Navigating E-Commerce

in 2023 and Beyond:

Brands, Amazon, and E-Marketplaces
in the Digital Era

A Report Based on a Survey of 1,000+ U.S. Brands

and Private Labels 2023 Edition
 2

E-Commerce in its Milestone Era

“ E-commerce spending surpassed $1

trillion in 2022.1 Where do we go from
here?”

Last year proved to be significant for the e-commerce

industry, marked by numerous milestones and
further disruptions. E-Commerce spend surpassed
$1 trillion setting up 2023 to be a watershed year,
yet the industry seemed to be in despair, with
crashing valuations, tech layoffs from dominant
players like Meta, Amazon, and Apple, and consumer
price sensitivity due to inflation reaching its highest
level in 40 years. While retail growth rates remain
higher compared to last year, the rate of growth is Regardless of whether you are a brand, a retailer, a
decelerating. private label seller, or any other entity — this report
sheds light on the strategies and opportunities
Despite these challenges, Brands and Private Label you can leverage to navigate today’s disruptive,
sellers still consider e-commerce their strongest marketplace-driven retail ecosystem. We hope the
channel as consumers pursue convenience and insights prove helpful in your efforts to reach new
price above all else. In fact, nearly half of brands audiences, control your marketplace presence, and
identify e-commerce marketplaces as their main drive share and profits.
avenue for growth, with a significant 62% choosing
to exclusively showcase their top-selling products
Dani Nadel
on Amazon.
President and Chief Operating Officer,
In its fifth annual installation, Navigating Feedvisor
E-Commerce in 2023 and Beyond: Brands, Private
Labels, Amazon, and E-Marketplaces in the Digital
Era, documents more than 1,000 U.S. businesses —
from direct-to-consumer to Fortune 1000 brands —
and their unique relationships with e-marketplaces
and Amazon. The report includes a deep dive into
their advertising and media strategies, plans for
economic uncertainty, the impact of inflation on their
businesses, as well as specific areas of challenges
and opportunities.

This survey was commissioned by Feedvisor and conducted by Zogby Analytics,

a nationally and internationally respected opinion research firm, on behalf of
Feedvisor. It was distributed online from January 2023 to March 2023, 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.

1
Digital Commerce 360 2023
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Table of Contents

E-COMMERCE FINALLY BECOMES JUST 6

COMMERCE

AMAZON: THE ULTIMATE 15

SALES DESTINATION

AMAZON’S ROLE IN THE EVOLVING 23

ADVERTISING LANDSCAPE

SHAPING THE FUTURE: EMERGING RETAIL 34

TRENDS ON THE HORIZON

LOOKING AHEAD 39

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E-Commerce Finally
Becomes Just
Commerce

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The Evolution of E-Commerce

49% While normally showing a growth rate of 6-7%

year-over-year, Walmart is now forecasting a lower
of brands see marketplaces as the increase for 2023, ranging from 2.5 to 3%.
greatest e-commerce opportunity
Despite the downward trend, 49% of brands still
see marketplaces as the greatest e-commerce
opportunity, with Amazon continuing to be the go-
Marking an unprecedented milestone in the to marketplace for many.
evolution of e-commerce, total online retail sales
hit $1.07 trillion in 2022, showcasing a remarkable In the coming months experts are seeing a new
22% increase compared to 2021’s total online retail e-commerce growth pattern emerge; one where
sales.1 This substantial rise not only signifies a slower sales growth will become the norm.3
more accelerated growth rate when compared to
the pandemic period, but also surpasses the 18% Currently, e-commerce as a whole is predicted to
uptick observed in 2020. However, this meteoric grow 8.9% this year,4 and will maintain that growth
rise in online retail sales has recently reached a rate through 2026. The slower growth rate is
critical juncture, where its sustainability is being attributed to 2 factors:
questioned.

Marketplaces, arguably the largest protagonist

drivers of growth, are starting to see the limitations Growth is settling back to the pre-
of a fractured economy. Compared with the previous
1 pandemic trajectory.
year, Amazon did not see double-digit sales growth
for the first time in a decade, but now anticipates E-commerce is morphing to
single-digit sales growth between 4-8% instead of
2 just “commerce” as the lines for
20-40% as in recent years.2 Other marketplaces attribution are becoming murkier.
are shifting their 2023 outlooks as well, including
Walmart whose growth compared to Amazon has
been much slower.
U.S. E-Commerce Growth Rate

60%

40%

20%

0%

-20%

Graph source: Marketplace Pulse 2023

1
Retail Dive 2023
2
Forbes 2023
3
Insider Intelligence 2023
4
Insider Intelligence 2023
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E-COMMERCE FINALLY BECOMES JUST COMMERCE 8

Current Marketplace Landscape US E-Commerce Market Share for 2023

vs. Title: E-Commerce Market Share
for 2023
60% 2% 2%
vs. Title: E-Commerce Market Share
for 2023
of brands now sell on Amazon, up from
14% from previous year 4%

6% 4%
The current marketplace landscape is experiencing 6%
prominent shifts among the leading platforms, with
Amazon still holding the largest market share at 11% 38%
37%1. Amazon continues to strengthen its position 11% 38%
as a preferred destination for brands, with more
than half (60%) of brands choosing to sell here in
addition to their own channels. This is a notable
increase from its 30% share in 2022, proving the
Amazon Everyone Else Walmart
power of Amazon to attract and retain a substantial Amazon
eBay
Everyone Else
Target Home
Walmart
Depot
eBay Target Home Depot
portion of the e-commerce market. In fact, of those
not currently selling on Amazon, 18% said they are
considering it for 2024. Walmart is now the third preferred marketplace,
as share of brands selling on their platform has
In a closely contested competition, Google and declined to 20% from 25% in 2022. This could be
Walmart consistently swap positions as they actively a result of their recent declining sales and warning
adjust their algorithms, enhance their e-commerce of a tough year ahead with inflation continuing to
capabilities, and pursue strategic initiatives. Google, eat into their profits.1 Yet, they have taken strides to
which is now the second most preferred marketplace continue to update their e-commerce experience,
brands sell on, has experienced a slight uptick, with especially with their latest redesigned website.2
22% of brands opting to sell on its platform. This These improvements could pay off as 19% of brands
represents a 1% growth compared to the previous say they would consider selling on Walmart in the
year. future.

Top Channels Brands Sell On

1
Statista, 2022
2
CNN 2023
3
Verge 2023
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Worthy Marketplace Contenders Beyond the 44% already selling on Amazon, other
marketplaces brands said they were interested in
selling on include Target at 16% and up 3% from last

17% year, Facebook at 20% and Google, at 17%.

of brands are now selling on Shopify, up Channels Brands Would Consider Selling on in
from 12% in 2022 2023

20% 19% 18%

In the last three years, Shopify has become a true *Brands not already
contender in the marketplace landscape, showing selling on Amazon
nearly 100% US e-commerce sales growth in 2020
and 40% growth in 2021, according to Insider
Intelligence.1 Shopify has even surpassed Walmart’s
17% 16%
e-commerce sales, and is poised to continue to do so,
with an estimated $108.15 billion in US e-commerce Target is struggling as a marketplace contender
sales compared to Walmart’s $73.45 billion this year.
despite overall sales across retail and e-commerce
Shopify has also continued to block Amazon’s “Buy
being up (0.5%), profit margins are down almost 5.8%
With Prime” program as a way to safeguard its sales.
which Target is blaming on three reasons: consumer
eBay is becoming a hot marketplace once again, purchases shifts, theft and bad PR.1 Rather than
and attracting more brands to its platform, which purchasing clothing and home goods, Target has
now hosts 17% of brands, up from 15% in 2022. This seen consumers prefer to buy necessities and
could be a result of the resurgence of the popularity groceries. They have also been battling shoplifting
of “vintage” and “used” goods the platform has long and organized retail crime with losses totaling over
been associated with. $500 million this year alone.

Channels Brands Would Consider Selling on in 2023

Facebook Walmart.com Amazon Google Target.com Instagram eBay TikTok Etsy.com

Shopping

1
Insider Intelligence 2023
2
CNN 2023
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Inflation's Mixed Effect on Brands 34%

of brands reported an increase of 20% or
44% more in their sales due to inflation
of brands have seen noticeable changes
in their circumstances due to inflation
Categories where sales have increased 20% or
higher from inflation year-over-year:
As the e-commerce landscape continues to evolve,
new challenges arise, and none are as persistent
Health, Household & Baby Care
and enduring as inflation, especially for businesses
operating in discretionary spending categories.

With the escalating expenses of essential necessities Arts, Crafts & Sewing
like housing, groceries, and fuel, consumers are
increasingly compelled to adopt rigorous cost-
cutting measures. Some, in an attempt to manage Cell Phones & Accessories
their financial obligations, have increasingly turned
to credit cards, resulting in a staggering record-
high consumer debt of $4.82 trillion in February, as
reported by the Federal Reserve.1 When examining overall revenue, 42% of respondents
have observed a change due to inflation, with 22%
Despite the uncertainty, spending as a whole has specifically noting a notable increase in revenue
maintained a positive trajectory throughout the year ranging from 6% to 11%. The majority, comprising 55%
and has even shown a slight increase (5.4%)2 in 2023. of respondents, have not experienced any significant
This resilience is reflected in the survey responses alterations in their revenue streams.
from brands, where over half (55%) stated they did
not experience any major changes due to inflation. In terms of holiday sales, inflation has had a positive
However, 44% have seen noticeable shifts in their influence on certain categories. Sports & Outdoors,
circumstances, with a majority reporting positive Toys & Games, and Home & Kitchen have seen a
outcomes. surge in sales, with 44% of businesses in these
categories reporting an increase. This indicates that
despite the challenges posed by inflation, strategic
measures and market adjustments have enabled
brands to adapt and thrive in specific segments.

While inflation remains an ongoing concern, the

data suggests that brands have demonstrated
resilience, adaptability, and the ability to capitalize
on shifting consumer behaviors. Through careful
navigation and a proactive approach, brands can
continue to navigate the complex landscape and
identify opportunities for growth even in the face of
inflationary pressures.

1
Insider Intelligence 2023
2
Insider Intelligence 2023
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The Battle for Attention: Brands

Grapple with Escalating Competition
in the Marketplace

25%
of brands said increased competition
was their biggest challenge

As e-commerce continues to grow and evolve,

brands face a myriad of challenges that can impede
their success. According to our survey, the top 5
overall challenges that brands are currently facing in
e-commerce include increased competition, supply
chain logistics, increased fees, meeting customer
demand, and acquiring new customers.
Increased competition, at 25%, is the leading
challenge for brands, highlighting the need for
Top 5 Challenges Brands Face businesses to stand out in a crowded and highly
competitive marketplace. Brands are addressing
this challenge by bolstering their customer service,
1 Increased competition - 25% offering more competitive pricing, increasing
advertising efforts, and allocating increased
2 Supply chain logistics - 24% budget towards innovation as part of their strategic
measures.
3 Increased fees - 22%
A new challenge this year, 22% of brands have
cited increased fees as a top concern. Specifically,
4 Meeting customer demand - 19%
FBA fees, which have risen an average of $0.22 per
product1. This rise in fees has brands trying to balance
5 Acquiring new customers - 18% the costs of selling on e-commerce platforms with
maintaining profitability. In most cases, brands have
expressed their intent to explore alternative cost-
saving measures in order to circumvent the need to
raise their own prices.

1
Amazon 2022

Identify your Amazon competition and take action to

outpace them with our FREE TOOL: feedvisor.com/connect
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39% Brands’ Top Strategies on E-Marketplaces

of brands use e-marketplaces to

acquire new customers and expand 39% Acquire New Customers
to new audiences

39% Expand to New Target Audience

In the increasingly competitive landscape of
capturing consumer attention and driving sales,
brands are using marketplaces for various strategies
to stay ahead. Over one third of brands (39%) are
38% Launch New Products
now using e-marketplaces as a means to acquire
new customers and tap into new target audiences.
Simultaneously, they are focusing on launching 37% Drive Sales
new products (38%) and building brand awareness
(37%). This trend showcases the growing recognition
among brands of the importance of diversification in
reaching a wide range of potential customers. With 37% Build Brand Awareness
a diverse and increasingly knowledgeable customer
base, brands are vying to secure attention and
loyalty, prompting them to explore different avenues 33% Run Promotions
for expanding their reach.

“ Meanwhile, 48% of brands said they use

Amazon as their primary marketplace to
drive sales.”
30% Product Testing

29% Identify Competitors

This indicates that brands rely more on Amazon
as a sales engine while simultaneously leveraging
other e-marketplaces to achieve different business
objectives, like improving brand visibility or launching
29% Product Liquidation
new products.
*Respondents could select all that apply.

