Retailers and brands are flocking to multi-merchant online shopping portals to sell to consumers they might never have otherwise reached. When marketplace merchants use Fulfillment by Amazon, their products become eligible for Prime two-day free shipping and that incentive is driving growth in FBA and marketplace sellers’ revenue. Ian MacDonald, director of e-commerce at Silver Star Brands, says marketplaces, particularly Amazon, put its products in front of customers who otherwise would have never seen them. “What we’ve learned is that customers who are buying our products on Amazon are new to us. They haven’t shopped with us before,” MacDonald says. “The percentage of our Amazon customers that have shopped with us [on Silver Star Brands’ e-commerce sites] before is in the single digits. These customers didn’t know about us—period.” Silver Star Brands, which operates six catalog and online brands, increased its total sales 8.7% to $156.5 million in 2015, up from $144.0 million in 2014.
Read more >
INTERNET RETAILER 7/1/2016