Amazon Prime Day 2015 will go down in history as Amazon’s first-ever attempt to create a sales holiday to rival Black Friday and Cyber Monday. This one day extravaganza on July 15th, 2015 delivered sales that exceeded Black Friday as well as a little quirkiness along the way.
Amazon delivered on Prime Day, even with some of the #weirdprimeday items up for sale – who doesn’t need a chef hat for $4 or gluten-free RED HOTS. Amazon scored big and so did CommerceHub merchants who took advantage of this unique sales opportunity.
Amazon Prime Day 2015 by the Numbers
Current CommerceHub merchants who sell on the Amazon Marketplace were able to more than double their sales, improving their one day YoY revenue by 147% as compared to same day sales one year ago. This is significantly better than the 80%-90% lift that other third party marketplace providers were reporting.
Not only were CommerceHub sellers able to substantially increase net sales, Prime Day was also a huge opportunity to drive new customer acquisition. On average, CommerceHub merchants were able to generate a 181% YoY increase in the number of new customers purchasing their products on Amazon during Prime Day.
The value of the shopping cart was also up. The Average Order Value (AOV) was up 117%, which was directly attributed to the increase in traffic of customers who came to Amazon Prime Day with the specific intent to buy. If they couldn’t find what they were looking for in Lightning Deal form, they may have found other items to add to their carts.
CommerceHub Sellers Refine Merchandising Strategies
For those sellers who participated, there were four key strategies that our Performance Marketing Services team suggested in order to drive optimal results.
Product Catalog Compliance
First and foremost, using a combination of tools and service, CommerceHub worked with all of our participating customers to ensure that their seller categorizations were up to date on Amazon. Additionally, Amazon listing errors were resolved using the Channel Error Resolution tool that is part of DemandStream ensuring that a merchant’s full catalog was visible across the Marketplace.
Agressive Merchandising and Promotions
One of CommercHub’s top merchants selling women’s & men’s branded and designer intimate apparel won big on Prime Day by taking advantage of the Amazon Price Optimizer re-pricing engine that is part of DemandStream to create seven (7) new pricing rules. These rules included floor pricing down to 25% or 50% resulting in 8,000 more products being re-priced to be incredibly price competitive and drive purchase. Additionally, this merchant was able to use rules to schedule re-pricing every hour based on the pricing of specific, targeted competitors. The DemandStream re-pricing engine can send updated pricing to Amazon every 10 minutes during peak events such as Prime Day or holiday shopping periods.
Price Discounts Combined with Free Shipping
A leading women’s apparel provider who also participates in FBA, decided to offer 50% off on much of their catalog in combination with free 2 day shipping on merchant fulfilled products to match Prime offers. Because this seller is a member of FBA, they were able to be aggressive in their price promotions to double their conversion rate during Prime Day. The powerful offer of price discounting plus free shipping lead to a 2X increase in sales YOY and a 3.5X in sales DOD.
Merchant Branded Promotions
For CommerceHub clients who did not participate in FBA our Marketing team helped these merchants craft and execute their own product promotions and discounts to take advantage of the increased traffic flowing through Amazon and convert that into sales. A leading music instrument retailer set up promotions of up to 30-40% off throughout their catalog, which lead to a 286% increase in sales YoY, and a 218% increase in DoD sales, despite not having featured placement in Amazon Prime Day 2015 lightning deals. Additionally, many merchants were able to provide free shipping and reduce fulfillment times to be more competitive with those merchants participating in FBA.
CommerceHub take on Prime Day
Amazon has confirmed that Prime Day will return. Next year, be prepared for a more focused and high-value group of products to be showcased, as Amazon expands on Alibaba’s strategy to create its own shopping holiday and combats new marketplace entrants such as Jet.com.
The higher demand on Amazon helped all of our sellers overall, and CommerceHub merchants should factor in a mid-year Prime Day lift on Amazon as part of their 2016 planning.