Digging deeper into Amazon’s message of “12% growth in 2023”, CEO Andy Jassy’s letter to marketplace shareholders held two particularly rich insights for brands…
It’s all about the deals
Unsurprisingly in this economic climate, deals have been crucial to Amazon’s growth in 2023 – and all the signs say this year will be exactly the same.
Last year saw a simply massive 70% YOY increase in customer savings from promotions and coupons, with discounts standing at more than £19 billion.
What can brands take from this?
We think it points to a clear focus – brands need to trade smart.
Focus on the need to employ a trading mindset, focus on the need to know your commercials and data, focus on managing your NetPPM and focus on your competition to keep – and stay – ahead of the curve.
Want more on adopting a trading mindset for greater profitability? Check out this blog.
Amazon Ads are non-negotiable
Amazon’s advertising revenues over 2023 increased by 24% – double the growth of the platform’s total revenues.
So now it’s set in stone – the need for brands to invest in Sponsored Ads and factor ad costs into margins is here to stay.
And if you don’t? Your competition will.
This drive towards essential ad spend is nothing new, and it’s not exclusive to Amazon either – it’s the same across all commercial marketplaces.
Here at Venture Forge HQ? We’re taking the optimistic view.
As our CEO Andrew Banks says, “I simply see more opportunity to reach new audiences, new customers and grow your brand.”
Need to adjust your Amazon strategy to align with these key insights? Click here to speak to our experts.