Marketing: Tips for growth on Amazon despite recession
A professional marketing strategy can help to achieve stable sales, especially in times of recession, and ensure faster recovery after the crisis.
Declining sales, shrinking profit margins and increased competition are just some of the difficulties businesses face during the recession. During these times, it's crucial to focus on optimizing and improving your business strategies to achieve successful growth. We analyze why marketing is especially important during declining times and how a professional Amazon agency can help you. With the right advertising strategy, it is possible to continue growing your business even in difficult times.
What does recession mean and what can I actively do about it?
A prolonged decline in economic growth is known as a recession. Depending on the cause and external circumstances, the economy may recover more quickly or more slowly from this slump. The same applies to the companies affected by it.
In tough economic times, it's tempting to cut the marketing budget and supposedly save money. However, companies that do this neglect an important factor of marketing, namely: Engaging and retaining customers. In 2020 and 2021, a total of around 15% less was spent on advertising due to the pandemic. But effective marketing is crucial, especially in times of recession, because an effective advertising strategy can do much more than convince a currently tentative customer base to buy a product. By continuing to invest in marketing, a company remains present and visible to potential customers. Companies can communicate their messages in a targeted manner, build trust and better reach their target audience. A smart marketing strategy can also help a company stand out from the competition and take advantage of new market opportunities while other companies are pulling back.
Fighting the effects of the economic downturn with professional Amazon marketing
It's worth learning from history here. Companies that have continued to invest in marketing and advertising during extreme economic downturns over the past 50 years have been shown to grow far faster during subsequent economic upturns than competitors who had not invested in advertising. This suggests that a good marketing strategy not only offers companies stability and security during the crisis through continued conversions, but can also cushion the impact of an economic downturn and help them recover more quickly afterwards.
Advertising and customer loyalty can therefore be decisive factors in emerging stronger from economically difficult times. Companies should therefore not neglect their marketing efforts right now, but rather expand and adapt them in a targeted manner and with professional help on various channels in order to ensure long-term success.
With the rise of e-commerce, Amazon has become one of the most important platforms for selling products. Millions of potential customers search for products and solutions on Amazon every day. So when competitors pull back and reduce their activities during the recession, companies that operate internationally in particular have the best opportunities to position themselves as market leaders and grow. On no other platform is it so easy to expand your business internationally.
And while Germany has been in recession since the winter half-year, some EU countries actually recorded growth in the first quarter. In Spain and Italy, gross domestic product rose by 0.5 percent, and in France it also increased slightly, by 0.2 percent.
So why not use international Amazon marketplaces as a growth opportunity?
International Amazon marketplaces offer companies access to a much larger customer segment and therefore also contain more potential for increasing sales. While local markets are experiencing sales declines, international markets can open up new opportunities. Customers from different countries have different needs and preferences, and expanding product portfolios to international Amazon marketplaces allows companies to appeal to this diverse customer base. This allows them to increase their sales potential even during a down economy and reduce their dependence on a single market. An Amazon agency can be of critical advantage in this regard, thanks to years of experience in the international marketplaces, as well as AI-powered tools and processes, and explicitly help cushion the impact of the recession on your business.
Amazon Marketing during the recession - Interesting FAQs
1. Why is marketing important in the recession?
Effective marketing helps companies to retain customers, generate sales and grow in the long term during difficult times.
2. How can companies grow successfully despite recession?
By diversifying sales channels, expanding offerings, providing excellent customer service and continuous optimization.
3. Why is a data-driven approach important?
Data and metrics provide valuable insights to target, adjust and quickly optimize marketing strategies.
4. What are the benefits of an Amazon agency in recession?
An Amazon agency optimizes product listings, analyzes the competition, and develops customized advertising strategies so that the organic reach of your products increases. Through targeted advertising, companies can address their customers with precision.
5. How can companies expand their product portfolio to international Amazon marketplaces?
Companies can offer their products in different countries via the Amazon platform and target their sales activities at international customers.
6. What are the benefits of diversification in international markets?
Diversification reduces risk and enables companies to benefit from different markets, even if there are economic downturns in one country.
Conclusion: Grow on Amazon despite the crisis with targeted marketing.
Especially in times of economic uncertainty, it's crucial to rely on the right marketing strategies to drive your business forward. An Amazon agency like Marktplatzkomplizen GmbH can help you grow successfully despite the economic recession with years of experience and the necessary tools. Also the chances and possibilities of international markets, should be used. The expansion of the product portfolio to other Amazon marketplaces is a strategic step that offers companies many advantages in times of recession. With a larger customer segment, diversification of sales markets, access to new customers and stronger competitiveness, companies can emerge stronger from the crisis and achieve long-term growth. An Amazon agency understands the international market and can help your company manage the complexities faster and better, as well as generate more revenue during and even after an economic downturn.
Contact us today to learn how together we can emerge as winners from the economic crisis.
