March was an exciting month, with Amazon in the news often, as usual. They made changes to existing Amazon programs, were blamed for the downfall of a toys retail giant – business as usual in Seattle!
Here at MPS, we spent a lot of time in March developing and presenting our Amazon Vendor Strategy webinar: Increasing Sales and Maximizing Profitability Through the Hybrid Model. If you missed it, click here to check it out. We’d love your feedback!
Key Industry Happenings & Platform Updates
Amazon’s fulfillment expenses for their Prime Pantry program increased 43% in 2017 - in an effort to increase profits, Amazon is gradually shifting the program to a subscription model. The service, which was previously $6 per box, will now cost $5 per month. For brands, this could mean less total Pantry consumers but, more consistent orders and loyal customers: https://bloom.bg/2FoAVwh
Interesting Fact! According to a recent McKinsey study, 35% of what consumers purchase on Amazon come from product recommendations based on sophisticated algorithms and predictive models that analyze transaction data. https://bit.ly/2fGI7Vj
Amazon’s secretive focus on the private-label industry has grown significantly over the past year. They now own the trademarks for a total of 41 brands across a variety of industries, and it’s been estimated that those private label brands drove about $470 million in sales last year: https://bit.ly/2uISxOo
A few of our top blogs from the month:
Other Industry News we Found Interesting: