We’ve seen some interesting trends on Amazon in 2021 as sellers rush to keep up with the continued pandemic-driven consumer behaviour and increased demand.
So, as the year comes to a close, let’s reflect on 2021 and look ahead at our team’s predictions and actionable insights for 2022 as a brand selling on Amazon.
Key takeaways from reflecting on 2021…
2021 was another year of growth for e-commerce in general and more specifically Amazon (90% of shoppers in the UK were using Amazon in 2021) with the domino effect from the 2020 lockdown as consumers realised they can easily access products from the comfort of their own home.
Amazon took the past year as an opportunity to help brands grow and improve. They made a number of changes to the platform including launching the growth opportunities tool, providing brands with personalized recommendations on how to improve the sales and conversion rate of products that are missing SP campaigns, A+ content, quality main images or reviews.
What to expect in 2022 – predictions for the year ahead
More focus on brand authenticity
Throughout the past year, we encountered some issues adding products to inventories that are not correctly connected with the seller’s Brand Registry. Amazon’s Brand Registry is focused on removing fraudulent listings and removing third-party sellers that are using your brand’s name. This is vital to building consumer trust and driving sales. We predict that there will be a further focus on brand authenticity as we move into 2022 to protect brands and ensure Sellers & Vendors are delivering an excellent brand experience for customers.
Opportunities for direct customer connection via social-media-like features
Moving into the influencer marketing space with Amazon live, will allow brands enrolled in Brand Registry and Amazon influencers to Livestream on Amazon about a brand or product they love which will then appear on your product detail page. The Amazon Posts program has also launched and is a Brand Registry only feature which we predict will become available to all sellers in 2022. Consumers can browse a brand’s own “feed”, similar to instagram, and discover other products similar to what they are looking for.
Video will take centre stage
Efforts to improve customer engagement on the platform is increasing. We’ve seen video being used in SB ads this year as well as on listing image & within stores and we think this will evolve even more so next year. Brands will continue to have more creative control over how they display their brand and products to help yield stronger results. We used this strategy for one of our brands Furrion, as part of their bespoke Amazon Advertising strategy. Find out how in the case study.
You may notice that Amazon often suggests similar products with the climate-friendly badge within listings that don’t have it. With a slightly negative reputation around Amazon’s sustainability as a business, we believe it will invest even more in this next year.
Strengthening of policies
Amazon is committed to fighting rebate websites and we believe that policies against these will become even more strict in the coming year. In November of this year, Amazon announced changes to their ToS to clarify their stance on rebates. These websites offer a big discount (or sometimes even a free product) if a customer buys the product on Amazon. Sellers use these websites to get traction when launching new products, as if there are more people buying them, the sales rank will increase and they will improve impressions and organic search results (and eventually sales). At This is Unicorn, we have always felt like rebates were a risky strategy. Read more on our CEO’s thoughts here.
Ads strategies will need to be more developed
Brands need to accept that in order to run successful ad campaigns on Amazon, metrics beyond ACoS and TACoS are now required. There’s more to Amazon Advertising than creating strategies that deliver high impact results. Building performance across the full customer journey is what sets you apart and how brands become a key player and dominate on Amazon.