Supercharge your growth with a full funnel approach that easily captures upper funnel
prospects, and effortlessly acquires new-to-brand customers: feedvisor.com/connect
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Unleashing the Power of Social More brands are selling on social media
Commerce: Expanding Opportunities platforms like Facebook (30%), Instagram (20%),
and TikTok (18%) than ever before.
to Reach and Engage Larger Audiences

54% Fueled by its immense popularity in markets such as

of brands see social media marketing as China, social commerce is predicted to experience
a significant opportunity a staggering three-fold growth rate compared to
traditional e-commerce over the next several years.1
Globally, the sector is expected to more than double
from $492 billion in 2021 to a whopping $1.2 trillion
While e-commerce as a standalone channel still by 2025. This forecast highlights the incredible
remains relevant, its traditional boundaries are potential and rapid expansion of social commerce
becoming increasingly blurred as other digital as a significant player in the e-commerce landscape,
platforms exert their influence on the retail despite legal implications for privacy and user data
landscape. Two prominent trends reign supreme, violations.
offering exciting prospects for brands: social
commerce and mobile commerce. After the long running trial where social powerhouse,
Meta, was accused of sharing private data from
profiles without users consent, the social giant has
been ordered to pay out $725 million to those actively
Top 5 Channel Opportunities for Brands
on the platform from May 2007 - December 2022.2
They have also had to make changes to their privacy
1 Social Media Marketing - 54% policies, including launching a new "privacy center"
to help facilitate more control over privacy and data-
Mobile/App Commerce - 49% sharing options. This has prompted other social
2 companies to tighten their data privacy policies and
Subscriptions/Loyalty Programs - become more transparent.
3 41%

4 Advertising - 41% Top 5 Categories Taking Advantage

of Social Commerce
5 Retail Media Networks - 38%
1 Cell Phone and Accessories - 80%

Office Products - 67%

2
Emerging as a dominant force in e-commerce, social
commerce has firmly established itself on center Sports & Outdoors - 64%
stage in the US, showcasing its tremendous potential
3
as an effective sales tool. Clothing, Shoes, and Accessories -
4 62%

5 Toys & Games - 61%

1
McKinsey 2023
2
New York Times 2023
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Brands Deprioritize Influencers in Leveraging Mobile Commerce for

Their 2023 Marketing Strategies Success

A mere 24% 49%

of brands think influencers represent a of brands see mobile commerce as an
great source of opportunity. opportunity

While influencers have undoubtedly emerged as

a powerful marketing tool, recent trends indicate
that they may not be as high of a priority for brands,
despite proving to be wildly effective in driving sales
growth.

Influencer marketing will not be going away any

time soon; however, brands are now recognizing the
importance of being more discerning when selecting
influencers who align closely with their values, not
just those with a huge following. This was especially
evident after the Adidas and Kanye West debacle,
where Adidas lost hundreds of millions of dollars
after cutting ties with the rapper, who exercised poor
judgment in a public manner.1

Brands have been exploring alternative marketing Social and mobile commerce have gone hand-in-
strategies and channels to allocate their resources hand, rising together as reaching larger audiences
more effectively and adapt to the changing market has become a critical priority.
(and public whims) as quickly as possible.

With over half of consumers shopping on

their mobile phones at least once a week, it
is no wonder brands see mobile as a strong
e-commerce opportunity.

As the digital landscape continues to evolve,

the integration of social commerce and mobile
commerce remains pivotal, providing brands with
the means to extend their reach, amplify their
messaging, and establish lasting relationships with
an ever-expanding audience.

1
NBC News 2023
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Amazon:
The Ultimate
Sales Destination

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Amazon: From Optional to Essential

60% It’s worth noting that Target’s marketplace currently

has fewer total sellers than Amazon adds in a single
of brands now sell on Amazon day, emphasizing the scale and dominance of
Amazon in the e-commerce space.

With its persistent momentum, Amazon is actively

Over the past few years, Amazon has transformed
pursuing an expansion of its e-commerce footprint
from an optional channel into an essential platform.
beyond the confines of the United States, focusing
Now, more than half (60%) of businesses embrace
its attention on five key markets. With no signs
Amazon as a sales channel, which is a significant
of slowing down, recent predictions indicate that
increase from 45% in 2022. Additionally, 36% of
Amazon is poised to capture a significant share of
businesses that previously did not sell on Amazon
the retail e-commerce market in various countries.
have indicated their intention to start doing so, a
Germany is expected to lead the pack, with Amazon
substantial jump from 15% last year. Of those, one
projected to claim over half (51.1%) of all e-commerce
in seven will start within 6 months. These figures
sales. Following closely, Canada is anticipated to
highlight the growing recognition among brands of
secure the second-highest share of Amazon’s
Amazon’s indispensable role in driving sales and
e-commerce sales at 41.5%, trailed by the UK, Japan,
fostering growth.
and Mexico.2

2023 Amazon Retail Share by Country

“ For comparison, the

marketplace adds as many
a month as Amazon adds
Walmart
sellers in
in a day,
Image source: Insider Intelligence 2023

underscoring the rapid pace of growth

for both platforms.”1

1
Marketplace Pulse 2022
2
Insider Intelligence 2023
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Embracing Amazon’s Potential Amidst

Obstacles Top 5 Challenges for Selling on Amazon

53% 1 Marketplace Fees

of brands say marketplace fees are their Increased Competition

2
biggest challenge

3 Lower Profit Margins

With Amazon recently adjusting fulfillment fees

Understanding the ROI of
and almost mandatory advertising expenditures, 4
advertising
brands are facing an uphill battle as marketplace
fees increase. These alterations have resulted in
the platform now claiming more than 50% of sellers' 5 Third Party Seller Infringement
revenue, significantly impacting their profit margins.1

The fees to sell on Amazon break down to the Brands both on and off Amazon share similar
following: while all Amazon sellers pay a 15% sentiments around the challenges and drawbacks
transaction fee (also called a referral fee), most of operating on the platform, including increased
will also pay 20-35% in Fulfillment by Amazon fees competition and increased costs.
(including storage and other fees), and up to 15% for
advertising and promotions on Amazon. The total However, the number of brands who do not think
fees vary depending on the category, product price, an Amazon strategy is necessary for their business
size, weight, and the seller’s business model. has decreased 6% from the following year, showing
the undeniable dominance of Amazon in the U.S.
e-commerce landscape and the apparent potential
it offers for brands to broaden their customer
Sellers in the Health, Household & Baby Care, base and boost sales. More brands are adding
Beauty & Personal Care, Grocery & Gourmet Amazon to their channel strategy for the following
Food and Toys & Games categories chose opportunities:
marketplace fees as the biggest challenge and
are consequently the ones with the highest To be where consumers are searching for
category selling fees. products (72%)
Access to customer insights (72%)
Expanded advertising capabilities (72%)
Advertising prices are not set by Amazon, but as Support with shipping and fulfillment (71%)
more sellers choose to advertise, advertising costs
rise. Consequently, increased competition is also Brands recognize that adding Amazon to their
a top challenge for brands, one that is not likely to channel mix opens up vast opportunities and
abide. changes to their strategies to increase their revenue,
gain more customers, and more.

