AMAZON PULLS THE RUG

It took less than 30 days for Amazon and other top marketplace retailers to punish its media partners. With historic levels of organic demand, there is a diminished need for media-driven traffic.

And then — especially in the business press — because it furthered the narrative that even the hugest of consumer goods companies, long stuck in codependent relationships with the hugest of retailers, would start trying to sell more of their products direct.

Meanwhile, the more recent rise of social media — plus digital publishing and the continued growth of e-commerce — has given brands strong incentives and tools to build direct relationships with their clientele, skipping the retail middlemen and keeping the rest of their margin.

There are several big trends impacting consumer brands. New brands like Dollar Shave Club that are skipping traditional retail and building their own relationships with consumers are threatening traditional brands in categories they never thought possible. At the same time, while brands need to sell through Amazon because of its reach with consumer

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It’s increasingly difficult for brands to earn media. A growing number of them are reporting on the compounding effects of a loss of revenue due to decreased affiliate sales. This will force more brands to redirect resources to other forms of creative marketing.

These data highlight the resilience of independent retail in a world where Amazon has grown its market share over time. Among the reasons for this: Independent retailers are nimble and provide a differentiated value proposition from vertical to vertical. The retail businesses most negatively impacted by the acceleration of e-commerce are midsize an... See more