Now showing 1 - 2 of 2
  • Publication
    Amazon’s Market Power Decoded by the Amazon Market Dominance Index
    Amazon is one of the largest online retailers worldwide. Amazon had an annual turnover of over $280 billion in 2019 but is very reluctant to publish figures and data on the distribution of sales across individual product categories. However, from the retailer’s point of view, these data would be particularly critical to determine the relevance of the sales channel and to understand the competition within specific product categories better. The objective of this study is to build a measure that illustrates Amazon’s market share and dominance in individual product categories to enhance market understanding and to enable retailers to make more informed decisions. By combining various high-quality data sources, we were able to create the Amazon Market Dominance Index (AMDI), which reflects Amazon’s market dominance compared to the entire German retail sector. The AMDI is calculated on a category-specific basis for Amazon’s ten main product categories. The semi-annual calculation of all AMDI values allows for growth-rate comparisons and the identification of seasonal effects. With the AMDI, we increase market transparency and provide data on Amazon’s market position that was previously unavailable. We help retailers with relevant and evidence-based insights that enable the identification of opportunities and risks in individual product categories.
  • Publication
    Evaluation of the Effectiveness of the Amazon Product Listing Optimization Tool
    With the growing popularity of the Amazon Marketplace and the increasing number of competing products, it has become difficult for sellers to gain visibility on the platform. The quality of the product presentation on the platform is a critical factor for visibility and sales performance. However, many sellers lack knowledge about which and to what extent product-page factors influence the conversion rate on Amazon. The Amazon Product Listing Optimization (APLO) tool helps sellers to optimize their product-page quality and, consequently, the conversion rate on Amazon. The tool analyzes the content of a specific Amazon product page and then provides individual improvement suggestions for the product-page quality. The primary objective of this study is to evaluate the effectiveness of the APLO tool in supporting the implementation of product-page optimizations. Additionally, we assess how these product-page optimizations affect the sales rank of the products on Amazon and how satisfied users are with the current version of the APLO tool. We used an experimental design to meet the primary study objective, in which the experimental group used the APLO tool and the control group did not. With a pretest–posttest design, we investigated whether the use of the tool and the intervention in the form of optimization suggestions have led to product-page improvements. Within 30 days, we checked the Amazon product pages at different predefined points in time using automatic re-crawling scripts to detect changes. Thus, we could also determine how long users need to implement the improvement suggestions. The last study objective was elaborated with an online survey integrated within the APLO tool website. The product pages of sellers using the APLO tool showed significantly greater improvements than the product pages of sellers who did not use the tool. By improving the overall quality score of the product page by one percentage point, the Amazon sales rank could be improved by 0.996 percentage points. Based on all survey participants (n = 102), the tool achieved a net-promoter score (NPS) of 60.8%, so the overall satisfaction is high, and most of the users are promoters. Finally, we could show that the APLO tool is effective in supporting the implementation of product-page optimizations and in enhancing the sales rank on Amazon.