments by decoding behavior, optimizing across multiple platforms. The system's analytical prowess allows advertisers to fine-tune campaigns with data-driven adjustments, ensuring impactful engagement and heightened effectiveness in consumer outreach strategies.

AMAZON INSIGHTS MASTERY

Harnessing Amazon Ads' bid modifiers API, Profitero and Zenith crafted a bespoke algorithm for Coty, fusing digital shelf analytics with Amazon DSP. This strategic innovation bolstered Coty's advertising efficiency by 28%, capitalizing on competitive data to refine bids and amplify consumer engagement in the competitive beauty sector.

RETAIL ANALYTICS

AI recommendation systems enhance consumer engagement on Amazon by harnessing content-based, collaborative, and hybrid filtering methods. These systems meticulously tailor product suggestions, enhancing customer loyalty and boosting sales metrics. While they offer strategic advantages in personalization and retention, the challenge of managing extensive user data persists in this innovative landscape.

Influencer Marketing

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Global Marketing

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Marketing & Comms

 📍 Austin, TX, USA

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