We saw a big boom in online businesses, drop-shipping, and FBA around 2020. Now, years later, it’s showing no signs of slowing down—being an Amazon FBA seller in 2024 looks like a lucrative business if you do it right!
To really make the most of it, though, we recommend understanding trends and predictions for the new year. Here’s a brief overview of what we can expect from Amazon in 2024 and how to use these insights to make it your best-selling year ever.
How Amazon is Leading the Way
Amazon might be an “old” platform by now, but it sure isn’t slowing down. It is doing an amazing job of leveraging AI to stay relevant and make things more convenient for its users, which is edging them even further ahead of competitors.
Here’s how it is leading the way in e-commerce. Understanding these developments will give you a good foundation for anticipating changes and adjusting your own selling strategy, both to start 2024 with a bang, and as the year goes.
Continued E-Commerce Dominance
The economy is always up and down. But Amazon prevails… And continues to grow! We can expect continued dominance from the platform as we move into 2024, and there’s no serious competitor in sight.
Online shopping is expected to grow exponentially next year and beyond. It’s convenient, it’s easy, it gives us access to products we’d never be able to get just at the corner store or the nearby mall.
Amazon is a giant in the online shopping sphere. It consistently attracts high-profile brands looking to expand their reach, but they’re just as popular with smaller sellers. We can expect to see Amazon reign supreme (as usual) in the online shopping world, so sellers can rest assured their loyalty will be worthwhile.
Amazon’s Own Brands Will Likely See Significant Growth
Amazon isn’t just a group of external sellers. It has its own private-label brands too, in multiple different markets across the platform. It makes sense that its own brands will see a high level of growth in the year to come, because it makes a point of offering competitively-priced alternatives to the big-brand products.
However, that doesn’t mean all is lost for other brands. It might mean stagnated growth for massive brands, who might have to get creative with advertising campaigns and find new ways of selling the benefits of its higher-priced products.
Embracing Emerging Technologies
Amazon actively works with cutting-edge technology to stay at the top of its game. AI, machine learning, and even robotics have all become standard at Amazon, from product development to customer service.
It leverages tech wherever it can to streamline processes, enhance personalization, and make the customer journey a more pleasant, convenient, and exciting one.
Data-Driven Decision Making
Amazon is a data master. Its data-driven approach is what allows them to stay at the top of its game year after year, vastly outstripping others thanks to trend monitoring and informed decision-making.
Same-day or next-day delivery is one of Amazon’s great strengths, and it has superb logistics to thank for that. Between smart warehousing, fulfillment centers, and capable delivery services, it can offer the fastest shipping to satisfy anyone’s craving for (almost) instant gratification.
How Amazon’s Landscape Will Evolve In 2024
So we already know that Amazon is ahead of the game when it comes to e-commerce in a fast-paced world. But don’t think it will be taking its foot off the pedal in 2024. Here’s what we can expect based on trends, data, and history.
Artificial Intelligence: Your New Business Partner
Amazon is already embracing AI, and we don’t think that’ll change. We expect the platform to hone in on personalization with artificial intelligence-powered algorithms, providing more personal and relevant recommendations based on each user’s data.
This spells good news for brands using Amazon Live, Amazon Posts, and influencer marketing. It’s like social media for browsers, and with enhanced personalization, you should be more visible to the audience.
Seeing is Believing: The New Reality of AR and VR
Augmented reality and virtual reality are changing the face of online shopping. Want to buy a new sofa? Imagine holding up your phone camera to your space and seeing exactly how the furniture would fit into your space. You can do that with Amazon View.
Amazon has been using AR and VR for years. Amazon Anywhere launched less than a year ago, is an innovative new feature that allows customers to interact with products in VR or even make purchases while gaming! This is a whole new avenue, and Amazon is currently the only one doing it. Watch this space!
Chatbots to the Rescue: Streamlining Customer Service
How a company handles customer service can make or break its popularity. Amazon’s chatbots are on the ball, handling customer queries without the need for human agents.
We fully expect to see them becoming more and more prominent in Amazon’s customer service, streamlining processes and guiding customers through the sales funnel easily and painlessly.
Social Commerce Takes Center Stage
Social media and shopping are merging into one! Platforms like TikTok, Instagram, and others are likely to integrate more easily into Amazon this year, allowing direct purchases from your feed.
This means that influencer marketing will be a BIG money-maker in 2024. Big and small Amazon sellers would be wise to leverage influencers to promote their brands, but be sure to pick the right kind of influencer for your brand. Micro-influencers can be just as effective as huge ones and way more cost-effective.
Voice Search & Quick Commerce Will Play a Bigger Role
Heard about that kid who got Alexa to order 200 cheeseburgers? That’s the power (and maybe downfall) of voice assistants! Alexa and other voice assistants are likely to play a bigger role in the years to come, streamlining the search process even more.
This means sellers will need to be more careful about how they optimize their pages and products for SEO. Text SEO and voice SEO are fairly different, and sellers who optimize both may see a higher level of success in 2024 and beyond.
Retail Media Boom
Amazon’s advertising platform has become the fastest-growing ad platform, and sellers should take advantage of it. But creativity matters—brands need to find the fine line between strategic and compelling in order to make their ads stand out.
Advertising costs on Amazon are rising, but do it right, and you can expect a good ROI. Make sure you have a great ads team before you go all in here, or you could end up losing money instead.
Personal Touch: Winning with Customization and Green Choices
Personalization will become even bigger. Consumers want products that really meet their needs and speak to their values, and Amazon’s data-driven algorithms deliver.
Eco-friendliness is also set to be a theme in 2024, with a growing interest in sustainability and green products. Sellers would do well to take note and start incorporating green practices, materials, and packaging into their products.
Next-Level Marketing: Tools to Get Ahead on Amazon
Amazon offers a spectacular suite of marketing tools, which it is always testing and refining. Sellers, whether you’re big or small, spend some time immersing yourself in these tools this year and figuring out how to use them to your advantage.
Data is everything when it comes to selling. Use it right, and you can find new, effective ways of sweet-talking consumers into buying from you. That’s what Amazon’s tools can do for you—trust me, you’ll thank yourself later if you take the time to learn now.
Amazon is constantly evolving, but it is always at the top of the industry. It's a household name. Say “Amazon” and almost nobody actually thinks of the jungle anymore!
Whether you’re an established Amazon seller or considering getting into it, 2024 is set to be a bumper year. Study these trends, adapt your selling strategies to them, make sure you’re using a great web host, and get ready for huge success in the coming year!