Why Brand Discovery Begins on Marketplaces Today?

Merline McGregor

October 11, 2022

Today, the way in which consumers buy has fundamentally changed. Recent growth in eCommerce transactions and the proliferation of online channels where consumers can find and purchase products present brands with new opportunities to connect with potential customers. However, increased competition and market fragmentation mean that having your brand discovered by a new customer can be harder than ever before. 

In such an environment, Australian brands should not overlook the fact that online retail sales from marketplaces are booming. Recent reports highlight that sales from platforms such as Amazon, eBay and Tmall now account for approximately 62% of all global online retail sales. Therefore, it is somewhat surprising to learn that some Australian retail brands do not currently have a marketplace strategy in place and are not actively selling their own products through this increasingly powerful channel.

Why Aren’t More Australian Brands Active on Marketplaces?   

Why Brand Discovery Begins on Marketplaces Today 1

A major barrier for brands adopting an online marketplace strategy today relates to perception. Marketplaces like Amazon or eBay are sometimes mistakenly perceived as being less of a priority to Australian brands, as these platforms have been historically associated with price-sensitive shoppers who may be less tied to brand loyalty. However, this perception is outdated and disconnected from reality with recent research showing that in North America alone, people were already spending more money on Amazon (with sales over $610 billion in 2021) than they were with longstanding retail goliath Walmart.

Understanding the local marketplace opportunity

As the leading marketplace platform available to Australian brands, Amazon continues to rapidly grow its share of the online retail market. Amazon’s local revenue was reported to have hit AU$1.75 billion in 2021, and indicators from Pattern’s Australian Shopper Report 2022 suggest it will smash through the $2 billion barrier this year.

Importantly, for Australian brands weighing up their own marketplace strategy and assessing channels for growth potential, research indicates that the majority of those who bought something from Amazon.com.au in the past 12 months expect to spend the same or more on the platform in 2022. In fact, 44% predict they will spend more on Amazon this year, and a further 44% predict they will spend the same. Even more so, with Amazon’s annual shopping event, Amazon Prime Day, just announced for 2022, there has never been a better time than now for retailers to delve into the marketplace space and list their products on platforms such as Amazon. Set to take place over 2 days on July 12th and 13th, Amazon Prime Day is growing in popularity every year, selling over 100 million products in 2021.

As Australians become more accustomed to purchasing from marketplaces, and the size of their spend through these channels increases, more retail brands will become present on Amazon, eBay, and other platforms. Selling in more places and putting a brand’s products on more marketplaces can not only broaden a retailer’s reach and drive revenue but also act as a defence strategy against unauthorised sellers.

So, How Are Marketplaces Positioned?

Why Brand Discovery Begins on Marketplaces Today 2

1. Brand Discovery Channel

It’s no secret that marketplaces attract significant traffic and have high visitor engagement, thanks to their fast delivery propositions, a broad choice of products available, and competitive prices. Likewise, marketplaces have become an increasingly important route to market brands who wish to acquire new customer groups.

Moreover, marketplaces have become a product discovery hub for many online shoppers – as well as a place for loyal customers to repurchase their favourite items – creating a platform for brands to build awareness. Amazon’s push into a broader range of product categories and its focus on a wide selection within those categories has led to the marketplace becoming a key facilitator of product discovery. To the extent that in other international markets, the platform’s customers commonly use the site as an online shopping search engine.  

Research only reinforces the brand discovery opportunity for brands on marketplaces, with 68% of shoppers saying that they now buy products for the first time on Amazon. Additionally, a further 64% of shoppers say that they commonly buy products from brands they have never heard of or bought from before. As a platform, marketplaces often reduce the risk of shoppers ‘trying before buying’ when discovering new brands, by building purchaser trust through customer data, including real-world product reviews, and informative answers to product page questions.

2. For Brand Consideration

When executing an effective marketplace strategy, there are some key aspects retailers need to consider to accelerate brand discovery and leverage the opportunities the marketplace can provide.

