Last year’s Prime Day was postponed due to the coronavirus pandemic and instead helped kick-start the holiday season, as it was held in many countries in early October. Amazon announced that Prime Day 2020 marked the two biggest sales days for small- and medium-sized businesses within the marketplace across nineteen countries. Sales surpassed $3.5 billion. Shoppers came in the tens of millions, even in the days leading up to the sales event itself. Amazon’s Spend $10, Get $10 promotion generated more than $900 million in sales for small businesses — and, presumably, got online shoppers familiar with new and unique brands. During the two weeks leading up to Prime Day 2020, customers shopped from small businesses across all 50 U.S. states, with Utah, California, and New Jersey seeing the biggest sales per capita for those included in the promotion, concludes Amazon’s report. 

While customers are starting to prepare for Prime Day deals that will fill their shopping carts, brands should start preparing their e-commerce stores for Prime Day 2021.

What to Expect During Prime Day 2021

Amazon announced that Prime Day 2021 will be held on June 21-22, just in time to splurge for summer vacation. 

Though retail sales exploded in March, reported CNBC, due in part to the stimulus checks that gave shoppers a little extra budget to treat themselves, April and May sales have been slower. NetElixir has found that, although e-commerce and brick-and-mortar retail sales have been a bit slower than anticipated in April and May, the travel and hospitality industries are experiencing a surge in demand. Consumer confidence continues to be high and customers are spending a larger portion of their dollars on travel and experiences rather than on things.

NetElixir anticipates that retail sales will continue to be strong throughout the rest of this year, especially as the rise in travel and experiences is a positive indicator for long-term economic growth. Based on NetElixir’s research into YoY e-commerce sales trends within our database, we see that while website sessions have been lower than expected, average order value and conversion rates continue to be strong. This indicates that consumers have a more direct shopping intent, knowing what they want to shop for and then buying it in abundance.

A sales event like Prime Day can play a crucial role in turning online shopper’s interest toward products again — especially products that will serve them well on their planned vacations. 

Last year, Prime Day loomed just before another huge sales event (Cyber 5, the days from Thanksgiving Day to Cyber Monday), which deterred some people from making big purchases, Digital Commerce 360 found. In Digital Commerce’s survey, 29% of customers said that they did not buy anything during Prime Day 2020 as they expected better sales during Black Friday or Cyber Monday. With Prime Day 2021 in its usual timeslot of kickstarting summer savings, consumers are expected to splurge, unhindered by the lure of another big sales event.

Tips to Succeed During Prime Day

Because Prime Day 2021 is expected to be a blowout event that could kickstart the next surge in retail demand, our team has some tips to help brands prepare.

Search impressions on Amazon, attributed to advertising, saw a 180% lift during the week of Prime Day 2020 compared to the 3-months prior. To prepare for this big day, retailers and brands like you should not focus on just Prime Day itself, but the days leading up to and after June 21-22. Your timeline around Prime Day should include:

1. Before Prime Day: Ramp up your presence on Amazon within the two weeks leading up to Prime Day to create awareness. Leverage Sponsored Display for top of funnel targeting along with Sponsored brands for generic search queries. Ensure your ads are visible not only on Amazon but other search engines to alert customers to your upcoming deals. Additionally, ensure you have adequate inventory to meet demand, as stockouts can drive customers to your competitors.
2. During Prime Day: Step up your sponsored product investments to engage high intent customers. Activate remarketing to nudge those who visited during the days leading up to Prime Day to return to complete their purchase. Expand long-tail keywords to tap into lower funnel shoppers looking for last-minute deals. When products sell out, update your website and offerings as soon as possible and direct customers to similar products, if applicable.
3. After Prime Day: Ensure continued coverage among customers who discovered your brand during Prime Day, regardless of whether they ended up converting. For select products sold during Prime Day where you have a complementary product to offer, ramp up retargeting efforts to grab a bigger share of the customer’s wallet. Encourage customers to share their Prime Day deals via social media to continue brand engagement, build customer relationships, and collect user-generated content that could be used again next Prime Day.

For specifics into your Amazon growth strategy, contact a NetElixir expert today.

Benefit from Prime Day Even Without an Amazon Presence

If your brand doesn’t have a presence on Amazon, don’t worry; you can still benefit from Prime Day without being on Amazon. Prime Day brings customers online, where they’re likely to browse around other websites while they’re already shopping. Digital Commerce 360 found that Amazon captured just over 40% of site traffic during Prime Day, while nearly 60% went to the rest of the top 100 retailers. 

