I’m selling products on Amazon, so why do I need a DRTV commercial? Way back in the old days, like three or four years ago, it was calculated that for every DRTV product sold on TV, 8 to 10 would sell at retail. Now the landscape is changing, as is consumer behavior and the world is evolving to more of a direct to consumer ecommerce preference for vast numbers of people in the US. Why?
It’s no newsflash that retailers are struggling. Stores are closing, profits are declining. Big box retailers are putting more investments into their online presences. Consumers shop less and less at retail.
A full 55% of consumers begin their online shopping search on Amazon. 90% of consumers check Amazon even if they find a product they want on another retailer’s site.
There are currently 300 million Amazon users, 30 million of which are on the app on a monthly basis.
Recent numbers indicate that 44% of U.S. households have Amazon prime.
With Amazon’s recent purchase of Wholefoods as well as premium brand marketers such as Nike appearing on Amazon, there is clearly no reason why anyone who has a product to sell would NOT be on Amazon. So, if you are there selling, why do any advertising at all?
According to data compiled by 360pi, there are currently 688,690 unique brands selling on Amazon, and 12,231,203 total products as of May 2016. With over 12 million products on Amazon, how is yours going to be noticed? There are not a lot of branding options on Amazon other than control of your images and text. Everything else is Amazon branded, not your brand. And customers are loyal to Amazon, not necessarily to you.
When consumers go on to Amazon to search for a product, they are not interested in browsing endlessly. 35 per cent of customers click on the first product featured on a search page, 17 per cent click on the second product. Shoppers are 10 times more likely to click on results from searches in the top positions. So, what is a marketer to do?
Product branding, differentiation and explanation can be made in a one or two minute DRTV commercial, where the benefits and advantages of your product are highlighted. While there would be a response mechanism of calling a phone number or visiting your brand website to receive orders, you can bet that many customers will go to Amazon to search for you there. Even if they visit your brand site to learn more, they may wind up buying at Amazon, especially if they are a prime member.
Therefore, if you stand out from the other 12 million products on Amazon by advertising on TV, you don’t need to be at the top of the search bar in your category in order for people to know about and search for your products. So, whether they buy from a phone number, your web site or Amazon, you have informed them, educated them and stood out from the competitive landscape and won them over.