TL;DR: Advanced brands are using selection as a strategic lever on Amazon, improving their profitability and growth prospects by developing online-specific assortment in the form of larger pack sizes, exclusive ranges, and online-friendly packaging. Further, when adding low-ASP assortment, they’re getting calibrated Net PPM targets and oftentimes commercial benefits in exchange for the value they’re creating for Amazon’s selection-driven flywheel.
3 minute read
Very rarely does Amazon want or need something from brands.
Thus, the typical relationship between brands and Amazon is akin to “David and Goliath” whereby Amazon throws its weight around to achieve its commercial goals, sometimes at the expense of its vendors and sellers.
However, selection is a key lever brands can pull to create a more level playing field because Amazon’s flywheel requires in-demand, vast selection.
To stick with the analogy, selection is therefore like David’s stone.
Now, the goal is not to take down Amazon, but rather to grow its business and your business profitably.
But what does that entail?
To examine this topic, we asked Martin Heubel, Director and Founder of Consulterce, to join us live to unpack what brands should consider when formulating their Amazon assortment strategy, including:
- The link between assortment and profit challenges
- A framework for Amazon assortment optimization
- Several examples of portfolio differentiation
- Perspective on Amazon’s low ASP push
Join the Stratably community
-
Bite-sized market updates
-
Deep dive analyses
-
Industry benchmarks
-
Retailer forecasts
-
Invites to live events
-
And More!
Enterprise Membership unlocks our full insights that you and your team can use to drive alignment across your organization, improve your forecasting, and invest in the right capabilities.
Simply put, it makes your organization much more informed, providing a competitive edge over your rivals.
