Amazon Prime Day: Preparing a Seller Strategy

Held each year by Amazon, Prime Day has become a global shopping event exclusively for customers on the marketplace. This year, Amazon has announced that due to delays caused by the ongoing pandemic, the annual event is scheduled to be held on 13th October. So, as sellers have additional time to prepare their product ranges, refine advertising campaigns, and enhance their overall strategy, what is the best way to prepare for Prime Day?

Similar to an annual Amazon strategy, the objectives for Prime Day sellers will vary depending on the specific goals set for product performance. As the primary aim for all sellers is to boost conversions during this period, there are a variety of promotional tools that can be utilised to increase the chances of achieving more sales.

Preparing for Prime Day

The key to creating an effective strategy for Prime Day is to understand the target customer. Leading up to Prime Day, sellers should focus on inventory, product listings, and advertising campaigns. As the event is available to customers worldwide, sellers should also research local markets to gain an in-depth understanding of consumer sub-segments.

By researching existing products, competitors, and ad campaigns, sellers can refine their Amazon strategy based on customer demand, average price points, reviews, and advertising. This year, the Prime Day event is expected to be scheduled for September or October, therefore it is worthwhile for sellers to also research global shopping patterns that may attribute to surges in demand for particular products.

Tracking inventory

As over 175 million items were sold during Prime Day in 2019, it is essential to account for the correct amount of inventory required. Sellers that run out of stock during the day will miss out on potential sales, and risk damaging reputation with customers. Preparing sufficient stock of each product listing before Prime Day will help with handling the increased influx of customers purchasing items. It is recommended that sellers use a fulfilment management system to ensure that stock is replenished across all channels whenever required.

Optimising product listings

Prime Day customers are often interested in the best deals and discounts available and are less likely to waste time reading through confusing product information. All product listings should be optimised to adhere to Amazon guidelines and to present product information in a clear and concise format.

Sellers should include detailed, accurate information about product colours, sizes, materials, specifications, variations, as well as keywords to help buyers locate the product. Including high-quality images and lifestyle photography is beneficial for communicating with customers visually.  

Setting advertising budgets

Without setting the appropriate budget for products, sellers can often overspend or underspend on campaigns. Budgeting campaigns is essential for spreading the campaign costs throughout the day, which prevents losing potential sales as Amazon campaigns will pause when the daily budget is spent.

Sellers should use customer data to determine which hours of the day are optimal for aggressive advertising and allocate resources to avoid wasted spend and increase ROAS. Additionally, product performance is more difficult to measure without setting clear performance indicators and controlling ad spend during Prime Day can be challenging. It is recommended that sellers set a higher budget to be able to compete with the additional product deals featured on Prime Day.

Launching new products

Prime Day can be highly effective for launching new products on the marketplace, as the increases in traffic and sales can boost an ASIN’s organic SEO ranking. Sellers should note that it can be difficult to launch new products without reviews to support initial customer interest.

Amazon Advertising campaigns should be launched months prior to Prime Day to provide the best chance of gaining interest with customers before the event. The submission deadline window for Prime Day Lightning Deals is a good indicator to begin advertising.

What to do during Prime Day

Although the strategy and plan for Prime Day are set in advance, the marketplace is far too competitive for listings to continuously perform without adjustments based on consumer activity. Competitor listings should be monitored throughout the day, ensuring that product price points are comparable as sales will almost always convert for the better deal. Third-party software that can handle automation for price adjustments throughout the day is highly recommended for reducing the amount of manual input required.

Advertising campaigns should also be tracked during Prime Day, ensuring that the budget is allocated correctly and that targeted keywords or listings are performing well.

What to do after Prime Day

While Prime Day is a great opportunity to increase product sales, it should also be used to engage with potential new customers and build upon the touchpoints and relations created.  Sellers should look to evolve single-purchase customers by reaching with personalised offers, discounts, and cross-product marketing. In turn, this can boost brand loyalty and encourage shoppers to purchase more frequently. Satisfied customers can lead to more good reviews, which are influential to customers on the marketplace. Sellers can also use the campaign data collected to refine their Prime Day strategy for the following year and further optimise current campaigns.

For more information about preparing for Prime Day, don’t hesitate to get in touch with one of our Amazon SPN specialists.