Grocery sector insight:
how Amazon and brands are adapting to feed the nation during the Covid-19 pandemic

Estimated reading time: 4 minutes

The Covid-19 pandemic has taken a firm grip on all aspects of our daily lives and social distancing has presented many new challenges for business.

As its turbulent impact on the way consumers shop becomes clearer, we take a look at the repercussions for the online grocery sector, which is being forced to quickly adapt to a new and unprecedented environment in order to feed the nation.

Read on to learn how e-commence giant Amazon is taking great strides to adjust to a new way of selling and what food and drink businesses can do to meet heightened demand for those in isolation and increase their market share at this crucial time.

How has Amazon adapted and how does this impact your brand?

The increasingly popular method of shopping for groceries online is understandably seeing a spike in activity during this pandemic. Amazon is investing heavily in their operations to keep up with demand, as many traditional grocery retailers struggle.

Amazon chiefs have hired more than 100,000 people and are hiring another 75,000 in order to receive, restock, and deliver products to customers more quickly and continue increasing delivery window availability.

With Amazon’s grocery operations expanding rapidly to fill the void, now is the perfect time to launch your brand on this platform if you haven’t done so already. If you’re already trading via Amazon, be sure to optimise your advertising and product listings for maximum visibility.

Consumer behaviour and how your brand should react to it

As more consumers are either forced to shop online or prefer to do so during a period when visiting supermarkets presents a stressful and potentially risky experience, we’re seeing the start of a long-term change in consumer buying patterns.

Even when lockdown lifts, there is a chance that social distancing will continue, which could lead to reduced numbers in supermarkets due to lengthy waiting times.

New data has emerged to show that Amazon’s online grocery arm could produce $70 billion in gross merchandise volume by 2023 — more than three times the total in 2019.

Customers are becoming more accustomed to purchasing online during this pandemic, meaning the online share of the market compared to offline will continue to boom post-pandemic.

Now, more than ever, it’s vital for your brand to increase its presence on Amazon and ensure that your content is optimised. Make your digital shelf as attractive as possible during this period of heightened traffic and demand.

Our latest performance data and how it validates the changing grocery sector

Representing major food and drink brands from Stokes, Heck and Eat Natural to Hillfarm Oils, Conscious Chocolate and Creative Nature, we’re seeing some huge increases in customer browsing and sales.  Coupled with decreases in Cost-Per-Click, this really is the best time to invest in advertising whilst others are tempted to cut back.

Consumer buying intent is incredibly high, so it’s important to make sure your products are sufficiently well stocked at Amazon.

Here are the key statistics

Sales figures, February to March 2020

  • Units sold — increased 243% 
  • Sales (£) — increased 284%
  • Page views — increased 175%
  • Overall CVR — 11.5% in March, up from 9.2% in February

Advertising increases, February to March 2020

  • Impressions — 131%
  • Clicks — 167%
  • Orders — 198%
  • Sales — 248%

Average Cost-Per-Click reductions

  • January — 0.48
  • February — 0.51
  • March — 0.39
  • April (to date) — 0.31

How can we help?

marketplace amp is an experienced marketplace optimisation agency with the expertise to create, set up and enhance high-impact product listings and ad campaigns.

We’re proud to have worked with national and international consumer brands. With our help, you can ensure that your return on investment (ROI) is maximised. Our team can advise, set-up or manage the whole process — it’s entirely up to you.

Let’s speak about your project

If you need support with trading on the world’s marketplaces, we can help. Contact us today to find out how we can amplify your sales. You can also send a message, tweet us or connect with us on LinkedIn.

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