This year's Prime Day was the "biggest in history" according to Amazon. Prime members purchased more than 100 million products during this year’s event and there were more sign-ups for Prime on the day (July 16) than any previous day in the company's history.
Prime Day sales in the United States grew faster than last year within the first 10 hours of the annual sales promotion, and sales on Prime Day 2018 surpassed Cyber Monday, Black Friday and the previous Prime Day, when comparing 36-hour periods. Some of Amazon's best-sellers were their own Fire TV Stick, Echo Show and Echo Spot.
What's the purpose of Prime Day?
Of course Prime Day is about driving sales, but it's not necessarily just about sales on the day itself. Amazon uses the discount day to obtain new members and their loyalty. When a customer signs up to Prime (for £79.00 a year or £7.99 a month) they then receive delivery, video, photo, music, Kindle books, and sharing benefits for the next year ahead. Whereas the relatively short-lived 36 hours of Prime Day soon go by, what Amazon is left with is an increased Prime loyalty base looking to continue spending over the next 12 months. A very savvy move.
How can other ecommerce businesses capitalise?
Over the last three years Prime Day has grown to become a big day in the ecommerce calendar, not just for Amazon itself but also for many other online retailers looking to cash in on the increase in shoppers online with money to burn.
This year Amazon actively encouraged even more shopping with third-party sellers by offering incentives to merchants using Amazon Pay – it's a great opportunity for third-party sellers to offer discounts to coincide with Prime Day to capitalise on the increase in web traffic and to acquire new customers.
"People love to comparison shop, with many turning to Amazon’s competitors to compare deals and prices. Prime Day has turned into a huge opportunity for all online retailers"
Amazon competitors were also offering their own online deals and events, as Taylor Schreiner, Director of Adobe Digital Insights, explained: "As a result of Amazon’s holiday increasing in popularity, numerous retailers offered deals on their own sites to combat Amazon, turning mid-July into a mini holiday shopping season. People love to comparison shop, with many turning to Amazon’s competitors to compare deals and prices. Prime Day has turned into a huge opportunity for all online retailers.”
Making the most of Prime Day 2019...
Lightning Deals are a Prime Day staple, and is a promotion in which a limited number of discounts are offered on an item for a short period of time. If you're also listing on Amazon sellers can get an opportunity to showcase their products.
Bundling products is another Prime Day expectation from customers. Multi-product discounts are a great way to sell as many products as possible on the day, and is likely to grab the attention of buyers.
Promote your deals
Don't just include deals on your website and/or Amazon, prepare before hand and let people know what deals are coming up and when by using email marketing, blogging, and social media. It's a great way of building suspense and arousing interest.
If you're expecting a busier period than normal, make sure you've got the resources to cope in terms of web traffic, customer service, and shipping – there's nothing like a damaged reputation to take the shine off a successful online sale.
Don't forget Amazon's biggest win with Prime Day is its ability to breed loyalty and achieve further sales down the line. Use customer loyalty and brand loyalty initiatives, such as money off next purchase incentives, or even just excellent customer service to try and retain as many of those new customers as possible.