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on April 14, 2021 by Drew Kramer in Marketplaces, Technology & Data

How COVID Changed Amazon Marketing Services for 2021

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How Covid Changed Amazon Marketing Services for 2021

The COVID-19 pandemic has triggered a denser, more competitive ecommerce environment, especially on marketplaces like Amazon. Data from McKinsey shows that ecommerce in the United States saw ten years’ worth of projected growth in the first three months of 2020. 

Now more than ever, brands need help with advertising from the right Amazon marketing services agency to stay ahead of the competition. We’re looking at how COVID changed Amazon Marketing Services for 2021, and we’re seeing that increased market density and competition is putting more pressure on agencies that have neither the technology nor the capacity to help brands keep up.

New Pressures on Brands and Ecommerce Marketing Agencies

Amazon saw 37% increase in online sales in Q3 2020 illustration Customers are shopping online more during the pandemic—especially on Amazon, which saw a 37% increase in net sales in the third quarter of 2020. Many brands struggled to manage surging demand for their products, especially those brands with siloed fulfillment and ecommerce marketing solutions. 

Pressure #1: Brands lacking technology

It’s important that brands partner with agencies that can provide a unified data picture of marketing and fulfillment to make each work for the other. But many ecommerce marketing agencies don’t have the technological infrastructure to provide such data. 

Brands need a marketing agency like Whitebox. Our proprietary technology helps brands use data from across verticals and channels to inform smart advertising strategies. 

For instance, our platform’s multichannel fulfillment data can show when a product is almost out of stock, informing our Amazon-accredited marketplace management experts when to pull back on advertising for that product. Conversely, if fulfillment data shows that the product is coming back into stock, our experts can push advertising accordingly.  

Pressure #2: Brands limited capacity

The COVID-19 pandemic placed significant strain on ecommerce marketing agencies that didn’t have the capacity to scale.

Many do not have the infrastructure to support brands’ growing advertising and fulfillment needs. Brands should choose a scalable solution prepared to handle future ecommerce expansion. 

Additionally, we recently added over 650,000 sq. ft. of warehouse space and employed eight times more people than in Q1 of 2019, expanding both our Baltimore and Las Vegas facilities so that we could sustainably scale to meet our clients’ needs.

The Importance of Amazon Marketing Services in 2021

Customers have changed during the pandemic, and these changes are likely to last. To increase visibility and conversions on the Amazon Marketplace, brands need Amazon marketing services—and the right partner. 

The different types of Amazon marketing services

Amazon’s core marketing solutions provide brands with the tools they need for product promotion throughout the sales funnel: 

  • Amazon Demand-Side Platform: This service uses Amazon audience behavior data and brand customer data to run advertisements on Amazon and third-party websites. 
  • Sponsored Products: Brands use this service to place a paid-for “sponsored” tag on their products. The customer will see the sponsored product near the top of the search results. 
  • Sponsored Brands: Through this program, a brand places a banner advertisement at the top of an Amazon search results page. This advertisement features the brand’s logo, a custom headline, and three of its products.
  • Sponsored Display: Sponsored Display is a service display advertising solution that helps you grow your business and brand on Amazon by engaging shoppers across the purchase journey, on and off Amazon

Why Whitebox is a leader for its Amazon marketing services

Whitebox offers managed advertising solutions services, as well as a range of marketing and fulfillment solutions. A team of dedicated marketplace management experts leverages the full power of Whitebox’s solutions to help brands meet their goals faster and more effectively.

When a brand partners with Whitebox, it receives access to an advanced data infrastructure designed to produce insights that drive smarter and faster decisions and improve brand performance. Many agencies need to spend years building their architecture to produce the same quality of insights that Whitebox can. With our solutions, brands gain a full data picture and can drive stronger Amazon marketing campaigns.

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What to Look for in an Amazon Marketing Service Provider

Choosing the right Amazon Marketplace management partner can be a challenge. Brands should look for providers that exhibit certain differentiators.

Transparency

Brands need a partner that empowers them to harness the full power of data. As a result, brands should seek an agency that exhibits transparency in its ecommerce marketing strategy and the data that drives it.

The agency should provide the brand with all available data about its marketplace performance, as well as the positive and negative impacts of its strategies. With this transparency, the provider empowers the brand to execute changes necessary to improve its Amazon performance.

Vertical integration

illustrated Image of Amazon sponsored ads for Amazon Marketing ServicesAgencies that focus solely on marketing rarely provide the quality of data that brands need in 2021. Partnering with a provider that offers a range of services puts brands in a better position to develop a comprehensive ecommerce marketing strategy.

Whitebox offers a range of Amazon fulfillment options on top of its advertising solutions. Brands that partner with Whitebox receive advertising solutions that work with fulfillment operations, and vice versa. For example, if a certain product is more popular than others, the brand may choose to sponsor it on Amazon. Whitebox has the tools and infrastructure to prepare the listing and ensure that enough inventory is available to meet customer demand.

Proprietary technology

Walmart, Amazon, Shopify data integrates with Whitebox

Proprietary technology drives ecommerce success—without it, people are solely responsible for implementing marketing strategies. It is equally important to have technology that empowers data-driven decisions as it is to have a team of experts.

Whitebox’s software pulls data from Amazon’s application programming interfaces and other marketplaces, such as Walmart and Shopify, to layer on top of brands’ marketing data and inform campaigns. This multichannel solution provides a complete picture of a brand’s ecommerce performance. Whitebox empowers brands to use multiple data sources to implement well-informed Amazon marketing strategies—an approach that is necessary for ecommerce success in 2021.

Key Takeaways

Based on how COVID changed Amazon’s marketing services for 2021, it is clear that brands must invest in these services now to capitalize on the marketplace’s future success. The quicker that a brand invests in its growth today, the easier it will be to maintain future growth. 

Whitebox empowers brands to leverage their customer, marketplace, and fulfillment data to deliver a high-quality experience, positioning brands for modern ecommerce success. Contact us today to learn more about our Amazon marketing services.

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