If there is one thing that anyone who works with or sells on Amazon knows, it’s that the landscape is vast and ever changing. Amazon is constantly creating new ways to put their customer first and to enhance the customer experience of finding and buying goods online. The same is true on the technical backend for technology providers like Boomerang Commerce.
- Our research has shown that the presence of 3P variants on your PDP pages leeches an average of 1.85% of your revenue from those pages
- This is a recurring problem, so you can’t just fix it once and forget it
- Automation is critical to success
We know that the last thing the world needs is yet another rumination on the e-commerce implications of the stretch of days from Thanksgiving through Cyber Monday, replete with statistics and predictions and insights into the deeper cultural meaning of the changing nature of consumer spending. So this isn’t that.
- Insights on what it takes for CPGs to succeed on Amazon from November 14th’s CPGmatters Virtual LEAD conference featuring Andrew Freeman, Global Director, E-commerce Capability at Kellogg’s
- E-commerce must be a C-level priority: “E-commerce is a huge focus for (Kellogg’s) and…is recognized by our Board and C-suite as a must-win area.”
- From siloed data, to connected teams and actionable insights: Prior to CommerceIQ, siloed organizational structures and non-integrated tools were a major obstacle preventing the Kellogg’s e-commerce team from maximizing its opportunity on Amazon
- Solving for the “Why” and “So What”: CommerceIQ is the only software Freeman found that could determine why things (like sales drops) were happening and determine what to do about them.
- Making the business case for the right tools: CommerceIQ is replacing several prior-generation e-commerce tools at Kellogg’s, because “we felt like this (software) was providing a much larger benefit to us that the other tools were.”
Selling on Amazon or Walmart requires brands to make several important decisions on a daily basis. A few wrong moves could incur loss of sales and market share.
- With consumer behavior moving from store-centric shopping to online shopping, retailers and brand manufacturers must evolve their models rapidly — across supply chain, operations, marketing, sales, shipping and fulfillment — to meet modern consumer expectations.
- For example, in retail, store goods are stocked and priced traditionally on the gut feel of merchants. The e-commerce arena is structured differently, and successful online merchandising and pricing decisions are data-driven…increasingly determined automatically by processing near real-time, fast-changing data related to changing shopper behavior, ongoing retailer price wars and the “Amazon effect”.
- As a result, retailers and brands are both seeing downward pricing pressure and increasing margin compression. To win in modern commerce, new methods, metrics and tools are required to drive sustainable, profitable growth.
In past blogs, I’ve discussed how Amazon is the greatest retail automation machine ever seen. When we talk to our consumer brands customers, however, we find it useful to explain that not all automation is the same. In fact, we’ve built a framework that breaks down the different levels of automation in order to help our customers evaluate where they are on their journey towards effectively and efficiently selling on automated “black box” retail platforms like Amazon.
Gone are the days when shopper marketing was able to get away utilizing data with a 30 - 60 day lag, developing strategy and insights just for the retail channel, and translating that into activation at a store level.
- For continued, sustainable growth and prevention of revenue leakage, consumer goods companies must know how to decode Amazon’s automated platform.
- There are over 30 variables on Amazon that consumer goods e-commerce teams must master in order to increase traffic and conversion, as well as product discoverability and availability.
- More importantly, consumer goods e-commerce teams have to know which combination of those 30+ levers to pull on at the right time for the right product.
- To do this, they must shift from a manual, reactive approach to an automated, proactive and predictive approach leveraging growth automation technology.
Real-Time Commerce: Why Real-Time Information & Actionable Insights Matter For Brands Selling On Amazon
In online retail, brands today are overloaded with information, underserved by legacy, manual retail processes unfit for Amazon, and immersed in an ever-changing battlefront where algorithms are tuned to serve consumers and maximize Amazon’s profits. This happens even at the expense of the world’s largest brands.