July is upon us, and with it brings the return of Amazon’s yearly flagship event, Prime Day – a 48 hour extravaganza where shoppers, especially Prime members, get access to a wide range of deals from brands all over the world. Running from the 12th to the 13th July (this year) the online giant’s 7th Prime Day offers a vast window of opportunity for all Amazon advertisers to skyrocket their sales.
In 2021, the Amazon event offered over 2 million deals and brought in nearly $11 billion in total ecommerce sales worldwide (7.9% higher than 2020), making it the year’s biggest day for digital sales. And this is only set to increase in 2022 - with a global predicted ecommerce spend of $12.52 billion across the two day event.
As a global marketplace expert full of Amazon specialists we’ve identified four tips that brands can implement to upgrade their growth with Prime Day.
1: Negotiate and establish the right Prime Day deals on Amazon
Every year, Amazon invites brands to benefit from Prime Day deals. Smaller brands are invited by an automated system, while larger ones are invited and managed by an Amazon vendor manager. However most of the time negotiations are necessary before brands agree to participate - as Amazon will ask for significant discounts from them. It’s up to the brand to determine whether or not these discounts will be worth the extra volume and exposure that Prime Day will give them.
What Brands Can Do: Negotiating with Amazon means that brands need to do their homework. This includes a variety of calculations. What are the exact deal terms that Amazon is offering? For example, will Amazon send back unsold stock at your brand’s own costs? What do they expect in terms of marketing spend? Make sure that for every product that is eligible for Prime Day, solid calculations are done to weigh cost prices, volume discounts, and potential returns.
2: Prepare all your products, even the ones that aren’t for Prime Day
Not all sellers, vendors, or even products are invited to participate in Prime Day. For the brands that are invited to join, it’s certain that they’ll experience high traffic. This means that even though a lot of their products won’t be directly included in the Prime Day event, brands would still benefit from preparing all their available products; customers will likely browse through your products and experience various touch points outside of the Prime Day deals. Prime Day can in fact boost website traffic by up to four times the average rate, as well as Amazon traffic by 300-400%.
What Brands Can Do: Don’t just prepare your Prime Day products on Amazon, be sure to prepare all the other products and touchpoints that your customers could potentially come across (such as on your website) – before, during, and after Prime Day. Ensure that your content performance is competitive, your SEO keywords are optimized, your website is technically equipped for increased traffic, and all your Prime Day and non-Prime Day deals, promotions, and vouchers are set.
3: Craft and execute a Prime Day-specific advertising strategy
It’s not enough to simply ‘have’ products on discount during Prime Day. Competition is fierce and attention is hard to catch, especially during peak events. Advertising is what often gives the push that brands need to make a significant dent in their sales. This is why your advertising strategy will likely need a Prime Day-specific rehaul. Click prices will take a sharp rise due to all the marketing investments that numerous other brands, including your competitors, will make for the period.
What Brands Can Do: Overhaul your advertising strategy to avoid bleeding out on expensive keywords or increased competition. Examine the keywords your competitors bid on, as well as the bids that are in the system. Select just a few strategic keywords and products that make sense for your campaign and focus your efforts on those.
4: Benefit from the Afterglow
Once the height of the 48-hour Prime Day event passes, brands on Amazon can still benefit from spill-over traffic and sales. Look at it as more of a Prime Season rather than a mere day (or two).
One key aspect to look into is the products that were successful during Prime Day. These products will reach a higher *“Best Sellers Rank” (BSR) – sometimes called the “Sales Rank” – after the event, and are therefore likely to generate more revenue for some time post-Prime Day.
*The BSR is an hourly-updated score that the Amazon algorithm automatically assigns to products based on historical and recent sales data, relative to other products in the same category. Being able to understand and take advantage of this tool will be crucial to growing sales on Amazon, especially post-Prime Day.
What Brands Can Do: Don’t underestimate the afterglow. Overall, brands should proactively engage with shoppers that missed the Prime Day deals but are still looking for late opportunities.
For new-to-brand customers: Shoppers that got to know your brand during your Prime Day promotions are likely to continue being active and loyal after the event. Engage these shoppers throughout the whole year with re-marketing campaigns.
For late promotions: Inconsistent forecasting (or just bad luck) can lead to overstock after Prime Day. Drive extra promotion after the event to keep your sell through rates up and your stock issues down.
Upgrade your growth with Amazon
With Prime Day likely to be around for the foreseeable future, now's the time to make the most of the opportunities Amazon presents. Even removing Prime Day from the equation, any brand looking to upgrade their growth through Amazon can benefit from learning the same fundamentals:
Conduct cost-benefit analyses, optimize your content, be critical with your advertising strategy, focus efforts on the right keywords and products at specific periods throughout the year, and measure how shoppers are engaging with you across all touchpoints.
For more insights on how your brand can drive sales and brand awareness with marketplaces, get in touch, and keep your eyes peeled for a (rumored) Prime Day 2.0 in October 2022.
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This article was originally published on Incubeta.