Creating demand VS Capturing demand

The biggest differentiator I see between the best disrupter brands on Amazon and everyone else?

The best brands know to CREATE their own demand.

What do I mean by this?!

🔶 Capturing Demand: Relying on Amazon to drive your demand. You list a product, you run sponsored ads, and you capture the demand that Amazon is already creating for you.

Pros: Easy. Amazon does the hard work. You put your sponsored product ad at the top of the page and you capture the attention of customers that are ALREADY searching for your product.

Cons: You are at the mercy of the market.
If searches are down, sales are down. If ad costs are up, your top of search placement is more expensive, and your RoAS is down. If your competitors lower their price, you are being directly compared to them in the search results and you lose your competitive advantage.


🔶 Creating Demand: You educate a customer on why they need your product BEFORE the search is even made. You convince them to go to Amazon and buy your product. You CREATE the demand for your brand.

Pros: You get ahead of the competitive nature of Amazon's search results.
Your customers are educated on why they need your product BEFORE they type in a search term. (Meaning potential customers are less swayed by the price, reviews, and PDP's of your competitors).
Inflated CPC's are less of a worry since you have a higher CVR than everyone else in your category.

Cons: It's not easy. Creating your own demand requires patience. This is NOT direct response. This is disruptive. Brands MUST understand that the path to purchase is not linear. Creating demand at scale takes TIME.

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The best ways to create your own demand?

- Lean into Amazon DSP. All of the control, audience insights, and creative opportunity you need to create demand at scale.

- Leverage influencers and social to increase trust and authority