By Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands.
Most vendors will miss their growth targets with Amazon in 2023. And you’ll likely be one of them if you expect high double-digit growth from the online retailer.
That’s because 99% of the time, these growth ambitions originate from a single-minded focus on sales from previous years.
It’s easy to believe that with more manpower, similar budgets and a relentless focus on optimising ROI, you can replicate this past sales performance.
But the reality is this: Amazon’s first-party revenue declined by 0.9% in 2022. Third-party sales also slowed, with growth mainly driven by the increase in 3P selling fees.
Does this mean Amazon can’t deliver growth in 2023?
It certainly can. But not at the 30-50% rate many companies currently plan with.
So what’s the solution?
If you want to drive profitable growth, ensure your teams focus on the right inputs in 2023:
- Launch exclusive items to drive Net PPM
- Optimise the ROI of your Retail Media budget
- Develop and start listing SIOC-eligible products
- Drive customer retention through Subscribe and Save
- Focus trade investments to limit sales interruption (CRAP/ROO)
Remember: Supporting your sales targets with clear actions is the easiest way to reduce your reliance on Amazon’s organic growth performance.
For further insight and support, contact Martin Heubel here