Firstly, it’s important to ensure your product listing is as complete as possible and describes the product accurately and descriptively. By providing sufficient product information on each listing, customers have a better idea about every aspect of the product, which in return can help brands avoid ‘misleading’ product information. Imagery is also extremely important when listing products on the marketplace. When profiling a product on the marketplace, brands should include at least 6-8 images from several different angles. Pairing the product to related lifestyles through images is another good way to attract interest and give customers a clear understanding of how the product is used.

The next key step is to create a brand storefront, albeit, in digital form, that tells a clear story of the brand, showcasing who they are, what they sell, and what they represent as a company. Lastly, marketing and advertising strategies need to be implemented to ensure your brand is reaching as many people as possible, and in as many demographics and categories as possible. For this, impactful and engaging advertising campaigns, designed to raise brand awareness and widen customer reach, should be executed to expedite brand exposure on the marketplace.

3. To Build your Future Customer Base 

Why Brand Discovery Begins on Marketplaces Today 3

Brand discovery will increasingly begin on marketplaces in the future. Rather than platforms like Amazon or eBay being impeding customer loyalty, brands have the opportunity to introduce themselves in these online environments, creating genuine connections with a new range of customers – who (after purchase) can go on to become ongoing and loyal repeat customers across a range of different sales channels, such as marketplaces, brand websites, and physical stores. It really is as simple as brands needing to be where their customers are – which is evidently now on the online marketplace, as those who don’t exist on these platforms merely lose the very customers they are trying to attract.

As marketplaces become more prevalent across the eCommerce space, it’s important to understand the impact that brand discovery can have on your overall holistic marketing strategy. To learn more about how your brand could start on marketplaces, contact us to speak with our marketplace team now.

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Important Holidays to Prepare for on Marketplaces in China

Important Holidays to Prepare for on Marketplaces in China

Brands selling their product throughout the Asia-Pacific region may wonder how to keep up with the fast market and make plans for next year. The good news is that in China, and the surrounding areas, there are many ecommerce holidays year-round for brands to prepare for and increase their sales. As brands plan for 2023, here are some important holidays brands should prepare for in China:

Q1 (January-March)

  1. Chinese New Year: (usually late Jan.–mid-Feb.) Spring Festival—also known as Chinese New Year—is a week-long holiday that is quickly becoming an incredible growing opportunity for brands.

  2. Valentine’s Day: (Feb. 14) Despite being an inherently Western holiday, Valentine’s Day on 14th February is another major event that has been wholeheartedly adopted in China, especially among younger demographics. 

  3. International Women’s Day: (Mar. 8) The global holiday, which is celebrated annually, is not only focused on women in particular, but in China also the sale of items related to the needs of women. 

Q2 (April-June)

  1. 520 Festival: (May 20) The Chinese pronunciation for the numbers “5-2-0” sounds similar to “I love you”, hence “520 Festival”. May 20th gives Chinese lovers another chance to showcase their affection to one another through gift giving–China’s version of Valentine’s Day.

  2. 6/18 - founding anniversary of JD.com: (Jun. 18) This is the founding anniversary of JD.com, one of the most prominent ecommerce companies in China. The event,  colloquially known as 618, is celebrated annually for 18 days leading up to June 18th. 

Q3 (July-September)

  1. Qixi Festival: (7th day of 7th month of Chinese Lunar Calendar, Aug. 22 in 2023) Qixi Festival signals the annual meeting of the cowherd and weaver girl in Chinese mythology, creating China’s Valentine’s Day and a huge retail event.

  2. Mid-autumn festival: (Sept. 29) Also known as the Moon or Mooncake Festival, this traditional festival is celebrated in many Asian countries. The mid-autumn festival is a very popular time to give gifts to friends and relatives. 

Q4 (October-December)

  1. Golden Week: (1st week in Oct.) This week-long public holiday in China is not necessarily an ecommerce holiday, but everyone takes work off for the week and it could have a direct impact on your ecommerce business. Being aware of public closures in the Asia-Pacific regions will help you plan ahead in inventory levels and necessary communication.

  2. Singles’ Day: (Nov. 11) Singles’ Day, or Double 11 festival, is the biggest 24-hour online shopping festival in the world and originated in China. Singles’ Day is a type of “anti-Valentine’s day”, originally created for those with a single relationship status, due to the symbolism of the number 1 (11/11). The shopping event has broken sales figure records each year since its birth and is often likened to Black Friday in the US.

