Brands and Amazon
in the Age of E-Commerce
2020 Edition
A Report Based on a Survey of 1,000+ U.S. Brands
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Consumers are increasingly shifting their shopping behavior
to marketplaces over brand and retailer websites, using these
digital destinations for every phase of their purchase journey,
from discovery to price comparison to conversion.
In 2018, consumers spent a staggering $1.66 trillion globally
on the top 100 online marketplaces, generating 50% of global
e-commerce sales for that year.1 Then, for the first time in
history, the U.S. e-commerce market in 2019 surpassed 10% of
total U.S. retail sales.2
The reach, sophistication, and convenience that online
marketplaces offer have paved the way for a burgeoning
“marketplace economy,” and Amazon is the epicenter. The
company’s third-party marketplace accounts for nearly 60% of
gross merchandise value of marketplaces worldwide.3
While many brands have eagerly embraced the disruption of
marketplaces within e-commerce, others simply do not have the
proper tools and guidance to help them succeed on platforms
as dynamic as Amazon’s.
Yet, marketplaces are a key component of any e-commerce
strategy, and a robust advertising approach is imperative. As
Amazon — with nearly 8% of the digital ad market — continues
to compete with the Google-Facebook duopoly, brands will need
a clear understanding of where to allocate their digital media
spend across their channel mix to drive the highest ROI.4
Introduction
Modern marketplaces are shaping the future
of e-commerce, with Amazon as the driving
force and Walmart steadily gaining ground.
“
With AI-powered technology, data-driven marketplace
intelligence, and hands-on expertise, brands can bridge the
gap between the “black box” of Amazon and their business,
providing support and strategic solutions to help them navigate
— and win — on and across Amazon, Walmart, and more.
In our second annual analysis, “Brands and Amazon in the
Age of E-Commerce” documents more than 1,000 U.S. brands
and their unique relationships with Amazon, including a deep
dive into their media spend and advertising strategies; how the
platform fits into their overall e-commerce mix; annual revenue
figures; and areas of tension and opportunity.
Whether you identify as a brand, retailer, private label seller, or
other, this report sheds light on the strategies and opportunities
you can leverage in your navigation of today’s disruptive,
Amazon-driven retail ecosystem.
We hope you enjoy the insights of this report as much as we
enjoyed mining them, and expect they will help you to reach
new audiences, control your marketplace presence, and drive
revenue and profits, all while maintaining your hard-earned
equity and identity.
Dani Nadel
President and Chief Operating Officer, Feedvisor
This survey was conducted by Zogby Analytics, a nationally and internationally respected opinion
research firm, on behalf of Feedvisor. It was distributed online from Nov. 15, 2019 to Dec. 6, 2019,
among a national sample of 1,000+ retail business decision makers. Results from the full survey are
based on a confidence interval of 95% and have a margin of error of plus or minus 3.1 percentage
points. All numbers have been rounded to the nearest percent.
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of brands advertise on Amazon, up from
57% last year.
of brands see at least a 4x return with
Amazon Advertising.
of brands selling on Amazon said
e-commerce marketplaces are their
greatest source of opportunity,
demonstrating how marketplaces are
driving the e-commerce trajectory.
of brands use Amazon to drive sales;
60% to acquire new customers; and 58%
to build brand awareness — revealing
that brands leverage Amazon as a full-
funnel purchase channel.
73%
83%
54%
62%
Table of Contents
INTRODUCTION
ACQUISITION TRENDS
To optimize your end-to-end e-commerce strategy,
get in touch with us at feedvisor.com/connect
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The Age of
E-Commerce
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55%
45%
Yes
No
Brands Recognize Amazon’s Significance:
55% Are Selling on the Platform
Brands, now more than ever, are acutely aware of the profit-
generating, brand-building opportunity that Amazon presents.
The platform boasts more than 100 million Prime members in
the U.S. alone and opens the door for brands to captivate these
highly loyal consumers, increase market share and their digital
shelf presence, and determine precisely how the platform fits
into their overall e-commerce strategy.5
Through Amazon’s third-party marketplace, these branded
products will continue to be sold without intervention or oversight
from the brands themselves — counterfeits, unauthorized
sellers, price erosion, and competition with Amazon’s private
labels will. In order to preserve and maintain price value, brand
equity, and profit margins for the long term, brands need to
holistically evaluate their e-commerce channels and seller
footprint to find the balance between risk and opportunity.
Consistent year over year, more than half of brands actively
sell on Amazon, and those that are not on the platform
recognize the risks associated with a lack of an Amazon
presence.
Brands Currently Selling on Amazon
However, several household brands — Nike, Ikea, and Birkenstock,
among others — have chosen to end their direct business with
Amazon. Although the moves signify pilot programs coming to
a close, leaving the platform is not a turnkey solution.
