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State of Amazon: What’s Next
By Tyler Henderson – Seller Labs
Tyler@sellerlabs.com
Amazon Sellers – Software developers
Over 40,000 Active Amazon
Sellers
Managed Over $7 Billion Amazon
Sales 2016
Started as Amazon Sellers
Where’s Amazon at Now?
50%
of total Units Sold On Amazon
are from Sellers
11
Global Markets
189
Countries
33%+
Growth, Year Over Year
100K Sellers achieving over
$100,000 in sales in 2016
75K
Sellers achieving over
$100,000 in sales in 2015
Shoppers Start on Amazon
55%
Sources: “Amazon: Friend Or Foe for Retailers,” Forrester Research, July 26, 2012; “Google Shopping to Counter Amazon: Testing ‘Buy Now’ Button, Other
Amazon Captures One of
Every Two Dollars Spent
Online!
https://ilsr.org/wp-content/uploads/2016/11/ILSR_AmazonReport_final.pdf
https://ilsr.org/wp-content/uploads/2016/11/ILSR_AmazonReport_final.pdf
https://ilsr.org/wp-content/uploads/2016/11/ILSR_AmazonReport_final.pdf
How many of you have
employees?
Economic Job Impact
600,000+
Jobs created outside of
Amazon
What’s Next for Amazon?
Prime Day 2017
1. Sales are increasing
73.8m visits on Monday
113.2m visits on Tuesday
60% increase of sales in 2017 as
compared to 2016.
3rd Party Sellers increased sales from
20m+ items to 40m+
2. Prime Memberships are increasing
A record number of new prime
subscriptions
50% more of Prime members made a
purchase on prime day
3. Ways to buy are increasing
The Echo Dot was the highest selling
product
Mobile orders doubled from 2016…
Which had doubled from 2015
What does that tell you?
You need to optimize for Mobile & Alexa
But that’s not all. . .
Recap
Increasing overall sales
Increasing repeat customers and
customer loyalty
Increasing points of contact with buyers
What else could they be increasing?
Coming in 2017
Where do you see Amazon’s focus
shifting towards?
Brands!
A brand is a promise to the customer
Brands = Good customer experience
Amazon Targeting Existing Brands
Amazon Helps Emerging Brands
Building A Brand - Before
Big investment of money
Big investment of time
Long return on investment
Build a website
Drive traffic
… and more
Building A Brand - Today
Smaller investment
Less time
Don’t have to worry about infrastructure
Don’t have to emphasize their website
Don’t have to worry about traffic
… and more
The Easiest way to build a brand that does well on
Amazon. . . Is to build a brand with the same values
as Amazon.
Amazon’s Virtuous Cycle
Amazon Sellers’ Virtuous Cycle
What Brands Get From
Amazon
Customers
+300M
Direct access world wide
Engagement
75 Minutes
Per unique visit
+42% increase over past two years
Prime Members
50M products on Prime
80M Prime Shoppers
38% year over year growth
Brand Protection
Brand Registry 2.0
Drive Awareness
55% customers start
product discovery on
Amazon
26% increase year over year
Cold Start - Launching a product with
no history or brand recognition
Drive Awareness
Sponsored Ads & You
Amazon Sponsored
Product Ads
5th Largest Digital
Media Publisher
Amazon Sponsored
Product Ads
TAKE AWAYS
1. Optimize for Mobile and Voice search
2. If you focus on building a brand and
providing a good experience, Amazon
will reward you.
3. Sponsored products are an incredible
opprotunity
So where is Amazon going?
Nowhere.
Questions?
Want today’s Slides?
TEXT: “SELLERLABS” TO 444999
or visit Sellerlabs.com/midwest

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State of Amazon: What's Next?

Editor's Notes

  1. What does prime day 2017 tell us about where the future of Amazon is going.
  2. So what’s super impressive about these numbers is that they’re only a 5% increase over prime day last year. That makes all of the things that I’m about to say all that more impressive. .
  3. Sales overall for the Amazon channel increased 60% for primeday between 2016 and 2017. Remember this is on just a 5%
  4. 3rd party sellers are getting smater too! The average discount given by a 3rd party seller was 45% compared to the 35% on average from 1st party sellers
  5. Think about that for a second. Seriously. I’m going to let that sit. The highest selling product on Amazon was the echo dot. A product that what?
  6. Think about that for a second. Seriously. I’m going to let that sit. The highest selling product on Amazon was the echo dot. A product that what?
  7. Think about that for a second. Seriously. I’m going to let that sit. The highest selling product on Amazon was the echo dot. A product that what?
  8. Amazon is targeting existing brands attempting to bring them on as first party relationships. I think that some of you can already speak to being affected by this middle one on the screen.