E-commerce will account for 10% of CPG sales by 2022, forcing brands to prioritize digital distribution. L2’s E-Tailer Landscape report suggests several ways for CPG brands to improve conversions through bolstering their e-tailer investments.
Sponsor banners: Brands that struggle to stand out in e-tailer product searches can boost visibility with sponsored banners, as well as listings and native content. For example, Amazon gives CPG brands the opportunity to be featured on its headline banner. However, only Bounty and Ziploc have taken advantage of this opportunity. Bounty follows variations of this strategy on Walmart, where it buys sponsored banners against its own branded terms, and Target, buying sponsored listings for the unbranded term “paper towels.”
Fill in the details: While e-tailers’ search algorithms favor their own private label brands, those brands lack robust product detail pages – creating an area where other companies can differentiate their offerings. For example, surface care brand Finish has robust product pages with how-to content, product comparison charts, and product benefits. As a result, the brand achieves 52% visibility for surface care keywords across Walmart and Amazon, beating out private label brands Great Value and Up & Up.
Bundle up: For enterprises, creating bundled SKUs creates opportunities for cross-selling between categories. P&G offers bundles of related products, like the “Tide Amazing Laundry Bundle,” which lets users buy a suite of three P&G laundry products with a single click.