Amazon Traffic Fluctuation
U sing Google Trends as a macro view on people searching for the term “Amazon” we saw a decline of approximately 7% across the first months of 2021.
Using more precise data, Similar Web saw a dip in total Amazon views during the February and March months by approximately 10% versus the January starting point. From late March (also likely impacted by stimulus checks) page views look to be trending upwards.
Using more precise data, Similar Web saw a dip in total Amazon views during the February and March months by approximately 10% versus the January starting point. From late March (also likely impacted by stimulus checks) page views look to be trending upwards.
When we look at year-on-year comparisons, Similar Web reveals an interesting story.
Between Jan 1st and Mar 31st, year-on-year total Amazon units sold increased +35%, page views increased +32% but revenue only +24% inferring a lower average selling price for brands on the platform.
When looking at some specific categories the data is more pronounced. For example, pet supplies during the same period experienced +43% product views but category sales revenue only increased +15%. For makeup and cosmetics page views were +11% but revenue declined -5%. For computers and laptops pageviews declined -4% and revenue declined -5%
So, with all of this data and insight, what should brands do?
1. Make sure your presence and performance on marketplaces is as strong as it can be. Brands must ensure their content, creative, retail operations and advertising is all optimized and they are not leaving themselves exposed to competitors stealing market share.
2. Keep a close eye on physical store sales and ecommerce sales and be prepared to revise 2021 targets for each sales channel. All indicators are that there will be overall ecommerce growth (but considerably lower than the jump seen 2019 > 2020) and a bounce-back in physical store sales.
3. Monitor product-level demand closely. The fluctuating economy, unemployment and stimulus all make for unpredictable times and consumer spending patterns may shift. They may choose more affordable products over more expensive ones.
4. Rigorously focus on predicting demand and ensuring your supply chain is as optimized as it can be. Running out of stock doesn’t just inhibit short-term revenues, ecommerce marketplaces will also penalize you for this over the longer term and you’ll likely see your rankings drop and take some time to recover
5. Continue to explore the addition of new products, new markets, and new marketplaces to drive sales growth.