  3. Double 12: (Dec. 12) Double 12, or Couples’ Day, is another massively popular shopping event in China that was originally established for smaller businesses that might have missed out on the benefits of Singles Day. 

How to Prepare For These Ecommerce Holidays in 2023

Now that you’re aware of the ecommerce holidays in 2023 that could benefit your brand, it’s important you prepare well and can use them to your brand’s best advantage. Here are four things to keep in mind when preparing:

1. Make sure you have a good trade partner. 

All brands expanding to or selling in China on any marketplace need a trade partner they can trust. A good trade partner should have experience, transparency, a data-driven mindset, brand obsession, and the right tools and resources to help you succeed.  

2. Stay ahead of the logistics. 

A good trade partner will help your brand understand various regional consumer demands and give you marketplace-specific logistics to help you to stay in stock. Every marketplace demands various amounts of stock, mostly depending on the consumer demand in that region, but also the upcoming holidays celebrated in those regions.

3. Prepare your customer-service teams for the holidays.

If you are planning to participate and sell your products during the holidays mentioned above, it’s important your customer-service teams are aware and know how to handle the influx of consumers during those times. 

 4. Be aware of local and regional holidays that may affect your business.

Knowing which holidays can directly affect and improve your business is key to selling across marketplaces in the Asia-Pacific region. Although not all holidays may be obviously relevant to your brand, it’s worth looking into and elevating an opportunity for increased sales.

Accelerate on Chinese Marketplaces with Pattern

The opportunity for your brand to increase traffic and conversion during holidays in China is exponential.  As the world’s foremost ecommerce accelerator, Pattern can handle your end-to-end strategy to grow your brand both domestically and internationally. 

Pattern is an option to be your brand's trading partner since we know local languages, customs, and cultural nuances to clearly communicate your brand as we plan, strategize, and execute your products’ success in China. We make your success our business, dedicating expert teams, years of experience, and proprietary technology to find the best ways to take your products to consumers throughout the world.

Discover how you can grow your brand internationally. Contact us

One Amazon Live Event Wins Owlet the Best Seller Rank in Two Categories

One Amazon Live Event Wins Owlet the Best Seller Rank in Two Categories

Owlet is dedicated to providing innovative baby monitor products that can track a baby's vital signs, giving parents peace of mind. With such a compelling product solution, Owlet wanted to raise brand and product awareness.  

Working with Pattern as its 3P partner on Amazon, Pattern decided to host an Amazon Live event to feature Owlet products in use. That way, Owlet could demonstrate the efficacy of their baby monitoring products dispelling any consumer doubt, skepticism, and addressing all questions.

Download the one-page case study here.

Amazon Live Kicks Off Owlet Sale Event

Pattern produced and executed an Amazon Live to kick off a sale with Owlet. Pattern’s creative team set up a studio at our global headquarters complete with a baby crib, Owlet products, and two charismatic hosts who acted as brand advocates. After the event, Pattern's digital marketing experts measured the impact to overall sales.

Read more about Owlet's Amazon Live event.

During and After Amazon Live, Owlet Sales Spike

During the event, Owlet traffic, defined by Amazon page views and sessions, spiked. The event’s attention to product detail, compelling video, and host engagement improved conversions too. Owlet's sales increased by over 10% during the week of their Amazon Live event and sale. 

But the success didn’t stop there–the event improved Owlet's Best Seller Ranking as well.  Their sock monitor went up ~70% and their camera by ~69% during that week. 

Owlet Traffic, Conversion, and Rank Skyrocket 

  • Owlet sales, page views, and sessions all spiked during the Amazon Live event.

  • Owlet increased sales by approximately 9-16% throughout the whole week of the Live event and sale.

  • Owlet’s Best Seller Ranking Jumped:

    • Sock monitor improved by 70% during the week of their Amazon Live event and sale.

    • Camera improved by 69% during the week of their Amazon Live event and sale.

Pattern’s Amazon Expertise 

As the world’s top ecommerce accelerator and Amazon 3P partner, Pattern knows how to take advantage of the various advertising channels on Amazon and other marketplaces to build your brand.  Pattern’s strategy is grounded in data-driven trends and consumer shopper behavior on Amazon, which is applied to our ecommerce equation.

