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How a global electricals brand used digital shelf analytics to increase Amazon sales by 33% in Mexico in just 6 months.
Amazon Mexico is among the top 10 e-commerce players in Latin America and the second largest in Mexico after Mercado Libre which currently dominates the space. However Amazon is catching up, particularly when it comes to electronics. For electronics brands, Mexico is an exciting opportunity.
- Mexico is the fastest growing e-commerce market in the world and the 16th largest market globally with revenue of US $23.2 billion in 2021.
- Electronics & Media is the largest e-commerce segment in Mexico accounting for 30% of the country’s e-commerce revenue
- Amazon is the biggest player in the electronics & media category in Mexico, accounting for 20%-25% of e-commerce net sales in this category with net sales of over US $1 billion in 2021
In Q1 2022, this global electronics brand came to us to help them capitalize on the potential of selling on Amazon Mexico in this highly competitive category.
CHALLENGE
Competing in a crowded category in an emerging market
Mexico is among the fastest growing e-commerce markets in the world where Amazon has consistently grown since its launch in 2013 to become the second largest e-commerce retailer in the country. In Q1 2022, having achieved success on Amazon in other markets, this electronics brand identified Mexico as a major growth opportunity. But how do you compete in a category as crowded as electronics, particularly in light of the rising trend of Amazon own-brand electronics products? The brand turned to us to learn how digital shelf analytics tools can be used to increase Amazon sales in this region.
ACTION
The Perfect Store Framework
To grow sales, the brand needed to optimize its assortment, compete on price, and have product pages that convert. We collaborated with the brand’s e-commerce team to implement digital shelf tracking tools to monitor the most critical KPIs including availability, pricing and promotions, and content metrics. Deep dive reports revealed insights on the competitive landscape and quick win opportunities, while regular health checks with our expert teams provided consistent feedback on performance and where to focus.
VALUE
33% increase in Amazon sales
Our tools allowed the brand to easily identify problem SKUs and actions required to improve performance including: (1) tweaking pricing to be more competitive, (2) addressing issues with out of stocks, and (3) optimizing content with high performing keywords. With focus and clarity, the brand was able to fix the biggest gaps impeding sale. By Q3 2022, the brand saw a
- 5% increase in their digital shelf score*
- 23% increase in sales, even managing to position itself about Amazon’s similar own brand products
What is your Digital Shelf Score?
Our Digital Shelf Score is an aggregated score of e-commerce performance based on the most impactful KPIs that influence online sales. To find out your digital shelf score, get in touch.
