Delaney Nicol, Lead Amazon Account Manager, and Holly Swanner, Amazon Account Strategist, discuss Amazon Fresh in this episode. They cover understanding the Amazon Fresh customer, cross-promotion opportunities, utilizing DSP as a Fresh Seller, using SpartanNash for inventory, and in-store promotions.
Understanding the Amazon Fresh demographic is crucial for providing a seamless online shopping experience and increasing market share.
Utilizing targeted advertising strategies and cross-promotion can effectively reach repeat purchasers and maintain customer loyalty within the Amazon Fresh ecosystem.
Deep dives
Understanding the Amazon Fresh Customer and the Importance of Omni-channel Alignment
The Amazon Fresh customer is often an overlap with the regular Amazon customer, with about 74% of Amazon customers purchasing groceries online. Understanding that the target demographic for Amazon Fresh is typically millennials and older Gen Z, who prefer pre-shopping online and planning their grocery trips in advance, is crucial. Being available online from the first step and providing a seamless online shopping experience that allows consumers to research products, understand ingredients, and make informed decisions is important. It is recommended to focus on omni-channel alignment, ensuring visibility both in-store and online to drive conversions and increase market share.
Opportunities for Cross-promotion and Repeat Purchases in Amazon Fresh
Amazon Fresh offers opportunities for cross-promotion, especially since 80-90% of their customers are repeat purchasers. By understanding the data gathered from customer profiles and purchase history, brands can utilize targeted advertising strategies to reach these customers. Implementing DSP advertising, streaming TV video ads, and placement on category pages can effectively cross-promote and re-target customers. Additionally, utilizing strategies like Subscribe and Save for repeat purchase products can help maintain customer loyalty and retention within the Amazon Fresh ecosystem.
Challenges and Best Practices with Spartan Nash in Amazon Fresh
Selling through Amazon Fresh involves partnering with Spartan Nash, Amazon's third-party distribution network. Challenges may include limited availability of storage space, specific product storage requirements, and potential cuts to fill rates. To navigate these challenges, it is crucial to understand which items drive business and work closely with the Amazon vendor manager and Spartan Nash to align forecasting and inventory management. Clear communication is key to maintaining a strong business relationship and successfully meeting the demands and expectations of the Amazon Fresh ecosystem.
Navigating Minimum Delivery Thresholds and Leveraging In-store Marketing Activations
A significant change in Amazon Fresh is the nearly tripled minimum delivery threshold, now at $150. This shift shows Amazon's increased focus on profitability. Sellers may need to adjust their strategies to target customers who are willing to meet this higher threshold or explore alternatives like in-store pickup. In-store marketing activations, such as end caps and circulars, offer great visibility and conversion opportunities. Brands should consider strategies that align with their overall goals, and Prime Day is a particularly advantageous time to invest in end caps for increased exposure and sales.
Join us this week for the VENDO Podcast where we talk about Amazon Fresh! Delaney Nicol, Lead Amazon Account Manager and Holly Swanner, Amazon Account Strategist cover understanding your Amazon Fresh demographic, using SpartanNash as an inventory provider, and in-store promotions.
Topics Included:
All about the Amazon Fresh customer (2:10)
Opportunities to cross-promote with Amazon Fresh (6:10)
Utilizing DSP as a Fresh Seller (8:53)
Inventory: Using SpartanNash (9:55)
UWI (In-store Locations) & UFT (Online Locations) ( (16:40)
Re-forcasting with minimum delivery fee (20:05)
In-store promotions(23:50)
Understanding your demographic(29:45)
Featuring:
Delaney Nicol, Lead Amazon Account Manager, VENDO
Holly Swanner, Amazon Account Strategist, VENDO
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