ClickZ Amazon Insights Newsletter - 12.19.2024

PLUS: Full-service fulfillment launches & social commerce surge drives sales

Author

Rachael Kennedy
December 19, 2024 • Estimated Reading Time: 9 minutes

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Welcome to Amazon Insights, an essential newsletter crafted for e-commerce professionals navigating platforms like Amazon and similar marketplaces. This will be our last edition of 2024 so on behalf of all the ClickZ team, we wish you a Happy Christmas and we’ll see you all again in the new year!

Top Reads 🌟

In 2025, the retail landscape will be reshaped by consumers evolving perception of value, driven by transparency and digital shopping tools.

As Acosta Group highlights, generational differences are stark: Gen Z seeks low-cost, high-quality deals with minimal effort, while Millennials prioritize quality at the best price, and Baby Boomers value experiential products. This shift demands retailers to move beyond discounts, offering enriched experiences through technology like smart carts and AI-enabled personalization, which promise to boost consumer engagement and loyalty.

Social commerce has emerged as a pivotal channel, especially for younger demographics. With 52% of Gen Z and 22% of Millennials purchasing via TikTok recently, brands must leverage digital storefronts for direct engagement. T

The blend of entertainment, personalization, and convenience in social media platforms is transforming consumer behavior, as evidenced by the 51% of social media users clicking on ads, with 24% making purchases. This trend underscores the necessity for brands to integrate social commerce into their strategies.

The Insight Track

Amazon partnership with Hyundai introduces Amazon Autos, offering a seamless car-buying experience online. This strategic move allows users to purchase Hyundai vehicles, including the IONIQ 5, directly through Amazon, bypassing traditional dealerships. The initiative promises expansion with more brands, enhancing Amazon e-commerce dominance.

Amazon is intensifying its delivery competition with Walmart by testing 15-minute grocery delivery in India and launching the MK30 delivery drone in the U.S. These innovations aim to enhance convenience and meet consumer demand for rapid service, challenging Walmart established grocery operations and delivery strategies.

Nexus Brand Group and Adbrew enhanced ezpz Amazon DSP campaigns, leveraging AMC insights to target cart abandoners and new customers. This strategic integration increased sales by 33.8% and reduced advertising costs by 30.48%, showcasing the power of automation and data-driven marketing for improved campaign efficiency and effectiveness.

Amazon 2024 landscape was a whirlwind of innovation and strategic maneuvers, reshaping the e-commerce ecosystem with a focus on AI, advertising, and market expansion. The AI revolution took center stage as Amazon partnered with Anthropic, launching Rufus AI and generative tools to redefine product listings.

Advertising saw a seismic shift with Amazon expanded suite, including Prime Video ad tier, offering brands sophisticated tools for audience engagement. The beauty sector also witnessed a premium boom, with luxury brands enhancing Amazon offerings, urging marketers to invest in enriched content and brand stores. Meanwhile, Amazon foray into new markets, like online car sales and healthcare, signals a diversification strategy, challenging marketers to adapt to these high-value arenas.

Vendor strategies evolved as Amazon vendor termination wave pushed brands towards a 3P model, highlighting the need for marketers to maintain pricing control. Fee structure changes, sports streaming dominance, and social commerce integration further underscore the dynamic shifts in Amazon ecosystem.

Strategic partnerships with platforms like PayPal and TikTok expanded Amazon reach, while record-breaking events like Prime Day showcased the power of strategic timing. For marketers, these trends demand a proactive approach, leveraging cross-platform integrations and preparing for major shopping events to maximize visibility and sales potential.

2024 Unwrapped 🎁

This year brought significant changes to Amazon as it continues to evolve as a key player in the e-commerce space. Here’s a roundup of the most impactful updates

Fee and Policy Changes

  • FBA Fee Adjustments: Amazon revised Fulfillment by Amazon (FBA) fees, reducing costs for certain product categories while increasing inbound placement fees.

  • Low Inventory Fees: New penalties were introduced for sellers with low stock levels relative to demand, incentivizing better inventory management.
    Read more about fee updates here.

Technological Advances

  • Generative AI Tools: Amazon integrated AI to enhance product recommendations and streamline content creation for sellers.

  • AR Shopping Features: Expanded augmented reality capabilities now allow customers to virtually try on products like clothing and accessories.
    Explore Amazon’s AI and AR advancements.

Expansion and Market Reach

  • Amazon Haul Launch: A budget-friendly storefront competing with platforms like Shein and Temu debuted this year, offering products under £10.

  • Global Expansion: Amazon entered the African market with the launch of Amazon South Africa, featuring localized services like same-day delivery.
    Learn more about Amazon Haul and new markets.

Social Commerce Push

Collaborations with platforms like Instagram, Facebook, and TikTok are enabling in-app purchases, aligning with the rise of social commerce.

Influencer Corner 📣

Amazon launches full-service fulfilment program

Amazon is launching its full-service fulfilment program, poised to reshape the e-commerce landscape - this initiative offers sellers a comprehensive solution, handling everything from product pickup to final delivery. This move has significant implications for both sellers and consumers.

Amazon's full-service fulfilment aims to streamline the complexities of e-commerce logistics. By leveraging its extensive supply chain network, Amazon offers sellers a one-stop solution, allowing them to focus on product development and marketing.

Joe Zhang, Sailer Partners

Humans are creatures of habit.

This means that many repeat purchases (whether you are aware of it or not) are usually the same brand each time. Even if it's not the same brand, it's likely a brand you are already somewhat familiar with. If you want customers loyal to your brand like this, you need to focus on developing an engaged online community as early as possible. This is especially true if your brand is in a competitive niche where all the products look alike.

Neil Patel, Co-Founder

Performance Pulse 📈

Performance marketing in 2025 will focus on strategic use of AI, first-party data, and personalized engagement to enhance customer loyalty and efficiency. As costs rise and effectiveness declines, marketers must prioritize creativity and strategic value. Agencies face pressure to adapt, while skills in strategy and technology become increasingly vital.

TikTok ads require strategic optimization for success. Key steps include defining objectives, refining audience targeting, enhancing ad creativity, and utilizing automated bidding. Additionally, adjusting ad placements, retargeting, and leveraging advanced features are crucial. Continuous testing and alignment with TikTok trends ensure maximum ad performance and brand visibility.

Influencer Partnerships

Crocs ➡️ Influencer Marketing Manager

📍 Broomfield, CO

Marketing & Communications

Fospha ➡️ Partnerships Executive

📍 Austin, TX, USA

Affiliate Marketing

Macy’s ➡️Director, Affiliate Marketing

📍 New York, USA

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