How to Prepare for Amazon Prime Day: 2022 Guide
Article by: Orca Pacific
The annual Amazon Prime Day event proves to be one of the biggest eCommerce shopping events of the year, outperforming Black Friday and Cyber Monday. In fact, some retailers will offer sales during Prime Day to compete with Amazon sellers. Prime Day total sales exceeded $11 billion last year, providing a huge opportunity for sellers to take advantage of. To prepare for this two-day event this year (dates have not been confirmed yet, but we can expect it to happen in the summer based on historical data), we compiled the best tips and tricks to be successful. To produce the best results, consider prepping at least one month before Prime Day.
Products to Promote on Prime Day
To take advantage of the traffic increase on Prime Day, brands should strategically focus on ASINs that have a strong rating (4 or 5 stars), a proven sales history, and a high conversion rate. Focusing on these products will ensure a high ROI and an increase in sales.
It can be beneficial to launch a new product on Prime Day if the campaign has been strategically planned out. If the goal is to increase exposure, launching and promoting a new product could be beneficial if the budget is there. It is best to couple the new product with an already established product that consumers love and trust.
Keep Inventory Levels Refreshed
One of the worst things that can happen to a brand, especially on a highly anticipated event, is not having enough inventory to keep up with customer demand. Failing to do so directly affects a product’s ranking, overall sales, and ultimately messes with Amazon’s algorithm. Avoid this by keeping inventory levels replenished.
According to an Amazon Press Release, “best-selling categories worldwide for Prime Day 2021 included tools, beauty, nutrition, baby care, electronics including Amazon devices, apparel, and household products.” Brands in these categories should prepare for similar results in 2022.
Deals and Discounts
Due to the increase in site traffic, sellers will experience a high level of competition and will have to act accordingly to stand out – providing deals and discounts is a great way to capture both attention and sales. One option is to bundle products that complement each other (or previously mentioned, bundle a new product with an existing, trusted product). There will be an influx of deals on Prime Day and as we discussed earlier, it is crucial that the promoted products have a strong sales history and high product ratings.
Lightning Deals are another great way to boost product sales on Prime Day because they appear prominently on the deals page, however, these deals should only be used if a brand already has a loyal customer base and if the product is trusted by shoppers. Recently, Amazon increased the length of time for lightning deals, from four hours to twelve hours. The downside to this is that sellers are not able to choose the hours to run the campaign so it is possible that the budget runs out sooner than expected.
Coupons are another effective way to boost sales. These coupons appear on a product detail page as an orange badge, which acts as an attention grabber for price-conscious consumers. Shoppers will also see a product banner to highlight discounted items on the search page, acting as an attention grabber once again. Amazon shoppers are looking for the best deals on Prime Day so promoting products with discounts will surely increase sales.
Marketing Budget and Tactics
Promoting products on Prime Day can be costly as it is one of the most anticipated eCommerce events of the year. It goes without saying that product listing optimization is a large factor in increasing organic growth, maximizing sales, and increasing conversion rates. Since sellers are unable to add anything to their product detail page about Prime Day specials, optimizing product images, titles, and descriptions will be a necessary pre-planning step for a successful Prime Day.
Running campaigns on Prime Day should be done strategically to avoid running out of budget. Some brands will notice their daily budget maxed out around 8 AM because of window shoppers who click on an ad but drop off the buying journey without making a purchase. Preparing for Prime Day means preparing to spend at least three times the amount of your daily advertising budget on Prime day and the day after. To help with budget management, sellers should invest in a campaign just for Prime Day focused keywords to ensure products are ranking appropriately.
Sellers can find a lot of value in doing a competitor analysis given the high competition level. Doing so will identify who the competitors are, analyze the product differences, and capitalize on bridging the gap in those product listings to generate revenue. Part of this involves tracking high search volume keywords for similar products and bidding on them to increase search ranking.
Prime Day also offers opportunities for other retail giants like Walmart, Target, and more. Across all boards in the eCommerce industry, retailers and brands have successfully capitalized on Prime Day and taken advantage of the halo effect, which led to a surge in sales even after the shopping event ended.
As mentioned above, be sure to start the preparation at least one month in advance to ensure all aspects are accounted for. By doing so, sellers can be strategically positioned to generate the results they want and ensure a successful Prime Day.