It’s that time of the year again. Amazon Prime Day is just around the corner. Last year, Amazon invented a brand new shopping holiday as part of its 20th Anniversary celebrations and made history of sorts. 2015’s Amazon Prime Day saw traffic to Amazon swell 77.2% higher than Black Friday and 51.5% than Cyber Monday with 398 items sold per second according to the company’s own estimates.
Amazon Prime Day will likely be held in mid-July this year, and we fully expect a repeat of last year’s shopping fever.
CommerceHub Clients Scored Big on Amazon Prime Day Last Year!
CommerceHub’s own clients saw their sales on the Amazon Marketplace more than doubling on the first Amazon Prime Day in 2015, with an average spike of 147% in one-day YoY revenues.
A large specialty retailer set up promotions and discounts 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 Prime Day’s lightning deals.
Another example is of a fashion retailer setting up a free shipping promotion during Prime Day, which lead to a fourfold increase in sales. Additionally, many of our merchants offered shoppers free shipping and reduced fulfillment times to compete with those merchants participating in Fulfillment by Amazon (FBA).
Preparing for Amazon Prime Day 2016
Based on last year’s promotion, we expect only sellers who have Prime enabled products to be eligible to offer Amazon Prime Day 2016 deals. So if your products are not Prime enabled, you’ll likely miss out on the Lightning Deals and other one-day specific promotions that Amazon will host on Prime Day.
However, not being Prime eligible is no reason to NOT gear up for Prime Day. From last year, we saw overall revenues for our sellers – Prime eligible or not – go up across the board. The deluge of deal hunters that are expected to land on Amazon on Prime Day will be happy to lap up a good deal, no matter if it’s Prime eligible or not.
To help you prepare for the mid-year shopping holiday we’ve all been waiting for, we put together this quick checklist.
Amazon Prime Day Checklist
- Make sure your categorizations are all up to date for Amazon
- Offer sale prices via the feed. We recommend offering a minimum 20% – 40% discount to make the most of this shopping holiday
- Resolve any Amazon listing errors via the Channel Error Resolution Tool
- Make sure that Amazon Price Optimizer (repricing) rules are up to date and scheduled for the correct frequency
- Adjust feed frequency to 15 minutes or shorter to avoid stock-outs
- Add an inventory buffer for items that have a higher potential to be sold out
For Prime Offers (FBA or Seller Fulfilled Prime)
- Make your top selling items Prime eligible
- Stock up on your inventory, notify your suppliers ahead of time. You don’t want to lose sales due to stock outs
- Consider repricing more aggressively on Prime Day to win the Buy Box
For Non-Prime Offers
- OFFER FREE SHIPPING
- Reprice more aggressively to win the Buy Box (typically, you have to beat the Prime offer by 10% or more in order to win the Buy Box)
- Shorten your fulfillment latency to 1 to 2 days
- Offer Same-Day or Two-Day shipping
For more help on setting up your product feeds and promotions on Amazon, reach out to our Performance Marketing team today!