As businesses move closer to 2025, the evolving landscape of e-commerce, particularly on Amazon, presents unique challenges and opportunities for brands. Asha Bhalsod, the founder of Etopia Consultancy, provided insights for Toy World readers, outlining critical focus areas that brands should prioritise to ensure their continued success on the platform.
One prominent issue identified by Bhalsod is the necessity for brands to de-risk their Amazon presence. She emphasises the importance of adopting hybrid models and rationalising product ranges to mitigate over-reliance on Amazon's Vendor (1P) model. According to Bhalsod, businesses that remained solely within Vendor Central faced significant risks due to the unpredictability of Amazon's policies, which can result in sudden actions such as 30-day account closures and reduced purchase orders, leaving brands vulnerable to changes outside of their control.
Profitability is highlighted as a central concern for 2025, with Bhalsod stating that vendors who do not meet profitability benchmarks may encounter serious repercussions, such as decreased purchase orders. The evolving Amazon marketplace necessitates a robust understanding of profitability metrics, making it essential for brands to focus on improving their financial outcomes in order to thrive.
In the realm of advertising, Bhalsod notes that the landscape within Amazon has shifted dramatically, particularly concerning advertising costs. With rising Cost Per Click (CPC) rates, brands can no longer afford to engage in broad, upper-funnel campaigns without a strategic focus on return on advertising spend (ROAS). To navigate this change effectively, Bhalsod recommends employing targeted, lower-funnel strategies designed to drive conversions and support sustainable growth. The use of tools such as Amazon Marketing Cloud (AMC) is advised for obtaining deeper insights into customer behaviours, which can facilitate more precise campaign optimisation for enhanced performance.
The insights from Bhalsod are part of a broader dialogue on future-proofing Amazon businesses, as brands must adapt to the continuing evolution of the platform. By addressing these key focus areas, companies can position themselves to increase their competitiveness and profitability in an increasingly complex e-commerce environment. Further information detailing additional focus areas and solutions for common challenges brands face on Amazon can be found in the January issue of Toy World magazine.
Source: Noah Wire Services