1
Marketplace Pulse 2023
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Hybrid Selling is the New Go-To As more 1P brands add 3P models, marketplace
competition increases. This benefits consumers
by providing them with a wider range of products,

73% competitive pricing, and improved availability.

of those selling on Amazon sell as a hybrid The adoption of a hybrid selling model allows
sellers to diversify their product offerings, and with
a greater presence of 3P sellers, Amazon’s product
An increasing number of sellers on Amazon are catalog expands significantly, enabling customers to
embracing a hybrid selling model that combines the find niche and specialized products that may not be
utilization of both first-party (1P) and third-party (3P) available through Amazon’s direct retail channels.
options. This strategic approach allows brands to
capitalize on the best of both models and diversify Categories poised to benefit are ones where
their risk. Amazon is expected to increase its share of sales
in the US. According to Insider Intelligence, these
Q7. IsBrands
your brand selling as a first-party include Computer & Consumer Electronics, Office
Selling
Q7. Is your brand as Hybrid
selling Models inseller
as a first-party 2023(1P),
seller
third
(1P), third
party seller (3P), or both? Equipment & Supplies, Health & Personal Care,
party seller (3P), or both?
0.8 Apparel & Accessories, and Furniture & Home
0.8
Furnishings.
74%
0.6 74%
0.6
53% According to our survey, the top five categories
0.4
0.4
53% adding 3P selling models in the next year include:
33%
0.2 33% 6%
0.2
20% 6%
20% 12%
0 12%
0
First-party seller
First-party seller Third-party seller Both
Third-party seller Both first-party and
first-party (1P) Top 5 Categories Adding 3P Selling in 2023
First-party seller Third-party seller and
Both first-party and
(1P)
(1P) only
only (3P) only
(3P) only third-party
third-partyseller
(3P)
(1P) only (3P) only third-party
seller seller
2022 2023
2022 2023 1 Electronics

In this model, 1P brands operate as wholesalers, Home and Kitchen

2
giving Amazon complete control over pricing. This
arrangement gives 1P brands an inherent advantage,
3 Beauty and Personal Care
as Amazon tends to dominate the Buy Box compared
to third-party sellers. For those choosing to also sell
as a 3P brand, the most likely reasons are to avoid 4 Clothing, Shoes, and Accessories
stockouts when Amazon runs out of their product or
to control their pricing. 5 Grocery and Gourmet Food

78%
of brands will be adding third-party selling,
up from 61% in 2022

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Leveraging Amazon: Key Strategies

47% of Brands Use Amazon for New
Brands Use to Drive Revenue and Customer Acquisition
Reach
They recognize the potential to tap into
Amazon’s massive user base and leverage its
35% of brands see 50% or more of their sophisticated targeting capabilities to attract
e-commerce revenue come from Amazon and convert new consumers.

Tactics Brands Use to Attract New

Customers
48% of Brands Use Amazon to Drive Sales Sponsored Products 18%
Sponsored Brands 16%
They capitalize on the platform’s extensive Sponsored Display 12%
customer base and optimized sales channels Video Ads 10%
to generate consistent revenue and expand Social Media 10%
their customer reach. Promotions 9%
Competitive Pricing 8%
Brands have stated DSP 5%
competitive pricing, Audio Ads 5%
video ads, and Influencers 2%
promotions and coupons
have been the most
effective strategies for
driving sales on Amazon. Brands Use Amazon to Supplement
Owned Channels:

In a bid to maximize sales and brand

exposure, brands often adopt a multi-
channel approach, leveraging both Amazon
48% of Brands Use Amazon to Build Brand
and their owned channels. Notable trends in
Awareness as Well as Other Channels to
this regard are as follows:
Drive to it

By leveraging the platform's robust marketing

tools, such as sponsored product ads,
sponsored brand ads, video, and brand
stores, these brands aim to increase their
visibility, enhance brand recognition, and
foster customer loyalty.

18% 13% 11%

Social Media Videos Promotions
Marketing Ads & Coupons

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Buy With Prime Gains Momentum Other Amazon Programs Worth Their
Salt
A year after its release, Buy with Prime is starting to
resonate with brands after a rocky start and claims of
violations of service agreements with platforms like
Shopify.1 Approximately 31% of brands participate
37%
of brands participate in Sold by Amazon
in this program to leverage the Prime badge and
attract customers who value the convenience and (SBA)
benefits associated with Prime membership, and
another 41% of brands are considering adding the
program in 2023. In addition to employing various business strategies,
brands also take advantage of several Amazon
programs to enhance their presence and drive
revenue. Participating in Amazon programs can lead
to increased reach, trust and credibility, enhanced
customer experience, and a significant competitive
advantage. Here are some notable Amazon programs
that brands currently participate in:

This program grants Amazon the power to

automatically re-price select third-party products on
the Amazon Marketplace. While repricing is not new,
with Amazon SBA, Amazon has the final say on what
prices will be, but does pay brands for all products
sold at either the sale price or the Minimum Gross
Proceeds (MPG), whichever is higher. Considering
the uncertain economic climate, partnering with
1
Insider Intelligence 2023 Amazon could provide some revenue stability as
Amazon's marketing power is behind brand products,
To optimize your end-to-end e-commerce strategy, almost ensuring sales.
get in touch with us at feedvisor.com/connect
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Cyber Five Yields Expected Results

for Brands
55%
of brands saw an increase in sales during
PEAS, the new official start to holiday

“ Total Cyber Five sales rose a modest

3.5% y-o-y”1
shopping

Brands fervently anticipated the arrival of the Most brands even welcomed PEAS, with 40%
holiday season in 2022, driven by the pressing need saying it had a positive impact on their sales, with
to counterbalance the adverse impact of inflation only a quarter saying sales were flat since they
on their sales figures. While the overall sales totals were forced to try to pivot their holiday ads to the
fell much shorter than the pandemic years’ massive new event. This could be because of the lack of
growth rates, there was still a modest 3.5% growth awareness surrounding the event, as Amazon did
compared to 2021, which resets e-commerce sales not give much time for preparation.
back in line with pre-pandemic growth rates.
Customers were not spending heavily during the
event, with 58% of items purchased during the early
hours of the Amazon sale costing less than $20 as
most consumers focused on value and convenience
in their purchases.3

Categories that saw the biggest PEAS wins

include:

Cell Phone & Accessories

Sports & Outdoors

The success of Q4 is being attributed to Amazon’s Movies & TV/Streaming

new two-day event - Prime Early Access Sale
(PEAS) - which happened just a month prior to
Cyber 5 on October 11th, ending on the 12th as their Electronics
way to “kick off” the holiday shopping season and
subsequently lengthen the shopping curve.
Clothing, Shoes, and Jewelry
While sales performance did not meet that of its
summer counterpart, overall, PEAS was considered
successful, with nearly one-third (31%) of Prime Despite the smaller spend, if another PEAS event is
Early Access shoppers purchasing holiday gifts held, almost a third (29%) of brands said they would
during the sale, up from 11% of Prime Day shoppers be launching a PEAS-specific promotion on their
in July.2 website.