How can we increase traffic and conversion to your brand? Contact us today.

“Partnering with Pattern has expanded our ability to capitalize on sales-driving opportunities that we wouldn't be able to tackle on our own. ”

– Jared Anderson, Owlet VP of Sales

Catch a behind the scenes moment from the Amazon Live Event:

5 Crucial Considerations When Building Your Global Marketplace Strategy

5 Crucial Considerations When Building Your Global Marketplace Strategy

As a brand creates revenue and gains momentum on domestic marketplaces, executives may start to wonder if they should grow their brand internationally. Expanding to international marketplaces is complicated, can be overwhelming, but building a solid strategy before expanding internationally will streamline the process. 

At Pattern, we’ve helped countless brands build their international strategy with our proprietary data, global marketplace experience, and local expertise in established and emerging regions. 

Building an international strategy must be calculated and methodical, and here are five considerations at the core of going global: 

1. Distribution by Country/Region

First, it should be no surprise that the methods and strategies companies use to transport products from the distribution centers to customers can vary by country or region. Handling order fulfillments may look different from shipping and packaging options, to delivery and transportation. Although the basic steps of global distribution may remain the same, the nuances of regional distribution may vary. 

If your brand already has a high-level distribution strategy in place in the areas you are currently selling, then it’s possible to modify and use it to go global.  

2. Consumer Demand

Before expanding to a specific country, marketplace, or entire region (across multiple marketplaces), it’s important you thoroughly research and understand the consumer demand for your product. Do you have data to show that your expansion market(s) has a need for your product? 

Beyond product-market fit, additional parts of consumer demand analysis include: consumer behavior, awareness of differences in cultural norms, and the beliefs and values of international buyers. Having access to data-driven insights and analysis on traffic and conversion, like Pattern’s reporting, is key to understand consumer demand in certain regions. 

3. Product Registration and Regulatory

Countries around the world set up regulations and processes to protect their consumers from any hazardous imports. Because of that, it only makes sense that these countries may have different product registration requirements and standards. Before expanding to new regions, a brand should make sure their products are registered with the appropriate government institutions and follow all production best practices to prevent any roadblocks.

At Pattern, our regional experts have the resources to manage marketplace setup and understand administrative requirements necessary to help scale global growth for your brand. 

4. Localized Pricing

When it comes to localized pricing, international ecommerce retailers should keep in mind two things–currency conversion and customer perception of price. As brands look to expand internationally, thorough research should be done to understand the currency conversions at each stage of the product life cycle in order to figure out the optimal localized pricing, while still retaining a net profit.

Remember, because of cultural differences, final pricing may be perceived differently by customers on international marketplaces. For example, in the western countries, it’s common for prices to end in a 9, but in other countries, it may be best to use a round number instead. High market saturation of certain products may also affect consumers’ perception of pricing, making them more likely to pay a higher price for the product than in a low-saturation market. 

5. Localized Labeling

Different countries and regions may have unique requirements for product labeling. Awareness and understanding of these requirements is key to a successful international strategy. For example, labeling may need to be in a certain language, and some countries may require brands to include certain product information. 

Your domestic team may not be equipped to handle all translations and regulatory conversations, so having the resources in place before attempting to expand globally will help prepare you for expansion. As a global ecommerce partner, Pattern has a team of regional experts and end-to-end resources to ease the pain of complying with local product labeling requirements.   

Build a Successful International Marketplace Strategy With Pattern

Moving into global markets requires a significant amount of research and planning–that usually starts with these 5 considerations. Having a solid strategy in place before your brand starts expanding to international marketplaces will make the overall process much smoother, easier to manage, and with a higher likelihood for success.. 

Going global can be intimidating, costly, and overwhelming to grow revenue, but with Pattern as your 3P trade partner, you’ll have the experience, resources, and data to successfully expand your business internationally. Our global expertise and footprint makes international growth on marketplaces frictionless and profitable. 

Is your brand considering global marketplaces? Contact us

Want to learn more about how Pattern helps brands go global? Watch this message from our co-founder and CEO, Dave Wright.