Amazon has informed its partners in recent months that it will withdraw the advertising of those products that do not generate benefits for the platform. It is no secret to anyone that Amazon is growing like foam in the field of digital advertising. According to eMarketer, the e-commerce giant will see its advertising business grow by 50 percent in just one year. Its market share will go from 6.8 percent to 8.8 percent this year. In fact, it is expected that Costa-Rica Mobile Database during 2020, its share in the segment will reach 10 percent. Although these figures are well below those registered by other large companies such as Facebook or Google, it seems to be enough for the company led by Jeff Bezos to impose conditions on advertisers. Recent reports indicate that although the e-commerce giant is interested in the advertising business, it does not want to generate income with just any advertiser; the firm looks for brands that add value to it.
As reported by CNBC, Amazon has informed its partners in recent months that it will withdraw the advertising of those products that do not generate benefits for the platform and that, on the contrary, represent a greater expense for the marketplace in terms of logistics. This would be the case, for example, of a pair of glasses with a cost of $ 5, whose storage, packaging, and shipping management would have a higher cost for Brother Cell Phone List the distributor. In this way, those brands that wish to continue appearing with their advertising on the world’s largest e-commerce platform must adapt to the policies imposed by Amazon in terms of purchase prices, storage terms, and shipping policies. Otherwise, they will have to change their business model and sell their products on their own. The giant founded by Bezos intends to improve the benefits for its business, a situation that has been criticized by many specialists who argue that there is a bias in the advertising business of the platform, which looks after its own interests and could significantly affect the consumer.
Faced with this new reality, the outlook for advertisers is not encouraging at all. The position of brands in the face of the phenomenon is complex. Electronic commerce is the next sale to look at and not be on Amazon, given the importance of the firm in the sector, it would mean being far from the consumer. However, the cost will be high, if we consider that a change in prices, logistics, or business model could benefit Amazon in a secondary way beyond advertising revenues. Let us remember that this firm is growing interestingly with its own brand lines that cover different categories, a proposal against which companies that pay for advertising on Amazon must now fight.