1
Adobe Analytics 2023
2
Numerator 2022
3
Digital Commerce 360 2022
© F E E DV I S O R
AMAZON: FROM OPTIONAL TO ESSENTIAL SALES CHANNEL 22

Black Friday Remains Biggest Holiday

Sales Day

34%
of brands saw an increase in sales year-
over-year on Black Friday

Even with the inclusion of PEAS, brands saw an

increase in holiday sales, with Amazon announcing a
record-breaking holiday season revealing customers Discounts were the strongest they had been since
purchased nearly half a billion items from small pre-pandemic, especially in the Electronics category,
businesses in the U.S. During Amazon’s biggest where they reached 25% off.3 In 2021, the average
Thanksgiving-through-Cyber-Monday holiday deal for Electronics was around 8%. This year’s top
shopping weekend ever, customers around the world category for discounts was Toys, with the highest
purchased hundreds of millions of products, and discount reaching 34% off.
small businesses in the U.S. generated more than
$1 billion in sales over the five-day period. Best-selling categories from Amazon included Toys
among the top five sales categories, closely followed
E-commerce sales overall showed a respectable 4% by the Home, Fashion, Beauty, and Amazon devices
growth.1 This year’s holiday shopping attracted an categories.4
unprecedented 196.7 million US consumers2 who
wholeheartedly embraced the holiday shopping Best Holiday Sales Day
extravaganza, undeterred by concerns of recession
2023 vs. Holiday
and inflation. In fact, deals and promotions were the
primary drivers of increased sales, as consumers Black Friday 34%
sought ways to save money while still getting the
products they wanted. The number of transactions Prime Day 17%
overall were also higher, rather than prices, compared
Cyber Monday 13%
to the year before, proving that inflation had not yet
made an impact on consumer spending.
Holiday

Thanksgiving 10%

New Years 7%

Prime Early Access Sale 6%

Super Saturday 5%

0% 10% 20% 30% 40%

2023

1
Feedvisor 2022
2
Insider Intelligence 2022
3
Adobe Analytics
4
Amazon 2022
© F E E DV I S O R
 23

Amazon’s Role in the

Evolving Advertising
Landscape

© F E E DV I S O R
 24

Amazon - the Advertising Destination

90%
of brands now advertise on Amazon

Despite the general slowdown in digital ad spend,

Amazon’s advertising division continues to thrive,
reaching an impressive total of $9.5 billion for Q1
2023, a significant 21% increase from Q1 of 2022.1

With 90% of brands now advertising on Amazon,

it comes as no surprise Amazon’s ad business
currently outperforms industry giants such as Meta,
Alphabet, and Snap. This accomplishment is due
in part to the e-commerce giants’ many updates
involving shoppable ads, livestreaming with Amazon
Live, an exclusive advertising deal with Pinterest,
and their new strategic approach, which now treats
advertising as a required component of merchants’
business costs.
Paid social platforms, on the other hand, maintain
Amazon is now the advertising destination with their position with a consistent 24% share, suggesting
your digital media spend break out across
brands allocating over 25% of their digital media ad the following
advertisers’ continued reliance on these channels to
spend to the retail giant for 2023. engage with their target audiences, but recognizing
Q54. Howchannels?does your digital media spend break
their spend needs to out across
be allocated thechannels
to more following
Brands Digital Media Spend Allocations for 2023channels?
to reach additional audiences.
17%
25% In contrast, display and programmatic advertising
17% experience a slight decline, moving from 24% to
Amazon
23% 25% 22%. This adjustment indicates a nuanced shift
21% in investment priorities, as advertisers explore
23% alternative avenues to optimize their digital media
Google
24% 21%
spend. With Amazon’s rise and the stability of paid
24% social platforms, advertisers are encouraged to
24%
Paid social evaluate these trends when determining the most
24% 24%
22%
effective channels to allocate their advertising
24% budgets.
Display/programmatic
13% 22%
8%
13%
Other digital channels
8%
0.2 0.4 0.6 0.8 1

0
2022 2023 0.2 0.4 0.6 0.8

2022 2023

1
Insider Intelligence 2023
© F E E DV I S O R
 AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 25

Amazon Dominates the Retail Media As an emerging digital advertising giant, Amazon
attracted over 14,200 companies advertising
Share Space 17,000-plus distinct brands in 2022. This influx of

“
advertisers played a significant role in propelling
Amazon commands 37% of retail media Amazon’s ascent as one of the prominent forces in
share1 and is expected to attract over the realm of advertising.
75% of all U.S. retail media digital ad
Amazon’s success is evident not only in a record-
spend for 2023.”2 Q34. How much value
breaking do you
ad revenue see
stream butfrom Amazon
in public opinion Ad
with 71% of brands seeing a great deal of value in
Amazon’s advertising unit is becoming a force Amazon Advertising, up 13% from last year.
to be reckoned with as the gap between Amazon Q34. How much value do you see from
and the rest of the retail media field widens. For Value Brands See in Amazon Advertising
58%
context, general mass retailers, including Walmart
A great deal of value
and Target, collectively make up the second-largest 71%
retail media allotment, or about 36% of the market. 58%
A great deal34%
of value
Some value 71%
27%

34%
6%Some value
Just a little value 27%
2%

6%
Just a little value
1%
No value at all 2%
0%

1%
1% No value at all
Unsure 0%
0%

1%
Unsure
0 0.2 0.4 0% 0.6 0.8 1

02022 0.2 2023 0.4 0.6 0.8

2022 2023

1
Marketing Dive 2023
2
Statista 2023
© F E E DV I S O R
 AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 26

Brands View Amazon as the Best

Place for Advertising ROI

45%
of brands see the highest media spend return
from Amazon, up nearly double from 2022
hich channels does your media spend generate the highest
Q55. On which channels does your media spend generate the highest
return?
Platforms Brands See Highest Returns return?
28%
45% 28%
Amazon
45%
28%
21% 28%
Google While advertising on Amazon is happening all
21%
25% year-round, 41% of brands consistently advertise
19% 25% throughout the year, with 13% choosing to focus
Paid social on advertising only a few products, and 10% only
19%
14% on new product launches. Brands deciding against
11% 14% Amazon altogether are losing out on a higher return.
Display/programmatic
11%
% Monthly Advertising Spend on Amazon
4% 6% Q55. On which channels does your
Q33. media spend
How much generate
is your bran
Other digital channels
4% return?
0.2 0.4 0.6 0.8 1
13%
0 2022 0.2 0.4 $0-20K
0.6 0.8 1
2023 28% 5%
Amazon
2022 2023 45%
15%
This is hardly surprising, as Amazon is well- $21-40K
13%
28%
prepared to tackle the task of effectively reaching
Google
21%
consumers in relevant contexts, as evidenced by 20%
$41-60K
their introduction of new advertising options for 25% 16%
advertisers both within and beyond theirPaid social
platform. 19%
19%
$61-80K
22%
In fact, brands now invest on average 44% of their 14%
Display/programmatic
advertising spend on Amazon each month, up from 11%
13%
36% last year, with roughly four out of every ten $81-100K
23%
(44%) brands investing $81k+ aOther
month 6%
digitalon Amazon
channels
Advertising. Additionally, top bracket spending on 4% 20%
$100K+
Amazon Advertising has increased over the past 21%
year with a little more than one in five brands (21%) 0 0.2 0.4 0.6 0.8
now spending $100K or more compared to last 0 2022 20230.2
year’s 20%.

