amazon for small business: friend or foe?
TRANSCRIPT
July 26th, 2017
ABOUT NETELIXIR
OUR TEAM:
100+ fanatically analytical search
marketers, operating in three
countries.
OUR PARTNERSHIPS:
We are a Preferred Partner of both
Google and Bing.
OUR VALUE:
We combine our expertise and our
proprietary technology to help
businesses get found, convert visitors
to customers and acquire game-
changing consumer insights.
TECHNOLOGY{ }
PAID SEARCH& SEO
PAID SOCIAL MANAGEMENT
MARKETPLACE AD MANAGEMENT
SERVICES CONSULTING++
LXR RETAIL:ENTERPRISE PAID SEARCH
TECHNOLOGY FOR RETAILERS
LXR GUIDE DIY PPC RECOMMENDATION +
MANAGEMENT TOOL
LXR MARKETPLACE:FREE SEARCH MARKETING TOOLS
FOR SMALL BUSINESSES
CONVERSION OPTIMIZATION
E-COMMERCE MARKETING STRATEGY
E-COMMERCE TECHNOLOGY
SUPPORT
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SPEAKERS:
Marketing Manager,
NetElixir
Alyssa Zaremba
Strategic Account Manager,
NetElixir
Anthony Turco
AMAZON FOR SMB:
FRIEND OR FOE?
July 26th, 2017
5
AGENDAE-COMMERCE LANDSCAPE TODAY
SURVEY RESEARCH + METHODOLOGY
RESEARCH FINDINGS + INSIGHTS:
• SMB Challenges + Investment Plan
• Amazon Pros + Cons
• Amazon Advertising
• Omnichannel Marketing
AUDIENCE Q + A
POLL:
Is Amazon a friend or foe to your
business?
A. Friend
B. Foe
E-COMMERCE
LANDSCAPE
People Don’t Just “Google It” Anymore
E-COMMERCE
LANDSCAPE
• Amazon has 43% of US e-commerce
market share. (FoxBusiness)
• Prime Day 2017: Sales grew 60% YOY to
an estimated $1 Billion. (BusinessInsider)
Who Has the Advantage in Post-Amazon World? (Op-Ed)
Top Reasons
Customers Buy Online
Advantage
Price Business
Convenience Amazon
Inventory Amazon
Quality of the product N/A
Reputable store Amazon
Customer experience Business
METHODOLOGY
• Tool: Google Consumer Surveys
• Method: Online Survey, 10 Questions
• Audience: Small to mid-sized
business owners and managers in the
United States on the Google
Consumer Surveys Publisher Network
whose company sells products through
Amazon as a vendor, seller, or both.
• Sample Size: 503
• Collection Period: May 10th–19th 2017
60% OF SMB
OWNERS/MANAGERS
SAID ACQUIRING NEW
CUSTOMERS IS THEIR
BIGGEST CHALLENGE.
27% OF SMB PLAN TO
INVEST THE MOST IN
PAID SEARCH WITHIN
THE NEXT 5 YEARS.
Understanding Your
Investment
Paid Search = #1 channel for new customer
acquisition.
Set long-term goals
• Think omnichannel
• Think customer-centric
Investing in your own site allows companies to:
• Craft a unique user experience
• Optimize customer’s journey to purchase
• Improve brand image/perception
• Gather customer analytics to better marketing
strategy
BIGGEST BENEFIT?
52% increased sales
volume potential.
BIGGEST DOWNSIDE?
45% lower margins.
Is Amazon Right for You?
High Sales Volume is Not a Guarantee
• Businesses must be able to...
– Competitively price products
– Manage inventory
– Take advantage of Prime and manage
delivery expectations
What has NetElixir seen for our clients?
Companies That Succeed on Amazon…
• Offset margins with lower overhead
– Fulfillment by Amazon
• Embrace Amazon custom programs
– Keep brand in tact
40% OF THOSE
RUNNING AMAZON
PAID ADS SAY THEY
ARE INEFFECTIVE.
LACK OF KNOW-
HOW WAS THE TOP REASON
FOR INEFFECTIVENESS.
Need Dedicated Resources
Online advertising is an increasingly complex and
competitive space.
• Have a plan
• Have the resources dedicated to the channel
• Keep up with constantly changing trends /
product releases / algorithms
THE MAJORITY OF SMB
ARE SEEING A 50-50
SPLIT IN E-COMMERCE
SALES DERIVING FROM
THEIR WEBSITE VS.
MARKETPLACES.
Invest in Your Brand’s Future
Most small to mid-sized businesses are currently
seeing sales from Amazon.
For the 8% who are not, 40% of them plan to invest in
Amazon over the next 5 years.
Businesses must think long-term.
• Who do you want to be as a brand?
• Diversification is good, but not at the risk of brand
commoditization.
21
WHAT UNIQUE VALUE ARE YOU
DELIVERING TO YOUR CUSTOMER?
22
YOUNIQUE
Increasingly consumers want
products and services that are
tailored to them personally,
and communications that
target them directly.
Marketers have access to
reams of data now that allows
them to microtarget
consumers.
SUMMARY OF RESEARCH STATS
● 60% of SMBs say acquiring new
customers is their biggest challenge.
● 27% plan to invest the most in paid
search within the next 5 years.
● 52% of SMBs noted the potential for
increased sales volume as the biggest
benefit of selling on Amazon.
● 45% of SMBs noted lower margins as
the biggest downside of selling on
Amazon.
● 40% of those running Amazon paid
ads said they are ineffective.
● Top reason for Amazon paid ad
ineffectiveness was lack of know-
how of SMB.
● Most SMBs are seeing a 50-50 split
in e-commerce sales from their
website and marketplaces.
Talk to Us About
Improving Your Amazon
Marketing Strategy
Visit: netelixir.com/contact
QUESTIONS
SUBSCRIBE TO
Consumer Insights
Weekly consumer insights/search marketing
stats delivered to your inbox.
Visit:
netelixir.com/consumer-insights
27
Join the conversation:
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APPENDIX
SURVEY QUESTIONS ASKED:
1. The company I work for/own sells products through Amazon. *†
2. Out of the following, what do you believe is the biggest challenge to your small business? *
3. Where does your business plan to invest the most within the next 5 years?
4. What is your company's opinion on selling on Amazon? - Is Amazon helping or hurting your business? *
5. Out of the following, what is the biggest benefit of selling on Amazon? *
6. Out of the following, what is the biggest downside of selling on Amazon? *
7. Which of the following best describes the type of products your company chooses to sell on Amazon? *
8. Is your business currently running paid ads on Amazon? Have they been effective? *
9. If your business' Amazon paid ads are not effective, what is the reason likely why? *‡
10. What percentage of your e-commerce sales are from website vs. Amazon/Jet/eBay?
* Indicates the winning result is statistically significant based on sample.
† Indicates survey filter question. Respondent was opted in to the survey if their company is an Amazon vendor, seller, or both.
‡ Indicates question allowed for multiple answer choices.
SURVEY BIAS:
Demographic report from question #1 shows respondents that were opted-in to take the survey. Similar
bias represented throughout survey.
SURVEY BIAS:
Demographic report from question #1 shows respondents that were opted-in to take the survey. Similar
bias represented throughout survey.