10 Trends on Amazon for 2022

Keep up with the future and boost your sales

 

Amazon is all set to take the entire marketplace and online shopping ecosystem to a whole new level this year.

While preparing for 2022, brands and sellers will enjoy exploring the current market shifts and incorporating some upcoming eCommerce trends.

If you are a seller or a brand planning on taking this ride and making the most out of it, follow the 2022 trends on Amazon and keep up with the next features to come.

 

 

 

Trend 1: People will search for products more on Amazon rather than on Google

 

As more shoppers turn to Amazon for product information, Amazon’s popularity has increased. 2/3 of shoppers start their searches on Amazon and 3/4 of them buy from it.

According to 2021 data, brands allocate 28% of their total digital media budgets to Amazon, 22% to Google, and 23% to social media.

Amazon is still growing faster than the overall market, even though many of its competitors are growing rapidly as well:

  • Amazon: $367.19 billion in total eCommerce sales
  • Walmart: $64.62 billion in total eCommerce sales
  • Target: $20.23 billion in total eCommerce sales

 

What makes people choose Amazon over other marketplaces?

Reviews and prices are the two most important factors for consumers. Aside from its easy user interface, Amazon offers competitive pricing, a robust search and query engine, recommendations based on past purchases, automatic reordering, and reviews to validate purchases.

Combined, these features make Amazon one of the leading e-marketplace players.

 

Pro-Tips for Sellers:

  • On-hand inventory is arguably the most important — and costly investment for your business. It is important to strike the right balance between understocking and overstocking.
  • Maintain a positive Inventory Performance Index (IPI) score.
  • Make your shipping promises crystal clear to avoid negative reviews if last-minute gifts are not delivered.
  • Align your advertising, promotion, and pricing strategies with inventory for optimal results.

 

 

Trend 2: Your brand matters, but so do your ads

 

On Amazon, consumers tend to be less brand-focused than they were in the past. About 60% of consumers purchased products from brands they had never used before during the pandemic. However, you should still build your brand on Amazon.

In fact, over half of the brands advertising on Amazon receive at least a 7x return, and 39% receive at least a 4x–6x return.

There are a number of tools available on Amazon to help build your brand, including sponsored brand videos, sponsored brand custom images, brand posts, and Amazon OTT. Advertising on Amazon in a variety of ways can help your brand stay top-of-mind with consumers.

 

Pro-Tips for Sellers:

  • Build brand awareness with Sponsored Brands.
  • Focus on product-level profitability.
  • Use category-specific targeting for Sponsored Products.
  • Use negative keywords to reduce wasteful ad spend.
  • Have a flexible Advertising Cost of Sale (ACoS) goal.
  • Use auto campaigns to explore and manual campaigns to exploit.
  • Optimize your bids.
  • Your advertising should align with your pricing and listing optimization strategy. It is crucial that advertising, content, and pricing all work together.

 

 

Trend 3: Fulfillment by Amazon

 

Amazon’s eCommerce business started to take off when it realized fulfillment—not only shipping but also returns, warehousing, and inventory management—played a vital role in its retail operations. There are several different facilities in Amazon fulfillment centers, such as sortable pick-and-pack centers and areas dedicated to large items.

According to Bank of America Global Research, Amazon is the fourth largest transportation network in the United States.

In July 2020 alone, it shipped 415 million packages, delivering 66% of its own packages, an increase of 12 percentage points from last year, according to ShipMatrix.

As a result, third-party sellers generally feel like they have no choice but to use Amazon Logistics for fulfillment and shipping, despite its higher costs when compared with other suppliers. Fulfillment by Amazon (FBA) is used by almost 85% of Amazon’s biggest sellers.

Amazon’s control over fulfillment, an often-overlooked but friction-inducing step in the consumer journey, improves the chances of it meeting consumer’s expectations of convenience while maintaining its brand ethos and taking care of its bottom line at the same time.

 

 

Trend 4: Technological evolution with AI/AR/VR

 

Be it the delivery of products using drones or resolving customer queries using chatbots, A.I. continues to make inroads in every corner of the eCommerce industry and will give Amazon businesses a competitive advantage.

Amazon has already invested in Prime Air’s new drone delivery unit for contactless and faster delivery. The use of these tech devices will increase in 2022, especially in areas requiring timely delivery, such as medical supplies etc.

Additionally, Pegasus Drive sortation robots will be implemented in massive quantities in sortation centers to handle the increasing order volume.

AR/VR-generated virtual try-on features will also see a high upswing. Consumers will be able to virtually test the product in a natural environment before making a final purchase. A study found that 71% of consumers are willing to shop more often with brands that offer augmented reality features.

With this technological shift, all of this automation will improve productivity and allow consumers to make more intelligent buying decisions.

Chatbots, photo editors, innovative advertising tools, and AI-driven graphic designers, along with Amazon’s iconic products like the Kindle, Echo, Alexa, and the home security system, are likely to see high demand in the near future and lead to a revolution.

 

Pro-Tips for Sellers:

  • Find out more about the latest technology and utilize these tools for a better customer experience.
  • These tools, if used effectively, can show a huge spike in conversion rates, but if not, they can be a setback for sellers and brands.
  • Moreover, staying relevant with the latest trends is vital for your Amazon business to thrive.

 

 

Trend 5: Social Commerce will be a rage

 

Globally, Social Commerce has grown tremendously in the last quarter of 2021. Up until now, only Facebook offered sellers and brands its platform to promote sales via social engagements, online stores, and more. Today, even Instagram promotes this trend and allows you to shop through its platform.

According to the Marketing Rule of 7, “The prospective buyer should hear or see the marketing message at least seven times before they buy it from you”.

