Amazon records strong quarter

Amazon News at a Glance:

• Amazon Q3: profit of almost 10 billion U.S. dollars
• Amazon launches AI tool for product photos
• Passwordless Amazon login for all smartphones
• Vet consultations via Amazon coming soon?

• Further E-Commerce News:
• AI’s popularity in online shopping
• Supply chains disrupted by drought affecting the Panama Canal
• Delivery and returns prove critical to sales
• Instagram & Facebook will soon have an ad-free option
• British consumers want sustainable online shopping

Updates: Amazon Marketplace

Amazon is also testing the integration of the “shoppable image” in the gallery. In such an image, multiple products can be shown and linked to their Amazon PDPs. However, it remains to be seen whether this feature can be created by the provider soon.

News: Amazon

Amazon Q3: Profit of almost 10 billion US dollars

An optimistic annual report: Amazon records a net profit of USD 9.9 billion for the third quarter of 2023. In comparison: in Q3 2022, it was only USD 2.9 billion.

• The report included USD 12 billion in revenue from its advertising business (+ 26%).
• Amazon Web Services earned USD 23.1 billion and the cloud offerings USD 5.4 billion.
• Amazon’s goal for Q4: to increase profits by USD 7 to 11 billion.

Amazon launches AI tool for product photos

Amazon has now launched a tool for advertisers that can generate product images with AI. The image generator, currently still in beta, creates backgrounds or scenes around the product and offers several results to choose from.

• The tool is intended to support small graphic design teams in particular, by enabling them to design product images creatively.
• Amazon promises up to 40 % higher click rates with the use of these generated images.
• Our assessment: A very valuable function, but one that cannot replace campaign or branding-focussed DSPs.

Password-less Amazon login for all smartphones

Amazon recently introduced passkey login. Initially, the feature only worked via the browser login and on Apple devices. Android devices are now set to follow.

• Customers can set up passkeys in the Amazon settings, and use them to unlock their device using facial recognition, fingerprint or PIN.
• According to Amazon, passkeys are an important step towards making the shopping experience easier and more secure for customers.

Amazon extends returns period over Christmas

As usual with Amazon, customers will be given more time for returns over Christmas.

• Products purchased between November 1st and December 31st can be returned until January 31st, 2024.
• Products have already been labelled with a notice on Amazon, and this is also indicated on the Amazon help pages.

Vet consultations via Amazon coming soon?

Amazon has already made inroads into the healthcare market with the acquisition of One Medical and the opening of Amazon Pharmacy. But it doesn’t stop there: According to rumours, the company is now setting its sights on pet care.

• Walmart already started offering Walmart+ subscribers free access to telemedicine for pets at the beginning of the year.
• Amazon could follow a similar approach to Walmart and offer the programme via Amazon Prime.
• So far, there has been no official statement from Amazon.

News: E-Commerce

AI very popular in online shopping

According to a study by Shopify and Sapio Research on the importance of AI in online shopping, 36% of consumers surveyed said they are more likely to shop with brands that integrate AI into the buying process.

• 68% believe that AI can help them get more information and find new brands. More than three quarters expect to discover special offers.
• 77% of the companies surveyed want to invest in these new opportunities.
• The survey involved 12,000 consumers and 4,800 companies in Australia, Canada, France, the UK, the US and Germany.

Supply chains disrupted by drought affecting the Panama Canal

The drought in Central America is also having a negative impact on global supply chains.

• The Panama Canal is one of the most important waterways for the transport of goods.
• As a result of the extreme drought, the number of ships travelling through had to be reduced to 24 per day. A further reduction is planned for February next year.
• The draught of the ships has also been limited so that they can carry less cargo.

Delivery and returns prove critical to sales

According to a survey by Zigzag Global and Shipup, 35 % of shoppers in the UK regularly experience delivery delays. 43% say it’s up to them to let the retailer know.

• An accurate estimate of delivery time is important to more shoppers (57%) than fast delivery (43%).
• 84% check the return policy before buying. For more than half of them, their purchase decision depends on it.
• 82% expect the seller to allow free returns.

Instagram & Facebook will soon have an ad-free option

After being fined millions for violating EU data protection regulations, Meta has announced the introduction of a new subscription model for Facebook and Instagram. From November, users will be able to use the social networks ad-free by paying at least €9.99 per month.

• The new subscriptions are valid throughout the EU as well as in Iceland, Liechtenstein, Norway and Switzerland.
• With the introduction of the ad-free subscription, the company is now likely to avoid further penalties.
• Advertising is one of Meta’s most important sources of income. It is not yet clear whether the subscription model will be successful.

British consumers want sustainable online shopping

According to a Royal Mail survey, 55% of British consumers would be more likely to buy from online stores committed to sustainability.

• 76% are in favour of recyclable packaging and 73% believe that fashion retailers should offer second-hand items.
• 41% would also be willing to pay more for sustainable delivery options; among consumers born after 1998, the number rises as high as 60%.
• 46 % have already shopped via social media and 57 % have used credit options such as “buy now, pay later.”

Did You Know?

Whether through Amazon Prime Day, Black Friday, or Cyber Monday – Amazon regularly entices shoppers with offers and promotions.

For two-thirds of British Amazon shoppers, deal events are relevant when making purchase decisions. 20% deliberately wait for deal days and save in advance to be able to get as many bargains as possible; 45% browse through the offers on the discount days and are tempted to buy spontaneously.

For a third of the British Amazon customers surveyed, deal events play a less important role – the majority of them do not wait for offers, but instead purchase immediately when something is needed. The more money customers spend, the more likely they are to prepare for discounts: 32% of those who shop monthly for £200 and more on Amazon save extra for deal days.

(Source: Amazon Shopper Report 2022, Remazing & Appinio)

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Top 5 Amazon Keywords

These are the top 5 most-searched keywords by country from October 29th to November 4th, 2023.

The Christmas season is approaching and this is also reflected in the search queries for advent calendars, Christmas trees and decorations in all countries. In Germany, there is great interest in the third season of the reality TV show 7 vs. Wild, which was released on Amazon’s free streaming service Freevee on October 31st. Additionally, British and American Amazon customers are increasingly looking for the autobiography of the unexpectedly deceased “Friends” actor Matthew Perry.

In Case You Missed it.

Corporate Language on Amazon: How Brands Strike the Right Tone – by Lisa Steckbauer, August 9, 2021

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Analysis: Amazon’s Acquisition of One Medical – by Filip Egert, August 2, 2022

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