Amazon is no longer just a marketplace for pantry staples and bulk multipacks. For food and beverage brands, it has become one of the most dynamic growth environments in commerce and one of the most unforgiving.
In a recent episode of The Nombase Podcast, hosted by Melissa Travers (Director of Community at BevNET & NOSH), Daniel Tejada, Co-Founder of Straight Up Growth, shared what is changing on Amazon heading into 2026 and what brands must do to stay competitive.
Their conversation covered major shifts across grocery fulfillment, advertising tools, pricing enforcement, and the operational realities brands will face as Amazon continues evolving.
Grocery Is Becoming Amazon’s Biggest Growth Bet
Amazon has always been a fast-moving platform, but Daniel emphasized that grocery is where the most significant transformation is occurring right now.
“Food and beverage in particular is seeing some of the largest shifts in terms of the Amazon landscape,” he said, pointing specifically to Amazon Fresh and Amazon’s growing focus on grocery shopping behavior.
The takeaway is clear. Amazon is investing more deeply in grocery experiences that mirror retail. That means shoppers are increasingly buying single units, building baskets, and purchasing more frequently.
Actionable takeaway: If your Amazon strategy is still built around a bulk-only approach, it is time to rethink your product setup and merchandising.
Amazon Fresh Is Turning Amazon Into a True Grocery Store
Amazon Fresh is one of the clearest signals that Amazon is prioritizing the grocery business. Daniel described Fresh as Amazon’s way of recreating the in-store grocery trip online.
“Amazon Fresh has been around for quite a while,” he explained. “It’s when you’re shopping on Amazon, and you get to see the single items instead of a 10 or 12 or 20 pack.”
That shift matters because single-unit access removes the friction of bulk ordering and opens the door for trial. It also makes basket building easier, especially when paired with Amazon’s delivery incentives.
“If you spend $25 on Amazon Prime through Fresh, you’re essentially able to get free delivery,” Daniel said.
For brands, that $25 threshold is powerful. It encourages shoppers to add items and creates more opportunities to win incremental placements in the cart.
Actionable takeaway: If your product qualifies for Fresh, treat it as you would a grocery store shelf placement. Optimize for discovery and trial, not just pack size economics.
Amazon Fusion Is a Quiet Program with Huge Potential
One of the most important updates Daniel shared was Amazon Fusion, a program within Amazon Fresh that supports faster delivery in select markets.
“It currently serves about 1,000 zip codes,” Daniel said. “By the end of the year, they’re looking to expand to about 2,300 different zip codes throughout the US.”
While access remains limited, Daniel made it clear that Fusion is already delivering strong results for participating brands.
“It’s a really, really strong program. We’ve seen some significant growth from our brands that have participated so far,” he said.
Fusion is especially relevant for brands selling perishable or refrigerated products where delivery speed and reliability directly impact customer trust.
Daniel also emphasized that many brands are not even aware that Fusion exists.
“This is the first year that I have seen it,” he said. “Definitely ask your vendor rep if it’s an option, because it’s something quite powerful.”
Actionable takeaway: If you are in grocery or gourmet food, ask your Amazon contact about Fusion eligibility. Early access could provide a meaningful competitive edge.
Amazon Is Pulling Back Private Label Except in Grocery
Daniel highlighted another important shift. Amazon has slowed private-label investment across many categories, but grocery is an exception.
“Amazon has started to slow down on a lot of its private label,” he said. “One area where they’re actually ramping up is grocery and food.”
That matters because private label growth typically signals deeper investment. More internal attention means better programs, faster innovation, and increased competition.
“Usually, that’s a sign that they’re probably going to be investing more into their programs, into their teams, and things like that,” Daniel said.
Actionable takeaway: Expect grocery competition to intensify. Brands will need stronger conversion rates, better pricing discipline, and more efficient advertising to maintain market share.
