Amazon, the world's largest internet-based sales firm, will allow businesses to send promotional emails to customers. This is considered a dangerous move that could clog inboxes with spam.
It announced new features Wednesday at the Amazon Accelerate conference in Seattle, to independent companies that sell more than half of products on Amazon.
Retailers will be able to send free emails to first-time buyers, loyal consumers and top spenders with a new Tailored Audiences tool. It was tested this year and will be available to all US retailers in early 2023.
The decision is interpreted as a move by Amazon over fears of independent merchants alienating customers. Thus, Amazon breaks with its historical reluctance to allow it to interact directly with customers.
However, online sales have been falling since their all-time high, and antitrust regulators are investigating Amazon's impact on millions of independent suppliers. Additionally, many business owners claim that Amazon makes it difficult to build relationships with even their most loyal customers.
If users do not wish to receive marketing communications, they must unsubscribe.
The potential for significant spam is a downside, and Kirthi Kalyanam, head of the Santa Clara University Institute of Retail Management, questioned how to address it. “Retailers are sending tons of emails and their customer inboxes are full.”
Merchants will support the project despite the dangers. According to Insider Intelligence, US internet sales will rise just 9,4% this year to $1 trillion, with growth falling below 10% for the first time.
Some Amazon sellers are already gearing up for a dreary holiday shopping season, as consumers cut their spending amid inflation and prioritize essentials like food and fuel.
According to Insider Intelligence, Amazon controls 37,8% of all online spending in the United States, which is six times higher than its nearest competitor, Walmart Inc.
The online giant is constantly launching new tools to help merchants and brands increase their sales to maintain this advantage while competitors develop their own e-commerce operations.
Additionally, Amazon is launching a new Q&A tool that will allow businesses to engage with customers using the voice-activated Alexa platform. Customers ask, “How can I remove pet hair from my carpet?” View and hear responses from vendors, along with links to their products.
Select businesses will have access to the functionality from October and it will be available to everyone early the following year.
According to Dharmesh Meta, Amazon's vice president of worldwide sales services, “many brand owners have spent years specializing in their product area, and this is an opportunity to connect buyers with their brands.”
The email marketing project is pushing Amazon further into advertising, which the company's founder Jeff Bezos initially rejected, but has since rapidly expanded and turned into a lucrative industry. Amazon's second-quarter revenue from advertising services rose 18% year-on-year to $8,8 billion.
Customers can already follow their favorite businesses on Amazon, which allows these brands to send messages to them as a pioneer of email marketing technique. The main difference is that customers must choose to receive these messages. They must now choose to refuse.
Kalyanam believes Amazon is promoting increased contact as it wants to support retailers in learning more about their customers.
“These retailers can't see any information about customers and that must be giving them trouble. "If Amazon makes up 90% of your sales, you're basically working in the dark and Amazon doesn't like stupid sellers," he said. ”
Source: techxplore
📩 15/09/2022 11:26
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