© F E E DV I S O R
AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 27

Brands Use Amazon Advertising to Consumers flock to Amazon for three main
reasons:
Stand Out From Crowds
1. Relevant product assortment with near-
limitless inventory fueled by Amazon’s
Top 5 Goals on Amazon fulfillment service.

1 Driving brand awareness - 61% 2. Competitive prices and deals with attractive
discounts, limited-time offers and frequent
sales.
2 Acquiring new customers - 60%

Driving sales - 55%

3. One-stop shopping experience where
consumers can find a vast array of products and
3
entertainment in one place including reviews,
4 Gaining market share - 46% customer Q&A’s and interactive images.

Amazon has masterfully crafted a shopping

5 Protect brand from conquesting
experience that seamlessly combines convenience
and have a full-funnel view - 37%
and efficiency, setting a high bar that is challenging
for competitors to match. With an increasing
number of brands acknowledging the remarkable
influence of establishing a presence on Amazon,
Brands choose Amazon to drive brand awareness the platform’s allure continues to grow stronger.
because of its vast consumer base consisting
of millions of active shoppers. Currently, 88% of
consumers say they are more likely to buy products
from Amazon than any other e-commerce site while
56% of consumers say they visit Amazon daily or at
least a few times a week.1

1
Feedvisor Proprietary Research 2022
© F E E DV I S O R
 AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 28

The Power of Amazon's Dynamic Ad Dynamic storytelling has proven to be a powerful

and versatile tool for advertisers to drive sales and
Types: Video brand awareness, with one of the most popular and
dominant methods being video. This advertising

53% type has witnessed an unprecedented surge, with

91% of businesses now using video as a marketing
Q32.
of Which
brands types
now use of Amazon
video ads Advertising
as part of their tool.1 is your brand using? (Please selec
advertising line-up
As more eyes are drawn to screens, with a global
video consumption average of 19 hours a week,2 it
makes sense for 53% of brands to currently have
Most Used Ad Types
Amazon video ads as part of their advertising
strategies (up from 44% in 2022). Looking ahead,
39% 56% of brands are planning to invest in video ads
Sponsored Products
46% in the future.

33% Video ad spend is slated to account for 52% of

Sponsored Brands
43% programmatic display ad spending in 2023 in the
U.S. with connected TV driving this growth.3
hich channels does your media spend
38% generate the highest
Sponsored Display
return? 38%

40%
43%
Amazon28%
DSP Display Ads of brands use Amazon Live in their
45% 37%
campaigns
28% 24%
Audio Ads
21% 27%

Another dynamic ad type offered by Amazon,

25% 44%
19% Video Ads Amazon Live, is gaining traction as livestream
53%
shopping takes root in the U.S. Current projections
14% show the livestream e-commerce market will reach
25%
11% Brand Store $31.7 billion by the end of 2023,4 nearly triple its
39%
size in 2021, according to a report by Coresight
% Research and Bambuser. By 2025, the market is
4% Amazon Live expected to reach $67.8 billion, accounting for over
44%
5% of e-commerce.
0.2 0.4 0.6 0.8 1
0 0.2 0.4 0.6 0.8 has been
Amazon 1 named as one of the top platforms
2022 2023
retailers use for livestreaming with 30% claiming
*Respondents could select all that apply. to do so, and given the rise in popularity, 49% of
brands have stated they will be adding this ad type
to their strategies in the future.

2022 2023
1
Hubspot 2023
2
Statista 2022
3
Insider Intelligence 2022
4
Retail Dive 2023
© F E E DV I S O R
AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 29

Video Advertising Becomes Essential

Full Funnel Vehicle
16%
of brands think OTT platforms represent a
great source of opportunity
Video advertising is trending upward, with 55% of
advertisers opting to allocate more resources to
this engaging format when compared to last year's
With video advertising, brands have more ways
48%.
to measure inventory, such as Amazon's AMC
product, which allows a more robust reporting
than the legacy ad attributed performance, by
Over half (59%) of brands recognize video as demonstrating videos value as part of a holistic
the format that provides the greatest ROI. advertising approach and how often video is a
first, mid, or last touchpoint in that journey. In
an ever-expanding realm of video possibilities,
Video has transformed from merely regarded encompassing established OTT, STV, and OLV
as an ancillary creative facet or an inventory platforms, novel avenues continue to emerge,
supplement for programmatic strategies to a full providing users with increasingly interactive,
funnel vehicle. In the past, video was esteemed as engaging, and pertinent opportunities. Notably,
premium inventory, but today its significance has new frontiers like DOOH and in-game advertising
transcended those bounds. It has evolved into an present fresh dimensions for captivating
indispensable element of every tactical evergreen audiences.
and tentpole media plan, forming an integral pillar
of strategic execution.

Today, video is a brands best way to appear in the

biggest screens available, providing a controlled
platform for conveying messaging as well as entire
stories. This affords the opportunity to seamlessly
align a brands other marketing initiatives, effectively
carrying it over to a full funnel advertising effort.

Digital Ad Formats with Greatest ROI

© F E E DV I S O R
AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 30

51% of Brands Think Video Ads

Drive Greatest Returns, Followed by
Sponsored Products

For the first time, Sponsored Product ads no longer

drive the greatest returns. Instead, video ads have
surpassed sponsored ads to become a core element
of Amazon’s advertising offerings.

The shift towards video ads signifies a

changing landscape where consumers are
increasingly drawn to video content, with 64%
preferring this ad type to any other.1

Despite the rise of video ads, it is worth mentioning

The strong visual impact of video ads enables that brands still recognize the value of Sponsored
brands to effectively convey their messages and Products, with 38% saying they provided the
create a lasting impression on viewers in the form greatest return. These ads, which appear within
of an immersive experience. search results and product detail pages, continue
to generate significant returns for brands on
This preference for video content has motivated Amazon’s platform. Sponsored Products offer a
brands to embrace Amazon Live as well, with 43% targeted approach, reaching consumers who are
claiming the highest returns are here. actively searching for products and displaying them
prominently in relevant search results.

Ads With Greatest Returns on Amazon

*newly added

1
Feedvisor Proprietary Research 2022
© F E E DV I S O R
AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 31

Mobile Continues to Dominate, but Desktop, while still relevant, shows a 5% year-over-
year increase in investment, with 53% of advertisers
Desktop Plays a Vital Role directing their attention towards this established
platform.
Given the rise in shoppable media and the
increasing influence of mobile and video
advertising, it is evident that the digital landscape Top 3 Categories Investing in Mobile and
offers unparalleled opportunities for brands to
Desktop for 2023
maximize returns on investment.
Mobile Investment Desktop Investment

Digital Ad Formats With Greatest ROI Cell phones & Toys &
Accessories Games
70% 59%
+2% YOY +4% YOY Clothing, Shoes, Health &
& Jewelry Household
Mobile Desktop

Health &
Electronics
Household
Mobile emerges as the undeniable frontrunner,
capturing the attention of advertisers with an
impressive 70% attributing high returns to this
format. Close on its heels, desktop advertising
showcases steady growth, with a 4% year-over-
year increase in ROI, earning the trust of 59% of
advertisers.

