Tambo exclusive insights to IGD Amazon Vendor Leadership Day “Brand Building and Amplification
We were fortunate enough to attend the IGD Vendor Leadership Day last week. Over 250 vendors attended the event, largely from FMCG businesses. Amazon turned out in force with their vendor team and representatives from some of their customer programmes e.g. Subscribe and Save, Global Store, Amazon Business, Amazon Advertising, FFP/SIOC.
Included in the event was a Smart Home tour where actors play out scenes in the home using Amazon devices. We saw how Amazon technology helped you: with your morning routine, have fun watching TV with mates and preparing food in the kitchen.
We were pleased to see Amazon focusing on the marketing opportunity of the platform with a number of speakers from the retail and advertising showing (with case studies) how you can build, amplify and protect your brand. Here are our key takeaways from the event:
✴️800,000 households use Amazon Pantry
✴️Amazon Fresh is now available to non-Prime members and the minimum order for free delivery has reduced to £40
✴️Amazon will be launching a Prime subscription offer ahead of Black Friday
✴️The growth in the use of Voice devices (e.g. Echo and Google Home) is faster than mobile adoption
✴️Customers on Subscribe & Save spend 129% more
✴️Prime Now is available in 40% of postcodes across the UK
✴️The fastest Prime delivery was from an order in Newcastle which took 12 mins to get delivered from final click
✴️Amazon is expanding its sampling programmes across all their channels
✴️ There is significant investment in Amazon Fresh to improve the browsing experience
✴️Implementing A+ pages improves your page conversion by 22%
✴️Advertising opportunities are opening up through Amazon music
✴️Brands are finding inventive ways to improve product packaging
✴️You will be able to buy a full Christmas dinner on Amazon this year!
Overall, the event was well received by the attendees we spoke too, however, everyone wanted Amazon to share more data on business performance.
Amazon is testing a 'New' badge to highlight newly released products
Amazon are taking a different approach to help shoppers tackle their indecision when choosing a product to purchase as the marketplace are currently testing a new product labelling system, Amazon 'New' badge, which will label the newly released merchandise on the platform.
The move builds on the previous introduction of Amazon labels to differentiate stock including: Top Brand, for top brands’ merchandise, and Best Sellers, the high selling items on the marketplace, as well as Amazon Choice, a seal of approval by Amazon.
Amazon boasts a vast selection of products on the marketplace which sometimes can make it difficult to find the right item for time-poor shoppers. The new badge could serve as a filtering feature to help shoppers pre-set their product preferences ahead of the search, boosting the chances of consumers pressing a buy button instead of abandoning the site without finding what they were looking for. The benefit for sellers is that they can show off their fresh stock with the new badge, differentiating it in search and making it look more prominent amongst other listings.
Amazon takes its Prime grocery shopping on-demand
Shoppers no longer need to sign up for a monthly Amazon Fresh delivery subscription before they order from the service. The online retailer is making the grocery delivery service available on-demand to those who are already members of its Prime subscription scheme.
Shoppers who are Amazon Prime members, live within the 302 postcodes in London and the South East where the service is available, and place an order worth at least £40 will now be able to pay £2.99 for a one-off on-demand delivery, or continue to pay £3.99 for an unlimited number of deliveries in a month.
This latest move is moving to make its service more convenient and cheaper for shoppers who order less frequently, and to make itself more competitive against those grocers in doing so.
Amazon’s new multistorey warehouse aims to cut delivery times
Amazon has agreed to take space in a first-of-its-kind three-storey warehouse in Seattle, a new type of distribution center that could reduce delivery times in congested cities to hours rather than days. The vertical warehouse is unique to the US where trucks can access multiple levels via ramps.
Having vertical distribution facilities closer to urban customers helps slash delivery times – this will be the only multistorey warehouse in the Seattle area with truck access to a second level to help compressed delivery times.
This development shows how Amazon is finding new ways to speed up delivery in urban areas where space is at a premium. If successful we can see the multi-story model replicated in cities around the world as transportation and logistics networks evolve to meet the pace of deliveries Amazon has promised.