Preparing for Amazon Prime Day 2024

Amazon Prime Day is a shopping event with deals exclusively for Prime members. Anyone can have access to Prime Day deals simply by becoming a Prime member.

• 2019. During the two day time frame, more than 175 million items were bought, which generated over $2 billion in revenue for third-party sellers.
• 2020. Despite COVID-19, third-party sellers, most of which were small or medium-sized businesses, surpassed $3.5 billion in sales on Prime Day.
• 2021. More than 250 million items were purchased by Prime members worldwide. Customers spent $1.9 billion on small business products.
• 2022. Amazon's most successful for selling partners to date, with revenue jumping over 300% compared to the daily average in the 20 days leading up to the two-day event.
• 2023. The first day of Prime Day 2023 was the single largest sales day ever on Amazon. Prime members purchased more than 375 million items worldwide and saved more than $2.5 billion.

The cornerstone of a successful Amazon Prime Day is meticulous planning and strategy development. Brands should begin preparations months in advance to ensure they are not only ready for the surge in traffic but also ready to capitalise on it.

This involves analysing past performance data to identify trends and high-performing products, setting clear objectives, and defining key performance indicators (KPIs) to measure success. A brand's strategy should include inventory management, promotional planning, and pricing strategies to ensure you are competitive.

Stockouts can be a significant setback during Prime Day. Brands need to accurately forecast demand and ensure they have sufficient inventory to meet the anticipated surge.

Partnering with reliable fulfilment centres and ensuring efficient logistics can help maintain customer satisfaction. For brands using Fulfilment by Amazon (FBA), it's crucial to send inventory to Amazon's warehouses well in advance to avoid any delays.

Offering exclusive deals and discounts is essential for standing out during Prime Day. Brands should consider creating top deals, best deals, lightning deals, and coupons.

These deals should be well-publicised across various channels, including social media, email newsletters, and Amazon storefronts, to maximise visibility and engagement.

Top Deals

• Featured on the Amazon deals page with count-down timer.
• Typically featured at the top of the event page.
• Reserved for single branded deal or multi-branded deal.

Best Deals

• Advertising of product groups.
• Similar to lightning deals.
• These deals can be used a little before Prime Day and after.

Lightning Deals

• Featured as a flash sale on the Amazon deals page.
• You can only include one product per Lightning Deal.

Coupons

• Featured on the product detail page and the Amazon vouchers page.
• Customers click on a voucher, and it will be added to their basket.
• The discount is automatically applied.

Sponsored Products. During Prime Day, when competition is high, allocating a significant portion of your budget to Sponsored Products to ensure your products stand out in search results is important to try and drive as many sales as possible.

Sponsored Brands. Sponsored Brands ads feature your brand logo, a custom headline, and multiple products. Sponsored Brands are ideal for promoting your brand and showcasing a range of products during Prime Day to increase brand awareness.

Sponsored Display. Sponsored Display ads are effective for retargeting and reaching shoppers who have previously viewed your products. Brands should allocate a smaller portion of their budget to Sponsored Display ads.

Amazon DSP. Amazon DSP allows you to programmatically buy ads both on and off Amazon. Amazon DSP is excellent for reaching a broader audience beyond Amazon. Allocating a portion of your budget to Amazon DSP for Prime Day is recommended.

1. Advertising exposure. It's important to expose potential customers to your brand in the weeks leading up to Prime Day by using video and display ads, as 75% of shoppers say they are likely or highly likely to buy a product on Prime Day that they discovered ahead of time.
2. Advertising budgets. As cost per click is going to rise significantly, make sure your budgets are always set high enough so your campaigns don't run out of budget too early. This will give your ads the chance to be viewed throughout the entire day at a time where there is higher traffic and a higher potential for conversion.
3. Advertising bids. To remain competitive during Prime Day, it is crucial to increase your bids and daily spend as cost per click increases exponentially each Prime Day. Last year's CPC saw a 40% increase from 2022. Vendors who increased their daily spend level by over 50% saw a lift of sales by 180 to 250% in 2022.

While CPCs did increase in 2023, we also saw a drop in ACOS, which means sales accelerate quicker for brands, resulting in a better ROI.

Sources: Amazon Ads (advertising tips for Prime Day) and Perpetua (leveraging Amazon Marketing Stream for Prime Day).

• Analysing your brand's performance is the first step, and reviewing where your sales came from and which traffic sources is essential.
• You should then be starting follow-up campaigns such as retargeting to encourage repeat purchases and retain customers.
• Brands should then focus on restocking their inventory to avoid any stockouts on Amazon.
• Providing post-purchase support to your potentially new customers is paramount to enhancing customer satisfaction and loyalty.

Prime Day is a major event that grows every year, with brands increasing their advertising spend to attract consumers seeking the best deals. Key considerations include managing inventory, organising deals, optimising ads, and updating product content for a successful Prime Day.

We anticipate Prime Day 2024 will be on the 17th July. Ensure your inventory is sent in on time to focus on budgeting and ad optimisation for the big day.