Amazon Ads Strategy: Brick & Mortar Sales Decline

Updated: April 29

Over the past few weeks we've been sharing our tips for adjusting and optimizing your Amazon Ads strategy during the COVID-19 pandemic. In this post, we're discussing how advertisers can take advantage of the share shifting from brick & mortar to eCommerce channels by making their products more discoverable to the consumer.

We’ve heard from many brands that they’ve seen share shifts from brick & mortar to eCommerce channels, and in some cases, from other eCommerce retailers to Amazon and Walmart in recent weeksIt is likely this trend will continue over the coming months, given the ongoing government restrictions and research studies like the one from Brick Meets Click consulting, which noted that the number of people who used online grocery delivery services more than doubled from 13% of all US households in August 2019 to 31% in March 2020.  

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Many of our clients who have seen this share shift are asking how they can take advantage of the increased traffic and sales on Amazon and Walmart.com by making their products more discoverable to the consumerBelow are a few things you can do to maximize sales during this accelerated period of share shift. 

  1. Shift Budget: Shift budget away from brick & mortar channels where possible and reallocate to Amazon and Walmart.com where consumers are shopping. 
  2. Leverage Promotional Dollars: Repurpose promotional dollars to paid search drive traffic to full-priced sales during this period of high demand, especially when looking to boost 2020 net profit. 
  3. Inventory Allocation: Reallocate unclaimed inventory, which may have been allocated to a declining channel, to eCommerce channels or those that are growing. This can help your eCommerce sales and maximize sales for your entire company at the same time 
  4. Additional Selection: Consider adding additional selection that may be missing from eCommerce channels to your Amazon or Walmart.com assortments. Obviously, there are several factors to consider when weighing this decision, however, one thing has remained consistent: more SKUs on Amazon means more sales. 

While share shift from brick & mortar to eCommerce isnt a new phenomenon, the shift has certainly accelerated over the past few weeks. While none of us have a crystal ball and can predict the ongoing impact this may have, it’s fair to assume that these recent developments will have a lasting impact on how and where consumers shop. 

 

This blog post is part of our eBook Amazon Ads Strategy: How to Respond to COVID-19. Click image below to read the full eBook.https://www.pacvue.com/blog/amazon-ads-strategy-how-to-respond-to-covid-19

To follow the latest news, product updates and best practices for eCommerce advertising, follow the Pacvue Blog.

Start diversifying your ad portfolio today. Contact us to set up a free demo and learn how to balance your budget across Amazon, Walmart and other ad platforms, increase your ROI and reach more customers.