Amazon eCommerce: Pros & Cons for your business

With the exponential rise of eCommerce, and the important role Amazon plays as an extension of your business, it’s important to keep in mind the Pros and Cons of getting into bed with the retail giant.

 

PROS

  1. Amazon provides a trusted source for consumers to find and buy your brand, versus your own website
  2. Amazon can fulfill your orders, saving shipping costs and helping to manage distribution hurdles
  3. Amazon provides an advertising platform that directly connects the consumers to the point of sale, both on and off platform via their robust data and ability to close the loop from an attribution standpoint

 

CONS

  1. Amazon eats into your margins and will likely take the majority share of sales (50%+ will be bought/sold on Amazon)
  2. Amazon Alexa and IoT usage will continue to grow, which may cut out the need for your brand if there’s an Amazon equivalent or if it’s automatically buying the consumers preferred brand
  3. Amazon does not provide CRM lists, so other than retargeting, building look-a-likes, and excluding past purchase segments through the platform, there’s no way to port those valuable audiences elsewhere

 

Ignited is working with DTC brands to maximize Amazon for their business, and we can help you too!

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