Amazon‘s pilot program for email marketing is significant for brands that have expanded their presence on the e-commerce platform in the past few years. Amazon already has a fast-growing advertising business to help brands stand out and for marketers to reach consumers when they’re almost ready to shop. By letting marketers build a following on Amazon as they do on social media, the company is helping to support brands’ efforts to build loyalty that lasts after an initial purchase. Marketers can use the software tool to target consumers in their email inboxes with information about new products or their latest promotions to drive repeat purchases.
The email marketing pilot also is notable as brands face the loss of behavioural targeting technologies as companies including Apple and Google take steps to give consumers more control over their data. Apple this week will update the software that runs devices including the iPhone to notify customers when apps want to track their online activities. The move worries marketers who rely on device identifiers for ad targeting. Likewise, Google will end support for third-party cookie tracking in its Chrome browser by 2022, though it continues to develop an alternative ad targeting technology that also provides more privacy measures. Amid this push for tighter data privacy, Amazon can help marketers reach their loyal customers directly with its email marketing program.
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More brands have taken notice of Amazon’s marketplace in the past few years. The percentage of U.S. brands that sell on Amazon’s marketplace grew to 78 per cent this year from 55 per cent in 2020, according to Feedvisor, which consults businesses on how to advertise and sell on Amazon. With millions of people stuck at home during the pandemic, online shopping surged and boosted Amazon’s sales 38 per cent to a record $386.1 billion last year. Brands that advertise and sell through Amazon participated in that growth, and the company’s email marketing program gives them more ways to engage consumers.