A strategy like this directly affects the buyer’s psychology and stimulates the purchase impulse. Social Commerce is an example of how brands and sellers are taking full advantage of this principle. According to Statista, social commerce will reach 79.5 billion dollars in the U.S. by 2025 with the rising influence of social media.

With an increasing population of consumers browsing social media apps for products, social media marketing and influencer marketing are essential for growing an eCommerce brand in today’s market.

Social media platforms boast a large fan base, and recommendations become more vocal and visible on these platforms.

37% of users trust product and brand reviews that are shared on social media channels more than brand advertisements, according to Global Web Index. Hence, optimizing Social Media Channels as sales channels will be on the rise in 2022.

 

Pro-Tips for Sellers:

  • Build a solid social media presence on different platforms like Facebook, Tik Tok, Twitter, Pinterest, Instagram, LinkedIn, etc.
  • Using social media and micro-influencers to promote your products will create transparency, customer loyalty, and authenticity.

 

 

Trend 6: Voice Commerce will be the new normal

 

Shopping with Voice Commerce means finding products or information, placing orders, making payments using a hands-free, voice-operated device, and much more. Amazon experimented with voice-controlled devices in 2014 when it introduced its Amazon Echo.

By 2023, the Voice Commerce market may reach a turnover of $19.4 billion, and 400% of customers will use voice commands for purchasing products. Considering the high demand for voice commerce, voice search is set to revolutionize 2022.

 

Pro-Tips for Sellers:

  • Update your Amazon business to keep up with these eCommerce trends.

 

Use chatbots to manage customer service. Bots can be used for different tasks, such as collecting feedback from surveys. In addition, they can answer customer’s questions, suggest products, inform customers about existing sales, etc.

 

 

Trend 7: Visual Commerce will steer up

 

In Visual Commerce, you use visual tools to search for products/information.

Throughout its history, Amazon has always been a trendsetter in implementing new-age trends and revolutionary tools to provide customers with the best possible experience. Visual Commerce is the next level of marketing. Along with product photos, other forms of interactive content will see a significant role to play.

Ben Silbermann, the CEO of Pinterest, noted in 2017 that “the future of search will be about pictures, not keywords.”

As per stats, 62% of Millennials and Gen Z prefer visual search over any other form of technology. Amazon already launched SCOUT in 2018 to cater to this advanced mode of search optimization.

 

Pro-Tips for Sellers:

Now is the right time to leverage visual commerce for your Amazon business and offer visuals with the following enhancements:

  • Improve the quality of your product images by using WebP format.
  • Make 360-degree images or reels of your best-selling products.
  • Invest in Amazon’s visual search tool so customers can take advantage of the benefits of visual search.
  • Make your product pages more conversion-friendly by repurposing user-generated content.
  • You can increase sales by creating graphic shopping ads.
  • Develop interactive 3D graphics for the most reviewed products.

 

 

Trend 8: Personalization will be a must-have

 

Despite the rise of eCommerce stores, people still miss the element of personalization and try-on functionality. With daily media consumption on the rise, consumers are spending more time looking for personalized content and products.

80% of consumers say they’re more likely to buy from brands that offer personalized promotions and content.

 

Pro-Tips for Sellers:

  • You should target such customers with a low-funnel marketing message and take advantage of these trends.
  • You can accelerate conversions by offering a coupon or discount to this group of buyers.

 

 

Trend 9: Live Shopping will see a whopping rise

 

In the eCommerce industry, Live Shopping or Live Commerce is the latest revolution in which customers can access shopping options and an engaging live stream on different social media platforms through an expert or influencer. Users will be able to purchase products from third-party retailers without leaving the platform.

Reports show that “Around 90% of social media users access their favorite platforms through a mobile device, and 54% of them use social media to research product choices”.

There will be a huge rise in mobile eCommerce trends in 2022, with Live Commerce being one of them. Several platforms have announced that live streaming is now available, including Instagram, Facebook, and Pinterest. Coresight Research predicts that the shopping market for U.S. live streaming will be worth $25 billion by 2023.

 

Pro-Tip for Sellers:

  • Live streaming is a way for retailers and third-party sellers to bridge the gap between customer expectations and what they actually receive.

 

 

Trend 10: Sellers will source more from domestic manufacturers

 

Because of supply chain problems that affect businesses worldwide, more sellers are going to start buying products from suppliers in their own countries.

Producing items in a country like the US will probably cost more per unit than in China, where labor and materials are cheaper. But, you’ll get your products faster and cheaper from the US than if you shipped them from China.

There’s also the option of sourcing from within the continent. If you live in the US, you can look for manufacturers in Canada or Mexico, where materials can be cheaper or even better.

Moreover, certain customers may become increasingly interested in purchasing products made in their home country. In the past 90 days, “made in USA” search volume increased by 54%, while “made in Canada” search volume increased by 143% (on Amazon.ca).
You can easily source nearly any product from China using a site like Alibaba. But it can be challenging to source the same kind of products from within the US rather than from other countries.

 

Pro-Tips for Sellers:

  • If you want to source from the US, you’ll have to do a lot more research to find what you need.
  • Find a reliable source at a fair price. This will give you an advantage over your competitors who are having problems ordering and receiving inventory.

 

Here’s to a successful 2022!

 

We can never know what will happen this year. However, looking at the numbers from the past years, we can predict what trends will grow in popularity in the future.

Choose the ones that will work best for your Amazon business this year and track their performance. Check if your customers will appreciate the change you made to improve their experience or if it’s the same as before.

Also, if you want to ensure that your products will rank well on Amazon in 2022, we can conduct a free audit of your product listing. Then, you will know what to do to improve it.

 

Contact us by Email, Facebook Messenger chat, or schedule a ZOOM meeting and get your free audit.