Vol. 127 - NO. 39

Blog Startup CPG

SINCE 2019

5 Amazon Predictions for 2022 and
How to Leverage Them

Fernando Campos is one of the co-founders of MarketplaceOps — a leading online marketplace management and strategy firm that helps CPG brands supercharge their growth on Amazon and Walmart. With over 500+ successful product launches on Amazon, MarketplaceOps leverages its fully integrated technology and proprietary ranking techniques to beat out the competition on top of well-made listings and advanced PPC strategies.

New year, new challenges – or the same? 2022 is about to welcome another wave of Amazon predictions and trends and sellers must get on top of them before the new year even hits. From expanded brand-building initiatives to increased CPC costs and supply chain barriers, sellers should brace themselves for engagement opportunities and operational challenges. Although time is ever-changing and we can’t fully expect what’s to happen in the new year, here are some of the top 5 Amazon predictions we’ve rounded up based on past year trends.

1. Amazon to Expand Its D2C, Brand-Building Initiatives

Amazon has been making moves to position itself as an all-in-one platform for building a brand that goes beyond just selling and advertising products. These past few years, the rise of Amazon Posts, Brand Stores, and Manage My Customer Engagement (MMCE), and more have enabled the retail platform to be a center for converting customers without ever leaving the website. Customers won’t just engage and convert once but will be able to ‘follow’ their favorite brands, be retargeted, and be involved in every stage of the funnel.

To leverage these, make sure you’re brand-registered to get access to Brand Stores, Amazon Posts, and MMCE to engage customers during new product launches, product awareness campaigns, and other social initiatives. Moreover, as these tools are designed to go beyond the standard Amazon marketplace listing, make sure to get creative and create branding-relevant content that showcases your products in lifestyle settings.

2. Rise of Video Streaming Opportunities

Now that Amazon owns Twitch (a leading live streaming service provider), we’re willing to bet that Amazon’s video streaming capabilities will continue to expand into 2022, becoming the internet’s choice for TV shopping similar to QVC. The release of Amazon-branded TVs will also increase the number of available ad placements and its integration with Alexa will allow for expansion into audio shopping, allowing for a fully-integrated, end-to-end shopping and advertising experience.

Additionally, the rise of TikTok and other UGC platforms encourages consumers to be more dependable on videos to discover new products. This rise has changed the way products are showcased in the post-pandemic world, going beyond rich text and images to fully demonstrate how a product can benefit a consumer.

All that said, brand owners should leverage high-quality video production to produce creatives that engage consumers on different video platforms. Take the time to learn how these platforms work and how they differ from each other and create videos that adapt to each audience.

3. Amazon CPC to Increase

Brace yourself for a more expensive advertising experience on Amazon this 2022. CPC is predicted to increase with the expected rise in sellers and products joining the platform, so prepare for the competition by defending your own branded terms and PDP ad placements. Launch a strong brand-defense strategy and test different ads such as ad types and optimization strategies to see what will get you more clicks vs. competitors. Either way, brace for the fact that you have to spend more money this year for the same results.

As you strategize on your ads, don’t forget the basics such as optimizing your images, videos, and other rich content for Sponsored Products and Brands. Give people a reason to click!

4. Improved Voice-Shopping Advertising

With about 1 in 4 adults in the US now owning a smart speaker and voice shopping estimated to hit $40 billion across the US in 2022, improved voice-shopping capabilities are to be expected. Voice-shopping by consumers is not just on the rise, but advertising via voice is also predicted to have increased adoption. That said, Amazon might continue to create voice-shopping-specific advertising toolkits that can help brand-registered owners extend their products’ reach.

To leverage voice-shopping, make sure your brand is poised to accept this innovative way of search. While waiting for Amazon to develop programs specifically for voice-targeting, check out other resources and tools that can adapt your store to it.

5. Supply Chain Challenges to Stay throughout 2022

The continued effects of the pandemic and constant introduction of new products on Amazon have expectedly put a constraint on their fulfillment capabilities. Because of such, Amazon has continued its use of their system of dedicating the most space to those who improve their IPI (Inventory Performance Index) metrics.

To make sure that your brand continues to fulfill its orders despite inventory restrictions, have a backup fulfillment method in hand such as by setting up FBM delivered by 3rd party logistic services.

Grow Your Amazon Brand to New Heights This 2022

Welcome this new year with a stronger and better Amazon strategy from listing creation to fulfillment with our expert team of Amazon professionals. With over 10+ years of combined experience, our team is well-equipped and prepared to help your brand scale and face the challenges 2022 has got to offer. Contact us today for a free strategy session and consultation to see where we can improve your brand’s operations.

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