On the one hand, shoppers want to connect with brands, they want emotive discovery experience and brands that speak to their values. At the same time they want convenience and unlimited choice, which for most is Amazon.
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9 out of 10 top sellers on Amazon now offer Prime for at least one product. Sellers choose to store inventory in FBA not because it is more convenient or cheaper than the alternatives. They do so because it unlocks access to more shoppers on Amazon.
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Amazon launched in Turkey on September 19th. Turkey becomes Amazon's 14th global marketplace. The marketplace launched with over 1,200 sellers on day one, all based in Turkey, mostly in the tree largest cities Istambul, Ankara, and İzmir.
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While 50% shoppers choose to buy something they have never bought before through a retailer like Walmart, Tesco, Aldi, or Target, 47% turn to a marketplace such as Amazon, eBay, Alibaba, or Etsy for repeat purchases.
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Launched three years ago in October 2015, Amazon Handmade was hailed as the "Etsy killer". And yet while it continues to grow it hasn't measurably impacted Etsy. Only 1.3% of Etsy sellers sell on Amazon Handmade.
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The Amazon seller has changed a lot since 2000. The changes are in what kind of products and the relationship with the brands they sell, how they handle fulfillment, and most recently where in the world they are located.
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Not unlike Netflix, Amazon is about matching the unique demand with the best choice. Netflix can service different audiences simultaneously and separately. Amazon search is starting to look like that too.
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"Hey, the same mattress is on Amazon for 1/4th the price, with free two-day Prime shipping, and thousands of reviews." How many customers would still buy a Casper mattress?
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The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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Private Label Pulse was our first-ever event. The event hosted four talks on the future of private label, advertising, international expansion, inventory performance & health, and - of course - Amazon.
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