if you are aamazon seller, we have good news. Amazon Prime Day will be here before you know it.
Last year, US online spending surpassed $11 billion across all sales channels during the two-day sales event, up more than 6% from just over $10 billion during Amazon Prime. . Day 2020, according to theAdobe Digital Economy Index.
While it may not be the 50% year-over-year growth seenbefore 2020Amazon Prime Day's impact on increasing sales across all sales channels makes it a shopping holiday worthy of its position among the big names like Black Friday and Cyber Monday. 👑
But it's also true that times have changed since Prime Day began, and there could be an impact on the traffic, sales, and growth opportunities that sellers see this year.
In this article, we'll explore the latest trends and predictions for Amazon Prime Day 2022 and whether it's worth investing your time and money this year.
O furo no Amazon Prime Day 2022
- The Latest on Amazon Prime Day
- Is Prime Day still a gold mine for sellers?
- Top 4 must-see predictions for Prime Day 2022
Make sure you have the necessary inventory and advertising budget for this Prime Day. find out howflexible working capitalcan help make it a home run.
The Latest on Amazon Prime Day
If you're here, you already know the Amazon Prime Day scoreboard.
Once a year, Amazon holds a massive 48-hour flash sale for its Prime subscribers. Usually the event is held in the middle of the year (except that time in 2020, when they made a last minute change and moved the event from July to October 🤷🏽♀️).
According to current speculations, Amazon Prime Day 2022 is projected to take place fromJuly 18th to 19th.
During the two-day event, thousands of Amazon sellers flooded the marketplace with deals and discounts to entice shoppers to their stores. It works.
Online shoppers around the world are turning to Amazon for limited-time Prime Day deals. In 2021, Asia-Pacific countries and Italy were among the biggest champions, with online sales growing 41% and 47% respectively during Prime Day, according to Saleforce.Second quarter 2021 sales index.
Is Prime Day still a gold mine for sellers?
Every year, online brands and eCommerce sellers eagerly await Amazon's Prime Day announcement.
But with the pandemic-related disruptions and changes in consumer shoppingchanging the game, there is some well-justified talk about Prime Day's real return on investment for online sellers.
The burning question now is:"Is there still honey in the Amazon Prime Day jar?"
The unfortunate answer is... it depends.
Here's what the latest data says:
- Cost-per-click advertising costs have increased:Because it's a competitive time on the e-commerce calendar, spikes in advertising costs are expected on Prime Day. But e-commerce brand owners were taken aback by rising costs, with little to show for it. According to original research from pricing intelligence platform Feedvisor, cost per click (CPC)increased by 28.6%across all categories in 2021 compared to 2020, while return on advertising spend (RoAS) declined by 18.3% over the same period.
- Competitive events steal the spotlight:WhiletotalWith e-commerce sales hitting $11 billion during the first day period of 2021, Amazon's result was weak compared to previous years. For example, the Prime Day 2020 result of$10.4 billionin sales was almost double the $5.8 billion earned during Prime Day 2019. In the early years of Prime Day, Amazon may have had the lion's share of sales, but recent results show a more diversified distribution among other markets such asWalmart, eBay, and Best Buy created their own versions of Prime Day.
- Big brands are the biggest overall winners:In 2021, the biggest winners were the biggest brands that had the financial capacity and order volumes toOffset Supply Chain Challengesand offer the kind of ultra-competitive offerings that growing brands struggle to compete with. Many small and medium-sized brands have opted out rather than try to compete as"low cost leader".
With all that in mind, it's no surprise that some sellers have decided to forego Prime Day altogether, while others choose to compete through other Prime Day strategies.Prime Day “halo effect”how to host your own promotions and special offers.
Your success with Amazon Prime Day depends on your brand's ability to adapt and respond to today's marketplace.
If you can keep a stockpile of bestsellers, serve high-traffic categories on Prime Day, invest in inventory and marketing early on, and muster the creative willpower to stand out among the biggest players, Prime Day could still pay off. you a big payday.
Top 4 must-see predictions for Prime Day 2022
To get your store primed and ready for Prime Day success, it's helpful to zoom in on key data predictions and insights.
Let's take a look at some of the key trends that could affect your Prime Day results this year.
