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Chris Moe and Jonathan Willbanks share the results of this year’s Amazon Prime Day.

Hi Everyone,

It’s us again with a mid-year Amazon update – hope you’re having a great summer!

2021 has been an interesting year on Amazon. Supply chain challenges have remained front and center, just like 2020, and this year at times has felt soft versus some of the pandemic highs. That said, with the exception of March and April, most of our clients are seeing strong PoP growth for the months in 2021.

We continue to grow as an organization along with Amazon’s rapidly expanding CPG market. We’re particularly excited to be supporting multiple brands in Fresh and Whole Foods, as Amazon enters the world of same-day and temp-controlled grocery delivery. We’ve also built a knowledge function which helps us consolidate and share some of the best insights from our work. We’ll be sharing these more often in our newsletters and other channels, including our Slack channel.

We’re always looking to partner with great brands looking to make a strong play in eCommerce. Thanks for your support and introductions to brands that you work with.

Looking forward to seeing you in person at some conferences this fall!

PRIME DAY RESULTS 

ROI on Prime Day deals seen in week following: In the week after Prime Day, our brands who ran any type of Prime Deal saw a 36% sales lift and a 77% session lift (traffic), compared to averages of their last 6 weeks. This reflected an improvement by 25- 30% in Sales Rank. 

Prime Exclusive Discount Coupons (merchandised in baby blue) had the largest impact: 3- 5x average sales lift on the sales day, and 90% sales lift the week after Prime Day. This significantly outperformed normal coupons and lightning deals during Prime Day.

Key points include:

  • Flo Pos
  • Bids rising in response to privacy
  • Reply to reviews

Read the full article, 2021 Amazon Thoughts & Prime Day Recap, on GoCartograph.com.

Umbrex is pleased to welcome Chris Moe with Cartograph. Chris Moe joined McKinsey in 2011 as a BA, focusing primarily on Sales & Marketing for B2C companies, across topics including pricing, digital pricing, and growth. After leaving to spend two years at a structured credit hedge fund in NYC, he returned to McKinsey and split between Marketing and Sales and work in Education, focused on University transformations. Chris co-founded Cartograph in 2018, an agency focused exclusively on Amazon consulting for emerging CPG brands.

Chris now lives in Austin, TX, and is always happy to talk Amazon, eCommerce, or CPG.

 

Chris Moe and Jonathan Willbanks share facts, stats, and observations on Amazon during a sixty day period of COVID-19.

The last couple weeks have been slow on Amazon – flat to slightly down for most brands. In a move that’s probably related, Amazon has removed stocking limits, turned coupons on, and started accepting deals. This was faster than we expected and we suspect grocery will be entirely “ungated” soon.

What we have been seeing:

DEMAND – slower for May – flat to down across grocery. Most promo levers now active, some new ad formats

Sales have been flat to down (5-15%) for the first two weeks of May. This seems to span many grocery categories, including the formerly white-hot baking category. The trend is still up vs. Feb, but demand seems to be softening.

~5% of sales have shifted back to younger age groups (<45 years), as it was before COVID. 

Coupons are live again, and deals are being accepted. We mostly see deals available for early June, though a few brands have been able to do earlier. (Note: Vine is still inactive.)

Ship times estimates have continued a slow march back to 1-2 day speeds, although significant variation still exists. 

The window to accept Prime Day deals was extended to early June. We still think Prime Day will be at earliest in August or later (maybe even folded into Black Friday). 

New ad formats: enhanced sponsored brand ads display a second image, and sponsored brand campaigns can now target ASINs. We’re testing both as incremental levers. SC ads are now live in Amazon Advertising (formerly VC). 

A number of our clients had their items suppressed for using ‘flags’ on the main image that called out size or quantity. This affected Seller Central accounts only – Vendor was unaffected.

 

Insights shared include:

  • Supply / logistics
  • What grocery brands should do on Amazon
  • Future outlook

 

Read the full article, Observations on Amazon amidst COVID-19 – 60 Days, on the Cartograph website.