When it comes to brands investment priorities,

mobile retains its prominence as the leading format,
commanding the investment of 62% of advertisers.
However, this reflects a slight 2% year-over-year
decline, suggesting a nuanced adjustment in
strategy.

To optimize your end-to-end e-commerce strategy,

get in touch with us at feedvisor.com/connect
© F E E DV I S O R
 AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 32

Measuring Impact and Maximizing

Some examples of what this data and
Performance Through Ad Tools
reporting can help advertisers unveil
include:

“ Businesses are missing out on $5.2

million in revenue due to untapped
data.”1
Gain visibility into total reach and
performance across multiple channels

Conduct path-to-conversion analysis,

For many, data is the key to performance and including multiple attribution models and
reigning in unnecessary spend. To keep track of cross-campaign data aggregation
data, brands have turned to numerous tools for
reporting and measuring advertising effectiveness. Unlock custom reporting beyond Amazon
The most used tool, reported by at least 50% of DSP’s current capabilities
brands is Amazon Marketing Cloud (AMC) up
from 37% in 2022. Launched in October 2021, Measure the influence of different media
the AMC is a holistic measurement and analytics channels on audience discovery, research,
solution responsible for providing cross-channel and purchase behavior through custom
measurement and attribution for search, display, attribution analysis
video, and audio.
See enhanced audience insights to make
Top Data Sources for Measurement and informed decisions on the most effective
Attribution ways to engage with potential customers

Create custom audiences for deeper

insight into optimal integration with
campaigns

In today’s data-driven world, brands must harness

deep Amazon expertise and advanced technology
platforms to get discovered, drive traffic to their
product listings, and optimize ad campaigns for
Through AMC, brands gain the ability to create effective audience targeting.
custom analytics based on advertisers’ specific
campaign objectives, tactics, and channels. The
recent introduction of the new AMC Audiences2
beta takes it a step further, enabling advertisers Partnering with an Amazon service
to seamlessly transition from deriving audience provider like Feedvisor, is a brand's best
insights to directly creating custom audiences for bet to see deep analytics and insights at
optimal integration into Amazon DSP campaigns. the ASIN-level and audience level, in order
to create the most robust and impactful
strategies and campaigns that break through
in a crowded, dynamic market.

1
SnapLogic 2018
2
Amazon 2023
© F E E DV I S O R
 select all that apply)
AMAZON’S ROLE IN THE EVOLVING ADVERTISING LANDSCAPE 33
35%
Conversion Rate (CR)
Q40. Which50% advertising metrics ma
Critical Ad Metrics for Brands Include Ad Metrics Brands Think Matter Most select all th
41%
Click Through Rate and Conversion
Return on Ad Spend
(RoAS) 47%
Rate in Down Economy 35%
Conversion Rate (CR)
50%
Advertising
In today’s challenging economic Cost of Salead
landscape, 38%
metrics play a crucial role in determining(ACoS)the 42%
Return on Ad Spend 41%
success of brands strategies. Among the array of
(RoAS) 47%
available and ever-growing KPIs, click-through rate 39%
(CTR) and conversion rate (CR) Costhave
Per Click (CPC)as
emerged
41%
paramount factors for brands striving to thrive in Advertising Cost of Sale 38%
a down economy. Our survey reveals that CTR has (ACoS) 42%
risen significantly, with a notable increase from
Total Advertising Cost 41%
of 32%
to 50%. This surge reflects the increasing reliance
Sales (TACoS) 39%
on the effectiveness of ads in capturing users’ 39%
Cost Per Click (CPC)
attention and enticing them to click through to the 41%
desired destination. 29%
Impressions
25%
Total Advertising Cost of 32%
Moreover, the conversion rate has also witnessed
Sales (TACoS) 39%
a notable uptick, climbing from 35% to 50%, 24%
Cost Per 1,000
highlighting the increasing pressure brands
Impressions (CPM) feel
22%
to convert their audience into actual customers, 29%
translating clicks into tangible sales or desired Impressions
25%
actions, and punctuating theCostshift
PerinAcquisition
consumer 18%
behavior as users explore offerings looking (CPA) for 13%
quality at the best price. Cost Per 1,000 24%
Impressions (CPM) 22%
6%
Other notable ad metrics include,Share return on ad
of Voice
spend (ROAS), which has experienced a substantial 3%
Cost Per Acquisition 18%
boost, rising from 41% to 47%. This demonstrates
Q40. Which advertising (CPA) 13%
the importance placed on efficiency and maximizing
metrics matter most to
the value of every advertising dollar invested.
your brand? With
(Please
the importance of CTR, CR, and select all that apply)on
RoAS metrics 6%
an upward trajectory, brands will need to rely on Share of Voice
3%
powerful advertising technology coupled with deep 0 0.2 0.4 0.6 0.8 1
expertise to navigate these challenging economic Q40. Which advertising
conditions and achieve tangible results with greater metrics matter most to
your brand? (Please 2022 2023
confidence.
select all that apply)

0 0.2 0.4 0.6

2022

© F E E DV I S O R
 34

Shaping the Future:

Emerging Retail
Trends on the Horizon

© F E E DV I S O R
 35

Shaping the Future: Emerging Retail Trends

on the Horizon
As we turn our gaze towards the future, the year ahead 1. Revolutionizing Retail Through the
promises a wave of transformative trends that will
redefine the retail landscape. E-commerce will face
Power of AI
"the year of efficiency" with emerging trends holding
One of the most prominent trends on the horizon is
the potential to revolutionize the way businesses
the growing influence of conversational AI systems,
operate and interact with their customers. Here are
exemplified by ChatGPT. Powered by advanced
the top 5 trends we see unfolding this year:
natural language processing capabilities, these AI-
driven chatbots are set to reshape the customer-
business dynamic. By facilitating personalized and
interactive shopping experiences, they bridge the gap
between consumers and brands, paving the way for
a new era of customer engagement and satisfaction.
They also enable a speed that is unparalleled to
the human experience, allowing for projects to be
completed much faster with streamlined systems.

Other AI-powered solutions hold promise for the

retail industry, such as dynamic and compelling
product listings generated by AI, which are set to
redefine how businesses showcase their offerings.
As AI continues to advance, retail functions may
be increasingly automated, ushering in a new era
of efficiency across the industry.

Text-based AI advancements, particularly

in NLP and NLU, demonstrate remarkable
language generation capabilities. Transformer
models like GPT-3 empower applications such
as chatbots, language translation, and content
creation. Improved sentiment analysis and
text classification techniques enable accurate
interpretation of user feedback across platforms.

