Amazon Prime Day 2021: Essential Strategies for Success
It’s that time of year when Prime Day, Amazon’s made-up e-commerce holiday and summer’s version of Black Friday, prompts millions of shoppers to shell out their hard-earned cash for can’t-miss deals. While this year’s date has yet to be announced, it’s likely we will see a return to the usual July launch after the delay of the 2020 event due to the COVID-19 pandemic. With many shoppers gradually returning to in-person retail, Prime Day is an opportunity for Amazon to show its staying power. And for brands advertising on Amazon to reap the benefits.
Here’s what you can expect to see and some tips to make the most of Amazon’s retail holiday.
Offer bigger discounts
It has been a difficult year for retail with many consumers facing financial hardship in the aftermath of the pandemic. Congressional Research Service data suggests that, since March 2020, about half of all U.S. adults live in a household that has lost some employment income. With consumer budgets getting tighter, we can expect to see large discounts offered as brands fight to capture sales from an ever-more frugal populace.
Tip: Consider offering deals and deep discounts on popular products to remain competitive and capture sales from brand-agnostic and new-to-brand consumers.
Think outside the Amazon box
It’s tempting to think of Prime Day as just an Amazon holiday. But in the few short years since it was launched, Prime Day has become a major revenue driver for online shopping overall. In 2020, 51% of the top 100 online retailers offered sales during Amazon’s Prime Day event.
Tip: Expect to see increased e-commerce traffic across the web during Prime Day. If you’re an e-commerce brand selling on other marketplaces or on your own brand website, be prepared to offer deals there as well.
Consider Amazon advertising
Google is king when it comes to search volume, but Amazon is often where consumers start their purchase journey — more than 63% of the time, to be exact. Amazon is leveraging that behavior to grow its advertising business. A few years ago, most listings in Amazon’s search results were organic; advertised listings were available but not dominant. Today, it’s common to see organic listings pushed to the bottom with sponsored ads and product placements grabbing the top spots — and the most views. Amazon Advertising can be incredibly effective for your brand, and never more so than during Prime Day.
Tip: Consider boosting your bids (by as much as 200%) to leverage Amazon’s various campaign types and maintain your brand’s recognition. Sponsored Brands campaigns can help you get noticed while retargeting audiences will help bring potential customers back to purchase.
Avoid disrupting your organic traffic
Organic listing placements may be fewer than in the past, but they’re still extremely important. Many brands try to test organic listing optimizations during high traffic events like Prime Day. While well intentioned, there’s a good reason to avoid this. These “optimizations” can confuse your message at a key time for sales. If you’re looking to make changes, try adding new content alongside existing content, in the form of bullet points, imagery, or additional information in descriptions. That being said, the reality is that any test of content during a high traffic time like Prime Day may be affected by naturally increased sales, skewing your test results.
Tip: Save the big tests and content optimizations for slower sale time periods and let your current listings do what they do best on Prime Day.
Prime Day 2021 will likely be one of the biggest shopping events of the year, again. But this time, the increased consumer demand meets greater frugality. Winning brands will increase bids within Amazon advertising and offer clear, can’t-miss deals both on and off Amazon to remain competitive and encourage new customer revenue growth.
One thing is certain: Prime Day 2021 will likely continue Amazon’s trend in revenue and site-traffic growth, further expanding its share of the retail market. Savvy brands will make sure they capture a piece of that growing pie.