Study: Amazon dominates e-commerce branding

Amazon is as popular with brands as with consumers, according to a new study.

“Brands & Amazon: Insights, Opportunities, and Concerns in the Age of E-commerce,” a survey of business leaders from major U.S. brands by e-commerce optimization company Feedvisor, indicates that more than half (54%) of brands are already selling on Amazon. Nearly three-quarters (72%) will be selling on Amazon within the next five years.

Brands want to sell on Amazon for straightforward reasons. For 44% of brands selling on Amazon, it represents more than half their total e-commerce sales. One-third of the brands (32%) selling on Amazon said it accounts for up to three-quarters of their overall e-commerce sales.

However, even beyond sales, brands appreciate Amazon’s potential as a source of customers. Almost all (97%) brands selling on Amazon, and a strong majority (84%) of those not currently selling on the platform, say the most compelling benefit is acquiring new customers.

Companies also see Amazon as a vehicle for advertising and branding. More than four in five survey respondents (82%) agree that advertising and branding options are one of the best parts about selling on Amazon.

Of the first-party brands surveyed, more than four in five (81%) want to expand to Amazon’s third-party channel. The majority of brands (61%) interested in evolving their relationships with Amazon said their primary reason is to get in front of a larger audience.

Despite these positive data points, brands do not view selling on Amazon with rose-colored glasses. Of the brands selling on the platform, two-thirds (66%) say that competing with Amazon’s private label products is a pain point.

A majority of brands selling on Amazon (57%) said they already pay for the Amazon Advertising platform. Almost all (97%) see value in those advertising efforts. The two most popular specific benefits cited by survey respondents were competitive pricing (51%) and customer acquisition (30%).