Amazon in March / April of 2017 launched a “sponsored product” that allows sellers to promote their products with cost-per-click advertising. This is a great business opportunity for brand owners and business owners because searching for products is one of the easiest to monetize. In the meantime, you might also want to hire the licensed Amazon seller consulting service near you.
Facebook and Google have been trying to upgrade their platform into shopping destinations, but users still go from FB and Google if you want to buy goods online. Amazon does not have this problem. Amazon has also been storing massive data for years and mastering e-commerce markets.
BMO Capital Markets analyst Daniel Simon predicts that Amazon can eat market share from Google such as retail, consumer electronics, media, entertainment and consumer packaged goods.
While analysts from Morgan Stanley, Brian Nowak predict ads business from Amazon will grow from 2% in 2015 to 4% in 2020 from the entire online advertising market in the US.
Note that although the Amazon Ads market looks small, people who enter Amazon are different from Facebook and Google, people who go to Amazon are used to shopping and are ready to spend. Coupled with the Amazon Prime feature.
Research That Demonstrates Amazon Superiority In Getting Online Buyer
Research from Bloomreach shows Amazon’s superiority in search products over other channels:
55% percent of consumers (NAIK from 44% in the previous year) will go to Amazon as they search for products compared to 28% on search engines (DOWN from 34% in the previous year).
50% of respondents started searching for products in their mobiles via the Amazon mobile site or app
In the year 2016 Amazon launched its own 7 brand private label fashion. Why? The first reason is that clothing, which includes products with high margins, is the highest online penetration product in American e-commerce.
Secondly, Amazon is very strong in online clothing category shopping with 45% market share.