Just as the vast biodiversity of the Amazon rainforest can often serve as a microcosm of the planet’s broader ecology, the sheer scale of Amazon.com’s operations can also provide some insight into the behaviors and trends shaping the global economy.
Arguably, the insights provided by the e-commerce giant are more expansive than its namesake rainforest.
Amazon shopping trends in a massive digital marketplace spanning 180 countries with more than 300 million active users and a network of 1.9 million global sales partners. These numbers are expected to contribute to forecast net sales of $121 billion to $126 billion in Q1 2023, according to Amazon.
Now recognized as the world’s third largest company, it’s easy to see why the marketplace is often seen as an insightful source for brands looking to stand out, both on and off the platform.
Discover five key Amazon shopping trends that have helped the platform achieve its meteoric success and redefine consumer and brand expectations when buying or selling online.
1. Personalization isn’t “nice” – it’s expected
Amazon is the king of personalization in e-commerce, especially when it comes to product recommendations. The company recently launched Amazon Personalize, a tool for developers to build their own recommendation engines based on the retailer’s artificial intelligence (AI)-based system.
Most shoppers today expect to receive that level of accommodation wherever they shop online. According to a 2022 Salesforce survey, 56% of global customers expect offers to “always be personalized,” up from 52% in 2021. They also expect brands to “predict”. [their] needs” when shopping, 62% felt that way, up from 56% in 2021.
As such, it’s becoming increasingly important to use your company’s consumer data to help determine what your customers may need at any given time. When shoppers browse your channels, make them feel like they’ve just stepped onto the set of the TV show Cheers. little things like knowing their name or a typical order can go a long way in keeping them as a customer.
2. Rapid fulfillment growth leads to changes in the supply chain
Almost everyone is familiar with Amazon Prime, Amazon’s “premium” customer service package that lowers most shipping fees while guaranteeing one- and two-day delivery on a wide variety of products. It was revolutionary at its launch in solving some of the major barriers to shopping in e-commerce (i.e. delivery times and shipping fees) and continues to drive huge Amazon sales to this day.
Naturally, that’s a big deal for customers, but it can often strain suppliers’ supply chains. Traditional supply chain models tend to lean, typically keeping minimal, needs-based inventory on hand, and production volumes are planned in advance.
But with increasing demand for free, fast and frequent deliveries, sellers are typically forced to hold larger inventories to meet those requests, impacting the supply chain and downstream.
Brands are advised to consider ways in which a more traditional approach to supply chain management may be holding them back from meeting customer expectations around delivery times and other fulfillment issues.
3. Customers are doing more mobile browsing and shopping
More than half (67%) of US Amazon customers report that they prefer to shop on a desktop or laptop computer over a mobile phone, according to retail advertising firm CPC Strategy, and 24% said they prefer to use their mobile device. :
However, these statistics can be somewhat deceiving.
For starters, the respondents’ responses are strongly correlated with age, perhaps suggesting a slow but steady upward trend ahead. (The trend is that those 35 and younger clearly prefer mobile devices, while online shoppers 55 and older prefer to use desktop or laptop devices.)
Second, those statistics only refer to online purchases and don’t reflect the number of people who may have used a mobile device earlier in the shopping journey.
While perhaps insignificant when you consider the number of studies showing that customers are more likely to research products on their mobile devices than on a traditional computer, it raises important questions about the value of a solid mobile experience at every stage of the funnel. regarding.
Of course, Amazon’s shopping trends have long supported their app, which makes mobile shopping and product exploration as seamless as possible. Features like swipe-to-buy and product watchlists allow customers to return to touchpoints whether they’re in the mood for mobile or desktop.
4. More customers (and brands) are comfortable with online CPG shopping
The COVID-19 pandemic has accelerated a number of predicted online trends, including a sharp increase in sales of products once considered unsuitable for e-commerce: consumer packaged goods (CPG), especially grocery products.
While Amazon was making moves in this space long before COVID-19 (the company acquired Whole Foods Market in 2017), a short-term aversion to in-person shopping has fueled some new habits among consumers, and now it appears that Amazon it was again. , ahead of his time.
Amazon’s US grocery e-commerce sales to grow 12.9% in 2023 to $29.12 billion per FBA Masterclass, a mentorship program that helps students succeed through Fulfilled by Amazon (FBA) : However, the rest of the economy is quickly ballooning to catch up. U.S. grocery e-commerce sales are projected to double over the next two years, from $122.39 billion to $243.67 billion. The latest figure represents both the rise of traditional supermarket brands branching out into the e-commerce space, as well as a number of brands adopting the direct-to-consumer (DTC) model in their own channels.
Global online grocery sales are forecast to exceed $2,160.7 billion by 2030, growing at a CAGR of 19.97 percent from 2022 to 2030, according to global research firm Precedence Research.
5. (Relevant) Multimedia is more and more essential
The ability to scrutinize a product, read its labels, and watch it in action are good expectations of today’s online consumers, and as a result, they owe a lot to Amazon’s early promotion of A+ content.
Without it, it becomes increasingly difficult for brands to stand out in the Amazon marketplace.
Essentially, the multimedia content provided to some of Amazon’s most trusted sellers enables them to present a compelling brand story, address common customer objections, and fully showcase the products’ potential.
And far from just bells and whistles, the system works.
Amazon users who watch videos on the platform are three times more likely to buy a product than those who don’t, according to digital marketing agency Nuoptima. Brands selling both on and off Amazon should ask: Are we using multimedia to its fullest potential?
Consider the gaps between your in-person retail experience and its e-commerce equivalent. while your customer may not be able to hold the product in their hands, it might be almost as helpful to see it in someone else’s hands or view an informative tutorial. about the best way to use your product. Maybe they could even enjoy an augmented reality solution that visually places the product right in their living room.
Think of ways multimedia can help bridge that gap between the physical and the digital, and go for it.
Follow Amazon shopping trends without becoming “trendy”
Tracking customer, seller and retailer behaviors and how they mesh with Amazon shopping trends can be a powerful way to review your e-commerce strategy across channels, not just The One.
The next time you hear about a “win” on Amazon, think about how you can incorporate similar benefits into your own channels for your customers.