- Take a customer-centric approach
- Build trust through reliability
- Quality must not be compromised
Amazon, with its abundance and range of products, continues to lead the way, ahead of its rivals, as the marketplace for the selling of unbranded, inexpensive and private label products.
Amazon is all about convenience – both for consumers and businesses. Research has shown that the ‘generic’ apparel label in Amazon Fashion, for example, has over 65,000 products and is the most-listed ‘brand’ in the marketplace. Simply put: the easier a product is to manufacture, the more likely it is to appear among the plethora of products on Amazon.
But, whilst opportunities to sell inexpensively manufactured goods on Amazon appear vast and widespread, sellers looking to stand out in crowded markets must not forget the role of the consumer. Whether operating in more traditional retail environments or on an e-commerce platform, what determines whether a product is a success or a flop can come down to how effectively it addresses a need or a pain point of the consumer.
Amazon customers are defined by seeking convenience, variety, and cost saving. So, for name brands to compete with new, cheaper products on the marketplace, it is imperative that they can market their points of difference, in a way which resonates with this type of customer through careful management of their listing presence. Being able to demonstrate trust and quality assurance through genuine reviews, and convenience through Prime capability and ease of returns, will enable a named brand to regain its market share.
Quality reviews tell consumers how a product will work for them, as well as enabling them to judge the credibility of the seller. Customers are craving knowledge from first-hand experiences; therefore, positive reviews further encourage consumers to trust what they are reading, and to follow through with a purchase. As well as helping to influence purchasing decisions, customer reviews can also increase the visibility of products on search engines. The more reviews that a product has, the better optimised the listing will be, delivering cut-through which is crucial in the crowded categories where off-brand products are increasing.
It’s also important to note that the algorithm governing the optimisation of products on Amazon continues to change and it is becoming increasingly difficult to compete as more products enter the market. In particular, the introduction of Amazon A+ content presents an opportunity for brands to improve their listings, and by extension their virtual shop floor. By integrating more detailed product descriptions, rich images, charts and narrative copy, the listings themselves can help customers make informed buying decisions. According to Amazon, A+ Content can increase sales on average 3 to 10% by educating the consumer about products and the brand.
As the volume of unbranded products continue to rise, in order to not be threatened, quality brands need to ensure they keep the customer at the centre of their universe.
Businesses do not need to compromise the quality of their brand to achieve success with online-marketplaces such as Amazon. Instead, brands must place the consumer and the consumer’s needs at the heart of their approach, continuing to tailor products that can reduce pain points for the shoppers of today.