It’s no secret. Prime Day is a huge opportunity to capitalize on Amazon traffic — and the proof is in the numbers.
This July, Prime Day is expected to attract over 4 million customers (!) and generate more than $4 billion in sales(!!). In fact, 31% of all consumers anticipate making some sort of purchase on Prime Day.
Trust us. You want to get a piece of this. Fortunately, you’ve got the time to tweak your listings so you can find success on Amazon’s biggest holiday. Given the volume of traffic expected on Prime Day, even the smallest adjustments can earn you major wins. Even if Amazon has been tricky for you to navigate in the past, there are several main starting points for you to optimize your product pages.
Follow these tips, and you’ll be well on your way to a successful Prime Day selling experience:
1.) Titles are Key.
Given the volume of shopper traffic on Prime Day, you’ll want to make sure your titles are crisp, clean, and descriptive. It’s crucial that your products make a strong first impression. Otherwise, shoppers will breeze right by. Keep in mind: a huge portion of shoppers won’t be on their computers. Instead, they will opt to scan for deals on their smartphones or tablets. Catching the eyes of potential consumers is everything.
2.) Optimize, Optimize, Optimize.
Take a deep dive into your ad campaigns by utilizing a wide array of keywords. These keywords should relevant and similar to products shoppers are looking for. Remember, industry terms mean nothing if they don’t align with the searches and lingo used by consumers. Keep this in mind. Now’s the time to adjust your keyword bids based on demand and performance.
3.) Create a Buzz.
For Cyber Monday promotions, you’ll notice that companies always go out of their way beforehand to make their deals well known. Why wouldn’t you do the same for Prime Day? While you shouldn’t necessarily do a complete overhaul of your advertising strategy, you can absolutely make sure that all of your followers are aware of Prime Day deals beforehand. Make time to hype up your customers. Define your target audience and focus on building their interest.
4.) Rock your Ad Creative.
40% of Prime members have clicked on an ad while browsing Amazon—and that’s just on an average day. We can expect this number to skyrocket on a day as popular as Prime Day. As a result, you can definitely count on getting your return on investment when it comes to advertising. Amazon offers multiple varieties of advertising campaigns, meaning you’ve got plenty of options. Now’s the time to put those options to use. Do your research beforehand so you can put together a diverse and comprehensive advertising campaign.
5.) Compete on Pricing.
Remember that 82% of Prime members consider price to be the key factor in their decision-making process. If your prices aren’t competitive, chances are your product will be left on when it comes time to buy. In addition to that, make sure your inventory counts are at appropriate levels. Since there will be a huge demand on Prime Day, you’ll want to avoid stock-outs at all cost.
6.) Promote Growth.
Discounts. Coupons. BOGO. Free shipping. If it’s available to you, take advantage of it. There are a ton of promotional opportunities at your disposal, and Prime Day is an ideal time to roll them out. Place an emphasis on generating buzz that will grab your shoppers’ eyes and get your products in their shopping carts. Prime Day is an advertiser’s dream.
7.) Adjust on the Fly.
As your strategy evolves, so will your competitors. Monitor their actions and prepare your team for anything. Shift strategy as needed. The world of Amazon can be difficult to predict, but the best companies are constantly preparing for everything. Stay the course and trust your process. However, don’t be afraid to switch gears if an opportunity presents itself. Now’s your time to shine.
Brace yourselves. Prime Day is coming.
The time of year has come again to start preparing for Amazon Prime Day. Since 2015, Amazon has been celebrating its founding day in a rapidly-growing global deal marathon for Amazon Prime members. Prime Day takes place in 17 countries around the world that offer Prime including the U.S., U.K., Canada, Italy, Germany, and Japan. For Prime Day, as well as the week leading up, Amazon offers many discounts on products, as well as short-lived lightning deals (which appear and disappear at specific times).
Why Should I Participate in Prime Day?
