This year’s Amazon Prime Day (12th July) was an indisputable success. Amazon saw transactions up by 60% and the number of orders placed on its mobile app more than doubled compared with Prime Day 2015.
At the same time, Amazon reported that their Prime membership base had hit 63 million (19 million up from 2015) with smaller sellers bringing in three times more than Black Friday last year. Amazon seems to be setting a new trend in the international retail market too, with Argos and Walmart creating similar, competitive offers for the same period.
Volo’s sellers who got involved in Amazon Prime Day have reported a 38% YoY (year on year) increase in sales. Our data shows that electronics, fashion and home and garden items were in high demand this year compared to 2015.
How to prepare for next year’s Prime Day
Stock-up on Inventory
A huge spike in traffic during Prime Day is great news, but you need to prepare in advance for the increase in potential customers and make sure you have a good stock of popular, top selling products. Running out of stock can result in a lower ranking in the listings for some items – something you definitely want to avoid when shoppers are on the hunt for good bargains.
Get your listing in top shape
Customers might get excited about your products and great deals, but you still need to offer them a high-quality shopping experience. Help them understand why your products are better than your competitors’ and provide them with all the necessary details to feel satisfied with the purchase.
Positive customer reviews are also a great resource as they have a major influence on buying decisions. Make use of your clients’ loyalty and offer them a small incentive to encourage them to write a review.
Create further deals
You can also create your own deals beyond Amazon’s sitewide offers but remember to put your best price forward. Add further deals or promotions to attract buyers to your products. A bit of research in advance can significantly help you to find a successful pricing strategy.
Another option is ‘Amazon Lightning deals’. These are flash sale promotions with a limited number of discount offers on an item for a short period of time. You’ll see a noticeable increase in sales on these products on Prime Day.
Gather more (and better) reviews
You have to face the facts, customers are influenced by what other buyers say. Prime Day is first and foremost a day to sell as much as possible, but don’t forget it can also be a great branding activity. You want to get as much attention as possible, so collecting reviews and ratings before the actual day is valuable.
Seller fulfilled Prime
Something sellers need to consider and get right is the fulfilment process. Seller Fulfilled Prime (SFP) allows you to keep your inventory in-house while gaining more control over packing and shipping processes. And to make things more straightforward, there are no freight costs to Amazon fulfilment centres and no pick and pack fees. You’ll have to use Amazon’s API to get Prime delivery quotes from premium supported carriers but considering the time you’ll save it will be worth it.
Report and analyse results in preparation for next year
Amazon Prime Day can be one of your most successful selling days over a year, but how do you know which items sold well and which didn’t? How do you calculate your ROI for each category of products and even for individual items?
Selling large quantities of your merchandise can be exciting but have you chosen the right pricing strategy, are you getting enough returns back? This is where reports come into play as an essential part of your business. Being able to measure the sales impact on your bottom line whilst also removing any errors is critical to create a highly efficient and profitable end-to-end process.
In a nutshell, Amazon Prime Day is a great opportunity for any seller. Especially as the marketplace is doing all the work, creating an impressive marketing campaign and generating word of mouth among your potential clients. However, you need to plan ahead, prepare your stock and listings and make sure that you offer a great shopping experience to anyone who steps through your online door.
If you want to learn more about how you can grow your sales and take part in Amazon’s next Prime Day, contact us here.