Amazon in 2021: Kiri's 6 Predictions for Retail Brands - Episode 167

DESCRIPTION

In today’s episode, I am sharing my predictions for 2021, as it relates to Amazon, some of the trends that we’ve seen in 2020 that will continue through to next year, and some changes Amazon will make. I’m going to try to make it as relevant as possible for consumer brands.

Make sure to tune in!

KEY TAKEAWAYS

  1. Amazon’s fulfillment capabilities will become their next AWS (they were built for internal requirements and when they built internal capacity, they started selling it to 3rd party companies)

    • Similar playbook with fulfillment - FBA program 

    • Logistics and fulfillment operations will be sold to 3rd parties that have nothing to do with retail (medical, education systems)

    • Jeff Wilke leaving Amazon (replaced by Dave Clark - the operational world from within Amazon)

    • Seller Fulfilled Prime will go away or be changed dramatically

  2. More experiments with Live Video and virtual experiences

    • Live Video has been present for at least 2 years

    • The live stream shopping experience in China - 9% of all purchases made online

    • A big platform for the future, video marketing will pick up in 2021

    • Experiences platform - launched in September 2020

    • AI integrations - “try on” technologies

  3. Amazon will slow down or even stop its private label brands expansion - a lot of regulatory challenges and bad PR in 2020 

  4. More competition amongst sellers 

    • The emergence of a very large scale roll-ups of eCommerce brands (highly optimized, efficient advertising, have internal powerhouse and technology)

    • This kind of M&A activity increases general savviness on the marketplace 

    • Savvy operators combined with longer termed trend manufacturers from china selling directly on Amazon

  5. Bulking up Amazon Fresh

    • Fell behind relative to Instacart and Walmart’s Grocery capabilities

    • Integration of various shopping platforms - Prime Now is faster (confusing to customers)

    • Fresh supermarkets in California, doing a lot of B&M

    • Make it a better experience for brands selling on Amazon Fresh

  6. Amazon Advertising will accelerate

    • A lot more DSP features being rolled out throughout 2020

    • Opens up a lot more opportunities for younger/smaller brands; more creative options, advertising Posts, advertising within video streams

MENTIONED IN THIS EPISODE

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