For ecommerce operators, this episode reveals The Body Shop's strategy of prioritizing Amazon to acquire new customers, even with a strong brick-and-mortar presence. It provides insights into why Amazon search ads can outperform Google ads for certain businesses and emphasizes the importance of meeting customers on their preferred platforms. The discussion underscores the necessity of adapting retail strategies to consumer behavior rather than solely focusing on owned channels.
Key takeaways
Brands need to actively engage on platforms like Amazon where a significant portion of their target customers already shop, as moving these customers to owned channels is often difficult.
Amazon search ads can be more effective for customer acquisition than Google ads, particularly for brands looking to capitalize on Amazon's built-in purchasing intent.
Physical stores remain crucial 'bread and butter' assets, but their role should evolve to complement and support marketplace and online strategies, rather than solely driving direct sales.
Strategic investment in marketplace presence (like Amazon) is essential for customer acquisition and growth, even for brands with established direct-to-consumer channels.
Adapt messaging and strategy to the specific platforms; what works for Google Ads may not be optimal for Amazon Ads, and vice versa.
For the Body Shop, it's about selling where the customers are -- even if that means it's not necessarily on your own sites or in your stores.
"Stores for us are the bread and butter of the business, the biggest portion of the business, and will always be," U.S. general manager, Andrea Blieden said on the Modern Retail Podcast. At the same time, being on Amazon has been a big boon to the business, mostly because that's where a significant part of new customers are. "I just don't think that you're moving Amazon shoppers off Amazon that much," Blieden said. "If you want to capitalize on the fact that over 30% of Americans are using Amazon, you gotta go there."
Blieden talked about the changes brought about by L'Oréal's sale of the company to Natura & Co. in 2017, The Body Shop's investment in Amazon and what it's like working at a company that speaks out on social issues.
What does this episode say about amazon & marketplaces?
Brands need to actively engage on platforms like Amazon where a significant portion of their target customers already shop, as moving these customers to owned channels is often difficult.
What does this episode say about paid acquisition?
Amazon search ads can be more effective for customer acquisition than Google ads, particularly for brands looking to capitalize on Amazon's built-in purchasing intent.
What does this episode say about retail & omnichannel?
Physical stores remain crucial 'bread and butter' assets, but their role should evolve to complement and support marketplace and online strategies, rather than solely driving direct sales.
What does this episode say about dtc strategy?
Strategic investment in marketplace presence (like Amazon) is essential for customer acquisition and growth, even for brands with established direct-to-consumer channels.
What does this episode say about amazon & marketplaces?
Adapt messaging and strategy to the specific platforms; what works for Google Ads may not be optimal for Amazon Ads, and vice versa.
