Amazon Prime Day is simply across the nook. That is how sellers can enhance their gross sales
Amazon Prime Day isn’t here yet, but sellers must act now for optimal results for the highly anticipated summer retail sales event.
No official date has been released AmazonIt has been widely reported that the popular two-day event will most likely be held again next month. Last year it took place on July 12th and 13th (and was announced by Amazon in mid-June). That makes mid-July, on or around July 11th and 12th, a logical bet.
There is a lot at stake for sellers. Amazon has more than 200 million paying Prime members worldwide. Last year, Prime members bought more than 300 million items worldwide on Prime Day – a record according to the company. Additionally, sales traffic tends to be higher in the days before and immediately after the two-day event, making this more of a week-long opportunity for sellers.
Of course, some of the biggest purchases are from retail giants, from Apple products to Shark vacuums, which were among the top-selling items last year. The economy has also weakened and retail demand has fallen. Still, this year is expected to be another big one, as 68% of consumers are expected to shop on Prime Day, according to a report by Jungle Scout, which provides software and research for Amazon sellers.
Vendors can start preparing by getting information straight from the horse’s mouth. Amazon offers videos from its Seller University on how to maximize profits on Prime Day. For example, the importance of concise, relevant titles, product listings with extensive detail, and keywords that are likely to appeal to customers.
Here are some additional steps that experts at e-commerce platform Amazon say sellers should take now to proactively prepare:
Keep track of storage periods and available stocks
Amazon recently told sellers to have their Prime Day inventory ready in U.S. fulfillment centers by June 15, according to Chris Compean, co-founder and CEO of Mayan, a provider of inventory and ad automation technology for Amazon sellers. Sellers may also consider fulfilling some orders themselves.
Where possible, sellers should use data from previous years to determine the ideal level of inventory. In the absence of data, a general rule of thumb is to plan to sell at least double your usual amount over the two days, Compean said. In the current economic environment, it’s difficult to keep inventory just right — even the largest retailers have struggled in the wake of the pandemic boom, inflation, and consumer slowdown in 2023 — but in general, sellers should always stock products for 60 to 90 days. “As long as you’re generally well equipped, you’ll be fine with Prime Day,” Compean said.
Start your Prime Day marketing two weeks early
At least two weeks before Prime Day, sellers should start building their visibility, said David Hutchinson, vice president of marketplaces at NP Digital, a digital marketing agency. As part of that initial effort, sellers must also determine how they plan to compete, whether that be by dropping prices, offering lightning deals — a discount over a short period of time — or Prime Day coupons, or running such promotions, perhaps for a few days before and after the two-day event, he said. For example, lightning deals can improve brand awareness and increase sales, but they can also fail. While couponing can increase seller visibility, they must have sufficient inventory to handle the potential sales surge.
Use Instagram, TikTok, YouTube, Facebook and Amazon provided URL links
Sellers should promote deals they wish to offer on their various social media websites and their dedicated Amazon Store page.
“You want to get Prime customers looking for your brand on Prime Day,” Compean said.
Amazon allows sellers to create URLs to paste into their Prime Day social media posts. So be sure to do this. “You want customers to be able to click right on your Instagram post, go to Amazon, and buy the product right away,” said Mike Scheschuk, president of small and medium businesses at Jungle Scout. “The same goes for TikTok, or YouTube, or Facebook, or whatever social media platform you choose to post on,” he said.
Using Amazon URLs ensures that your sales analytics are sufficiently detailed. “You’re not just tracking that you got three hundred clicks because of a post. You can actually see what they bought as a result,” Hutchinson said.
Don’t be stingy – offer deals on all products
Top-selling items in the US on Prime Day in recent years have included beauty items, pet products, kitchenware, children’s clothing, toys, electric toothbrushes, electronics, and outdoor gear and apparel. Of course, small businesses are also competing for consumer money with some of the biggest brands, with Apple products, Shark vacuums and premium beauty brands also among the top sellers on Prime Day. Compean encourages sellers to offer Prime Day deals on all of their products to maximize potential sales.
Don’t forget to advertise before and after Prime Day
Sellers should plan to spend more on advertising in the days leading up to and immediately after Prime Day, when traffic tends to be higher. According to Jungle Scout’s e-commerce data, average ad spend per brand rose 320% on “typical days” last year and is up 11% from Prime Day 2021.
Budgeting can be difficult, especially for sellers who don’t have comparable data from previous years, said Dan LeBlanc, co-founder and chief executive officer of Daasity, an ecommerce analytics platform. In this case, sellers should plan a sufficient budget so that they do not feel pressured if the ads do not generate a return. A general rule of thumb might be double the amount of a normal day. “You don’t want to pour your entire marketing budget into this week,” he said.
Check your customer reviews and product listings in advance
Sellers should use the weeks leading up to Prime Day to pay special attention to reviews and ensure their products are easy to find. This could include using paid keyword research tools to help businesses figure out what keywords are trending on Amazon or popular on Prime Day last year.
Popular keywords aren’t always obvious, although they fall into categories known as Prime Day winners. Examples that were popular on Prime Day last year include “gel nail polish,” “baby clothes,” “wall clock,” and “router,” according to data from Feedvisor, a seller information platform.
Sellers can also test which product images resonate most with customers, Scheschuk said. This is typically done by conducting A/B tests to find out what content, including product images, resonates the most with customers using a service provided by Amazon, he said. With A/B testing, one group of customers sees one version of the content, while a second group sees the other. Sellers can then review which version performed best and use that in the future.
It’s not possible to give exact advice on images – there’s case-specific A/B testing for that – but in general, advice for Amazon sellers suggests that the images used should be clear and either product or lifestyle oriented. Also, it’s best to keep the product as identifiable as possible – can buyers immediately tell what’s being advertised when they see the creative?
Get a small business badge to stand out from the crowd
Many small businesses have not applied for a small business badge identifying products from US-based small business brands.
“A lot of people want to support small businesses,” Hutchinson said. “All things being equal and there is a penny difference, as a consumer you are likely to side with the small business and not with a large corporation. It’s another way to stand out on Prime Day.”
The Small Business Badge is free, but there are certain limitations imposed by Amazon, which sellers can learn more about by visiting Seller Central, Amazon’s third-party management portal.
Amazon uses the Gartner definition of small business to determine which sellers qualify. That means they must have fewer than 100 employees and less than $50 million in annual revenue. According to eComEngine, which provides software to support Amazon sellers, a brand must also enroll in the Amazon Brand Registry or participate in the company’s Handmade program for artisans.
Remember this isn’t Black Friday – focus on Amazon
Especially during Prime Day, don’t try to drive traffic to other shopping sites you may be listed on, such as Shopify or Walmart, as the majority of people won’t be looking for deals there. “It’s not Black Friday,” Hutchinson said.
Already thinking about the deadlines for next year
Amazon offers certain Prime Day promotional benefits to eligible businesses that meet its requirements, LeBlanc said. However, the deadlines for these services are months in advance. Thinking ahead for next year can help sellers capitalize on these special promotional opportunities, he said.