Executive Briefings

E-Commerce Expert Says More Brands Should Sell on Amazon

At Gap's annual shareholder meeting this year, CEO Art Peck said, "to not be considering Amazon and others would be in my view delusional." Soon after, Lands' End announced that it would start selling some merchandise on Amazon, as the online behemoth's "credibility of being a desired fashion destination for shoppers continues to grow."

It may seem anachronistic to call Gap and Lands' End "early adopters," given that so many retailers and brands have been selling on Amazon for years. But in the apparel business, some have a deep-seated trepidation about relinquishing any measure of control over brand equity.

However, moving forward more and more apparel brands will find that Amazon isn't just another online channel that they can take or leave - it's a primary platform that they must not only consider, but actively manage in order to reap the benefits and avoid the drawbacks. As retailers and brands rethink their omni-channel strategies, there are three top factors they should consider when approaching The Amazon Question, according to CommerceHub, which helps retailers and brands grow online product assortments.

First, follow the customer: Today, 43 percent of online product searches originate on Amazon. If you're not capturing shoppers on Amazon you may be missing out on a major source of traffic and demand.

Apparel shopping on Amazon wasn't one of the e-commerce giant's original areas of focus, but as consumers have become more comfortable shopping online, and delivery programs like Prime allow them to order clothes and easily return what doesn't fit, clothing has become an increasingly large portion of sales on Amazon. For example, CommerceHub estimates that the value of third-party sales in the "Clothing, Shoes, and Jewelry" category grew 12 percent between Prime Day 2015 and 2016.

Read Full Article

It may seem anachronistic to call Gap and Lands' End "early adopters," given that so many retailers and brands have been selling on Amazon for years. But in the apparel business, some have a deep-seated trepidation about relinquishing any measure of control over brand equity.

However, moving forward more and more apparel brands will find that Amazon isn't just another online channel that they can take or leave - it's a primary platform that they must not only consider, but actively manage in order to reap the benefits and avoid the drawbacks. As retailers and brands rethink their omni-channel strategies, there are three top factors they should consider when approaching The Amazon Question, according to CommerceHub, which helps retailers and brands grow online product assortments.

First, follow the customer: Today, 43 percent of online product searches originate on Amazon. If you're not capturing shoppers on Amazon you may be missing out on a major source of traffic and demand.

Apparel shopping on Amazon wasn't one of the e-commerce giant's original areas of focus, but as consumers have become more comfortable shopping online, and delivery programs like Prime allow them to order clothes and easily return what doesn't fit, clothing has become an increasingly large portion of sales on Amazon. For example, CommerceHub estimates that the value of third-party sales in the "Clothing, Shoes, and Jewelry" category grew 12 percent between Prime Day 2015 and 2016.

Read Full Article