According to the latest report, Amazon will allow brands that sell products on its platform to send marketing emails to shoppers. It’s a risky move to boost sales that could flood users’ inboxes with spam. The company was announced this at the Amazon Accelerate conference in Seattle. The purpose of the event is to showcase the new capabilities of the Amazon platform to independent merchants, a retail platform where more than half of product sales come from third-party independent sellers.
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Merchants will be able to send free emails to new shoppers, returning customers, and their largest consumer groups through a new tool called “Custom Audiences,” which will also allow sellers to monitor results. The tool has been tested this year and will be available to all US sellers in early 2023.
This move is Amazon’s long-standing of never letting third-party sellers have direct contact with customers for fear of alienating consumers from the platform. But the pace of online sales has slowed from pandemic highs, and antitrust investigators are probing Amazon’s power over millions of third-party suppliers. Some merchants also said Amazon made it difficult for them to build relationships with even their most loyal buyers.
Dharmesh Mehta, Amazon’s vice president of global sales services, said in an interview: “Many brand owners have spent years becoming experts in their respective product areas, which is a way to connect customers with their brands. A chance to get up.”
The email marketing move pushed Amazon further into advertising, which founder Jeff Bezos initially resisted but turned into a fast-growing and profitable business for the company. Advertising services generated $8.8 billion in revenue for Amazon in the second quarter, up 18% from a year earlier.
