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Forrester: Amazon product content: a new space race?

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The Whole Foods acquisition by Amazon weeks ago was only the latest milepost in the latter’s inexorable march to the top of retail. The company sold $136 billion worth of products in 2016 – more than any other online retailer (and just over a third of what Wal-Mart did).

And we find that Amazon is big and gaining on Google for product-related searches (be they early or late in the purchase journey). This means that more and more purchase journeys will start on Amazon’s home page, and proceed via search to a variety of product pages all the way to a sale.

This changes a lot of things, but the upshot – to my mind – will be a massive outlay in product content and product-related experiences by manufacturers.

If we start with the current state of digital marketing, it’s not hyperbole to say that Google AdWords effectively takes the lion’s share of digital direct marketing dollars. Retailers and product manufacturers alike spend small and large fortunes and considerable brain power positioning themselves in paid search listings, and then on their sites in the hopes they can close a sale. Of the money spent on their own experiences, most is focused on user experience (UX), conversion rate optimization (CRO), testing strategies, and reacquiring people who abandon shopping carts. Some is also spent on content – usually in service of the UX, CRO and testing goals.

As many of those digital direct marketing dollars migrate over to Amazon, and migrate they will, a lot changes. On the Amazon site, all of the site experience issues fall out of scope for the product manufacturers. Most of what remains for manufacturers to control is the content they supply Amazon, and pricing strategy. What they lose in independence and control, they gain in simplicity and clarity: Provide enough evidence of product value to justify a margin-friendly price.

Read the entire article here, Amazon product content: a new space race?

via the fine folks at Forrester Research.

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Forrester Research Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Forrester’s unique insights are grounded in annual surveys of more than 500,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of our most innovative clients. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations.

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