This episode dives into Amazon's Q2 2017 earnings, revealing a revenue beat but an EPS miss, offering valuable context on Amazon's financial performance for ecommerce businesses. It also tackles critical listener questions concerning global ecommerce expansion challenges, Amazon's controversial buying strategies, the potential of messaging platforms for brands, and the underutilized power of auto-replenishment models beyond Amazon, providing diverse perspectives for merchants navigating the evolving digital landscape.
Key takeaways
Amazon's Q2 2017 results showed revenue exceeding expectations but earnings per share falling short, indicating investment in growth over immediate profitability. Businesses should consider these trade-offs in their own growth strategies.
The operational and regulatory complexities of global ecommerce expansion often outweigh immediate growth opportunities for brands, particularly when dealing with Amazon's aggressive international push. Evaluate market entry thoroughly.
Amazon's practice of buying products at full retail price from marketplace sellers can be a strategy to control supply and pricing, and sellers need to understand how this impacts their relationship with the platform and their own brand strategy.
Messaging platforms like Messenger offer a potential new customer engagement channel, but brands must weigh the noise and efficacy against established channels like email. Experimentation and careful ROI analysis are key.
Auto-replenishment models offer significant customer retention and LTV benefits, extending beyond typical consumables to non-intuitive product categories. Explore how to implement subscriptions or recurring purchases for your product set.
EP095- Listener Questions and Amazon Earnings http://jasonandscot.com Amazon Q2 2017 Earnings Summary (PDF from Amazon) Amazon reported a beat on revenue but a miss on earnings Revenue came in at $37.96 billion, beating street estimates of $37.18 billion. EPS was only 40 cents per share, missing street estimates of $1.42 per share. Listener Questions Kiri Masters: I'd love to hear Jason and Scot talk about their global e-commerce outlook. Amazon in particular seems keen to expand aggressively in international markets. Does the growth opportunities match the regulatory / operational complexity for brands? Interested to get your take. Josh Tarasoff: Hi Jason and Scot--What is your take on Amazon's strategy behind buying products at full retail price from marketplace sellers? Here is an article: http://www.cnbc.com/.../amazon-new-fba-program-buys.... Thank you. I love the show. Anup Gosavi Hey guys... love your show. Would love to see your take on when/ if brands will be active on messaging platforms like Messenger, Kik. etc. Is it actually a better channel than email? Is there a signal in all that noise? Opportunities/ risks etc. Thanks! Lauren Quaile Tonkin: I'd love your thoughts on autoreplenishment. Why have other retailers not adopted this tactic broadly (beyond Amazon and Target)? Do autoreplenishment models differ globally? What non-intuitive products/categories do you think can benefit from an autoreplenishment strategy? Thank you! Keep up the great work. Ben Kates: off-price retail offline and online Gareth Hanes (in uk): Hi
What does this episode say about amazon & marketplaces?
Amazon's Q2 2017 results showed revenue exceeding expectations but earnings per share falling short, indicating investment in growth over immediate profitability. Businesses should consider these trade-offs in their own growth strategies.
What does this episode say about dtc strategy?
The operational and regulatory complexities of global ecommerce expansion often outweigh immediate growth opportunities for brands, particularly when dealing with Amazon's aggressive international push. Evaluate market entry thoroughly.
What does this episode say about customer retention?
Amazon's practice of buying products at full retail price from marketplace sellers can be a strategy to control supply and pricing, and sellers need to understand how this impacts their relationship with the platform and their own brand strategy.
What does this episode say about finance & fundraising?
Messaging platforms like Messenger offer a potential new customer engagement channel, but brands must weigh the noise and efficacy against established channels like email. Experimentation and careful ROI analysis are key.
What does this episode say about amazon & marketplaces?
Auto-replenishment models offer significant customer retention and LTV benefits, extending beyond typical consumables to non-intuitive product categories. Explore how to implement subscriptions or recurring purchases for your product set.
