While Prime Week is still a few months off, with Prime Day on a yet to be determined date in July, Amazon is already gearing up and you should be too.
So, what is Prime Day?
Prime Day was spearheaded in 2015 to celebrate Amazon’s 20-year anniversary. Amazon has now turned this into a global shopping event. As the name suggests, Prime Day’s purpose is to promote Amazon’s Prime service and offers exclusive deals for Amazon’s Prime members. It exists as a major marketing tactic for Amazon to get more Prime memberships, as the data shows they tend to purchase twice as much as other customers. And it works. Many Amazon customers will sign-up for the free 30-day trial or take advantage of discounted introductory offers, like the student membership.
The entire week leading up to Prime Day will be full of deals for all Amazon members, outnumbering Black Friday and other similar retail holidays. Many sellers and vendors will run special promos during this time too, to bring in more sales and entice non-Prime members to still make purchases. Amazon has reported up to a 60% increase in purchases during Prime Week, so even if you are not participating officially, this week can still be a great promotional opportunity.
Lightning Deals are the #1 Way to Participate.
Lightning Deals are limited sales run on Amazon. They run between 4 and 6 hours (or until the deal quantity sells out), often for a discount of 20% or more. Amazon will list deals 24 hours in advance, allowing customers to sign up to watch the deal and get a notice when it starts. These deals will display throughout Amazon, including on the Today’s Deals page, and mobile users get notifications for Lightning Deals based off their browsing and purchase history.
Amazon will provide recommendations for your Lightning Deals. This includes not only a minimum sale price but also a minimum quantity. If you choose to participate you must meet these numbers. You can certainly offer more items for the deal and may even offer a deeper discount, but you may not submit a deal for a higher price or lower quantity. If you are creating a Lightning Deal for Prime Week, make sure to submit them by the deadline. For 2018 that deadline is May 18 for Sellers and May 31 for Vendors, but you can always verify this from the Lightning Deals screen.
How Lucrative are Lightning Deals?
This depends on your bottom line. Not only do you need to weight the fees ($150 normally, $300 during peak times, and for vendors $500 for Prime Day; plus your normal operating costs to sell on Amazon), you need to consider a variety of other factors. Is this a good season for your item? What does your competition look like on Amazon? What about your competition off Amazon? Just because Amazon sets a deal price, it doesn’t mean that it is the most competitive. You need to consider how many units you think you can sell and determine if the return is worth it.
I’ve Decided Lightning Deals are Not for Me. How Else Can I Participate?
There are a variety of other opportunities for you within Amazon. Take the time to revisit your ad campaigns and back-end keywords. Refine your content. The power of organic search results and the halo effect from ads is huge, and taking the time now to optimize all of this will serve you well during Prime Week.
Amazon also offers a variety of additional marketing opportunities. Take advantage of the increased shopper traffic and run your own specials. Set up promos and coupons, list your items at a discount, take advantage of sales pricing so buyers know your item price has been reduced. These are all viable tactics to attract shoppers.
And don’t forget the power of the internet. Many other online retailers are jumping on the band wagon and offering their own summer sales to compete with Prime Week. Join them! Or use your other web resources like your brand page, social media, and customer email lists to promote your deals on Amazon.
Important Prime Week Deadlines!
Lightning Deals need to be submitted early. Vendors have until May 30 this year, and Sellers only have until May 18. Any advertising adjustments you make should be completed at least 2 weeks before Prime Week starts (aim for June 30), and we recommend having most other plans in place by then as well.
Contact us to make sure you are ready to maximize on Prime Week!