Amazon Trends for 2021

Amazon Trends for 2021

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.

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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