/ DECEMBER RECAP + 2021 Predictions AMAZON BRIEF Latest Business Developments + Recommendations featuring:
Jack O’Leary RETAIL INSIGHT Head of Advisory, NA STRATEGY WEBCAST RETAIL INSIGHT Recent Content for Subscribers Amazon Brief Schedule
We resume our end of month scheduling, with the January 2021 Amazon Brief occurring January 29th and recapping Q4 earnings Latest Developments AGENDA Offered focused selection for one- and next-day 1 Holiday fulf. delivery through Christmas eve and extend returns 2 Int’l programs window 3 Air Freight
4 Custom clothes 5 SFP requirements • Dec. 23: One-day delivery on ~10 mil. items (national, no min. order value) 6 Review comments • Dec. 24: “Millions” of items same-day delivery (eligible areas, orders over $35) • Dec. 24: Free two-hour grocery delivery (select cities), physical stores also open 7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired Any item purchased between Oct. 1 and Dec. 31 can be returned by Jan. 31
Amazon Brief / 2021 | 5 Predictions Source: Edge by Ascential AGENDA International Programs: Germany eliminates Fresh additional 1 Holiday fulf. membership fee, Payments in Middle East, FBA in Brazil
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements Fee Elimination Oct. 2019 July 2020 Dec. 2020 6 Review comments
7 Package chemicals Min. Order for Free Deliv. 35 USD 40 GBP (~55 USD) 80 EUR (~99 USD)
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 6 Predictions Source: Edge by Ascential AGENDA Amazon makes first jet purchase of 11 used Boeing 767- 1 Holiday fulf. 300s
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 7 Predictions Source: Edge by Ascential, CNBC AGENDA Camera-powered custom clothing system launched
1 Holiday fulf.
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 8 Predictions Source: Edge by Ascential AGENDA Easing SFP requirements as logistics networks 1 Holiday fulf. struggle
2 Int’l programs New Criteria st June 3 Air Freight February 1
4 Custom clothes
5 SFP requirements
6 Review comments 55% of glance views <2 day 70% of glance views <2 day 7 Package chemicals delivery delivery 8 Haven disbands
9 AMC
10 Wondery acquired Nationwide Coverage
Saturday or Sunday Shipping and Pickup Amazon Brief / 2021 | 9 Predictions Source: Edge by Ascential AGENDA Commenting on reviews has been removed by 1 Holiday fulf. Amazon
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 10 Predictions Source: Edge by Ascential, Business Insider, Tamebay AGENDA Banning certain plastics and chemicals in some of own- 1 Holiday fulf. brand items sold in grocery formats and via Fresh
2 Int’l programs
3 Air Freight Chemicals Non-recyclable 4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 11 Predictions Source: Edge by Ascential AGENDA Haven healthcare partnership disbands, but some initiatives 1 Holiday fulf. continue within constituent companies
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 12 Predictions Source: Edge by Ascential AGENDA Amazon Marketing Cloud launches more broadly, giving 1 Holiday fulf. brands an opportunity at a more unified view of advertising
2 Int’l programs Amazon Marketing Cloud (beta) 3 Air Freight
4 Custom clothes
5 SFP requirements Amazon data Brand data sets 6 Review comments
7 Package chemicals Sample Application: 8 Haven disbands “Advertisers often ask us how OTT video and display advertising work together to improve customer engagement across the purchase funnel in Amazon’s store. With AMC, they can 9 AMC run this analysis and get reporting on metrics such as the median purchase, and detail 10 Wondery acquired pageview rates for audiences that were shown both types of ads versus those who only saw display ads.” - Amazon
Available Markets
Amazon Brief / 2021 | 13 Predictions Source: Edge by Ascential AGENDA Acquires podcast network, Wondery, for $300 1 Holiday fulf. million
2 Int’l programs
3 Air Freight
4 Custom clothes
5 SFP requirements
6 Review comments
7 Package chemicals
8 Haven disbands
9 AMC
10 Wondery acquired
Amazon Brief / 2021 | 14 Predictions Source: Edge by Ascential 2021 Predictions Amazon’s healthcare ecosystem reaches the US consumer
Wellness Insurance Healthcare Services Pharmacy Fulfillment is Amazon’s fastest growing expense area
Source: Amazon IR Amazon’s fulfillment network is becoming a key infrastructure platform Advertising is closing the gap on AWS net sales
Source: Amazon IR, *Advertising is reported as the main component of what Amazon calls “Other” net sales The breadth of Amazon’s advertising potential is growing Amazon’s ecosystem density increases with time Creating the business model we see today MEDIA & COMMERCE ENTERTAINMENT PLATFORMS MARKETING & CONNECTED LIFE DATA MANAGEMENT
SOCIAL CLOUD COMPUTING
CHOICE O2O
LOCAL LOGISTICS SERVICES
FINANCIAL TECHNOLOGY, SERVICES R&D, INNOVATION SEARCH LOYALTY [email protected]
Thank you!