PRIME DAY 2022: A REMINDER ON WHAT HAPPENED
Despite last year’s concerns around inflation, Prime Day 2022 was Amazon’s biggest to date. The two-day sales event was held in mid-July, as predicted, and offered great deals and discounts to Amazon Prime members across a wide range of products. While 35% of consumers reported spending less than in previous years, overall performance rose 6.2% YoY and generated around $7.76B. During Prime Day, Stella Rising clients saw an average revenue lift of 5.9x vs. a typical day. This year, inflation—though improved—and recessionary headwinds persist. We expect to still see a strong event as consumers will seek out sales, look to treat themselves for less, and get a start on their holiday shopping.
PRIME DAY 2023 SCHEDULE/GOALS
Last year, Amazon Prime Day was held on July 12-13; we expect a similar schedule for Prime Day 2023, including lead-up and lead-out periods, so brands, plan accordingly. To maximize sales during this event, we strongly recommend a holistic strategy that includes not just Prime Day but also the lead-up and lead-out periods. This can include promoting deals and discounts in the days leading up to Prime Day and extending promotions for a few days after to catch any procrastinators. A few key timing considerations:
- The lead-up period to Prime Day begins up to two weeks in advance and is an opportune time for brands to prepare their product pages, promotional strategy, and advertising campaigns for a successful event.
- Following the lead-up period is the Prime Day event, which takes place for around 24-48 hours in mid-July. During the event, Amazon heavily promotes pre-selected featured deals and discounts for “prime” placement throughout the site.
- Finally, following the Prime Day event, the lead-out period begins and lasts for around two weeks. By reengaging with consumers who did not complete their purchases, brands are able to capitalize on the increased traffic to maximize the Prime Day halo effect and continue to drive sales long after the event has ended.
At this time, brands should be finalizing their goals and promotional strategy for Prime Day. Brands can consider a few key objectives, including:
- Driving revenue
- Increasing brand/product awareness
- Liquidating excess inventory
Once a primary objective is selected, brands can choose the deal types that best suit their goals.
PROMOTIONAL STRATEGY
Amazon promotional sourcing began on April 10th and continues with several deadlines, depending on the promotion type, until the event. Amazon offers a variety of deal types that will provide brands with central placement throughout the event, including Lightning Deals, Prime Exclusive Best Deals, Prime Exclusive Discounts, and Prime Member Coupons.
- Lightning Deals – Final Submission Deadline: April 28, 2023
- Duration: 12 Hours
- Restrictions Include: Min. 20% discount off the basis price; must match/beat lowest price in last 30 days
- Fee: $300/deal scheduled during Prime Week; $500/deal scheduled on Prime Day
- Prime Exclusive Best Deal – Final Submission Deadline: April 28, 2023
- Duration: 48 Hours
- Restrictions Include: Min. 15% discount off the basis price; must match/beat lowest price in last 30 days
- Fee: $1,000/deal
- Prime Exclusive Discount – Final Submission Deadline: Two Weeks Prior to Event
- Duration: 48 Hours
- Restrictions Include: Min. 15% discount off the basis price; must match/beat lowest price in last 30 days
- Fee: No Fee
- Prime Member Coupon – Final Submission Deadline: None
- Duration: 48 Hours
- Restrictions Include: Min. 20% discount off current price; customer Segment targeting must be set to Amazon Prime
- Fee: $0.60/redemption
Overall, to make the most of their deals, brands should use Amazon recommended ASINs, highlighting top products and/or new products, and ensure that ASINs are not suppressed due to out-of-stock issues, pricing, or compliance issues.
PREPARATION TIPS
Brands looking to make the most of this year's Prime Day event can take advantage of the following key recommendations from Stella Rising to ensure they are fully prepared. Implementing these recommendations can help brands drive sales, increase brand visibility, and stand out in the highly competitive Prime Day marketplace.
- Ensure Sufficient Inventory: Inventory is a crucial factor in Prime Day preparation. Amazon’s cutoff deadline for inventory is June 15.
- PDP Content Review: Brands should plan to review and optimize their product display page (PDP) content well in advance of Prime Day. This includes reviewing the product’s title, bullets, images, infographics, and A+ Content.
- Store Review: Just as with PDPs, brands should plan to review and optimize their Store. With the increase in organic and paid traffic, brands should plan to highlight their promotions prominently in the Store throughout the promotional timeframe.
- Generate Traffic: Driving traffic to deals during Prime Day is important, both on and off Amazon. On Amazon, brands should ensure a strong budget for the event and be prepared for increased competition, which can result in higher CPCs. Externally, brands should plan to leverage their social media presence as well as existing email distribution lists to promote their deals if possible.
In summary, by aligning goals, inventory forecasting, optimizing content, and driving traffic to deals, brands can make the most of this annual sales event. Prime Day 2022 was a huge success for many brands on Amazon. However, with proper preparation and a strong promotional strategy, Prime Day 2023 can be even more profitable for brands.
At Stella Rising, our award-winning team of Amazon experts drives brands forward with savvy marketplace strategies. Looking to outshine the considerable competition? Connect with us.
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