Monthly Amazon Update – February 2020

Published on 03.03.2020

Marketplace News

Consumer advice center criticizes "Amazon's Choice": The consumer advice center of North Rhine-Westphalia criticizes the label assigned by Amazon on product pages, because the corresponding products do not show good ratings in some cases and are cheaper to get in other online shops. According to this, in a test pool of 50 articles, 29 out of 50 products were not rated very well by customers, 6 of them with less than 4 stars. More than half of these products had less than 50 written reviews, one article even only three. On average, the products at Amazon were 11% more expensive than in other online shops, and around two thirds were significantly cheaper in other shops. In the USA, too, there was recent criticism of the choice label, together with the demand to disclose the criteria for awarding it. Link

As Marketplace Pulse was able to read from the business figures, in 2019, Sellers generated a total turnover of 200 billion US dollars, which is 40 billion more than in the previous year. Amazon's own business, on the other hand, grew by "only" 15% to 135 billion euros. According to this, Sellers are responsible for almost 60% of the total trading volume on Amazon, and this share has doubled in the last 10 years. Link

According to a new report from Feedvisor, which includes more than 1000 US brands, Amazon Advertising offers a higher ROI than Googles or Facebooks ad platforms. Of the companies surveyed, 73% would advertise on Amazon, up from 57% last year. The fact that 59% of companies say that they get the highest return on media spend at Amazon also increases the amount of money invested in it: The number of companies that leave more than $40,000 a month at Amazon increased by 33%.

Half of the brands surveyed experience at least a 7x ROAS. Other reasons for the growing popularity of Amazon Advertising include new ad features that can reach customers at every stage of the Customer Journey. Link

Amazon tests "Stores" results in search results: The promotion of stores is part of Amazon's attempt to make brand awareness and storytelling campaigns more attractive. Link

Amazon's ARA Premium will be free: Amazon has provided Vendors with very little data so far. Information on customer demographics or reports on sales, marketing, customer behavior or trends could not be obtained. The features for which customers in the "ARA Premium" package previously had to pay from €30,000 a year are now apparently free. Without any official announcement, Amazon made the tools available for free to many vendors: apparently, this only applies to vendors with a trademark registration. ARA Premium will probably be renamed "Brand Analytics" in the future. Link


The first grocery store under the "Amazon" brand has opened in Seattle: As was suspected last year, Amazon is combining its existing "Amazon Go" concept with the choice and low-cost offerings of competitors like Walmart. In the "Go" system, customers can leave the store with their purchases without going through a checkout: this is made possible by a system of cameras, smartphone geofencing and various other technologies that allow customers and goods to be tracked through the store. According to Amazon, the system can now handle complicated situations such as unpackaged fresh food. Link

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