By Martin Heubel, Commercial Advisor to 1P Amazon Vendors at Consulterce
Following Amazon’s single-pack strategy in FMCG may kill your brand.
Quite literally.
Amazon wants you to list single-pack items (Nielsen selection). No case packs. No multi-packs. Just single units.
The logic is simple: Remove conversion barriers by keeping prices and unit sizes low.
But what looks good on paper doesn’t work across categories.
Premium Beauty brands can list single items because they are cost-efficient to ship and sell at high prices.
But that’s not the case for HPC, grocery or lower-priced beauty items. Selling a chocolate bar for £1 or nail polish for £5 isn’t profitable for Amazon.
So if you’re only listing single packs, you’re effectively growing your sales dependency on Amazon’s current strategy to win market share.
Once Amazon shifts its focus to profitability, you’ll be forced to raise investments or rapidly change your price-pack architecture.
So if you’re not actively investing in:
- Premiumisation
- Larger pack sizes
- Value bundles
- Online exclusives
…you’re simply increasing your exposure in.
For further information and support, contact Martin Heubel here
