Amazon’s principle of “customer obsession” has fueled its growth and entrenched itself in the lives of consumers. By setting the standard for speed of delivery and continuing to add value with adjacent services, Prime memberships have become ubiquitous with 60% of U.S. adults using Amazon Prime (160M US prime users in 2021, 258M US adult population per the 2020 Census). Now, with the advent of Amazon Tailored Audiences, they are extending their suite of seller services to bring additional value to retailers. The new capabilities provide digital marketing tools to drive repeat customers and increase customer lifetime value. As Amazon continues to protect its moat in ecommerce, maintaining captivity on both sides of the platform is critical. The Tailored Audiences at first glance, appears to be a smart move leveraging industry proven practices to drive engagement and conversion, but its impact will be an interesting storyline to follow. If vendors abuse the tooling and degrade the customer experience, Amazon can be expected to swiftly tighten the guard rails and protect their first principles. And in the continued trend of increased data privacy, Tailored Audiences may provide an added stickiness for vendors to continue prioritizing the Amazon ecosystem.
1. https://www.inc.com/rebecca-deczynski/amazon-sellers-email-marketing-tools.html
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