Last year saw other big brands host their own Prime Day-like sales event and 2021 is no exception: Walmart’s Deals for Days, as well as Target’s Deal Days, will both start the day before Prime Day 2021 on June 20th, and last through June 23rd and June 22nd, respectively.

Prime Day and other big sales days are a catalyst that will bring people online searching for promotions and deals. Brands have opportunities to draw some of that online traffic by delivering their own sales and promotions. Consider hosting your own version of Prime Day, luring customers in with your brand’s hottest deals or most popular products. Display your deals prominently on your site and consider adding a countdown for when the sale ends to drive urgency.

Leverage the surge in online search volume through these deal days. While you may not necessarily capture their wallet, you can boost your traffic as customers inevitably comparison shop to ensure they are getting the best deal. Carefully monitor similar products that are selling on Amazon, as any stockouts of products could open up opportunities for your brand to supply the deficit. 

As always, NetElixir’s experts are here to empower your e-commerce growth, across any and all digital channels. Contact an expert today for help with your growth strategy, both on and off Amazon.

The post Preparing for Amazon Prime Day 2021 appeared first on NetElixir.

NetElixir found that Prime Day had an impact on eCommerce sites beyond the Amazon marketplace. Lingering Prime Day sales could continue to boost online traffic and sales, as the initial two day sales event had a rub-off effect across the digital landscape. 

What Did You Buy On Prime Day?

 Prime Day is a communal event, as friends and coworkers share the best finds. As a hotly anticipated sales event, Prime Day 2020 did not disappoint.

NetElixir found a 61% lift in revenue per day on the Amazon platform within our dataset, compared to regular shopping days throughout the week. While we had bullishly predicted a 90% increase in YoY online sales during Prime Day, the sales event showed a positive start to the holiday shopping season. 

Prime Day encourages splurges on large orders and this year saw a 14% higher average order value (AOV) for purchases compared to the days leading up to the sales event. During this hectic holiday season, consumers are inclined to wait for a sale as they are more conscious about their holiday budgets. With time for more browsing and research, shoppers are on the lookout for the best deals and promotions, leading them to search related products and deals across search engines and social sites. This research prompted a dramatic rise in non-Amazon website traffic and sales. 

NetElixir found that 53% of user traffic came on the first day of Prime Day (October 13th), while 57% of the revenue came on the second day (October 14th) within our dataset. Consumers seemed to spend the first day researching the best deals and products out there, while following through with purchasing on the second day. Day two of Prime Day saw 12% lesser clicks and a 7% higher conversion rate compared to day one. Additionally, majority of the high-value products were purchased on day two, leading to a 44% higher AOV compared to day one.

While Amazon may want to encourage impulse purchases, consumers are a bit more hesitant this year. Expect consumers to continue to research carefully prior to purchasing throughout the holiday season. Retailers should make promotions and sales information prevalent on their website for easy user navigation. 

Across the board, while not releasing their own numbers, Amazon announced that Prime Day generated more than $3.5B for third-party sellers, as this year the retail giant focused more on supporting small businesses. Those billions led to a 60% increase from last year’s sales for small and mid-sized businesses selling on Amazon’s platform – in line with NetElixir’s own research.

The Residual Impact of Prime Day on eCommerce Websites 

While those retailers who participated in Prime Day were able to boost their sales and brand awareness, many retailers saw success beyond the scope of the Amazon marketplace itself. NetElixir had advised retailers to continue promotions across search and social media channels to leverage the surge in online traffic during the two day sales event.

Prime Day triggered a site-wide growth across eCommerce websites that were not linked to Amazon marketplace. During the two days of Prime compared to non-sales days, websites saw the following increase in site performance metrics:

• Website sessions increased by 19%
• Site orders jumped 39%
• ECommerce revenue rose 42%
• Website conversion rates increased by 17%

Over the course of the two days of Prime, shoppers searched for brand and product information across other channels as they conducted thorough research prior to purchasing. Prime Day searches gained 23% more interactions across search engines and social media than non-sales days.

By creating a cohesive digital presence around Prime Day – advertising on non-Amazon channels, showcasing product deals on social media, and leveraging key words like “Prime” and “best deals” – retailers were able to tap into the surge in online traffic and demand generated by the sales event. By showcasing products related to what was on sale during Prime Day, retailers had opportunities to gain market share.

Consumers were already online; retailers didn’t necessarily have to sell on Amazon to reach Prime customers. A strong digital presence will be the key to success this holiday season, as well as timely marketing campaigns around expected surges in online traffic as giant retailers push their eCommerce channels more and more.

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