Amazon Changes to Look for in 2020
Over the last decade, Amazon.com has become one of the most powerful companies in technology and beyond. Amazon’s success shows no signs of slowing down in 2020, especially in terms of its unmatched logistics operations and advertising earnings. Revenue in Amazon’s core business, e-commerce, has increased sevenfold from an already massive base of $34.2 billion, and analysts estimate that Amazon’s ad sales will rise 36 percent year-over-year in 2020.
Let’s take a look at what Amazon sellers should anticipate in 2020 to stay on top of this complex marketplace:
Even Faster Shipping
Though some question the long-term profitability of Amazon’s aggressive shipping methods, sellers will continue to feel the pressure of quick-delivery timelines in 2020.
To remain competitive and desirable to shoppers, it's imperative for all of a company’s products to be Amazon Prime eligible. Anticipate Amazon to announce it will expand the number of products eligible for one-day shipping to Prime members, and be ready to meet that demand to attract hundreds of millions of consumers looking to get their products to their doors even faster.
Focus on Ads
Amazon topped $10 billion in revenue for the advertising side of its business in 2018, making it the third largest ad platform behind Google and Facebook. Amazon is continuing to invest in its ad business, which is growing rapidly at an increase of 95 percent year-over-year, according to recent earnings reports.
In 2020, experts predict that Amazon will give sellers more options to advertise and create even more customized opportunities. These tools are often beta tested, but sometimes the features show up unannounced. Brands should make sure to stay on top of any new features and test them as soon as they become available.
As Amazon’s search engine optimization is always evolving, brands should develop a marketing strategy that can succeed in the face of the site’s frequently changing algorithms and ever-expanding customer base.
In the new year, it's vital for brands to have a concrete plan in place for optimizing photographs, branding, messaging, and more. A few tips for listings include:
- Make sure the images are high quality. Text within the boxes and zoom-in abilities are also important.
- Content that mirrors branding on a company’s website creates crucial brand awareness and also further educates customers about a product, therefore driving buyer confidence.
- Succinct, well-thought-out titles and bullet points lead to higher conversion and lower return rates.
- Static pricing shows that a product has value beyond its competitors and drives improved customer experiences, as they won’t see it for a lower price later and feel misled.
Best-in-Class Customer Service
Although algorithms are unknown, above all, the key factor is creating a positive customer experience. Mobile learning, real-time support, personalization and one-time contact resolution are just a few customer service trends thought to drive success in 2020.
Reviews are vital in the algorithm of Amazon. Reviews hold a lot of influence over how an Amazon shopper converts, and therefore must be carefully managed and responded to in a timely manner, whether positive or negative in nature. Brands should shoot to get their reviews to be a 4.5 (or higher) rating out of five, as this shows that customers have been more than satisfied with the product.
As we kick off a new decade, Amazon is on track to continue its reign as a powerful platform for companies of all types and sizes. Armed with these predictions, any brand can confidently strategize for the future and hit 2020 sales goals.
Vanessa Ruminski is vice president of partnerships for SupplyKick, a fully integrated digital retailer for brands selling on Amazon.
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Vanessa Ruminski is Vice President of Partnerships for SupplyKick, a fully integrated digital retailer for brands selling on Amazon. Vanessa has a unique background with more than 10 years of senior experience in merchandising in brick-and-mortar and e-commerce retail for The Bon-Ton Stores. Now in her role at SupplyKick, Vanessa works with the hundreds of brands the company partners with, including Blue Rhino, Splenda, ciao! baby and Johnson Hardware.