E-commerce growth has remained slow in France, less than a quarter of French consumers bought CPG products via e-commerce, yet the sector is gaining. Online sales grew 8% in the first quarter of 2014 while basket sizes fell. Amazon.fr dominates this small but growing online market comprising the highest online market share. Fifty-nine percent of online retailers sell on Amazon, according to Fevad iCE, yet only thirty-two percent of French Personal Care Index brands link to Amazon.fr from their sites.
Nivea, ranked first on the Digital IQ Index: Personal Care | France, outperformed peers in Amazon category search visibility and presence on the e-tailer shelf through inventory range and product page customization, including custom descriptions and videos.
Reviews are an essential element to merchants AEO on the platform. The Intelligence Report: Amazon found that having 18 reviews was optimal for search visibility in the U.S. while exceeding those numbers had almost nil effect on AEO. However, fifty-four percent of index brands on Amazon.fr had fewer than five reviews and only thirty-two percent appeared in the first page results for core category keywords. The digital shelf remains ripe for the taking.
Once a consumer completes an online order, they are twenty-five percent more likely to re-purchase on the internet, according to Brick Meets Clicks. Amazon’s “Subscribe & Save” gives brands an opportunity to gain repeat purchases and checks off all the boxes for winning these repeat purchases with “Subscribe & Save”, reasonable fees and discounts, a simple purchase path, easy access to customer service, and efficient fulfillment. Realizing the opportunity for “Subscribe & Save” to keep products in the basket, nearly half of index brands offer “Subscribe & Save” on Amazon.fr, compared to only 30% in the U.K.
By adopting a robust Amazon strategy early on in the game, Personal Care brands may see great return on investments as shoppers move to digital. The digital shelf is still up for grabs.
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