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THOUGHT LEADERSHIP

AMC Insights: Amazon Is a Platform for Brand Loyalty, Too

23 Jan 2024

Turns out Amazon.com is just as ripe for direct brand sales as it is for product discovery.

By Jack Lindberg, Mars United Commerce

In the dynamic world of e-commerce, Amazon stands as a colossal figure in many ways, often perceived primarily as a platform for product discovery. 

We’re all familiar with the statistic that more than half of online product searches start on Amazon (51%, according to Jungle Scout. Amazon is more than happy to leverage that statistic as it aggressively competes against national media platforms like Google, paid social and linear TV. Amazon wants to be the place where consumers learn about brands, even if it’s not happening on Amazon.com, because brands can use Amazon Marketing Cloud (AMC) to attribute sales on Amazon.com to prior ad exposure in the upper funnel off the website.

However, a recent exploration into AMC with one of our clients at Mars United Commerce offered a fresh perspective that might reshape how we view consumer behavior on this platform.

The AMC Revelation

Our journey into AMC was driven by a curiosity about the nuances of customer search behavior. We focused on the difference between initial and attributed search terms (the search term through which the shopper made a purchase), essentially tracking how they were navigating through Amazon.com.

The results were eye-opening. For the brand in question, approximately 50% of purchases were made by shoppers who entered a branded search term and then immediately converted. This was a pivotal moment in our understanding. These shoppers weren’t browsing the category on Amazon to discover products; instead, they had arrived with a clear intent, knowing exactly what they wanted.

This insight led to an intriguing question: Is Amazon.com as much a platform for specific brand searches as it is for general product discovery? It seems we might be overestimating the discovery aspect while underestimating the significance of brand loyalty and targeted searches. Is Amazon serving as both, simultaneously, depending on the brand or category? Is it just as important for ”spearfishing” shoppers as it is for those casting their nets into a category?

Implications for Amazon Strategy

This revelation has profound implications for how we approach Amazon as a marketplace. It suggests that a substantial number of Amazon visitors aren’t just using the site to browse but have a specific purchase in mind. For brands, this means that ensuring visibility for direct searches becomes as crucial as being discoverable in general searches. Shopper behavior will vary greatly depending on the category and brand recall, so it is important to investigate this data for your brand.

Amazon, as it turns out, is not just a behemoth for product discovery but also a powerful platform for targeted, brand-specific searches. This dual nature requires brands to take a more nuanced approach to their marketing strategy that will capitalize on both aspects of Amazon’s vast e-commerce ecosystem.

At Mars United, we work with clients to leverage the full potential of AMC. Understanding nuances like this one is key to developing a more effective Amazon strategy. You need to first interpret the data, and then translate it into actionable strategies that align with your brand’s unique position and goals. The right partner can turn insights into business-driving strategies.

To learn more about how Mars United Commerce can help you rethink your Amazon strategy and elevate your utilization of Amazon Marketing Cloud, contact.

About the Author
Jack Lindberg is Director of Media Insights & Analytics at Mars United Commerce, where he is responsible for leading the Amazon/Amazon Marketing Cloud analytics and the data clean room practice. Prior to joining Mars United, Lindberg was a senior product manager at Pacvue, where he helped build the commerce accelerator’s advertising product.

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