Seattle-based Amazon has its membership ambitions in the right place, analysts say, but the e-commerce giant needs to now focus on serving its most popular CPG brands.
“Amazon is not brand-friendly,” said Michael Graham of Canaccord Genuity to CNBC. “They’ve underperformed in things like retail and home, where brand is a little more important. They haven’t been able to really crack the code there.”
“That’s an important strategic issue for Amazon going forward,” Graham stressed to CNBC, considering that as powerful as Amazon is it faces stiff competition from traditional brand-name retailers and smaller upstarts alike.
In fact, the Prime Day event has boosted online sales of its rivals. According to Adobe Analytics, reported by CNBC, retailers that have more than $1 billion in annual revenue saw a 64% increase in their digital sales during Prime Day compared with an average Monday.
To read the CNBC article, click here.