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Amazon Prime Day 2023 kicks off on Tuesday, July 11th and continues through Wednesday, July 12th. Here’s everything you need to know as a Brand about Prime Day 2023. Take advantage of our Sponsored Ad Strategies and Insider Tips to sell successfully during this year’s Amazon Prime Day event.
“Prime Day is an opportunity that enables Brands selling on Amazon to reach millions of customers around the globe, and enjoy unparalleled sales,” says Alden Wonnell, CEO of Adverio. “There are over 200+ million paying members of Amazon Prime. Preparedness is always the key factor to increasing sales during Prime Day, and can help brands facing sales plateaus or downward momentum regain growth traction and marketshare.”
Today, many Brands and buyers are keenly aware that Prime Day is basically Amazon’s version of Black Friday. For years, and as experts in the eCommerce industry, we follow Amazon’s every move. Our company tracks the incredible seller growth and impact on retail as a whole.
As a Brand or Ad Manager, it is imperative to monitor average sales increases leading up to Prime Day, inventory counts, advertising conversions, and necessary spend increases to capitalize on the buying frenzy.
Just remember: Even though Prime Day only lasts two days, sales for the event will start early and will linger after Prime Day officially wraps up. You should be prepared to kick off your Prime Day promotions and advertisements in advance of the big day.
Adverio’s Prime Day PPC Ad Campaign Strategy
- 50% budget increase the day before Prime Day begins.
- 100% budget increase for Prime Day(s).
- Budgets lowered to default and 10% target ACOS decreases the day after Prime Day.
- ACOS targets are set back to default 2 days after Prime Day.
Notes for Brands:
- Sales can increase dramatically over both Prime Days, however Spend can also increase in tandem.
- Brands need to make sure they have enough budget for campaigns to deliver throughout the entirety of both days to maximize sales.
- Adverio’s Prime Day Budgeting Strategy ensures our clients have the best chance of staying within budget in order to maximize sales.
Expectations For ACOS During Prime Day
- ACOS increases incrementally in the two days prior to Prime Day as people are looking for products they will buy on Prime Day.
- On Prime Day, ACOS decreases due to purchase intent / conversion rate being significantly higher.
- The day after Prime Day, ACOS increases as most shoppers have spent their full budget, but are still browsing deals on Amazon.
- Adverio’s Prime Day strategy accounts for these increases and decreases in ACOS and shopper intent.
Best Practice Tips For Brands
- Focus on mature/established products and your brand’s best sellers.
- Consider adding Coupons and/or Sale Pricing to your listings for both Prime Days (Seller Central>Advertising>Coupons / Manage Inventory>Edit>Offer>Sale Price).
- Take advantage of any Prime Day offers that Amazon makes available in your account (Seller Central>Advertising>Deals).
- Prepare to launch Lead-In campaigns to generate awareness and consideration prior to Prime Day (Sponsored Brands, Sponsored Products).
- Prepare to launch Lead-Out advertising campaigns to generate sales by retargeting shoppers after Prime Day (Sponsored Display, Amazon DSP).
Your Prime Day “prep-steps” should start well before the actual day(s) for best results. The deadline for submitting Prime Exclusive Discounts already passed on April 28th; however, the window is still open for Prime Exclusive Discounts. Keep your eyes open for additional news from Amazon or contact us for additional guidance. It is our business to ensure that you’re ready to implement brand or product promotions, any deadlines or restrictions the company may announce leading up to Prime Day.
How popular is Prime Day? Let’s dive into some key stats.
Amazon Prime Day Statistics
- Prime Day 2022 was Amazon’s biggest year yet. Sales were up from Prime Day 2021 and with total revenues reaching an estimated $12 billion dollars.
- In 2021, sales during the event reached a record high compared to 2020, amounting to $11.2 billion U.S. dollars, 65% of which came from the United States alone.
- Amazon has 200+ million Prime members.
- 78% of consumers have heard about Amazon Prime Day.
- Best-selling categories include toys, kids, tools, electronics, beauty, health, pets, clothing, apparel, home improvement, jewelry, food, and more.