- 70% of online consumers shop during events for deals and discounts. With 31% of US customers planning on making a purchase on Prime Day for 2019, this is a “prime” time to invest in advertising or in promotions to capitalize on traffic. The graphic below shows the sales for Prime Day by year.
- Prime Day is closing in on Black Friday and Cyber Monday for sales. Prime Day 2016 beat out the previous Cyber Monday’s sales by 19%. It also comprised 74% of e-commerce sales conducted on that date. In 2017, Prime Day beat the previous Cyber Monday’s sales by 33%.
What Are My Available Options?
1.) Lightning Deals: A 4-hour flash promotion that is run in the deals section of Amazon. These deals require a specific discount/deal price be offered that is set by Amazon and must be Prime eligible with a 3.5 Star average review.
- Only certain items are eligible to be offered as Lightning Deals. Amazon tells us which items are eligible.
- Amazon also requires a certain quantity of inventory that has to be in stock at their warehouse during the deal period.
- Amazon will select the date/time that a lightning deal will run. Once they select the deal, we have until 25 hours prior to the deal running to cancel the deal.
- Amazon can cancel the deal, or choose not to run it, at any time. If the deal does not run, there is no charge.
- These will cost $500 + the cost of the discount to run during Prime Week.
2.) Coupons: A discount offered to customers that will show up on the product listing and in the coupons section of Amazon.
- Coupons can be offered on any in stock item.
- Coupons can be marketed as a percentage off or as a dollar amount discount.
- The cost is .65/clip + amount of discount. A budget has to be set beforehand.
- These can be run in a date range that can be edited throughout the course of the coupon.
3.) Advertising: With the amount of traffic increasing rapidly, an increased advertising budget will help increase the visibility of your products and capitalize on the influx of consumers.
- Competition will be heavy for Prime Day and we recommend doubling ad budgets for the month of July.
- Budgets should be set and monitored starting at the beginning of July.
- A strategy may include running specific campaigns to increase awareness of any products on promotion or with low visibility.
When Do I Have to Decide?
This year Prime Day is predicted to bring in over 4 million customers and see over $5 billion in sales. Retail Bloom wants to help your brand take advantage of this event and the 31% of US customers who plan on making a purchase on Prime Day 2019.
- All Prime Day deals have to be submitted by May 10th.
- All inventory related to Prime Day must be at an Amazon fulfillment center by June 27th.
The future of Vendor Central is unknown.
Many vendors are in a difficult spot right now trying to navigate the reasoning behind Amazon’s recent decision to stop their replenishment orders. Is Vendor Central a thing of the past or is this just a technical glitch? Some vendors have been told by Amazon that it’s just a technical glitch while others have been told that Amazon is no longer purchasing directly from them and that they need to open a Seller Central account. No one truly knows…. yet.
Though very abrupt, we’re not surprised with the decision as Amazon has hinted that this day may come. Marketplace sellers working through Seller Central now make up over 53% of all retail sales on Amazon. Combine that with margin challenges on the vendor side, and this may simply be a move towards scaling their referral and fulfillment revenue… likely a more profitable portion of their business.
Here are your options:
- Wait. If it is a technical issue, it may be resolved, but there is no information pointing in that direction so don’t wait too long.
- Partner more closely with your other third-party (3P) marketplace sellers: If you have other third-party retailers selling your products, work with them to support you more heavily on the platform as quickly as possible.
- Set up your own direct to consumer strategy via Seller Central
- Partner with a new, qualified marketplace seller or marketplace service provider: This is a huge decision with many pros and cons. Don’t panic. Investigate all of your options and make the best decision for your brand.
First, we’d be happy to learn more about your brand and the challenges you’re facing. We can walk you through all of the options above and help you make the best decision for your business. Regardless of the path you choose, Retail Bloom is there to help. We can provide you with an experienced marketplace team fluent in all Amazon best practices and can partner with you to drive your Amazon strategy.