In today's blog post, we dive into the world of Prime Day and how you can maximize its potential for your Amazon business.
Last month we hosted a live Q&A webinar featuring Michael Dan, Managing Director of Sitruna, experts in all things Amazon. They're an Amazon agency with whom we have had a successful partnership for over 6 years (and counting!). In this webinar, we discussed key strategies and insights to help you navigate Prime Day effectively. Whether you're new to the ecommerce business or seeking to optimize your Amazon presence, the webinar is littered with tips and tricks that you can use to make the most of Prime Day and drive growth for your business.
We've posted a recording below, however, if you'd prefer to read, check out a written summary of the highlights down the page.
What is Prime Day?
Prime Day is Amazon's highly anticipated annual sale event exclusive to their platform. Michael explained that participating in Prime Day can catapult your product's rankings if executed correctly. The event typically sees a significant surge in overall sales on Amazon, with potential increases of 3 to 4 times compared to regular days.
Prime Day Benefits All Sellers
One of the great advantages of Prime Day is that it benefits both private label sellers and resellers, as long as their products are prime eligible. Michael emphasized that even if your products are not prime eligible, you can still participate by using vouchers to attract attention to your offerings.
How Amazon Promotes Your Products on Prime Day
During Prime Day, Amazon leverages various promotional channels to highlight your products. While the most prominent placements are typically reserved for larger vendors, your products are likely to appear on the deals page and banner of the landing page. The presence of the Prime Day flag or badge can make a noticeable difference in conversion rates, driving increased visibility for your offerings.
Participating in Prime Day and Associated Costs
To participate in Prime Day, you can sign up for prime exclusive discounts, which costs nothing to run. Additionally, you have the option to submit regular deals, which have a fee of 2X the deal fee. Michael advised sellers to carefully plan their inventory and ensure they have enough stock to meet the expected increase in demand.
Beyond Sales: Other Benefits of Prime Day
Prime Day goes beyond short-term sales boosts. It can lead to an increase in review numbers and improve your seller ranking. This enhanced position sets you up for long-term success when returning to your regular selling price.
Selecting Products for Top Deals and Traffic Generation
Amazon considers various factors, including trailing 30-day revenue and past performance, when selecting products for top deals. Prime Day also presents an opportunity to drive traffic to your other product detail pages and storefront, increasing overall visibility and potential sales.
How to Plan and Execute Prime Day
To make the most of Prime Day, it's crucial to submit your prime exclusive discounts before the deadline and ensure sufficient stock availability. Michael recommended having at least 30 days of inventory on hand to meet demand. Additionally, he touched on voucher limitations, flexibility, and the effectiveness of strike-through pricing.
Leveraging Sitruna's Expertise
Sitruna, a long-standing client and trusted Amazon agency, can provide invaluable support in optimizing your product detail pages, keyword optimization, branding your store fronts and products, and managing PPC campaigns. Their expertise can enhance your chances of success on Prime Day and beyond.
Other Key Ecommerce Events to Consider
While Prime Day is undoubtedly a significant event, it's essential to consider other key ecommerce events such as Black Friday, Cyber Monday, and the lead-up to Christmas. Although the traffic may not match that of Prime Day, these events still offer valuable opportunities for increased sales.
Private Label vs. Wholesale and Shopify vs. Amazon
Michael briefly touched upon the advantages of private label products, which tend to provide higher profit margins and long-term viability. He also highlighted the importance of diversification, recommending that sellers consider selling on both Shopify and Amazon to mitigate risks associated with account suspension and leverage the strengths of both platforms.
Expanding into the EU Market
Expanding into the EU market can offer benefits, particularly for UK sellers who already have an EU selling account. The EU Fulfilment Network allows sellers to fulfil orders in the EU from their UK fulfilment centres, simplifying logistics and expanding their customer reach.
Prime Day presents a remarkable opportunity for ecommerce businesses to boost sales, improve rankings, and increase brand visibility on Amazon. With the insights shared by Sitruna, combined with our expertise as an accountancy practice specialized in working with ecommerce businesses, you are well-equipped to prepare for and make the most of Prime Day. Remember to plan your inventory, leverage promotional opportunities, optimize your product pages, and consider partnering with Sitruna for comprehensive support. By strategically participating in Prime Day and capitalizing on its benefits, you can pave the way for long-term success in the ecommerce arena.
If you want to get in touch with Sitruna, you can do so via their website here. If you are an existing client of Ecommerce Accountants, Sitruna will carry out a FREE brand audit - to qualify for this, please email your point of contact at our firm and we will introduce you to the Sitruna team directly.
If you are an ecommerce business looking for a new accountant, please get in touch with us today.