Amazon surprised shoppers by announcing that Prime Day would be three weeks earlier than usual - on the 21 and 22 June. That’s the earliest Amazon’s famous deal day has been since its inception in 2015. Last year, Amazon was forced to delay Prime Day until 13 and 14 October due to COVID-19.
While Amazon did not disclose its sales for the event, in the absence of official figures, there have been estimates. Ecommerce delivery company ParcelHero estimated that global sales reached a record $10.4 billion for the two days. This was 45.2% higher than in 2019.
Financial stimulus measures in the US and in Europe, such as Germany’s 3% VAT reduction, also undoubtedly helped to support the success of Amazon Prime Day last year.
Last year, the pandemic meant many more shoppers were still living with social restrictions and with pent-up savings from not being able to go on holiday, to restaurants or outings. Estimates from credit rating agency Moody’s show that consumers worldwide have stockpiled an extra $5.4 trillion of savings since the coronavirus pandemic began. Other studies show signs that a consumer boom is about to be unleashed as economies continue to open.
This year, Amazon doesn’t have as much of a captive audience as it did last year with much of Europe and the US less constrained by social restrictions yet the expectation is that Prime Day will still break new sales records.
In addition, the epic adoption of ecommerce fuelled by tbe pandemic only emphasises the significance of deal extravaganzas pioneered by Amazon and heightens the opportunity for the consumer brands that sell through Amazon.
We will be tracking Prime Day in real time on 21 and 22 June and reporting on key findings. Until then, see below for things to look out for this year and 3 things consumer brands should focus on to leverage Amazon Prime Day 2021.
3 things to look out for Amazon Prime Day 2021
1. Even greater success for small businesses
Last year, Amazon reported that sales for third-party sellers, which are almost all small and medium-sized businesses, reached $3.5 billion globally, breaking Amazon records. The ecommerce giant supported SMEs over Prime Day 2020, offering £10 for shoppers to spend if they spent £10 with a small business in the week before.
Amazon has revived this deal for 2021. This combined with the $18 billion last year it spent investing in small and medium-sized businesses, leads us to expect Amazon to promote these businesses further and its Amazon Handmade and Amazon Launchpad platforms to boost sales again this year.
2. The best summer deals are coming home
Screens and snacks: When Prime Day kicks off, the Euro 2021 Football Championship will be underway. Expect Amazon and some manufacturers to tap into this with deals targeting fans. So you can expect to see deals on televisions, soundbars and even beer and snacks as mazon is likely to use the higher traffic to showcase its growing grocery offering
Cosmetics, fragrance and clothes: According to NPD group, during the lockdowns, sales of cosmetics and fragrances dropped significantly as people were stuck at home. Now with the end of restrictions in sight, sales are starting to rise so Amazon and manufacturers in the category are likely to take advantage of pent-up demand. Amazon may also see this as an opportunity to encourage shoppers to use it’s Prime Wardrobe service.
Home improvement and garden: One area where we may see fewer deals is in Home Improvement and Garden products. The pandemic prompted a global DIY boom but this has strained the availability of certain key materials now, like cement, timber and paint. At the same time, new Brexit-related rules have put pressure on the supply chain, which were exacerbated by a giant cargo ship getting stuck in the Suez Canal a few months ago.
Shoppers hoping to grab a bargain on a BBQ or a swing seat for the garden to enjoy the sunny weather may be disappointed
3. Increased competition from rivals
In previous years we have seen competition from other UK retailers who would run deals to challenge Amazon on Prime Day, this was particularly evident in 2016 and 2017. However, since then this challenge has diminished somewhat but Currys stills ran “Epic Deals” last year to challenge Amazon. In Germany last year the fight was very much alive with MediaMarkt and Saturn running rival promotions.
The bottom line of omni-channel retailers such as Argos and Currys will have suffered over the last year due to store closures so we are expecting more competition, in the form of rival deals, this year as they use this shopping event to bolster sales.
Tune into Edge by Ascential’s blogs on the day to get our real-time analysis into who is winning Prime Day.
Prioritise these 3 things to succeed on Amazon Prime Day 2021
1. Invest in paid search
90% of purchases on Amazon begin with search. Given the high volume of traffic on Prime Day it is imperative your products are visible to shoppers. The top three listings account for 64% of all clicks and these listings are highly likely to be paid placements. Therefore your Prime Day strategy should include winning keyword auctions for the popular terms your shoppers are using.
2. Optimise Prime Day deals
Deals are the main focus for shoppers visiting the Amazon website on Prime Day. The deals page will be the first port of call for many. Manufacturers should consider Spotlight or Lightning Deals to maximise visibility T.he cost of these promotions is often easily recovered through increased sales. Choosing between which deal to utilise will depend on the discount you’re willing to offer to shoppers. Spotlight deals have greater visibility but require a greater discount. Not engaging with deals can also have a negative effect after Prime Day with products decreasing in relevancy and organic search rank.
3. Ensure you have A+ content
Conversion rates are typically higher on Prime Day than a normal day however manufacturers must ensure there are no obstacles to purchase to take advantage of this. Manufacturers must ensure they have A+ content on their product listings, particularly the most popular products and those on deals. This includes comprehensive, high quality imagery and videos, a broad and supportive FAQ section and clear and precise product descriptions. This content will make shoppers feel reassured about a purchase and ultimately boost conversion rates.
Watch out for our blogs on the 21 and 22 June for real-time analysis into who is winning Prime Day 2021.