Live Blogging from 2013 Catalyst Europe: Amazon Fireside Chat

June 4, 2013

Marketplaces ChannelAdvisor By ChannelAdvisor

Welcome to the live blog for ChannelAdvisor. We’ll be live
blogging the general sessions at Catalyst to make sure attendees don’t miss
anything. Also, make sure you’re following hashtag #EUCatalyst and
@ChannelAdvisor on Twitter for all of the latest updates.

Speaker: Chris Poad, Amazon and Ian Jindal, Internet Retailing 

Title: Fireside Chat with Amazon 

Chris Poad has joined Ian Jindal on stage at Catalyst EU. Chris is
responsible for Seller Services in the UK, including Amazon’s marketplace,
Amazon FBA, Amazon Webstore, Amazon Payments and Amazon Product Ads. Busy man!

Chris described one of the newest updates from Amazon, where retailers
can promote their products on Amazon on a CPC basis and direct a buyer to a
detailed product page and from there to that retailers own website for
conversion. Chris did say that Amazon is cautious about this product placement and it is not true that a seller could bid above you to win the Buy Box. 
 

“We are focused on input methods like availability, selection and
price” said Chris. Chris said there is an incredible correlation between
selection growth and sales growth.

Ian pointed out that sellers who use FBA are growing about twice
as fast as retailers who do not. He attributes this to the concrete delivery
information provided on the product page and the trust in Amazon controlling
the delivery and customer service. Retailers using FBA are also benefiting from
Prime eligibility and customers who use Prime typically buy more products from
Amazon.

Ian asked why all retailers don’t use Prime. Chris pointed out
that it depends on the product in hand, sometimes it can be more efficient (especially with small products like memory sticks)  for
retailers to ship themselves. Chris also said that some retailers need easy
access to their products for other channels, and when they are in a Fulfilment
Centre they are not as readily available as they would be in their own
warehouse. He also said retailers can fulfil to other channels using FBA.

On the growth of the Amazon marketplace… The growth of Amazon is
consistent and Chris thinks that this can be explained by FBA,  global selling and helping sellers become
exporters and the category mix that is growing. The quickest growing products
are apparel, health and beauty. Today media only accounts for around 40% of
sales.

A show of hands in the audience shows that almost half of
attendees sell across Europe and one third ship globally.  Many retailers are trialing their products on
platforms like Amazon to judge their success.

What would the reason be to move to payments? Chris said that the
benefit is that it improve the customer experience, gives more utility to the
Amazon customer and allows retailers to take advantage of Product Ads.

Finally on competition by Amazon, Chris said that customers like
low prices and even without Amazon there would be intense competition online.
Amazon is just concentrated competition but is satisfying the customer
appetite.

Brief reminder for Catalyst Europe’s social presence:

 

· Follow @ChannelAdvisor on Twitter as we’ll be tweeting out
updates, reminders about sessions, networking events and more

· Tag your social posts, Instagram pics with our show hashtag:
#EUCatalyst

· Keep tabs on discussions, networking opportunities and more on
the Pathable community at http://catalysteurope2013.pathable.com/

· Keep an eye on the eBay Strategies blog where we’ll be live
blogging the Keynotes and Main Sessions at Catalyst”