MartechAsia speaks with Raphael Menesclou, chief marketing officer of DataHawk, about data-driven ways e-commerce businesses can boost sales on Amazon and Walmart.
What are the typical challenges retailers face on platforms like Amazon and Walmart?
Perhaps the most common challenge retailers face on platforms such as Amazon and Walmart is that of competition. Despite having lowered the barriers to entry for retailers, competition in digital marketplaces is increasingly fierce. Given that countless retailers are selling the same, if not similar, products, it’s not so much about whose product wins but more about whose SEO strategy wins.
How do they try to solve the problems/challenges and do they succeed?
Retailers typically try to solve the challenge of competition through either advertising or listing optimization. Of course, with the right analytics tools, these two problem-solving methods can very well be deemed successful. Though often overlooked, conducting product and market research on competitors is particularly valuable for establishing and maintaining a competitive edge.
What is social proof theory and how can retailers leverage on data-driven evidence to drive sales?
Social proof theory can be described as a behavior people assume in unfamiliar situations in which they emulate the actions of others in an attempt to do what is understood to be right or to justify their unsubstantiated actions. Retailers tend to exploit this phenomenon to drive sales. Take, for example, ratings and reviews. While one product may be just as good, if not better, than another, when shopping online, consumers will more often than not go with the product that has higher ratings and better reviews and imitate the purchasing behavior of others when they cannot come to a decision on their own.
Do Buy now Pay later options work? Or are they just hype to drive consumerism?
Buy Now, Pay Later (BNPL) options only work because they drive consumerism. In an age of instant gratification, online shoppers want products, and they want them yesterday. So, of course, BNPL options work because they give consumers the option to make purchases right away and pay for them later. This very process drives consumerism in that it encourages the acquisition of products in ever-increasing quantities. This trending payment option has the utmost potential to increase conversion rates by encouraging shoppers to buy products they could not typically afford otherwise.
Will retailers benefit from presence on platforms such as TikTok or Reel?
I think that whether or not retailers will benefit from the presence of platforms such as TikTok or Reel is contingent on the product and target audience. For example, if your target audience is millennials or gen z, then yes, without a doubt, a presence on TikTok can be beneficial in increasing visibility and popularity. However, if you sell, for example, walking canes for older generations, then no, these types of platforms may not be as advantageous, which goes to show the importance of understanding your target audience.