5 Keys to Selling on Amazon in 2021

If 2020 has taught us anything, it’s that we must be adaptable. Working from home, teaching from home, seeing our co-workers, friends, and family through the lens of a web camera instead of in-person, and definitely shopping habits. This has impacted consumer shopping and although consumer spending has decreased there has been an increase in e-commerce sales because it provides a safe shopping experience. This trend will most likely continue in 2021 and it is important for entrepreneurs to shift with consumer behaviors. So, what can we expect sellers to see selling on amazon in 2021 and how do you prepare to meet customer needs? 

Selling On Amazon In 2021 & Utilizing New Features

Amazon is always finding new and creative ways for the buyer to find the right products that ultimately leads to the Add to Cart button. Below are some new features that we can see expand in 2021.

  • Amazon Posts: Provide a brand story within a category to relevant shoppers allowing them to click through and discover product pages. 
  • Amazon Attribution: Measurement solution to measure, optimize, and plan for advertising on non-Amazon marketing channels.
  • Amazon Live: Allows a host to demonstrate the features of a product with fun and interactive videos.   

Running Ads

The image you search for a product on Amazon and page 1 is ONLY sponsored Ads, this could be a 2021 reality. Amazon became the No. 3 digital ad seller in the US last year. Many brands are working with Amazon-specialized agencies to get better returns on ad spend and stay competitive. Watch for new targeting strategies and Ad Types allowing you to target your products based on customer needs and solving problems. Amazon Attribution is an advertising tool with no fee that allows the seller to see the metrics of advertising outside of Amazon, allowing the seller to have better insight on marketing tools that work with their brand.  

KEY STAT: Amazon will earn $9.85 billion in net US digital ad revenues this year, representing 7.6% of the market. By 2021, nearly one in 10 US digital ad dollars will go to Amazon.


Selling On Amazon In 2021 & The Importance of Analytics

What is the first thing sellers look at to measure success? ROAs and ACOS. Prepare for a shift to start looking at TACoS: Total Advertising Cost of Sale (Ad Spend/Total Sales). This allows the seller to not only determine metrics based on advertising but overall sales including organic metrics, keeping in mind that ads also drive organic sales. 

There will also be more opportunities to look at data outside of Amazon to better understand what is driving sales. Amazon Attribution is an advertising tool with no fee, just Brand Registry, that allows the seller to see the metrics of advertising outside of Amazon, allowing the seller to have better insight on marketing tools that work with their brand. This also allows for identifying trends, demographics, and retargeting strategies. 


Brand Registry 

There are lots of benefits to Brand Registry: creating A+ Content, Storefront optimization, Vine Program, and now more with protecting your brand. Amazon is taking steps to decrease listing hijackers and counterfeit products. Amazon is all about customers having the best experience and will allow smaller brands to gate their products requiring brand approval for others to sell. They are also expanding on allowing more video content, driving more traffic to storefronts, and launched Amazon Live. Brand Registry is a 2021 must-have. 


Small Business

Plan for an influx of more sellers, it is predicted that 72% of brands will be using the platform in the next 5 years. To encourage shoppers to purchase from small businesses, Amazon will start to spotlight a small business and drive more traffic to the Shop Local Small Business section. Amazon will also encourage shopping locally by highlighting local businesses close to the consumer.  If you are looking to find out if you should sell on amazon check out our blog Is Selling On Amazon Right For My Business?

2020 wasn’t an easy year, but 2021 is filled with opportunities and optimism. Amazon will not be slowing down with the new year, sellers will grow with the new innovations and continue to dominate eCommerce. 




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