Amazon Prime Day 2019: Five Key Takeaways
After the four billion dollar success of Amazon Prime Day 2018, the 2019 annual retail event is expected to be bigger and better than ever. Lasting a full 48 hours this year, Amazon Prime Day is offering customers incredible deals on everything from electronics to luxury items. However, research shows that buyers aren’t limiting themselves to just Amazon.
A study conducted by Criteo found that businesses that offer discounts during Amazon Prime Day generate a 40 percent increase in sales on average. Major retailers from Walmart to Target to eBay have been promoting similar sales events on this day, but mid-size and smaller companies could also take advantage of this opportunity. Prime Day gives businesses from any vertical an opportunity to learn how to better market their products and services. Read on for five key takeaways from this year’s Amazon Prime Day marketing push.
1. Offer Free Shipping
One of the primary appeals of Prime membership is the free two-day shipping, so retailers can make their own marketing more attractive by offering free shipping for an upcoming sale as well. A study conducted by MediaPost found that 79 percent of consumers rank free shipping as the most important option when making a purchase decision. To compete with Amazon, it helps to incentivize buyers with free shipping or a low-threshold minimum—free shipping after spending $50, for example.
2. Begin Your Ad Campaign Well in Advance
Whether you plan on organizing an ad campaign to compete with Prime Day or for another planned sale, take a tip from Amazon and start advertising early. In addition to the typical advertising channels, Amazon tried out a few new strategies this year. For example, for the last few weeks or so, all boxes of Amazon orders have been printed with Amazon Prime Day advertisements, encouraging current customers to order again during this major sales event.
3. Do the Math
Don’t go stir crazy on sales unless you are sure your company can afford it. Actually, Amazon itself offers a Brand Analytics tool that can offer useful insight into what products your target market is seeking and how much they are willing to pay. If you can’t afford major markdowns this year, offer your customers something else of value, such as higher cash-back percentages, reward and loyalty points, discounts for items like gift cards, and free products with certain purchases.
4. Promote Selectively
Of course, Amazon Prime Day doesn’t apply to everything on the site. This would not only be overwhelming for buyers but would also likely lead to a significant loss for the company. Instead, Amazon has a small list of heavily discounted items that are popular among consumers, particularly around this time of the year. Back-to-school items are always needed toward the end of summer, but study your sales from the previous year to determine what else your customers tend to gravitate toward during this time. It might require a bit of experimentation at first, but you’ll learn more about your customers and sales potential with every passing year.
5. Extend Your Sale
If we have learned anything from Black Friday, it’s that having a sale on just one day of the year can result in absolute chaos. Take a page out of Amazon’s book by extending your own sales event for at least 36 hours, and maybe even 48 if the results are particularly promising. This will not only limit the stress and chaos surrounding your customers and your workers, but it can also give potential buyers the time they need to research and ultimately buy.
As one of Seattle’s top digital marketing agencies, Chair 10 Marketing helps businesses of all sizes craft digital marketing strategies that drive sales and leads. Learn more and schedule a free consultation today.