Is Your Prime Day Strategy in Order?
It’s officially July, and while consumers’ minds are likely focused on upcoming plans for the summertime, we also know they’re thinking about another kind of holiday: Amazon’s annual Prime Day.
It’s a well-known fact that Prime Day has grown exponentially over its last four years of existence. According to several sources, total estimated Prime Day sales have grown by 50-60% over this time, and if you thought it couldn’t grow any larger, think again! In 2019, Prime Day will begin on Monday, July 15, and will run for a complete 48 hours – this is 12 extra hours on top of last year’s 36-hour shopping bonanza.
Global Sales on Amazon Prime Day
- 2018: $4.2 billion (Source: Internet Retailer)
- 2017: $1 billion (Source: Bloomberg)
- 2016: $525 million (Source: CNBC)
- 2015: $415 million (Source: CNBC)
Speaking of last year’s Prime Day, here’s our recap of how brands performed in 2018, with some of the key statistics, including: number of products purchased, participating countries, revenue growth in Amazon’s third-party marketplace ecosystem, and more.
What else is happening this year?
Once again, Amazon will tap into the power of Alexa-enabled smart devices, offering shoppers a variety of exclusive deals on products bought through the Echo, Echo Dot, Spot and Show. New to this year’s event is the integration of Amazon-owned game streaming site, Twitch, which will launch a live shopping show during the two-day event, catered to its gaming enthusiast audience.
Why participate in Prime Day?
Prime Day has become a mammoth of a global shopping day, and so, many brands have seen the value in participating. As in previous years, Prime Day will offer a virtual tidal wave of consumers browsing the aisles of Amazon.com, so it represents an important opportunity to maximize sales and capture new customers. Plus, Amazon puts significant investment in advertising to drive potential customers to its site during Prime Day, which allows brands to put more funding behind their own efforts in order to be as well-positioned as possible among the competition.
Tips for brands participating in Prime Day on Amazon
As a brand investing in Prime Day, you should be heavily focused on the products you’re promoting, activation timing and setting alignment on budget. We’ll get into some more specific recommendations, but first, here are the core actions we recommend as a guide for maximizing your Prime Day strategy:
1. Engage with shoppers before, during and after Prime Day.
2. Drive traffic to your deals and other high performing products in your brand portfolio.
3. Increase engagement with new shoppers, especially brand-aware audiences that are more likely to purchase.
4. (Bonus) Brand teams: invest in maximizing exposure as shoppers come to the site with high intent to purchase.
Can’t identify which product to promote during Prime Day?
We recommend driving awareness for your overall portfolio by sending customers to your Amazon Store. Stores act as your microsite on Amazon, and allows you to educate and engage consumers about your product offering. Amazon has placed a lot of emphasis on improving the Stores environment by enabling brands to create a rich user experience that’s easily customizable. Stores is a great place to showcase your Prime deals, as well as upsell additional items to interested customers.
Look at core products and other growth-driving factors
Additionally, we recommend activating Amazon Retargeting against your core growth-driving terms. Be aware that the cost to advertise will rise during Prime Day, and there will also be an increase in sellers advertising on the platform. We suggest launching ads around the time of day you see the most engagement.
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