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An awareness of the changes and trends on Amazon Business is essential for brands and retailers to adapt their sales strategy within the marketplace. This is especially true for companies that use the logistics solution FBA (Fulfilment By Amazon), whose operational success as sellers depends on Amazon. The importance lies in the fact that changes introduced by the US behemoth can affect a company’s pricing strategy and result in a loss of profits. One example of this is the possible increase of sales fees and commissions by Amazon. From Minderest, we explain the main changes during 2022, and the growing trends.
New challenges and opportunities for Amazon Business sellers
Supply chain issues
The COVID-19 pandemic caused failings in the supply chain. Therefore, during 2022, it is increasingly relevant for sellers with an FBA system to carry out a detailed assessment of their production and distribution capacity. They should also look for ways to optimise efficiency and reduce the risk of running out of stock. This will help improve positioning on Amazon and fulfil the guarantees that the marketplace promises its users. You can set up backup or emergency suppliers and adjust sales forecasts to current market needs, indicating increased demand.
Downturn in acquisition and sale of companies on Amazon
Since the launch of more and more Amazon Native Brands, brands created to sell exclusively on Amazon, another trend has emerged: the acquisition/sale of these brands once they are already well-established with users. These transactions are carried out by a conglomerate of brands responsible for their optimisation, like a property company responsible for managing several buildings. The shift for 2022 is that these transactions have slowed down so that it is now harder to sell an Amazon Native Brand and make a profit.
Growth in food product sales
In 2022, forecasts predict a growth in the sale of food and drinks through Amazon Fresh to take a stand against other online supermarket competitors. This creates an opportunity for FBA suppliers and sellers who can increase their sales volume. At the same time, the ability to repeat the same purchase periodically on Amazon helps companies to win over more loyal users and increase different consumers’ Customer Lifetime Value (CLV).
Greater protection for brands
We also see another positive factor which will benefit brands in 2022. Amazon Business will dedicate increased resources to ensuring their sellers’ protection from counterfeiters, who abound in online retail. The marketplace has created a brand register which guarantees sellers’ authenticity and makes it easier to report possible offenders. Through this service, you can also benefit from selling tools provided by Amazon.
Upward trends for 2022
Over the last few years, new trends have gradually taken root in how Amazon Business works, conditioning sales through the marketplace. In 2022 the upward growth of these trends continues. These include:
- The growth of cost per click adverts within Amazon.
- The importance of including high-quality photos and videos on product pages.
- The increase in the number of sellers.
- The increase in sales. Amazon’s sales increase exponentially every year, so it continues to be a useful sales channel for growing e-commerce businesses.
It is crucial to have a global perspective of competing companies’ actions and prices within Amazon, to achieve optimal benefits from these advantages and new opportunities. This will help you design a competitive pricing strategy in line with users’ expectations. You can use competitor monitoring systems to get access up-to-date data.
Find out how Minderest can take your business to the next level.
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