Prime Day is soon approaching! The annual Amazon shopping day(s) are filled with colossal deals on electronics, home goods, clothing, and more. But this year, it may look a little different due to the COVID-19 pandemic, but how so? Learn all the details and predictions about one of the biggest e-commerce days of the year.
What to Expect
The COVID-19 pandemic delayed the typical July-based shopping day until October. This was due to the high demand for home deliveries that stressed warehouses and fulfillment centers across the country. When is the big day? The sale will kick-off at midnight PT on Oct. 13 and go through Oct. 14.
Prediction: The Strongest Prime Day Ever
Amazon is poised to have its strongest Prime Day in its history. They have been seeing historical figures during the pandemic and it has shifted their business model to not just an e-commerce platform, but as an essential business for small business operators. Additionally, it serves those looking to obtain goods without leaving their home. It is an unheard-of position that Amazon can take; they currently hold 38% of the e-commerce market. That 38% has been transformed into essential business services, grocery, educational materials, entertainment, and a platform for individuals to generate revenue during times of uncertainty.
Expect Price Points to Adjust
What will look different this year? The price points for goods and services. Nationwide, stores have been cutting costs of goods to compete and aide with the difficult financial situation many have found themselves in during the pandemic. However, Fulfillment by Amazon (FBA) members have been able to maintain price and still retain volume due to its “ease of use.” If FBA members price match competitors outside of the e-commerce ecosystem during the upcoming capital sales days, there would be no reason to purchase products outside of their space. This would allow Prime Day to become the single most beneficial day of the year to the average American who is preemptively purchasing holiday goods, gifts, big-ticket items, etc. But what can we anticipate from a marketing standpoint during Prime Day?
There is a big opportunity from a remarketing perspective and advertisers should take note.
Amazon will allow those who are not prime members to sign up for a free month of membership and still participate in Prime Day. This will capture their purchase information and email thus, allowing to re-target non-prime members to either subscribe or to purchase products at a higher rate later in the future. This is a “win-win” as far as revenue is concerned for Amazon.”– Matthew Banther, Paid Search Lead at Chacka
The company is gaining more retailers who specifically sell their brand products on their platform for a nominal fee to drive revenue. The tradeoff to the consumer is incredibly low prices during the sale season while Amazon reaps copious e-targeting efforts that will be executed on all traceable platforms.
With Amazon’s over 100+ million paid members across the globe, e-commerce retailers have a unique advantage to get in front of these highly engaged shoppers and drive sales on this growing platform. These days, you cannot just expect to show organically on Amazon, you need to invest in paid media to get any traction for your e-commerce business. Did you know Chacka’s experienced team was one of the first agencies to pilot Amazon Advertising and provided feedback to shape the Kenshoo e-commerce tool? If your business would like to get started on Amazon or have any questions, please fill out our contact form below and we will chat soon.