Last week, Amazing had the pleasure of hosting a webinar in collaboration with Amazon, focusing on the Health and Personal Care category on Amazon. This highly informative webinar covered a range of topics, including consumer behavior within this category and recommendations for both retail and advertising strategies in the coming months.
The Importance of Defining Your Buyer Persona on Amazon Let’s start by discussing how consumers interact within this category. Based on a study by Feedvisor and Statista involving a significant sample of Amazon consumers in the USA, Europe, and Latin America, we have identified the key characteristics of different generational segments:
- Generation Z (1997-2012): This youngest generation places high importance on brand credibility, price sensitivity (making promotions especially appealing), and is highly responsive to advertising. When creating product detail pages, prioritize a mobile-friendly design.
- Millennials (1981-1996): Millennials are also mobile-centric and actively engage in this category. Over 60% of them visit Amazon after seeing off-Amazon advertising. Running DSP campaigns is essential to engage and redirect them to the Marketplace.
- Generation X (1965-1980): They respond well to custom advertising and prefer established brands. While they are mobile users, they tend to make purchases on desktop. Having well-structured product detail pages with ample information, A+ content, and additional details beyond description bullets is crucial to secure their purchases.
- Baby Boomers (1946-1964): They rely heavily on product ratings and reviews before making a purchase decision. Product and video advertising significantly influence their buying choices. This generation has the purchasing power to buy recognized brands and doesn’t necessarily wait for promotions.
- Silent Generation (1929-1945): This generation prefers desktop over mobile for making purchases and tends to choose well-known brands. Surprisingly, they have increasingly shifted to online shopping in recent years and carefully read product detail pages before making a purchase. They frequently and significantly contribute to this category.
In summary, emphasize mobile-friendly product detail page design, carefully manage advertising strategy to avoid saturation, maintain a strong brand presence, and occasionally run promotions to foster brand loyalty.
Retail Recommendations for the Category
We highlight some relevant strategies for the upcoming months, which can be applicable for different product types:
- Competitive Nature: The Health and Personal Care category is one of Amazon’s most competitive. It features numerous major brands selling extensive product catalogs, often in a Vendor format.
- Price Battle: The distribution network competes fiercely to win the Buy Box, often at price points that astonish manufacturers.
- Always-On Advertising: To achieve success, maintaining an “always on” advertising strategy is vital.
Our primary recommendation is to prioritize which products to promote on Amazon. You must focus on top-performing references that will receive the most attention in terms of advertising, promotions, and content. To manage this prioritization, Amazing employs a proprietary methodology, the Prioritization Matrix, which offers ongoing insights to address the differing needs of each product.
Linked to prioritization is the possibility of using a hybrid approach for selling on Amazon. This means that, as a brand, you can have both Vendor and Seller accounts without penalization. It’s an intriguing option to explore if you have a broad product portfolio and Amazon isn’t interested in all your products. To learn more about this approach, feel free to reach out to us.
Lastly, we delve into the importance of having impeccable product detail pages. Consider mobile users and how they interact with content, which is different from desktop users. On mobile, images take center stage, followed by the Brand Story, A+ content, and description bullets. While keywords remain crucial for product visibility, a comprehensive, elegant, appealing, and distinctive content layout within the product detail page contributes significantly to conversion.
A Few Advertising Insights
Our webinar featured Dolores Lacabanne, Amazon’s EAS for the category, who shared valuable insights. Here are some key takeaways:
- Quick Growth: Health and Personal Care is expected to be the third-fastest-growing e-commerce sales category this year, with a 22.1% YoY increase, according to Amazon’s forecast.
- High-Growth Categories: Skin Care, Optics, Healthcare, and Oral Care are leading the pack, followed closely by vitamins, household products (e.g., cleaning), and Baby Care.
- Strong Presence in Spain: More than 12 million users browse the category on amazon.es, with over 4 million in the Diet and Supplements subcategory.
- Key Consumer Insights: This category predominantly attracts women (70%) and couples (80%), with 53% of them earning over €100,000 annually and 78% owning their homes. Over 50% of customers purchased two or more products from the category.
Dolores also provided recommendations for advertising creatives based on these insights:
- Tailor your creatives to the female majority of users.
- Include variety packs, considering that you’re appealing to shoppers who make decisions not only for themselves but also for their partners.
- Activate customer retention tactics such as remarketing, Subscribe & Save (SnS), and DSP.
- Leverage increased sales trends at the beginning of the year and include specific messages in your creatives during this period.
If you’re still eager for more insights, feel free to reach out to us, and we’ll be happy to answer your questions or provide further information. You can contact us at hola@amazingagency.io or use the web form to get in touch, and we’ll respond promptly.