online grocery growth

Amazon Order Variability; Amazon Fresh UK; Online Grocery Growth

Ecommerce

Despite positive reception to online grocery growth, businesses are frustrated with Amazon’s algorithmic ordering patterns because of demand planning and inventory management. 79% of brands report inaccurate forecasting from Amazon and 95% reported week-to-week ordering variability. Due to this, 71% of manufacturers report that they reference Amazon’s forecasts in the demand…

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Amazon demand trends

Strong Amazon Demand; Target’s Same-Day Delivery Services; Q4 Digital Sales

Ecommerce

Our research suggests demand trends remain very strong 1Q to-date and brands and Amazon management alike expect elevated demand to continue for the near term at least. In many categories, Amazon appears to be ordering aggressively in 1Q as it works its way back to healthier in-stock levels. While in-stocks are…

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Digital funding

Club Channel Digital Funding; Shopify Growth; Amazon AVNs

Ecommerce

CRC’s recent research on the club channel suggests both Costco and Sam’s Club are coming to vendors asking for digital funding. Our work suggests Costco is still resistant to sacrifice margin within its eCommerce business and is working to get vendors to cover shipping costs, or otherwise charging higher prices…

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Amazon Strategic Account

Amazon SAS Program; Shop Pay Expands; Amazon 1Q21 Sales Growth

Ecommerce

Amazon has increasingly pushed manufacturers to invest in what they now call their Strategic Account Services (SAS) resource [previously known as Strategic Vendor Services (SVS) and Amazon Vendor Services (AVS)]. In our recent manufacturer benchmark, 44% reported currently using the program (vs. 39% in our July 2019 benchmark), and 67%…

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Amazon Business Growth

Jeff Bezos’s Transition; Walmart Connect; Amazon 4Q Results

Ecommerce

Amazon announced this week that Jeff Bezos would be transitioning from CEO to Executive Chairman, passing the baton to Andy Jassy, long-time CEO of Amazon Web Services. Based on reports, Jassy is a well-respected executive at Amazon, essentially starting and leading the industry-changing AWS business, which some estimate would be…

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Amazon Fresh B&M

Amazon Fresh Stores; Walmart Distribution Centers; eCommerce Growth in 2021

Ecommerce

Amazon has launched five Fresh (“Mendel”) B&M stores to date, including four in California and one in Illinois. The Amazon Fresh team appears to have ambitious goals for store expansion this year (indicating to many brands that it plans to open 100+ stores this year), and has suggested these B&M…

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Amazon Fresh B&M

Amazon Vendor Negotiations; Costco Tests Curbside Pickup; Consumer Buying Behavior in Flux

Ecommerce

Over the last several years, many manufacturers have increased spend requests during their Annual Vendor Negotiations (AVNs). In our latest benchmark study, Amazon appears most focused on asking manufacturers to spend more on co-op, merchandising programs, and its SAS resource. Our study suggested food and consumables manufacturers have a larger…

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Omnichannel & Pureplay Collaboration; Commerce Marketing Growth; COVID-19 Concessions

Ecommerce

In our latest benchmark research on team collaboration, an increasing number of brands are connecting their Amazon teams with their omnichannel teams. This is because emerging omnichannel retailers often model their digital business and strategies after Amazon. About half of these brands hold meetings monthly or more between these two…

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Amazon Advertising & Supply Chain Strengthened; Outlook for 2021

Ecommerce

Brands continued to lean heavily into paid search in the fourth quarter as 56% reported increasing their spend compared to only 6% cutting back. Also, 33% of brands report spending more on media and DSP with Amazon in 4Q compared to their plans entering the year, vs. 13% that have…

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