AI's testing capability advances through automated

testing frameworks, enhancing software quality
assurance. These frameworks utilize machine
learning to generate test cases, simulate user
interactions, and detect anomalies. By processing
vast amounts of data and identifying patterns,
AI testing systems uncover complex bugs and
vulnerabilities that are challenging to detect
manually.

1
NBC 2023
© F E E DV I S O R
SHAPING THE FUTURE: EMERGING RETAIL TRENDS ON THE HORIZON 36

Personalized shopping journeys benefit from 2. The Rise of the Resale Movement
AI's transformative role in the retail landscape.
Machine learning algorithms analyze user In line with the quest for sustainability and
data to provide tailored recommendations and affordability, the rise of the resale market stands
assistance, increasing customer satisfaction and as another significant trend. The U.S. total resale
conversion rates. AI-powered recommendation volume is expected to grow 7.6% this year, more than
systems suggest products aligned with individual double sales from last year.1 The reason? Consumers
interests. Chatbots and virtual assistants offer are increasingly turning to platforms dedicated to
personalized assistance, guiding customers buying and selling pre-owned goods, promoting a
through the purchasing process and enhancing circular economy and offering unique and cost-
the overall shopping experience. effective products. This shift not only resonates with
conscious consumers but also presents opportunities
As AI continues to advance, retail functions may be for businesses to tap into a thriving market. Retailers
increasingly automated, ushering in a new era of with resale programs keep expanding, with Kate
efficiency across the industry. Spade, J. Crew, and Canada Goose some of the
newest brands to join the resale movement. Amazon
also has a resale program - Amazon Renewed. Here,
sellers can push high-quality pre-owned products
to millions of customers worldwide. With 92% of
consumers willing to purchase secondhand to save
money without sacrificing quality, resale will be a
hot commodity this year and beyond.

1
Insider Intelligence 2023
© F E E DV I S O R
SHAPING THE FUTURE: EMERGING RETAIL TRENDS ON THE HORIZON 37

3. Emerging Retail Marketplaces 4. B2B Services Get Easier

The year ahead also promises the proliferation
of new online marketplaces, promising to expand
product offerings, provide consumers with greater
34%
of brands use Amazon Business3
choice and convenience, while also offering sellers
additional avenues for selling their products and
potentially increased competition.
In the B2B arena, businesses prioritize cost
Some of the newest retail marketplaces to join the savings, a simplified procurement process, and
ranks of Amazon, Walmart, Shopify and the like are scalability. These factors are driving adoption of
Michael’s (launch was announced in February of this B2B marketplaces, like Amazon Business, which
year),1 Temu, and Shein2 - both launched in the US exemplifies the benefits of such platforms. Amazon
this year. Business allows businesses of any size to register for
a Business Account and purchase a wide range of
While Michael’s offers another avenue for third- business supplies at various bulk rate discounts. By
party sellers in the Arts, Crafts, and Fabric category leveraging the power of their extensive e-commerce
to expand, the introduction of Temu and Shein pose infrastructure, Amazon has streamlined the
a minor threat to the more solid marketplaces. purchasing process for businesses, providing them
with a seamless procurement experience.
Temu, an innovative online marketplace, specializes
in connecting local artisans and craftspeople with
a global audience. By offering a platform for these
talented creators to showcase their unique products,
Temu empowers consumers to discover and support
independent artists while enjoying a diverse range
of one-of-a-kind offerings. With Temu’s arrival in the
US market, shoppers can expect a curated collection
of handcrafted treasures at their fingertips - for
much cheaper than what is currently being offered
on Amazon.

Similarly, Shein, a global fashion marketplace with

a targeted niche, has been making waves worldwide
and is set to expand its presence in the United
States this year. With its vast inventory of trendy and
affordable fashion items, Shein provides consumers
with a plethora of options to express their personal
style. The arrival of Shein in the US market further
amplifies the concept of choice and convenience,
allowing fashion enthusiasts to explore a wide array
of clothing, accessories, and more.

1
Digital Commerce 360 2023
2
Marketplace Pulse 2023
3
Amazon
© F E E DV I S O R
SHAPING THE FUTURE: EMERGING RETAIL TRENDS ON THE HORIZON 38

5. Video Shorts and Entertainmerce

Emerge as Powerful Tools
Video shorts and entertainmerce are becoming
increasingly important in advertising and brand
awareness strategies for brands. With the rise of
social media platforms and the ever-decreasing
attention spans of consumers, these short and
engaging video formats have proven to be highly
effective in capturing and retaining viewers' attention.

Video shorts, typically ranging from a few seconds

to a several minutes, offer a concise and visually
compelling way to communicate key brand
messages, showcase products, and create
memorable experiences.

Entertainmerce, a blend of entertainment and

e-commerce, takes video shorts a step further
by integrating interactive elements, storytelling,
and direct purchasing opportunities. Brands are
leveraging entertainmerce to not only entertain and
engage their audience but also seamlessly guide
them towards making purchases. By incorporating
clickable links, call-to-action buttons, or even in-
video purchasing options, entertainmerce enhances
the convenience and immediacy of the shopping
experience.

Both offer brands an opportunity to captivate

audiences, communicate key messages, and drive
meaningful interactions. As consumer preferences
continue to evolve, incorporating these formats into
marketing strategies can help brands stay relevant,
memorable, and successful in an increasingly
competitive marketplace.

© F E E DV I S O R
 39

Looking Ahead: The Year of Efficiency

In the dynamic and ever-evolving world of For some, that means hiring those with new skills. For
e-commerce, the tapestry of retail trends is others, partnering with external experts often proves
continuously being woven, promising to reshape to be the most favorable choice. Collaborating with
the industry as we know it. From the advent specialized entities or individuals allows brands to
of conversational AI revolutionizing customer tap into existing expertise, leveraging the proficiency
interactions to the exponential growth of resale and experience of those who have already mastered
platforms that tap into the value of secondhand the required skills, allowing those brands to adapt
goods, and the ever-expanding reach of marketplaces, much faster.
the retail landscape is undergoing a profound
transformation. Additionally, the emergence of
robust business-to-business (B2B) services is
leaving a lasting impact on the way retailers operate.

“ Amidst this whirlwind of change, one

thing remains abundantly clear: retailers
must adapt and wholeheartedly embrace
these trends if they wish to thrive in the
face of mounting competition.”

The year of efficiency has arrived, beckoning retailers

with a multitude of challenges and opportunities. To
succeed, retailers must be proactive in recognizing
the immense potential these trends hold and be
willing to seize them.

Learn how Feedvisor360 can optimize your business to

drive profitable growth at feedvisor.com/platform
© F E E DV I S O R
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Learn how Feedvisor360 can optimize your business to drive profitable growth at feedvisor.com/platform