Are You Ready For The Best Finding So Far?

Marketplaces (hint - Amazon).

So many of you have embraced Amazon.

Have you thought about the fact that Amazon is creating a reactivation problem for you?

Let's go back to our 18 month 1x buyers, evaluating annual repurchase rates. This time, we crosstab items purchased with channel responsible for the first order. Ready? This one is absolutely delicious.

Omnichannel!!  In this case, Amazon.

Look at the annual rebuy rates of 18 month 1x Marketplace buyers vs. other channels. It's a catastrophe. On an annual basis, the Marketplace buyer who purchased two items (not just one) has a 1.67% chance of purchasing again in the next year. Not next month ... next YEAR!

In other words, the Amazon buyer here is useless.

You are under no obligation to spend money marketing to unresponsive customers. In 2024, you have free choices, and free choices are there for a reason ... to allow you to have a relationship with unresponsive customers.

Meanwhile, look at the Paid Search / PLA customer row.  One-item buyers weren't very good ... but, if the customer bought multiple items, the customer has an above-average rebuy rate - with some credible numbers there. Same with Paid Social.

Almost all of you employ a vendor to help with cross-shopping opportunities. Here's a chance for your vendor to help you out ... demand that they amp-up their algorithms (#AI) to really dive into the Paid Search / PLA / Paid Social visitor who just put an item in the cart.  Ramp it up!

Naturally call center customers have better repurchase rates ... that's something I see in nearly every project. That's also something you can't really focus on going forward, it's mostly a 65-79 year old customer unless the customer needs assistance.

We keep stacking wins, readers!

• More items matters.
• Independent of items purchased, AOV size matters.
• Selling at full price matters.
• Selling best-selling items matters.
• Multiple categories (after controlling for items purchased) matters.
• Lapsed marketplace buyers are a CATASTROPHE!

Build a plan, based on what you've learned this week. How will you alter your communication/investment plan with lapsed customers?

And ... no ... this is not a plan.