- Amazon is enabling merchants to send email marketing messages to a wider range of customers through a Tailored Audiences tool unveiled at its Accelerate conference.
- The idea is to help sellers reach loyal, spender, and new buyers beyond those who choose to follow their pages. The platform will help brands track email performance metrics such as click-through rates, delivery rates, unsubscribe rates, sales, and conversions.
- Tailored Audiences is currently in beta, but Amazon said the program, which is available for free through its Seller Central portal, will expand to US sellers early next year. The opening of channels for sellers to market directly to customers comes as Amazon grapples with slowing e-commerce growth and makes a bigger push into digital advertising.
Overview of the dive:
Amazon is expanding email marketing capabilities for sellers to help build loyalty and bring new buyers into the fold. While Custom Audiences won’t be widely available in the US until next year, the beta comes as marketers lock in their vacation strategies, which could provide a fertile testing ground ahead of rollout. The tool was one of many marketing-related announcements made at Accelerate this week.
Consumers could previously “follow” their favorite brands on Amazon to receive notifications about special offers and shopping events via a brand follow feature. Custom Audiences allow sellers to send similar emails to a broader set of customers for the first time.
The offer is a response to brands’ expressed desire to “increase customer lifetime value,” Amazon executives said. Amazon is expected to capture nearly 40% of U.S. e-commerce sales this year, a double-edged sword for merchants who account for more than half of its physical product sales but need to stand out in a surging sea of merchandise. growth.
The platform has a long and complicated relationship with sellers, and Custom Audiences could be a way to curry favor with the third parties that power its e-commerce juggernaut. It could also frustrate customers who don’t necessarily want emails piling up in their inbox.
Along with making the email marketing perk free, the e-commerce giant plans to roll out custom HTML content and more robust templates to help campaigns pop.
“With these capabilities, Amazon is helping give brands more control over how they market to their customers,” James Gossling, director of e-commerce at Sports Research, said in a statement attached to the news. “These email marketing capabilities are exactly what we’re looking for to build customer loyalty.”
Amazon recently introduced other ways for sellers to increase their presence on its site. The company highlighted a Premium A+ content tool that allows merchants to embed richer media modules, including videos, image carousels, and Q&As, into product pages. Brands using this feature have seen their sales increase by up to 20%, according to Amazon.
However, broader e-commerce activity is slowing after a frenzy at the start of the pandemic. Amazon’s online retail sales fell 4% year-over-year in the second quarter to $50.86 billion, the second straight quarter of decline. Meanwhile, ad sales remained a strength and rose 18% from the year-ago period to $8.76 billion in the second quarter.