Amazon’s Hybrid Model, Shopify Live + Retail Restocking

Brands Are Showing Renewed Interest in Amazon’s Hybrid Model

According to research conducted by CRC, brands have begun to show a renewed interest in Amazon’s hybrid model. This model allows manufacturers to act as both a seller and a vendor. Essentially, brands would maintain their 1P retail relationship with Amazon while offering an assortment of products through the 3P marketplace, whether through the brand itself or a partnership with another brand.

Some potential benefits are greater pricing control, improved inventory backstop abilities, and the ability to launch new products more efficiently. However, brands should also consider the challenges that can come with balancing the execution of the 3P portion of the business alongside the management of the 1P relationship with Amazon.

Want to find out more? Let’s talk.

Shopify Investing in Live Streaming

Shopify has recently started offering “live shopping” that lets brands and store owners sell products through live video on their website.

Brands/store owners will be able to access the Live Shopping App within their own Shopify store. The app will allow brands to have a “live shop” page for their store to do in-show product promotions and product spotlights. Viewers are given a chance to add products to their cart at any point throughout the live stream and can communicate with the shop via a live chat.

The new program allows brands to generate more sales by leveraging product launches, customer connections, product demonstrations, and more. Some other potential benefits include improved sales conversions, increased session times, real-time analytics, post-event metrics, and KPIs to analyze sales, and a lowered customer acquisition cost (CAC). Brands can also record their live shopping shows and use them later to drive sales and engagement.

To learn more about the program and if it’s right for your brand, reach out to us.

Retail Restocking Efforts

Inventory-to-sales ratios are expected to remain low into the fall due to the continued elevated demand and challenging supply chain dynamics. Fall events, such as returning to work, leisure travel, and back-to-school, are anticipated to drive further restocking activity across general merchandise categories. While it will likely be months before the current restocking cycle ends, there is an air of optimism regarding sales expectations.

CRC research shows that around 91% of CEOs in a roundtable of participants expect sales to increase over the next six months, which is expected to drive restocking activity further.

Manufacturers are still facing delivery challenges due to the continued shortages, including tight transportation capacity and other supply chain disruptions.

Talk to us for more information on retail restocking efforts and how this impacts your brand.

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