Amazon Sends Customers to Brand Websites - New Test

Amazon's New Shopping Feature: Directing Customers to Competitors

Do you recall the classic holiday film “Miracle on 34th Street,” where the Macy’s Santa Claus, Kris Kringle, guided a customer to a rival store to locate a desired gift unavailable at Macy’s? Amazon is now implementing a similar strategy within its online platform.

The retailer announced on Tuesday a test of a novel Amazon Shopping feature. This feature will redirect shoppers to external brand websites when a search within the Amazon app yields products the retailer doesn’t currently stock.

Mimicking a Successful Strategy

The marketing approach showcased in the movie fostered positive customer perception of Macy’s and reinforced its position as a preferred shopping destination. Amazon anticipates a comparable outcome.

This move is particularly relevant given the intensifying competition from other online retailers, notably fast-growing e-commerce platforms like Temu and Shein.

Beta Testing and Availability

Currently, this functionality is limited to a beta test. It will be activated for a select group of U.S. customers utilizing the Amazon Shopping app.

Amazon will now display certain products in search results, even if they are not sold directly by Amazon.

How the Feature Works

Customers will be provided with a link to the retailer’s website. This allows them to review product details, pricing, and shipping options.

Purchases can then be completed directly on the brand’s website. The product information displayed on Amazon is sourced directly from the retailer and is updated frequently.

These external links will appear alongside products available within Amazon’s marketplace, including those offered by third-party sellers.

Amazon assures users that their personal information will not be shared with brands when clicking these links.

Transparency and Prime Integration

A pop-up notification, stating “You’re leaving Amazon,” will inform customers before redirecting them. This ensures clarity regarding their shopping location.

Some brands may offer Buy with Prime, enabling Prime members to utilize their Amazon account and payment details for transactions on the retailer’s site.

This service provides the same fast delivery, convenient returns, and customer support benefits associated with Amazon Prime.

Beyond Buy with Prime

However, Amazon clarified to TechCrunch that the feature will not be exclusive to brands participating in Buy with Prime.

While the retailer did not disclose the number or specific names of participating brands, they confirmed representation across various product categories.

Amazon's Statement

“We’re continuously working to expand selection and make shopping even more convenient for customers,” stated Rajiv Mehta, Amazon’s VP of search and conversational shopping.

“We’re testing bringing more selection and brands into our search results to help customers find even more of what they want and further improve our shopping experience.”

Rollout and Brand Participation

Initially, the feature will be available to a limited number of customers using the iOS and Android versions of the Amazon mobile app.

Expansion to additional customers and brands will be based on user feedback.

Brands interested in participating can express their interest by emailing branddirect@amazon.com. They can also use this email address to request exclusion from the feature.

Data Considerations

Amazon asserts it will not collect data on customer interactions on external websites after they leave the Amazon platform.

However, data regarding which brands receive clicks could provide valuable insights for Amazon regarding potential products to stock and brands to collaborate with.

Expanding Brand Portfolio

In the past year, Amazon has actively added more premium and luxury brands to its offerings. These include Clinique, Estée Lauder, Oura Rings, Armani Beauty, Kate Spade New York, Kiehl’s, and Dolce & Gabbana Beauty.

Simultaneously, Amazon has launched Amazon Haul, offering competitively priced products to counter the influence of Temu, Shein, and TikTok Shop.