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Not only has Amazon earned the title, America’s Favorite Brand, but it has become essential to brands and retailers tapped into the world of e-commerce. Although the channel faced some resistance in its early days, more and more brands and retailers over time have come to embrace Amazon. Continue reading to learn some of the reasons why Amazon has become an unavoidable must for brands.

Amazon has Built-In Upselling and Cross-Selling Opportunities 

Amazon has built-in upselling and cross-selling features, and according to Forbes, these tactics can boost revenue up to 35%. Both of these efforts can drive considerable extra revenue to brands. Here we break down the differences at a high level and what they look like from a consumer’s perspective. 

  • Upselling

The purpose of an upsell strategy is to get shoppers to spend more money by offering either an upgraded item or item add-on. Upsells are usually successful because the consumer is ready to buy. 

On Amazon, shoppers may have the option to “Bundle and Save” where they spend more but get a greater value. Another example is the “Customize & Add to Cart” function sometimes located within the Buy Box. Here, shoppers can build their own bundles and spend more than they intended.

  • Cross-Selling

Amazon’s cross-selling modules suggest related products to shoppers already considering an item. These recommendations are often sold by another vendor or belong to a different category. But, the feature can drive indirect revenue for brands by making its products visible to shoppers that may not have come across them on their own.   

From a shopper’s perspective, cross-selling on Amazon can be more effective than social cross-selling because it’s less invasive. Amazon uses modules with messaging like “Customers who bought this product also bought”. It gently tries to offer something valuable to the consumer and drive revenue to brands as a result.

Brands have Access to Robust Advertising Capabilities 

Amazon’s advertising revenue is set to pass the $3 billion mark in the United States this year, offering both search and programmatic advertising options to brands. 

Search advertising leverages a shopper’s intent and demand for products, while, programmatic advertising reaches people based on their demographics, browsing history, and shopping behavior. We encourage our clients using Amazon Advertising for search to tap into the capabilities of DSP. A blend of both options deliver the best results and can do far more to strengthen brand equity on and offline.

Having the option to tap into progressive advertising platforms that, in the case of DSP, incorporate Amazon’s robust customer data, is a major benefit to brands that sell on Amazon. 

Both Transparency and Trust can be Found on the Channel 

Shopping on Amazon has become standard practice for most Americans. As a result, Amazon ranked at the top of the list of America’s most trusted companies for privacy and security. To build trust with shoppers, Amazon offers policies like its A-to-Z Guarantee

Consumers also rely on Amazon's product rankings and customer review system to keep brands honest and, more importantly, to guide how they should be spending their money. In fact, two-thirds of consumers are influenced by these measurements and are more likely to buy if a product has reviews.

All these are reasons for brands to embrace the channel to sell their products. Building and maintaining trust is crucial in e-commerce and Amazon helps make this possible for brands of all sizes.

Amazon has a Loyal and Lucrative Audience 

There are many reasons why Amazon’s audience is one brands can’t afford to miss out on. For starters, Amazon is number one in product searches in the United States. And, of the shoppers that visit the marketplace, more than 100 million of them are Prime members. 

must for brands

Amazon shoppers are large in number and strong in their loyalty. In fact, 85% of Prime shoppers visit Amazon at least once a week.

Amazon has become a must for brands because it provides a platform designed for success. Brands and retailers find success when they have the right tools and knowledge to execute. If you could use the support of a strategic partner, schedule a free consultation. We’re also here to answer any questions you have.

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