Amazon Trends: How will the marketplace develop in the future?

Amazon Trends: One thing is pretty clear

… namely that the group will continue to have a strong say in future developments in e-commerce. A world without Amazon? Hard to imagine nowadays. Since it was founded as an online bookstore in 1995, the US company has managed to push ahead and established industry giants from the throne in new business areas thanks to innovative solutions. According to statista.de Amazon is the most valuable e-commerce brand in the world, so it is clear what the giant is not lacking: resources. The financial possibilities are more than given so that Amazon can be an innovator for itself and an entire industry in the long term.

Amazon developments in the area of FBA

Fulfillment by Amazon, or FBA for short, is just one of the most diverse services that the marketplace operator offers its retailers. This is particularly interesting from the point of view of e-commerce newbies, as they do not have to set up their own logistics network first. Instead, they can use existing infrastructures and outsource order processing to Amazon. In principle, this will continue to be possible. The only question is whether and to what extent the service actually appears to be usable. In the past, one of the most consistent Amazon trends was that the company increased the fees for its services in various places. Of course, each increase makes FBA less attractive. This applies in particular to retailers who operate in the low price segment and are exposed to tough competitive pressure.

Reading tip: Learn how to use your Calculate FBA costs .

Apart from that, there will also be positive, primarily technological developments at Amazon. The group is constantly expanding its logistics network and is becoming more and more efficient in processing orders. In addition, Amazon promises to produce CO by 2040 ₂ -to want to become neutral. This goal alone requires technological changes that will affect the entire market. Traditional shipping service providers such as DHL, DPD & Co. also have to develop further if they do not want to lag behind Amazon’s developments.

Amazon trends in advertising: Sponsored Brands select SEA for Amazon

Amazon Advertising is a very dynamic area that has undergone a lot of changes in the recent past. These are also the ones that will permanently change the use of Amazon Ads.

This applies in particular to the so-called. Sponsered Brands . The feature initially went under the title in 2020 “Amazon Headline Search Ads” was launched and has enjoyed increasing popularity ever since. Sponsored Brands give you the opportunity to place personalized advertisements with your logo, a slogan and up to 3 product extensions. The advertisements are paid for according to a PPC (Pay-Per-Click) model.

As the use of sponsored brands increases, more brands will be registered on Amazon than registration in the Amazon Brand Registry is a prerequisite for using the sponsored brands; as a non-registered brand, the scope for action with regard to SEA is rather limited.

Presumably, there will be a trend at Amazon SEA that can already be observed on other SEA channels, such as Google Ads: a price increase. The more dealers who use the feature, the more bidders there are for individual keywords and categories, which in turn drives up prices. It is all the more important that companies precisely define their goals with Amazon SEA and use the existing budget as efficiently as possible.

Reading tip: Amazon Brand Registry and Sponsored Brands are exciting options in terms of that Branding on marketplaces . More about this in our blog.

Amazon DSP: The next level of Amazon advertising

With Amazon DSP (Demand-Side-Platform), Amazon is taking the path towards programmic advertising. In terms of online marketing, this is still a relatively new discipline. On the basis of user data, advertising space is purchased in real time and advertising banners tailored to this are displayed.

The biggest difference to conventional Amazon Ads is that Amazon DSP is not limited to the marketplace, but ads can also appear outside of it. In this way, users are made aware of certain products much earlier. The payment model also differs from the sponsored ads above and follows a CPM (cost-per-mille) approach. This means that you are always billed after 1,000 impressions, whether clicks and purchases were made by DSP is irrelevant for the costs.

Its payment model makes the feature an Amazon trend that probably only affects large companies. The algorithm needs a lot of data to teach it in, which in turn means high upstream costs before the system has become established and the right customers are addressed.

Amazon Attribution: Google Analytics for the marketplace

Amazon Attribution could be an exciting Amazon development for all those who try to attract buyers to their Amazon presence through a wide variety of channels. Attribution is something like the Amazon counterpart to Google Analytics, which shows the performance of social media, video or other campaigns and provides information about which product pages users find particularly interesting – and how they ended up on them. This makes the tool particularly interesting for professional dealers and agencies who want to conduct performance marketing as efficiently as possible.

Attribution is currently an Amazon trend in beta. However, the tool is already available for the German market and is now free of charge. As with sponsored ads, the prerequisite for use is a successful trademark registration.

Tools become the necessary standard equipment

In the long term, it is foreseeable that trading on Amazon will become more and more professional. Reasons for this are upcoming Amazon developments, new functions, but also the increasing competition within the marketplace.

In order to master these changes, you need suitable tools such as ERP systems, repricers and campaign optimizers that react to changes in the market and automatically make adjustments.