Study: Brands flock to Amazon during pandemic

The number of brands selling and advertising via Amazon has sharply risen since the outbreak of COVID-19, and other e-marketplaces are also growing.

According to “Brands, Amazon, and the Rise of E-Marketplaces,” a new study of over 1,000 brands from Feedvisor and Zogby Analytics, over three-quarters (78%) of respondents are currently selling on Amazon, up from 55% in 2020. Forty-one percent of respondents said Amazon Advertising was among the new strategies they had deployed during the pandemic. 

Currently, 88% of respondents use Amazon’s advertising platform, up 21% from 2020. Additionally, respondents are increasing their investment in Amazon Advertising, as 59% spend over $60,000 monthly compared with 38% who did so in 2020. Over half (51%) of respondents using Amazon Advertising experience a return of 7x or more, while 39% see between a 4x–6x return.

While Amazon continues to grow in significance as a brand sales and marketing platform, other e-marketplaces are entering the mix. More than half (53%) of respondents believe e-marketplaces are their greatest source of opportunity in 2021, up from 43% the prior year. Over half (57%) of respondents on Amazon leverage other e-marketplaces to build brand awareness, up from 50% in 2020.

This figure includes seven in 10 (71%) respondents currently advertising on Walmart, with 48% spending at least $60,000 monthly. In addition, 87% of respondents plan to increase their ad spend on Walmart in 2021, with 68% planning to increase their spend by up to 50%.

Emerging marketplaces such as Google, Target, Instacart, and Kroger are also earning a growing share of respondents’ e-commerce presence. More than one-quarter (27%) said they would consider expanding to Google Shopping and 21% said they would consider expanding to Kroger.

“The growth of e-commerce during COVID-19 has substantially benefited e-marketplaces, especially Amazon,” said Dani Nadel, president and COO, Feedvisor. “As Amazon continues to pave the way for stronger customer-brand relationships and overall brand growth — driven by digital media offerings, enhanced advertising and content features, and reporting capabilities — we can expect to see more brands increase their investments as they see greater, tangible value from the platform.”