Amazon Marketing Cloud Is Becoming a Must-Have Tool
Amazon Marketing Cloud (AMC) is one of the most important advancements for brands trying to scale profitably. Daniel described AMC as Amazon’s push toward deeper customer-level insights.
“It’s essentially extra data and insights directly from Amazon that can empower you to do a whole lot of different things,” he said.
AMC helps brands measure metrics that have historically been difficult to access, including new-to-brand performance and lifetime value.
“There are things like new to brand,” Daniel said. “There’s things like understanding your LTV.”
The barrier to entry is also dropping. AMC once required API access and technical skills.
“You needed to have API access,” he explained. “You also had to understand how to do SQL queries.”
Now, Amazon is making it more accessible.
“Amazon is making it easier and easier,” he said. “There’s even places in your Seller Central where you can start to understand some of your Amazon Marketing Cloud data.”
Actionable takeaway: Brands should start using AMC now, even if only through basic Seller Central reporting. It can directly inform which products and campaigns deserve investment.
Your Best Seller Might Not Be Your Best Growth Product
One of the strongest lessons Daniel shared is that Amazon success is not just about driving volume. It is about driving profitable customers with high repeat behavior.
“We had a brand where about 80% of their revenue was driving through a single SKU,” Daniel said.
That might sound like a win, but AMC revealed a weakness.
“The repeat purchase rate was very low,” he said. “That made the LTV relatively low for that item.”
So they shifted strategy toward a different product with stronger customer retention.
“We changed our ad strategy and started to focus on a different item that had a very, very strong repeat purchase rate,” Daniel explained.
The results were measurable.
“Our LTV increased by like 30% doing that,” he said.
Actionable takeaway: Use AMC to identify which SKUs drive repeat purchase. Those are the products that should become your hero strategy, even if they are not currently your top seller.
Keyword Strategy Changes When You Measure New-to-Brand
AMC also shows that many brands overestimate the number of new customers they acquire from non-branded keywords.
“We’re spending on a non-branded keyword… thinking every single one of these buyers is new-to-brand,” Daniel said.
But the data told a different story.
“Only 40 percent of our buyers on this keyword were actually new-to-brand,” he explained.
That insight helped them reallocate budget toward more efficient targets.
“We actually decided to start focusing on other terms and even other products in our portfolio,” Daniel said.
Actionable takeaway: Evaluate new-to-brand performance at the keyword level. If a keyword is expensive but mostly attracts existing customers, shift spend to targets that truly drive acquisition.
Four Metrics Can Diagnose Most Amazon Problems
Daniel also shared a simple framework he uses to quickly assess where a brand is underperforming.
“I have a thing called the Golden KPIs,” he said. “Just four metrics that I look at.”
Sessions are one of the core indicators.
“Sessions is the number of unique visitors you get to your product listings,” he explained.
If sessions are low, the problem is visibility. If conversion is low, the problem lies with content, pricing, or trust signals. Amazon also provides category benchmarks to help brands assess whether they are underperforming.
“Amazon will actually provide where all the averages are,” Daniel said.
He also evaluates a brand's dependence on advertising.
“Our last piece is the percentage of ad-driven sales,” he said. “If I’m over-invested… I need to improve my organic ranking.”
Actionable takeaway: Audit your Amazon business weekly using sessions, conversion rate, category benchmarks, and ad-driven sales percentage. These metrics clarify whether your next priority should be traffic or conversion.
Amazon DSP Is Expanding into Streaming and In-Store Media
Amazon DSP is becoming a more powerful lever for brands looking to scale beyond search ads. Daniel confirmed DSP includes display, video, and audio, but emphasized it is now moving into physical retail.
“Now they’ve even added things like digital signage in stores,” he said.
That includes Whole Foods placements.
“If you want to get your brand right there, you actually have the ability to do that,” Daniel said.
Amazon can also connect those impressions back to sales.
“Amazon can track those sales… because people are giving their Amazon Prime numbers,” he explained.