1. Technology products will take center stage
Day one play:Enjoy your own bestseller categories.
Every year, tech gadgets take the top spot in deals and buyer interest, especially Amazon-related gadgets. And this trend shows no signs of slowing down in 2022.
Of course, that doesn't mean you can't profit in other categories. YesAmazon Prime Day USA 2021The results are anything but baby products, health and beauty, housewares and clothing, all of which could be very profitable niches this year.
But regardless of your category, one of the best ways to win on Prime Day is to make sure you're stocked up and ready to sell your best wares.
- Review past sales data to forecast the correct amount of inventory and attempt to restockearly.
- Consider ordering extra reserve stock just in case.
- If you've had success with product bundles in the past, plan ahead to run special promotions to increase yourAverage order value (AOV).
2. The halo effect will continue
Day one play:Leverage the buying habits of your target customers.
The infamous “halo effect,” which refers to the excitement, extra presence, and attention generated by Prime Day, has remained constant since its inception.
The difference we're seeing now is that the halo effect is spreading to other big markets like Walmart and Target.
In 2022, you could see more brands capitalizing on the Prime Day halo effect, ramping up their advertising and promotions, and opening stores.on multiple platformsin time for the big sale.
- Look for ways to accommodate shoppers' buying habits into your product offering. For example, if your analysis shows that many customers buy in bulk, you can offer a custom package at a reduced price to secure more sales.
- Alternatively, you may find that some products work well with the subscription. This can give shoppers the opportunity to get items for less if they sign up during Prime Day.
- Despite the greater share of sales in larger markets,34% of buyersthey say they prefer to shop at small businesses during events like Prime Day. Now might be a good time to show off the fact that you're a growing business.
3. Shipping challenges can lead to pricing and inventory issues
Day one play:Stock up and be ready to ship in advance.
While the manufacturing industry is regaining stability, the global shipping supply chain remains unstable. For the foreseeable future, getting products into your warehouse will likely remain expensive and time consuming.
Supply chain issues will almost certainly affect the discounts, sales, and units you can offer on Prime Day. And, of course, there is also the risk of an increaseout of stock on amazonand other sales channels.
Since these problems aren't going away anytime soon, it's best to tackle them head-on. Create a comprehensive plan to avoid shipping delays and increase inventory in optimal locations.
- Start looking for boat space early to secure the best rates.
- Create an allowance of a few weeks into your shipping plan to accommodate port delays.
- Establish product reservations at key locations.
- Focus on filling high-yield products to avoid stockouts and save money.
4. Amazon ad prices will continue to rise
Day one play:Instead, invest in email.
We hate to be the bearer of bad news, but much like Black Friday and Cyber Monday, Prime Day ad costs are likely to remain high.
According to the Feedvisor report cited above, ad spend is up 93.6% in 2021 compared to 2020. Of course, if you have the skills and can focus on your campaign selection, you can still get ROI on your budget .
But for many marketers, email marketing offers a much safer route. According toAdobe Digital Economy IndexOn Prime Day 2021, last-touch email share of sales increased over 11% year-over-year: higher organic search rate, direct traffic, social media andaffiliate trafficking.
Here are some quick tips to help improve your email marketing.
- Work to grow your subscriber list before Prime Day.
- Build excitement with exclusive pre-event teasers, giveaways and product launches.
- Research the winning bids from previous years and give your opinion on them.
- Segment your subscribers based on your key target personas for higher conversions on personalized offers.
This year, make the best Prime Day move
This Prime Day, don't let cash flow tight orAmazon's strict payment schedulestop you from growing your brand.
Whether it's an increase in advertising budget or an investment in reserve stock ahead of the big event, SellersFundingdaily advanceit can help you access up to 90% of your inbound sales so you can keep your growth on track.
For brands with long-term needs, you can receive up to $5 million inworking capitalto help stockpile ahead of peak shopping days, bolster your advertising budget during peak shopping seasons, and invest in profitable new product lines or sales channels.
Because, for sellers who play it well, Amazon Prime Day could still bring in a huge boost in sales. And at SellersFunding, we want to see you win.
So start your preparations early, optimize your campaigns and find ways to make your product offering stand out from the rest. And if you need help with flexible financing, don't hesitate toGet.