Private Label; Google 100; eComm GrowthBy Cleveland Admin
Our latest consumer research indicates that in addition to being an important tool for product research, social media presence is also important when it comes to reaching shoppers buying Amazon Private label products. 84% of Amazon’s private label shoppers report to have researched or purchased a product because of something they saw on social media. 78% of consumers indicated they bought a product because of a Google ad, 75% because of a YouTube ad, 68% because of an Instagram ad, and 66% because of a Facebook ad. Given consumers’ growing use of social media, brands can build their presence as well as enable purchasing on these platforms to more effectively compete with private label brands that are likely to have a smaller presence on social media or be sold there.
Google Shopping 100 Highlights Trending Holiday Gifts
Google, along with social platforms, are increasingly looking to enable commerce on their platforms. Google recently introduced Google 100, a curated list of top trending holiday products. This allows users to see which products are rising in popularity across a variety of categories as the gift giving season continues to heat up. Some products highlighted this morning include the Google Home smart speaker in tech, the Zulu Surprise Mystery Capsule in toys, the Razor RipStik Caster Board in sports and fitness, and the Dyson Cyclone V10 Vacuum in home goods. We found this to be an unexpected approach as Google’s strength is more aligned with search-driven commerce (akin to Amazon) rather than browsing behavior. As a result, we do not expect this to be a needle-mover for Google in its commerce ambitions.
Ecommerce Growth Mixed in 3Q19; eBay Lags while Amazon, Chewy, and Wayfair Lead
eCommerce growth was broadly stronger in the quarter, with census data indicating acceleration from 2Q19, tied in large part to Amazon’s faster growth trends. Other eTailers saw a more mixed growth picture with tariffs and marketplace sales tax changes called out as key headwinds.