More Competitive: Turkey 5 (T5) 2023 saw gross Margin declines between 6.5% to 12.9% and ROAS declines of upwards of $2.70 as compared to 2022.
Topline Growth: T5 2023 was 10% bigger when measured by ordered revenue as compared to T5 2022. Prime Day 2023 remained the dominant shopping event of the year.
AD Strategy: Brands focused their spend efforts on Sponsored Display up until Thanksgiving, where they layered on Sponsored Brand and Product to drive conversion. Overall during T5 2023, brands relied more heavily on Sponsored Products versus other ad types as compared to 2022.
[Report] State of Retail Ecommerce: Industry Trends & Insights, 2023
KEY FINDINGS
Out of Stock levels have begun to rise and have exceeded 2022 levels in September. Brands continue to maintain lower levels of inventory on hand, likely driven by the desire to preserve cash and mitigate obsolete inventory.
Unit Margins continue their steady decline despite rising Price levels and declining discounts. Combined with rising CPCs there is continued pressure on profitability that has continued since Q2
While Prime Day 2023 saw a huge spike in ad spend, the summer saw an overall pull back until September, likely driven by brands preserving budget for Prime Big Deal Days (which saw a massive increase) and BFCM.
[Report] Discover the ultimate insights from Amazon Prime Big Deal Days 2023!
KEY FINDINGS
Outside of Toys and Grocery, all categories pulled back on Ad Spend relative to Prime Early Access Sale in 2022.
Brands were much better prepared with inventory, we observed 80% increase in on hand inventory and a 34% reduction in revenue lost due to out-of-stock levels.
Gross Margins fell by 7% vs. last year, driven by a decrease in ASP in all categories outside of Pet and Grocery
ROAS fell during Prime Big Deal Days as compared to all other tentpole events, which is in contrast to 2022 when Prime Early Access 2022 exceeded Prime Day 2022.
Insight #1: How am I performing tactically relative to competing brands within the key dimensions of Share of Voice, Assortment, Customer Sentiment, Availability, and Brand Strength?
Insight #2: What is working for my competitors that I need to better understand to optimize my strategy?
Insight #3: What are opportunities for growth I haven't yet capitalized on?
An all-in-one platform for brands to plan, monitor, and execute their ecommerce businesses
Connected
Break down silos in your organization by giving your sales, marketing, brand, supply chain and agency teams access to a single unified platform.
Data driven
Empower your teams with the information they need at their fingertips. This streamlines your measurement and planning processes, focusing you on the results that matter most.
Automated
We’re leading the charge on reducing repetitive manual tasks with predictive analytics and automated actions and insights, allowing you to maximize your return on investment.
Book a demo of the CommerceIQ platform
Know our capabilities around:
Omni Retail Media Management and Self-serve Platform
Omnichannel Market Share
Omni digital shelf and advertising optimization
Single tech stack solution for all your ecommerce needs
