Amazon is an ecommerce powerhouse in the US. But outside its country of origin, it accounts for only a small piece of worldwide retail ecommerce sales—13.3% in 2018 based on our latest forecast. But that doesn't mean marketers should discount Amazon's influence on consumers around the world. Experts agree that it's a remarkable tool for brands that want to expand internationally.
eMarketer's Jasmine Enberg spoke with Daniel Knijnik, co-founder and CEO of Amazon advertising agency Quartile and Andrea Omodei, head of digital and ecommerce at Italy-based cosmetics company Alfaparf Group, about the benefits of working with Amazon abroad and how Prime set customer expectations of the online shopping experience. Knijnik and Omodei were interviewed as part of eMarketer's November report "Amazon Around the World: 'Primed' for International Expansion but Faces Challenges from Alibaba, MercadoLibre, Flipkart and Others."
Why should US brands seriously consider selling their products on an international Amazon platform?
Daniel Knijnik: Amazon is a familiar channel for US companies. They already sell on Amazon.com, so they have their product pages set up, and they know how logistics and marketing work on Amazon. It doesn't take a lot of extra work.
There's a large possibility that Amazon will become dominant internationally. If it does, their products will already be there.
Andrea Omodei: Amazon isn't just an ecommerce platform—it's also an advertising medium. It's a way to reach a huge audience that can be hard to reach on other channels. In Italy alone, there are about 22 million unique visitors to Amazon per month, so working with Amazon is becoming mandatory.
Why do you think Amazon will become dominant abroad?
Daniel Knijnik: Once Amazon fully establishes Prime culture abroad, it'll be difficult for local ecommerce players to compete. We saw that happen here in the US. Prime customers can log in to their account, search for an item, and with a click or two they've bought it. And they know it'll arrive in two days. If they want to return it, they can press one button and it's done. That user experience is very hard to emulate.