- Prime members purchased more than 250 million items in 2021.
- Customers spent an average of $47 per order on Prime Day 2021.
Certain categories and certain types of Brands do better than others during Prime Day. The brand that benefits the most is Amazon itself, showcasing massive discounts on all of their products and services. Beyond Amazon, household brand names take the lead in terms of increased traffic and sales. Overall, the majority of increased sales happen across established brands, whereas smaller or less established brands may not see a significant change in sales during Prime Day. While it is smart to temper expectations, it is still important to give your brand the best chance to generate sales on Prime Day through applying best practices and making sure your product pages and ads are well positioned.
Results of Prime Day are concentrated in certain categories, and also influenced by how established and competitive your brand is in the marketplace. In addition to ads, Amazon offer’s unique ways to promote your products during the Prime Day Event including Lightning Deals, 7-Day Deals, and Coupons.
As a Brand stakeholder, ask yourself, “How do I maximize Prime Day?” If you are an established brand, beyond using advertising to grow sales, adding coupons of 15-30% or sale pricing may be a useful approach. If you recently added new products, this may be a chance to gain momentum, ranking and reviews from sales, so price your products accordingly.
What are Amazon Lightning Deals?
Discounts and promotions on Amazon are a great way to improve your rankings and sales. Amazon Lightning Deals are your best allies in that arena. They are also an easy way to reduce your inventory.
- The items under these promotions are usually featured on “Today’s Deals” page.
- During Amazon Prime Day deals, these offers are exclusive to Prime members.
- Customers can find offers and lightning deals under most categories, including electronics, clothing, home appliances, beauty products, and more.
These are limited-time promotions run by Brands to capture customers’ interest and sales. More information on Lightning Deals.
What is a 7-Day Deal?
Like a Lightning Deal, a 7-Day Deal is a time-bound, promotional offer. However, instead of a Lightning Deal that may go live at an odd time of day with minimal traffic, the 7-Day Deal grants an item exposure for up to 7 days on the Amazon Deals page.
- Aside from the Amazon homepage, the Amazon Deals page is the most visited landing page on Amazon.
- Exposure on such a high-traffic page can benefit brandss immensely.
- As an added bonus, 7-Day Deals will also receive a “Limited time deal” badge in Amazon search results.
- This will potentially drive even more visibility to a deal and a brand overall.
7-Day Deal details can be found in the Manage Deals Page in Seller Central.
Amazon Coupons
It is vital to know that Amazon coupon features give you more control over your sales and promotional campaigns during Prime Day or throughout the year.
- Coupons are a good way to attract more traffic to your store, which can convert into leads.
- Your products are cost-effective in comparison to your competitors.
- By using coupons, you are making more money.
- More people redeeming your coupons, increases your sales.
- May result in a Best Seller Ranking (BSR).
When factoring in coupons, consideration should be made to the added costs of running any promotional campaigns during Prime Day. Work with some numbers that give the highest possible discount to your potential buyers while keeping sales profitable. More information on Amazon Coupons.
Prepare for Prime Day in the Right Way!
Simply put, Prime Day on July 11th and 12th is all about preparedness and ultimately, maximizing your ROI. Sophisticated Pay Per Click campaigns, coupons, PDP, Lightning Deals, and 7-Day Deals, are a great way to build brand and product awareness in advance of Prime Day.
It is important to note that consumers are feeling the pain of inflation right now. Amazon Sellers should respond with more promotional events throughout Prime Day.
Also, consider a bigger-picture approach to Prime Day by looking beyond July. Successful Brands and Sellers leverage these two days as a way to gather an immense amount of advertising and shopper engagement data.
By leveraging this data, brands can use Prime Day to capitalize on repeat purchases during the months following the event itself. Average sales will increase leading up to the event, build during the event, and the savviest Amazon Sellers will continue the momentum after the event with additional advertising and retargeting using Amazon Advertising strategies such as Sponsored Display and Amazon Demand-Side Platform.
For more information about how Adverio helps Amazon Sellers maximize and increase sales during Prime Day, contact us today.
