Getting Ready for the Holiday Season

Getting Ready for the Holiday Season

How brands can amplify performance on Amazon and other digital commerce retailers.

  • min read
Getting Ready for the Holiday Season
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Even when Prime Day 2021 saw a softer YoY growth of 7.7%, it still brought in $11.4bn (54% up from 2019) in gross merchandise value and sold 250 million products across June 21-22. Amazon is expected to redouble efforts to catch up on growth for the holiday season starting various early Christmas shopping deals, and some early Black Friday deals in Nov.

Electronics, toys and apparel are expected to be key highlights in this year’s deal list, along with curated gift finders on Amazon. Key events over the next 45 days include:

  • Black Friday & Cyber Monday – 26 – 29 Nov
  • Christmas deals – 2nd week of Dec
  • Christmas/Boxing Day – 25th/26th Dec

For incumbent brands this season brings additional challenges as their operating models are often not as nimble as insurgent brands and therefore requires increased focus to sustain growth. In the US alone, we see an 8-percentage-point gap in online penetration between incumbents and the overall market in their categories.

Create a distinctive purchase experience

Distinctive purchase experiences, strong retail hygiene and a robust marketing plan can drive more consumer conversions. We have designed a simple framework, which can help amplify performance on Amazon and other digital commerce retailers.

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Devise a robust Digital Marketing plan

Collaborate with marketers and partners to ensure there is a solid digital marketing plan in place, to create incremental traffic generating opportunities. Traffic is a key input to the Amazon flywheel and can then significantly influence all other levers to create a virtuous cycle.

Amazon is now the largest product search engine in the world with approximately 60% consumers starting their search on the platform.  Effective retail media strategy and execution is vital to help cut through the noise on the Amazon for your products.

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Boost visibility with Promotion and Merchandising

Understand the different type of deals made available on Amazon and map which products would fit for each. If you are in a profit challenged category like FMCG, work with your vendor teams to organise promotional bundles that have a clear consumer benefit which helps retain post promotion period price parity.

Lead the season with the right products for your brand

The infinite shelf on Amazon makes it harder for products to reach consumers who are trying to find them. Choosing the right product range – in the right combination of popularity, profitability and price can bump the brand to the top of the search results page on Amazon. Dig into your brand analytics reports to calculate repeat purchase rates for consumers and where applicable, enrol products into a subscribe & save program.

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Ensure Product Availability during the entire season

Being IN STOCK is non-negotiable on Amazon during this season. It is a well-researched fact that being out of stock or losing the “Buy Box” can result in loss of sales velocity, seller rank and organic search ranking. Work with your vendor teams, supply chain teams, use the demand forecasting reports and historic patterns to meet the demand during the holiday season.

Get the Product Content Right

Amazon’s A9 algorithm is highly reactive and places significant emphasis on having the right digital shelf hygiene. Taking care of digital shelf hygiene elements including product title, the search optimised feature benefits, product and lifestyle images, product videos reviews/ratings and A+ Premium content helps boost organic search ranking and glance views for the product portfolio.

Like Amazon, several retailers have adopted an algorithm driven selling supported by distinctive retail media ecosystems. This framework, and the tasks-to-be-done can be easily expanded to all retailers who contribute significantly to the brand’s business growth this holiday season.

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