Report: Three-Quarters of Major U.S. Brands Will Be Sold by Amazon Within Five Years

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Report: Three-Quarters of Major U.S. Brands Will Be Sold by Amazon Within Five Years

01/29/2019
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NEWARK, N.J. — Brands are increasingly seeing the opportunity that comes with selling on Amazon, like gaining new shoppers, new insights from Feedvisor, an e-commerce optimization company, reveal.

According to Brands & Amazon: Insights, Opportunities, and Concerns in the Age of E-commerce, a survey of business leaders from major U.S. brands, indicates that more than half (54 percent) of brands are already selling on Amazon and nearly three-quarters (72 percent) will be selling on Amazon within the next five years, reported Convenience Store News sister publication Drug Store News.

Brands want to sell on Amazon for straightforward reasons:

E-commerce Sales

Forty-four percent of brands selling on Amazon said it represents more than half their total e-commerce sales. Additionally, one-third of brands (32 percent) selling on Amazon said it accounts for up to three-quarters of their overall e-commerce sales.

Source of Customers

Almost all (97 percent) brands selling on Amazon, and a majority (84 percent) of those not currently selling on the platform, say the most compelling benefit is acquiring new customers.

Marketing Vehicle

More than four in five survey respondents (82 percent) agree that advertising and branding options are one of the best parts about selling on Amazon.

Reaching a Larger Audience

Of the first-party brands surveyed, more than four in five (81 percent) want to expand to Amazon’s third-party channel. The majority of brands (61 percent) interested in evolving their relationships with Amazon said their primary reason is to get in front of a larger audience.

Despite these positive data points, brands do not view selling on Amazon with rose-colored glasses, Drug Store News reported. Of the brands selling on the platform, two-thirds (66 percent) say that competing with Amazon's private label products is a pain point.

However, more than half of brands selling on Amazon (57 percent) said they already pay for the Amazon Advertising platform, and nearly all (97 percent) see value in those advertising efforts. The two most popular specific benefits cited by survey respondents were competitive pricing (51 percent) and customer acquisition (30 percent).

Convenience Store News and Drug Store News are properties of EnsembleIQ.