Daniel also pointed to major media expansion opportunities.
“They recently announced a partnership with Netflix,” he said.
Actionable takeaway: DSP should be viewed as a full-funnel tool. It is increasingly valuable for awareness, retargeting, and retention across both digital and physical placements.
Retention Is the Cheapest Growth Lever Most Brands Ignore
Daniel shared a compelling example of how brands can drive growth by improving second-purchase behavior.
“Our $29.99 item… the average customer or LTV was about $90,” he said.
But AMC revealed that retention dramatically changed economics.
“If a customer purchased twice from us, our LTV jumped up to $170,” Daniel explained.
They launched a DSP re-engagement campaign targeting customers who had made a single purchase but had not returned.
“We decided to specifically target customers who’ve purchased once, but have not purchased in the past 30, 60, 90 days,” he said.
The impact was immediate.
“Our secondary purchase rate went from… 30% to about 50%,” Daniel said.
Actionable takeaway: Build DSP campaigns that target one-time buyers. Increasing the second purchase rate can be one of the fastest ways to improve profitability without increasing spend.
Prime Eligible FBM Could Unlock Perishable Categories
For refrigerated or temperature-sensitive brands, fulfillment remains a major barrier. Daniel was candid about the limitations.
“To be transparent, FBA is very difficult for… refrigerated items,” he said.
However, a new program is emerging that may change the equation.
“Amazon just opened up like Prime Eligibility for FBM,” Daniel said.
He described it as a new hybrid model.
“It’s like a Fulfilled By Merchant Plus almost,” he explained.
Actionable takeaway: If your product struggles with FBA requirements, explore Prime-eligible FBM options. This could significantly improve conversion for perishable categories.
You Do Not Need 30,000 Reviews to Compete
Many emerging brands assume they need massive review counts to win. Daniel challenged that idea.
“You don’t need to have 30,000 reviews to be able to compete,” he said.
Instead, he recommends focusing on milestone thresholds.
“Your first target should be like, how do I get to 100 reviews?” he said.
Then build toward the long-term benchmark.
“Our ultimate goal is only to get to 1,000 reviews,” Daniel explained. “If I can hit 1,000 reviews, I’m now converting at a similar rate to somebody who has 20, 30, 40,000 reviews.”
Actionable takeaway: Prioritize early review velocity through Vine and non-branded sales growth. Focus on hitting 100 reviews quickly, then work toward 1,000 as a long-term conversion unlock.
The Amazon Brands That Win in 2026 Will Be More Focused
Daniel closed with a clear message. Amazon is getting more competitive and more expensive, but brands can still scale if they operate strategically.
His recommendation starts with financial clarity.
“Run a P&L… an Amazon P&L for your SKUs,” he said.
He shared a real example where a brand’s top seller was driving revenue but losing money.
“We realized their number one seller… they were losing money on,” he said.
He also emphasized focus as a growth strategy.
“We believe in a less is more strategy,” Daniel explained. “I’d rather go really, really hard at one item than… spend a lot to get nowhere.”
Actionable takeaway: Choose hero SKUs intentionally. Concentrate spend where you can win rank and profitability, then scale the rest of your portfolio through cross-promotion.
Final Thought
In 2026, Amazon will reward brands that treat the platform as a system, not a set of tactics. Grocery is accelerating, AMC is unlocking deeper strategy, DSP is expanding into new channels, and fulfillment options are evolving quickly.
Brands that win will be the ones who invest in smarter decision-making, stronger retention strategy, and more focused product-level execution.
Or as Daniel put it simply, “You cannot sleep.”
To hear the full discussion and real-world examples behind these takeaways, listen to the full episode of The Nombase Podcast.
Amazon is evolving quickly, but the brands that win will be the ones with a clear, focused strategy. If you want a growth blueprint tailored to your brand, Straight Up Growth can help map the path forward across ads, and profitability.
