Opening Shop In Rival’s Turf
Amazon may not be as big as Alibaba (who’s bigger than Amazon and eBay combined). But it certainly loves to get its foot into new territory by recently opening a store front on Alibaba’s Tmall. Smart move to keep itself in front of Chinese customers who can REALLY shop online. Last year, China’s Singles’ Day garnered in a whopping $9 billion in online sales with Alibaba laughing all the way to the bank – all in ONE DAY.
Don’t Forget, The Chinese Can Spend A LOT
Looks like Amazon wants a piece of the action as well. Let’s see what happens in this year’s Singles’ Day which will land on 11th November 2015. Believe it’s going to be better than last year as Chinese folks have proven to be very good online shoppers.
Although Amazon will have to do a bit of profit sharing with Tmall, the company is doing what it takes to remain visible to the largest market segment that’s outside of the US (with enough spending power to overshadow most countries’ GDP!).
Small & Medium Sized Merchants Opt For Retargeting
While many online shops can’t challenge the mighty Amazon or Tmall and Taobao, they can try to remain visible to customers who have visited their online stores by retargeting. If done well, merchants can still close the deal even if their customers do not buy from them when they first visited their store.
This strategy is deemed more effective for merchants who have high traffic coming to their site. So in other words, Amazon will be riding on the amount of high traffic that goes to Tmall by maintaining an online presence there. Hence sites that have traffic will be able to track their visitors and have their ads shown to the same visitors if no purchase was made.
These remarketing efforts uses a combination of ads that shows the products that customers were looking at which may or may not come with added free shipping or discounts.
Something Is Better Than Nothing
All in all, either these merchants do something to get back lost sales or they can do nothing and continue to loose business opportunities in the form of traffic that’s passing through their sites. They might as well put out the offer and choose to remain visible to their customers this way. For those in need of retargeting and ad creation services, do check out Retaily, a dynamic retargeting service provider. We’ll be more than happy to help.
Oh yeah, the short video below shows the staggering Singles’ Day 2014 sales :
