Prime day is an event that Amazon has run over the past 4 years. The day aims to give Prime customers which makes up 60% of all Amazons shoppers exclusive discounts over a number of products during a specific length of time or on a specific date.
This year Amazon held the event for a total of 36 hours, During this time over 100 million products were sold and Amazon had a record-breaking number of prime membership sign-ups, seeing a growth from 85 million prime members in 2017 to 95 million in 2018, proving to be the most successful event to date.
In what way does Prime day benefit other online retailers:
With the size of Amazon and with it having more than half of its business from third-party sellers, it is no surprise that their Prime Day event also has an impact on the rest of the e-commerce world.
During Prime day this year, big-name retailers saw a 35% increase in sales and smaller retailers saw a 17% increase (on average). This is due to a number of factors, the main factor being the increase in web traffic. It is a perfect opportunity for all online retailers to take advantage of the increase in numbers by gaining new customers and making more revenue from their existing loyal buyer base.
Looking at the Magento Business intelligence data published in a blog written by Magento, you can see the type of shoppers that make purchases on Prime day that supports the above benefits. The data showed that 54% of shoppers were first-time shoppers and the remaining 46% were returning shoppers. The data also showed that 24% of these shoppers made a repeat purchase within the next 3 months. With the idea of prime day being to reward existing prime members with exclusive discounts it is surprising that there is a higher number of first time shoppers to returning shoppers, however with the opportunity to sign up to Amazon Prime either on the day or prior to the event it gives new customers an incentive to sign up in order to take advantage of the day of deals and make a purchase. This gives Amazon and other businesses the chance to benefit from the flood of first-time shoppers and capture more data in order to generate further business in the future.
What type of Customers does Prime Day attract?
Looking into the demographics of shoppers we came across a blog that went into detail on the type of customers that make the most out of prime day and the benefits amazon prime give an online shopper on a daily basis. It is clear from this information that the majority of prime customers are between the ages of 40-55. The average prime customer tends to have the following attributes:
- Majority are married
- Around half have children
- The majority own their own home
These customers tend to have more disposable income and therefore can afford the monthly or yearly cost of the Amazon Prime membership.
Why do these shoppers use Amazon and Amazon Prime:
There are many benefits of using Amazon prime, one being the free 24- 48 hour delivery service they offer on over 1 million products on the site, however there are other factors that online shoppers consider:
- Shipping and convenience
- Wide selection of products (one stop shop)
- Return Policy
- Amazon Credit
With these factors helping to influence shoppers to purchase products through Amazon these are things that you should consider when trying to grab the attention of new potential customers and keeping your existing customers happy.
Don’t get caught out planning for a “Prime Day” and end up having a “Prime nightmare”;
When it comes to planning there are a few things you need to look at, firstly, what are your key objectives?
- do you want sign-ups, subscriptions, clearance sales etc
Once you have established your objective you can work backwards and establish a plan for how you are going to deliver this. Different objectives with require different plans in order for it to be a success.
Where businesses have faltered is to promote a site wide sale weeks before which will naturally have an adverse impact on the run-up to the day. This puts tremendous pressure on the day itself to be a huge success as many customers will be waiting for the day but inevitably will forget, will lose the impetus or will have already looked around and found a deal somewhere else. ultimately this could lead to The day arriving, the deal being good but not incredible and the store taking less overall in the month then it normally would.
You have to think strategically, if you have an SKU count rivaling Amazon then you can afford to run loss leaders in certain categories, it’s a different story if you have one category and 300 products.
So with the objective at the forefront of your mind you then use everything around you;
– Your customers, are you targeting them all or a portion? (new customers/ existing customers)
– Is it a leader product your pushing as a loss leader that opens up opportunities?
– What is in it for the customer, is it a genuinely compelling and competitive deal or is it just price matching someone’s general retail price point?
– What impact on Customer LifeTime Value is this likely to have on everyone that engages?
– How are you going to market, at what frequency and across which channels will you tell everyone about it?
For more information on how you can make your site Prime day 2019 ready get in touch on 0113 8330411 or alternatively send us an email!