eCommerce Deep Divewith John Ghiorso
Amazon News & Trends: January 2023
Buy with Prime:
Let’s begin with the launch of Buy with Prime. This program was expanded to all US-based sellers in January and is designed to provide Prime members with a seamless shopping experience by offering Prime-eligible products from Amazon and third-party sellers. By participating in this program, US-based Amazon sellers can access the large and growing customer base of Amazon Prime members and increase visibility and sales by leveraging the recognizable symbol of fast and reliable shipping that comes with the Prime badge. According to Amazon, Buy with Prime has the potential to increase shopper conversion by 25% on average, so this is a big opportunity for sellers.
In addition to Buy with Prime, Amazon has also made a move into the healthcare space with the launch of Amazon Pharmacy RxBenefit, which is a $5 monthly subscription plan that will cover a range of generic drugs and doorstep delivery. This is a natural extension of Amazon’s focus on improving the customer experience, and we can expect to see more innovation from Amazon in the healthcare space in the future.
Updated supply chain standards:
Amazon updated its Supply Chain Standards, which took effect on January 19, 2023. These updated standards are part of regular reviews that occur every three years, and it’s essential for products sold in Amazon stores to comply with these standards.
Amazon Ads: Product Tab:
On the advertising side, Amazon Ads launched a new feature called the Product Tab, making it easier for sellers to monitor all their ASINs in one place. The product tab helps sellers determine which ASINs need improvements for optimal performance, thus improving efficiency on the Amazon Ads platform.
Twitch display inventory:
Amazon Ads also announced the launch of Twitch display inventory available in Amazon DSP for US advertisers, providing advertisers with new and highly visible, seamless formats to connect with their audience on Twitch. This is important for advertisers who want to expand their reach to first-party Amazon audiences, providing more options for greater programmatic supply.
In other news, Walmart has recently launched Walmart Business, a direct competitor to Amazon Business. In an effort to catch up to Amazon and move to a more robust eCommerce presence, this new shopping experience will cater to SMBs and non-profit organizations in all of the typical B2B product categories.
Unlike Amazon, Walmart has a more curated selection of products (100,000 versus millions). Walmart Business offers both a free and membership version (Walmart Business+), where teams can expect additional benefits such as free shipping, free pickup and delivery, rewards, and savings.
In addition to Walmart Business, Walmart has also seen growth in its retail media division, Walmart Connect, with performance improving across the board. The platform transitioned to a second-price auction at the beginning of Q2, which helped sellers drive higher ROI and increased ad efficiencies.
Additionally, Walmart’s third-party marketplace has seen a rise in the number of sellers, with the platform having innovations in automation and releasing new ad units.
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