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Amazon (AMZN) Unveils Marketing Solutions, Boosts Seller Focus

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Amazon (AMZN - Free Report) is leaving no stone unturned to deliver an enhanced experience to sellers on its e-commerce platform with its robust solutions.

The introduction of the latest marketing solutions, which will be executed as part of Buy with Prime, testifies to the aforesaid fact.

Buy with Prime is a new program that helps direct-to-consumer (DTC) e-commerce sellers expand their customer reach by offering Prime shopping benefits such as fast, free delivery and a seamless checkout experience to shoppers off the Amazon website.

New solutions like advertising, social media ads and Buy with Prime marketing toolkits are likely to aid DTC sellers in gaining momentum among Amazon Shoppers.

Solutions in Detail

With the advertising solution, DTC sellers can showcase their products on Amazon. Sellers will be able to direct customers to their sites with the help of the Buy with Prime page and Sponsored Ads.

Social media ads enable the Buy with Prime sellers to expand their reach to shoppers on Facebook and Instagram and direct them to their sites.

Meanwhile, Buy with Prime Marketing Toolkit offers Buy with Prime badge, which sellers can use while marketing. With the Buy with Prime badge, sellers can convey that they provide Prime shopping benefits on their own DTC sites.

We note that the e-commerce giant strives to support Buy with Prime sellers in expanding their businesses and growing their sales on the heels of the new solutions. Also, the solutions are designed to boost traffic on the DTC sellers’ sites.

Bottom Line

We believe that the latest seller-oriented solutions, combined with Prime benefits, will aid Amazon in gaining solid momentum among third-party sellers, which have turned out to be crucial for AMZN’s business growth.

This, in turn, will contribute to the company’s financial performance in the days ahead.

This is likely to instill investor optimism in the stock in the near term.

In second-quarter 2022, sales generated by third-party seller services rose 9% on a year-over-year basis to $27.4 billion.

Coming to the price performance, Amazon has lost 22.9% on a year-to-date basis against the industry’s decline of 25.2%.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail-wholesale sector are The Kroger (KR - Free Report) , Asbury Automotive Group (ABG - Free Report) and Rush Enterprises (RUSHA - Free Report) . All companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kroger has gained 8.1% over a year. The long-term earnings growth rate for the KR stock is currently projected at 11.3%.

Asbury Automotive Group has lost 6.7% on a year-to-date basis. The long-term earnings growth rate for the ABG stock is currently projected at 18.52%.

Rush Enterprises has lost 16.2% on a year-to-date basis. The long-term earnings growth rate for the RUSHA stock is currently projected at 15%.

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