3 min read

Making the most of Amazon Prime Day

Prime Day is expected to fall at some point in October. This year it will be a little different though, as we’re still in the midst of a global pandemic, and companies haven’t had the luxury of their Q4 restock that usually comes with the July Prime Day. With disrupted supply chains and online purchases at a record high, the outcome of this Prime Day is entirely unknown.

Prime Day is one of the biggest yearly events on Amazon, with revenue and sales skyrocketing for businesses across the board. But how can you ensure you make the most of Prime Day, especially within the current climate?

Picking The Correct Deals

Amazon sellers have access to a variety of deals that can be scheduled across different time periods. Deal fees will see a substantial increase over higher traffic time periods such as Prime Day. To be eligible for deals you must be a professional seller with at least five seller feedback ratings per month and an overall rating of at least 3.5 stars.

7-Day Deal (Hero Deal): These deals do exactly what they say on the tin; they last for 7 days with no limit on the amount of inventory that can be sold (so make sure to keep an eye on stock levels!). These deals are highly effective if you wish to push a continued sales increase over a 7+ day period. You are only able to select a fixed week for these deals to run – you cannot select specific dates.

Lightning Deals: The most common deal of the two. Lightning deals are very effective at driving a significant sales boost over a short period of time, averaging a 65% increase. These are perfect for clearing inventory and delivering a quick revenue boost. These deals also lead to a “halo effect”, where listings continue to see boosted sales even after the deal has ended. However, you will be prompted to offer a more significant discount on your items if you run deals over Prime Day (so be sure to check those margins!).

Making The Most Of The Event

Brands who push forward with Prime Day generally see a good uplift in sales. However, as this Prime Day is expected to take place in unprecedented, uncertain times, many brands may be leaning more towards sitting this one out.

This could be great for businesses who do take part, as they will benefit from reduced competition. So, rather than watching your competitors who are going ahead with Prime Day overtake you, make the most of it. 

If you’re not sure where to start, we’ve compiled a few strategies that could steer you towards success this year.

  • Running paid advertising using sponsored products and brands – Many sellers fail to see the importance of sponsored products and sponsored brand advertising over Prime Day, but they could really increase your visibility and sales. Make sure you have a generous budget allocated to your campaigns as impressions, CPCs and clicks will be expected to boom. You don’t want to miss out on the opportunity by having your campaigns limited by budget.
  • Utilise Amazon’s vouchers – These can be applied to products and redeemed on top of deals, so be careful not to overlap. These are perfect to use on those products that do not qualify for Amazon’s deals that you still want to offer at a reduced cost.
  • Creating bundles – This is an extremely effective method, especially on giftable items. Many shoppers use Prime Day to buy gifts so be sure to make the most of your giftable ASINs by compiling in bundles.

Amazon Brand Registry

An extremely important feature embedded within Amazon is the “Amazon Brand Registry”. Here a seller is able to register their brand, providing they have a registered trademark with branding visible on either their product or the packaging. The Brand Registry is overlooked by lots of sellers despite the great benefits that come with it, such as:

  • Amazon storefronts – A registered brand is able to build their own storefronts on Amazon. These storefronts can be structured however you wish (perfect for showing off your Prime Day deals).
  • Sponsored Brand advertising – Very similar to sponsored product advertising, here you can advertise your brand with small product showcases at the absolute top of the page. These ads link to your storefront, so they tie in nicely when showcasing deals. Sponsored brand advertising is extremely effective over periods with increased traffic, making them perfect for Prime Day.
  • Including A+ content within listing descriptions – A+ Listing content can drastically improve the visual appearance of a listing. Enabling sellers to include custom images and structure within product descriptions, A+ content is proven to increase CR% – exactly what you want over Prime Day with all of the increased listing traffic.

Inventory Planning

The most important, and often most unpredictable, factor of Prime Day is inventory. Amazon fulfilment centres are subject to massive increases in volume, so a receiving process which previously took five days could now take 20-30 days to complete. Make sure to plan ahead.

Amazon has an Inventory Performance Index (IPI) in place that has the potential to be a challenge for a number of brands, as it can essentially limit how much inventory can be sent to Amazon’s Fulfilment Centres. The limit is largely based on inventory turns, which has proven to be more of an issue recently with supply chain disruptions due to COVID-19.

All of these issues have previously led to sellers having FBA stock issues over Prime Day. Amazon sellers who utilise FBA should be fully prepared to have to fulfil orders themselves. Sellers could also use a third-party logistical service to fulfil orders; this is an effective insurance policy that’s worth the investment.

Planning your own Amazon Prime Day activity?

Prime Day is fast approaching, but if you’re unsure on how to use Paid Media to capitalise on all the benefits it can bring, get in touch with our team to see how we can help. Call us on 01438870220 or fill out our contact form. 

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