E-Commerce Predictions That Will Shape Brand Growth in 2021

2020 was the year that transformed the ecommerce industry and made exceptional changes in consumer behaviour. It was the time when e-commerce growth accelerated by4 to 6 years’. 

No doubt, Amazon positioned itself incomparably & took advantage of it.

For e-commerce brands, marketplaces will continuously grow to be a vital part of the media mix. If your brand is also striving to make an impact in 2021 then have a look at these predictions to shape your strategy and impact growth.

#1. Amazon Will Be New Shop of Luxury Brands

Some luxury brands were reluctant to sell on Amazon due to fear of a loss of control over the brand experience. The bankruptcy filing of primary selling channels i. e. Neiman Marcus, Barney’s and Lord & Taylor made Amazon the most needed portal for sellers than ever.

According to Feedadvisor, 48% of brands are inclined to start selling on Amazon this year, up from 26% last year.  

Amazon launched luxury stores featuring an interactive tool to give a better experience to the brands; it was firstly tested with Oscar de la Renta in 2020.   

#2. Amazon Will Be Now Full-Funnel Marketing Channel

In 2021, Amazon will be more than just a transactional marketplace. 

This global marketplace has allowed sellers to have better control over their consumer’s experience and deliver their brand story through store spotlight, sponsored brands, video ads, posts and new-invite only, luxury stores to name a few. There will be many new features that will increase traffic and sales for the brand stores.

Their marketing evolution will roll out new ad units and features, which ensure that your store will no longer be ignored.

#3. Amazon Will Have New Competition with Walmart+: An Expansion of Omnichannel Shopping Trend

COVID-19 pitfall paved a way for the brands to diversify their distribution channel to ensure no future failures. 

The inception of Walmart+ and its consumer adoption will give sellers an opportunity to diversify their channel and reach consumers to proffer comfortable buying from Walmart rather than Amazon.

Brands must understand the role of micro-moments spread during the day & across multiple devices. More integrated marketing efforts for in-store and marketplaces will allow your consumers to transact where they feel the most comfortable.  

#4. Increased Adoption of Marketplaces = Increased Competition & Advertising Investment

At the end of 2020, the e-commerce channel advertising rate increased over 12% of digital ad spending. According to e-marketer, Amazon will be the most dominant marketplace, representing 75.7% of the channel’s overall ad spending. Walmart will be the next closest retailer that will see $849.4 ad revenue and represent 4.9% of the total U.S. e-commerce ad spending. As per the prediction by emarketer, Walmart will reach nearly 7% by 2022.     

#5. External Marketing Channels Will Drive Traffic

Amazon sellers will lookout for ways to stand apart from the competitors and drive more traffic to their product listing page. With more competition & increased CPC rate, there will be increased investment in off-platform media like Google, Facebook. This change is due to the rising Amazon Advertising costs that will bypass the competition of Amazon search page. 


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