Seven Reasons Why Brands Should Celebrate Amazon’s Arrival In Australia

In this guest post, Jaywing’s managing director, Chris Pittham (pictured below) argues that despite all the doubters and naysayers, Amazon’s arrival in Australia could prove a boon for local brands…

There is no doubt that Amazon is not being universally welcomed. It is often seen as a retailer that will swallow up the independents while optimising its tax position to everyone else’s detriment. However, it is here and it’s not likely to be going anywhere any time soon. We’ve already seen how Amazon has worked in other markets such as the UK and US and while we can all try to remain the champion of the independent there are reasons why Amazon has been so successful. So how about we put the hand-wringing on hold and get smart to work with it rather than against it, turning Amazon’s presence to an advantage?

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The existence of a huge marketplace can provide visibility and growth

Amazon is a route to market just as any other channel might be

You can buy space on Amazon to advertise products and stores just as you can on PPC, Google Shopping, Facebook advertising, programmatic or any other paid media (including eBay), which allows for diversification and greater spread of risk and opportunity.

And so the same principles as any other biddable media strategy apply

The key to making it work is a solid biddable media and cost per acquisition strategy founded on the principles of mathematical optimisation.

It’s eminently trackable

Which means you can gather and use data to integrate with all other data you already have in order to feed better attribution and optimisation.

It increases advertising competition

Competition is always healthy, albeit between the global giants such as Google and Facebook. It will come in the form of increased advertising options (which should make the ACCC happier given the recently announced investigation into Facebook and Google); and the increasing adoption of personal assistants and connected home devices such as Alexa via the Echo and Dot and Google Home. The rise of voice search will also provide opportunities for niche products, niche marketing and brand recognition.

It has become a go-to brand for consumers

Whether trying to find the exact novelty item to give for your Secret Santa or weighing up the various benefits of similar product types for more everyday purchases, consumers buy from Amazon because it’s easy. It’s easy to view options, find stuff you didn’t even know you wanted and pay all at once. And when Prime and Fulfilment by Amazon (FBA) comes, delivery will far surpass that of many other retailers. This is why Amazon remains the giant it is, even when it doesn’t sit well with consumers’ principles. They’re time poor and the service delivers.

Which is likely to drive others to up their game

Amazon’s arrival will no doubt put pressure on other retailers to improve the online and logistics experience they offer to consumers in order to compete. Brands focusing on all aspects of their marketing across all channels as well as their customer experience needn’t fear the future – they will be the ones most likely to survive and thrive in this new etail era.

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