Amazon Business Groups Marketing Spend

Goals

To identify the business groups within Amazon with the highest marketing spend to determine the areas of focus for a new business.

Early Findings

Top Amazon Sellers

  • One way Amazon determines the top sellers is based on feedback. They estimate that there is feedback on 10 — 20% of purchases on the website.
  • In 2018, based on feedback, the global top five sellers were MediMops, MusicMagpie, Pharmapacks, Momox fr, and World of Books Ltd.
  • The top sellers based on feedback in North America were Pharmapacks, AnkerDirect, SquareTrade, eTailz, and JE Direct.
  • The best-selling products on Amazon are compiled by the company based on product categories.
  • Amazon sells more than 398 million products.
  • JungleScout provides a comprehensive database that enables subscribers to obtain market information on best-selling Amazon products. Subscriptions range from $39 — $159.

Why are Retailers Advertising on Amazon?

  • Retail marketers have rated Amazon highly based on the translation into sales, and the expense of a user clicking through to landing page. The return on investment for dollars spent by retail marketers is the greatest on Amazon when compared to Google and Facebook.
  • Amazon provides brand analytics for sellers. Information of this nature is available through Vendor Central and Seller Central. Both sites require registration and payment to access the information. Some limited information is available on registration.
  • 17% of retailers said their primary reason for advertising on Amazon was related to return on investment, 16% said it was related to the size of the marketplace, and 15% said it was because that was where their target audience shopped.
  • Acquiring new customers was why 74% of brands advertised on Amazon. 59% of retailers advertised on Amazon to drive brand awareness.
  • A recent report suggested Amazon will soon take 10% of the digital advertising dollar.
  • Amazon has seen a 50% increase in advertising growth in 2019.

Summary

  • There is very little information freely available that discusses the Amazon businesses with the greatest marketing spend. Most of the information of this nature is hidden behind paywalls.


Proposed next steps:

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