What is Amazon Prime?
Amazon Prime is a paid service offered by Amazon that allows members access to expedited shipping, including same-day delivery and one-day, two-day, and no-rush shipping. It includes additional Prime-exclusive deals, along with a credit card for qualified members. There are streaming opportunities like Prime Video and Amazon Music that allow members to download music, watch movies, and read eBooks, all for $15 a month, or $139 a year (the price recently increased from $119 a year).
What is Prime Day?
Prime Day began on July 15, 2015, Amazon’s 20th anniversary, as a way to thank loyal Amazon Prime customers. Its goal was to provide exclusive deals on a number of Amazon products for Prime subscribers. Prime Day is a yearly sales event that often lasts for two days in the summer, mostly in June or July (Amazon does not release the exact date of Prime Day until 2-3 weeks before), and allows members to find a number of deals on everything from groceries to electronics.
Need help managing your brand on Amazon?
Contact our experts at WishingUWell for help today!
Why is it Important?
Prime Day is the biggest sales event of the yearFor many Amazon sellers, Prime Day is the biggest sales event of the year. Amazon has grown to be the biggest eCommerce platform in the world. With the start of COVID-19, those numbers have only increased. Between quarantine and an uptick in work from home jobs, eCommerce is a bigger deal than ever before. Being that there are over 200 million Amazon Prime members, Prime Day on Amazon is often bigger than even Black Friday, with 20 countries participating worldwide, purchasing over 250 million items last year alone and outperforming Black Friday’s overall sales by $2.3 billion. It is important to have established coupons in place, and choice items that you want to advertise for leading up to Prime Day. Note that the deadline for coupon submissions is June 10th this year. You should aim to highlight your best-selling items to increase their growth, and introduce your brand to new customers with your best-selling items.
Make sure that your inventory is stocked upAlthough Prime Day is not the time to try and unload low-performing products, you should make sure that your inventory is stocked up on all products. Prime Day is useful in that it helps increase traffic on all products, and it’s important not to run out of stock on any inventory. Also, be mindful that purchase orders have deadlines, and should be made well in advance to ensure you are stocked up prior to Prime Day. Amazon’s inbound shipping cutoff is June 2nd, while the FBA inventory cutoff is June 20th this year.
Customers have broadened their purchasing habits
In past years, consumers have been geared toward purchasing electronics, beauty products, and products for the home, which has deterred some brands whose focus is on other products from participating in Prime Day. However, in recent years, customers have broadened their purchasing habits on Amazon, and are purchasing from every category. Statistics have also shown that existing customers tend to purchase multiples of the exact same product, while new customers tend to purchase more variety packs in order to try out new products.
Drive more traffic to your productsBrands are also skeptical about the lack of immediate sales benefit of discounting products. However, it can drive more traffic to your products, which stands to have a higher payoff in the long run. An increase in traffic will lead to an increase in sales, even for products that are not running discounts or coupons.
Ensuring Prime Day Success:
Is your goal to increase brand awareness?
Note that cost-per-click rates will increase during Prime Day, as they are coveted spots that become very competitive around this time.
Would you like to improve or increase customer reviews?
Obviously an increase in traffic to your brand will result in a higher chance that customers will leave reviews. This is also why it is important to advertise products that are performing well, so that you have a higher chance of receiving more positive reviews.
Are you solely attempting to drive sales to your products?This area is where updating purchase orders comes into play. It is important to make sure that your inventory is well stocked to lessen your chances of selling out on Prime Day.
What Can We Expect from Prime Day 2022?
Prime Day has grown rapidly in participation since its inception in 2015. The uptrend of previous years suggests that this year will be even bigger than 2021. Here are some things we can expect from Prime Day 2022:
- Social media is playing a bigger role than ever in online shopping, and Prime Day is no exception; it will be helpful to use such avenues as Twitter, Facebook, TikTok, and Instagram to advertise select items leading up to Prime Day
- Unrest in Ukraine along with the continued economic unpredictability of COVID-19 will heighten customers’ need to find big deals; this is where coupons, discounts, and lowered listing prices come into play, as it is even more important to advertise your biggest deals on Prime Day
- It is important to make sure that your listings are optimized to include the most current high-ranking keywords to drive more traffic to your listings
Prime Day is a huge day for sales that stands to greatly benefit sellers and consumers. If taken advantage of, this event can make all the difference for your business.
To learn more about WishingUWell, and how we can help better your experience selling on Amazon, please contact us at wishinguwell.com.