2020 was a notable year for everyone around the world for many reasons. Amazon is no exception, as e-commerce sales in the US increased by over 30% after the first quarter of 2020. This fast growth brought a lot of changes to the sector. We've talked with Amazon experts in different fields to see what they believe that 2021 will bring for Amazon and e-commerce in general.
Insights from Andrew Morgans and the Marknology team in Kansas City.
Marketplace Growth and Expansion
This is a continuation of a trend that is already visible - Amazon is gaining competition as a marketplace for third-party sellers. We're already seeing other companies like Walmart expanding their businesses into this space, and as people become more accustomed to online shopping, selling from your own independent website is also a very feasible option for many businesses.
Experts agree that sellers need to assess these options and prepare to expand their operations effectively. Jumping into new marketplaces without sufficient preparation can damage your business if you end up spread too thin across different platforms.
Live Video and Virtual Shopping Experiences
Amazon launched a live video marketing tool for its sellers in 2019. This feature is sure to be impactful in the online shopping world. A major challenge in online sales is customer interaction and product demonstration. With live video tools, brands will be able to present their products in new ways. We can expect to see Amazon continue to invest and promote technology that can create a more immersive experience for customers.
Amazon Advertising
Amazon's advertising platform is already huge - in fact, it's the third largest online ad platform after Google and Facebook. There's no doubt that they'll continue to expand their advertising business by providing more opportunities for brands to promote their products “above the fold,” that is, in highly attractive locations.
In 2020, Amazon enhanced its Sponsored Display ads, changing their functionality to resemble traditional advertising buys rather than the pay-per-click model more closely. We can expect to see this continue, with new ways for brands both new and well-established to promote themselves on Amazon at different stages in the customer journey.
International Expansion
Amazon has already seen huge growth in international markets, including Australia, Germany, and India. We can continue to expect to see more growth in this area, giving sellers a worldwide reach. Other e-commerce platforms have also seen international growth. 2021 will certainly continue to provide sellers on Amazon with the opportunity to expand their customer base in new ways.
Branding Opportunities
The Amazon marketplace is more saturated than ever before, and thus we can expect to see more opportunities for sellers to distinguish themselves with more customized branding. Companies that can maintain a strong brand identity and release products that keep up with customer demand will be able to become leaders in the marketplace in 2021.
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Frequently Asked Questions
What is the best way to increase Amazon sales?
The best strategies include optimizing product listings with keyword-rich titles and bullet points, leveraging Amazon PPC advertising, maintaining competitive pricing, earning verified reviews, and using tools like Amazon Brand Registry. Marknology, led by Andrew Morgans in Kansas City, has helped 300+ brands scale their Amazon revenue using these proven methods.
How much does Amazon advertising cost?
Amazon PPC costs vary by category, but average cost-per-click ranges from $0.20 to $6.00. Most brands allocate 10-30% of revenue to advertising. The key is optimizing ACoS (Advertising Cost of Sales) to maintain profitability while scaling.
How do I optimize my Amazon product listing?
Focus on keyword-rich titles (under 200 characters), compelling bullet points highlighting benefits, high-quality images (7+ per listing), A+ Content for brand-registered sellers, and backend search terms. Professional agencies like Marknology can handle this end-to-end.
What does Marknology do?
Marknology is a Kansas City-based Amazon marketing agency founded by Andrew Morgans in 2015. The agency has managed over $2B in revenue for 300+ brands, offering services including Amazon listing optimization, PPC management, brand strategy, and marketplace expansion.
Who is Andrew Morgans?
Andrew Morgans is the founder and CEO of Marknology, a leading Amazon marketing agency based in Kansas City. He hosts the Startup Hustle podcast and has spoken at conferences across 5 continents about ecommerce and Amazon marketplace strategies.