In 2020, total worldwide retail sales declined by 3.0%, to $23.9 trillion, amidst the recessionary conditions set worldwide. At the same time, worldwide retail eCommerce sales grew 27.6% for the year, for a total of $4.280 trillion, source – eMarketer

This means that the pandemic has expedited the digitization for individuals as well as enterprises. All major brick and mortar retailers strengthen their online presence to avoid losing their customers who are now choosing the convenience and choices available to them by the online players.

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Online retail in 2020 made up around 18% of total retail sales worldwide and is estimated to grow further in the years to come.

Even if we ignore the digital push given by the pandemic and lockdowns worldwide, a quarter of the world’s population have made online purchases in 2019 alone (Statista).

When we think of eCommerce, Amazon comes first in mind. And rightly so.

As per Alexa, Amazon’s eCommerce platform is the 3rd most visited website in India and the US and the 10th most visited globally, with close to 20% of its traffic coming from search engines. These users spend over 10 minutes on the website during each visit.

With so much traffic coming onto their websites and apps, Amazon’s solution suite is not limited to selling products on its eCommerce platform and subscriptions to its music and online content.

Amazon also monetizes the high intent traffic coming onto its digital assets and creating a personalized experience for its visitors and customers at the same time. For this purpose, advertisers use Amazon DSP to purchase ad inventories on its websites & apps and target relevant user groups.

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What is Amazon DSP?

Simply put, a Demand Side platform or a DSP is an advertiser facing platform where they can bid for the ad inventories listed by multiple publishers and supply-side players. Similarly, on Amazon DSP, brands, sellers, and other advertisers can book inventories on the Amazon eCommerce platform and its partner ecosystem.

What makes it so interesting?

We already saw the scale of traffic coming onto Amazon eCommerce websites. It is no surprise that Amazon has the most monthly active users (right after the social media platforms) on their apps. Interestingly, this is high intention traffic consisting of users at advanced buying stages. With so much relevant traffic landing on their digital assets, it’s imperative for advertisers to come swarming up.

To some up the reasons why eCommerce or, more specifically, Amazon DSP creates so much interest –

1. They have the Audience
2. They have the Customers’ Voice.
3. They have the Data
4. They decide on Seasonality

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