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Why Do Some Brands Get It Wrong With Amazon?

Published on:

Monday, April 17, 2023

It’s easy to head straight to Amazon when you need something specific, scrolling through the various search results until you find exactly what you’re looking for. While many of us herald the convenience and efficiency of Amazon as a platform, offering us a plethora of suggested options to suit the broadest and the most targeted searches, what very few customers consider is what separates the brands that thrive from those who get it wrong on Amazon.

In the interests of helping each one of our clients to achieve maximum success on Amazon, we decided to familiarise ourselves with some of the reasons why brands miscalculate the value of Amazon – and decided to turn it into a blog post!

So, sit back, get your thinking cap on, and keep reading to find out exactly what it means to miscalculate the value of Amazon – and how you can avoid these mistakes.

The danger of Amazon-phobia

The reasons why some brands choose to overlook the value of Amazon and embrace other platforms and marketplaces are, to a certain extent, founded in sensible assumptions.

Those brands that actively choose to avoid Amazon claim that listing their products on the site can force them to lose control over their branding and the customer experience, that listing on Amazon could cause damage to their brand reputation, and that listing on such a vast and expansive marketplace site could even cause their brand to appear cheaper and of a lesser quality.

And yes, we get it. With so many brands and sellers using Amazon as a core consumer marketplace, there is a chance that the cheaper and lower quality listings impact some of the high quality reputation that you’ve built for your brand. What many businesses and brands don’t realise, however, is that they have more control on Amazon than they think – and that adapting to the challenges can not only help them to overcome the supposed setbacks but can also raise awareness of their brand exponentially.

The reality of Amazon

Over 60% of consumers start their product search on Amazon. This stat is remarkable, citing a single marketplace platform as being responsible for well over half of the first impressions searches that customers make when seeking a new product.

Amazon app

The partnership between Amazon and brands across all retail sectors means that even branded and niche products are searched for on Amazon first – particularly by Amazon Prime customers who are considered to be the most loyal on the market as a result of the free delivery they receive and the host of other benefits that result in retention rates of 93%.

And it’s not just established brands that benefit. The very business model operated by Amazon means that new sellers and businesses with high quality listings have just as good a chance of standing out as those with established seller profiles and platforms – and it’s this simple fact that brands need to consider regardless of their existing customer base.

In short, Amazon is a customer acquisition channel which allows both established businesses and new brands to nurture awareness and get their products in front of customers. Some customers will search for specific brand names, others will be broader in their search and will be open to cheaper alternatives – but whatever they are looking for, getting your brand name in their line of sight is no bad thing.

Yes, you may be pitched alongside a cheaper alternative, but is there anything wrong with that if it draws attention to your brand? All the big brands are doing it; in fact, all Amazon-phobia is doing is letting your competitors pick up on the customer demand that could drive your own sales skywards.

How to use Amazon in a positive way

Before we leave you to assess your own attitude to Amazon and whether it could work for your business, here are a few tips on how to utilise Amazon in a positive way.

  • Connect your Amazon profile with your website through branding, so that customers who find you on Amazon can convert to your website.
  • Use the reviews that Amazon encourages and generates to capture more customers.
  • Research the packages that Amazon offers, and which make fulfilment easier.
  • Remember that listing on Amazon means putting your products and your brand right in the direct eye-line of customers who want to buy products like yours.

To find out more about how to get started on Amazon, how to boost your profile and listings, and how to maximise sales through a combination of direct marketing and Amazon marketplace presence, get in touch with the Social Loop team.