Regardless of whether you have started selling on Amazon yet or not, you would have had to be living under a Bezos-free rock in recent years to have not seen the hype around Prime Day. Once a year Amazon pumps a ton of hype into the ecosystem with a day - or more accurately - seemingly an annually increasing time period that last year lasted 36 hours - of deals and promotions.
Amazon’s stated aim is to reward Prime customers for their continued custom. However, stats show that July had generally been the quietest month of the year for Amazon. Prime Day then was their way of kickstarting some revenue at a time almost equidistant from the beginning and end of the month of madness - Black Friday through 22nd (ish) of December when revenue goes absolutely bazinga.
So what can we expect as Amazon sellers?
Simply put - more traffic and more sales. The general levels of traffic on the Amazon platform spike massively on Prime Day and it is therefore a great opportunity. Prime Day has been the largest single day of sales on Amazon for the last 2 years running.
It doesn’t always guarantee exponential sales, but to give you an idea, here are the UK sales from one of my accounts last year:
As you can see, in the lead up to Prime day we were doing £3-400/day on this account, and hit almost £900 on Prime Day. So we saw a spike of around 2x. What is also interesting to note is the increase in sales in the following weeks too. More on why that happened that shortly.
We didn’t do anything crazy, just the 8 solid strategies I’ll talk you through now.
Quick disclaimer: depending on your goals, your approach to some of these strategies may vary. These are things you CAN do, but make sure you apply them in the right ways for your current context.
1️⃣ Be in stock
For most people it could well be too late now. But it goes without saying, if you want to capitalise on a spike in traffic, you need to be prepared on the inventory front. Some of you may be able to ship some extra units in by air. Otherwise some sellers *may* want to consider decreasing PPC budgets or increasing price, although I wouldn’t generally recommend this as you run the risk of negatively affecting ranking.
That aside - it’s a good lesson learned, and this, like all other keys today, will apply even more so to Q4.
2️⃣ Optimise your listing
It goes without saying that an optimised listing is key. But at high traffic times like Prime Day, it’s good practice to back through your listing and have a refresh - are all the high traffic and relevant keywords in my listing? I use Helium10’s tools to check this - index checker to ensure I’m indexing for all the important keywords, and Cerebro to see if I am ranking high enough for the important keywords. If not, I’ll work through my listing, make sure those phrases are prominent, and maybe even run some Facebook ads to ensure I’m ranking high when it comes to Prime Day.
3️⃣ Consider your pricing
The temptation with pricing is to drop it considerably in order to compete with this deal-fest of a day. However, what you will often find is that due to the increase of traffic you will be able to get away with charging a slightly higher than normal price. Don’t go crazy, but it’s worth trying to squeeze a little more out of those margins.
4️⃣ Advertise on Amazon
There are a range of ways to advertise on Amazon. It’s too late now to set up a Lightning Deal for Prime Day - but that is something worth considering for the future. What I would recommend however, is making sure you are using vouchers (coupons in the US) to display a clear discount - buyers will be on the lookout for discounts, so this is of utmost priority. Sure, this will eat in to your margins, but what I recommend is if you are concerned about your margin - increase your price by the same amount as the discount and you will often find your conversion rate still improves.
Also ensure, where applicable and possible you are running promotions such as multi-buy discounts by offering, say, 10% off when buying 2 units. You can easily set this up in the advertising section of your Seller Central account.
And finally, PPC. There are a number of approaches you can take with PPC on Prime Day. Firstly, you may want to ignore the advice Amazon gives. I just got the emails through yesterday in which Amazon will always suggest increasing your budget and your bidding. Of course they would. However, remember that there will be a lot of “window shoppers” on Prime Day and this budget may get blitzed pretty quickly.
Instead, consider increasing your budget for the day, but leaving bids as they are. This way, when your competitors blow through their budget by 9am, you’ll have great visibility for the rest of the day and it won’t cost you an arm and a leg.
Remember I noted the interesting growth in sales post-Prime Day? The reason for this was a spike in keyword ranking. You see your ranking improves with velocity. Prime Day is a great opportunity to manufacture some velocity that means the positive impact on your business doesn’t just last one day, but pushes you into a new bracket of revenue. PPC is a great way to put you in the best possible position to do that.
5️⃣ Advertise off Amazon
Your customer list (assuming you’re building one, which you should be!) will most likely already be aware of Prime Day. What better way to get them buying from you, than to reach out and let them know you are running some Prime Day promotions yourself (see previous point!)
6️⃣ Plan your diary
A small point, but it’s a great idea to make sure you are available and near a computer on Prime Day in order to monitor your campaigns and ensure everything is running smoothly. You don’t need to be glued to the desk, but make sure you don’t plan to be climbing a mountain that day either...
7️⃣ Aim for customer retention
Amazon’s goal with Prime Day is a mid-year boost. But it also has the aim of retaining it’s most important customers - Prime members - by offering exclusive discounts. Take a leaf out of Amazon’s book and make sure you are focusing on customer retention too. You can do this by offering good customer service should any problems arise and by offering follow up promotions to customers.
8️⃣ Avoid wasting money on things you don’t need
Ok, so this isn’t strictly Amazon FBA related. But you’ve come this far, so let me get it off my chest. It’s a worrying financial world we live in at times. Combine the increased appetite for instant gratification along with the ease of access to debt and it is a recipe for financial disaster. Whilst you put effort and energy into a profit producing business, don’t nullify all your efforts with poor personal financial management.
If you really need something, then Prime Day can be a great time to get a good price. But if you don’t need something, and you just buy it because it was £300 and is now £200, you didn’t save £100, you spent £200. Anyway, cheers Dad, lecture over.
I hope this tips have helped and that Prime Day 2019 is a record breaker for you!