September 19, 2022
Amazon.com has introduced a new “Tailor-made audiencesa tool that allows sellers on its platform to email repeat customers, recent customers, and high-spend customers at the Amazon Accelerate conference last week in Seattle.
Previously, sellers could only send emails to brand subscribers. The tool will be available for free on Seller Central, Amazon’s online portal for sellers.
Amazon said brands have expressed a need for improved tools to increase customer lifetime value. Sellers can send loyal customers”reminders of things like your great deals or new product launches,” Carla Vernón, vice president of consumables categories at Amazon, said at the conference, according to Geekwire.
Sellers will be able to monitor the impact of their email marketing campaigns and customer engagement with performance and reporting metrics, such as open rates, click-through rates, emails delivered , opt-out rates, sales and conversion.
Tailored Audiences is currently in beta testing with plans to make it available to all US sellers in early 2023. Amazon sellers are responsible for more than half of Amazon’s physical product sales.
Bloomberg describes the Tailored Audiences tool as “a risky offer to boost sales that could flood inboxes with spam,” noting that customers will not accept e-mail messages.
“The move marks a break with Amazon’s historical reluctance to let independent merchants connect directly with customers for fear of alienating them,” according to the report. “But online sales have slowed from their pandemic highs, and antitrust investigators are probing the power Amazon wields over millions of third-party vendors.”
The tool comes as the value of email marketing seems continually in question with its reputation for spamming and the continued expansion of social media, including popularity with short video content on platforms such as TikTok and Instagram among younger consumers.
E-mail market studies in recent years have continued to show its profitability. A 2018 survey of Smart Insights and GetResponse found that 47% of marketers rated the effectiveness of email marketing as “good” or “excellent”, ahead of social media marketing, 39%; SEO, 33%; content marketing, also 33%; and social pay-per-click, 31 percent.
DISCUSSION QUESTIONS: What do you think of Amazon’s Tailored Audiences tool and the effectiveness of email retargeting campaigns? What advice would you have regarding engagement frequency and tactics around email marketing?
“I don’t see this helping anyone but Amazon against antitrust investigations for its third-party brands.”