What to expect from Amazon UK in 2020.
by Hannah Hooton

As we move into the 4th quarter of 2019, retail is all wrapped up for Christmas – excuse the pun! And for Amazon they are pretty much all wrapped up for 2020.

After recently attending IGD’s Vendor Day (IGD is the research and training charity at the heart of the food and consumer goods industry), there were a few key themes coming from Amazon UK for 2020.

1. Job creation in the UK.

Regardless of Brexit, Amazon is committed to the UK and as such is creating 2,900 new jobs over the next year, this amounts to a 20% YOY growth of Amazon UK employees.

Their focus in 2020 will be on speed of delivery and price of products, ensuring they have the fastest delivery and lowest prices for products in the market. They are very aware these two mechanisms are the foundation of their growth in the UK and so their plan for continuous improvement in these areas bodes well for consumer experience.

2. Amazon Prime engagement.

One of their key learnings for 2019 was the strength of Amazon Prime engagement. It’s safe to say we can see more elaborate Prime stunts to encourage consumers to a trial their Prime service.

So we are likely to see more events like the upcoming Premier League live on Prime video, where 20 Premier League games will be live and exclusive on Prime Video this December - with all early December midweek games and all Boxing Day games being shown. They were keen to let us know advertising slots between the games were still available too!

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3. Clicks & Mortar stores.

We will see an expansion in Amazon’s retail presence, after the introduction of “clicks & mortar” stores in 2019 with great success for SME’s.

Amazon’s move into offline retail initially saw the opening of 10 UK ‘clicks and mortar’ high street pop-up stores, which will now be further expanded. Amazon are incorporating small online businesses across the stores, showcasing a range of products available on Amazon Marketplace. A physical presence that is likely to increase brand loyalty, win over small businesses to the Amazon model, and fuel Amazon Launchpad.

4. Ultra-fast delivery.

Through their expanded partnership with Morrisons, Amazon are rolling out an ultra-fast grocery delivery service to more UK cities, with delivery as fast as 2 hours.

With Food and Beverages featuring in retail and online it feels like this could replace BBC Good Food as the go to place for recipes, as increasingly you are able to buy all the ingredients from Amazon Pantry. Particularly with your favourite cook books such as Joe Wickes Collection (Founder of Lean in 15) offering exclusive content to Amazon.

Prime Now, the 2 hour delivery service of a limited number of sku’s in the main cities, is looking to FMCG for growth with their prime day deals focused on this category. Something for the Winter seasonal products to seriously consider.

Sadly there is still no appetite currently for increasing pharmaceutical products on Prime Now – it was made very clear OTC will be the only medicines featuring for now.

5. Subscribe & Save growth.

Subscribe and save (SnS) is the largest brand loyalty programme on Amazon.co.uk, ensuring customers never run out of essential items. 80,000 lines are currently available through the service – allowing customers to gain a discount every time they receive an order and flex their automatic ordering to meet their needs.

The value of SnS is expected to grow – with statistics collected this year showing SnS creates higher customer spend, typically customers are worth 129% more than a non-SnS customer buying the same brand. Brands experience 56% faster growth than a non-SnS line so for self-care products it’s a no brainer.

6. PPC price increase.

Pay per click (PPC) on Amazon is likely to rise in price. With 75% of customers discovering your products through the search bar – first page visibility in search results is crucial. As a result PPC bidding to appear on this crucial first page is the most competitive as it offers the best return on investment. So with increased competition as the traditional businesses slowly adapt the price is only going one way.

There are now 250 million sku’s on Amazon UK, so even if you don’t want to engage with Amazon, you can guarantee your customers are on there searching. So if you don’t want to miss out on additional sales and want to make the most of 2020, reach out and we can help you optimise your Amazon presence.

Hannah Hooton
Hannah HootonSenior Account Manager
Hannah is a shaper, an innovator, and ridiculously competitive. If you have a challenge and you’re not sure how you can tackle it, she’ll find you not just one solution but two. She can also tell you a thing or two about wine!

Get in touch with Hannah:

Hannah Hooton
Hannah HootonSenior Account Manager
Hannah is a shaper, an innovator, and ridiculously competitive. If you have a challenge and you’re not sure how you can tackle it, she’ll find you not just one solution but two. She can also tell you a thing or two about wine!

Get in touch with Hannah:

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