Last year was a big year for Amazon—they released several new products and services, made some huge acquisitions, and continued to dominate the e-commerce industry. So what can we expect from them in 2022?
Here are four predictions for Amazon in the upcoming year:
1. Demand Continues
With the shift towards online shopping, many brands are afraid that the COVID-19 boom will fade out. New customers, despite what you may expect, will continue buying post-pandemic (if that’s a reality) as they have consistently proven throughout 2020 and 2021. With a reduced-contact mindset and the Omicron variant, online shopping will prevail. Additionally, after consumer panic buying subsided, Prime Membership steadily grew—regardless of membership fee increases and delays in 2-day shipping. As Amazon keeps increasing the perks and benefits for Prime such as streaming video, music, and e-books, customers don’t see the need to abandon memberships.
The abundance of supply chain issues has negatively affected companies across the globe, but specifically those that source from overseas. We predict that more U.S. sellers will start sourcing products domestically, in spite of increased costs per unit, to ensure faster shipping that meets demand quickly. Finally, keywords such as “made in USA” have increased in search volume over Q4, which leads us to believe this will continue in 2022 as more and more customers are looking for locally sourced products.
3. Social Commerce on Amazon
Amazon seems to be taking cues from social media sites in relation to engagement with social media-like tools that inform and entice customers to interact more with brands. Amazon Posts is just one example of Amazon mimicking social media—particularly Instagram. By blending social media and e-commerce together, you can provide an elevated shopping experience for new customers and existing customers through curated content. In 2022, social commerce will be a bigger part of Amazon because it allows customers to browse and discover products in a new way—or in a way that is already familiar to them such as searching social media for products.
4. Possibility for Cryptocurrency
As cryptocurrency interests continue to grow so do adoption possibilities. Tesla, AMC Theaters, and other major companies have all accepted a form of cryptocurrency in the past year, which means Amazon could be next. In order to remain competitive, will they create their own or simply allow other forms? That still remains to be seen, and only time will tell.
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