With Prime Day just around the corner, we want to ensure you're fully prepared - so we've put together a strategic guide with our quick tips to Prime Day 2021.
Since 2015, Amazon has been celebrating its founding day by providing some of their biggest discounts of the year. During the height of the pandemic, we saw 2020 drastically change the way consumers shop. With the staggering statistics of last year, we are expecting to see continued eCommerce growth as more consumers shift the way they buy. We have put together some best practices for Prime Day prep to ensure you are ready for the two-day marathon.
PRIME DAY 2020 TAKEAWAYS
Last year, Prime Day 3rd party sellers surpassed $3.5 Billion in sales with Prime Members saving over $1.4 Million and we expect results to be just as staggering this year. According to our partner, Cleveland Research Company, they found that 63% of general merchandise brands said Prime Day 2020 met or exceeded expectations and 82% plan to spend the same or more this year. As for the food and CPG space, 77% of brands polled said 2020 met their expectations and the same number reported they would be increasing spend on Prime Day this year. Not only can you anticipate a sales boost, but it also provides brands the opportunity to push out stale products and make deals discoverable by new customers.
3 PHASES OF YOUR PRIME DAY BRAND STRATEGY
- Lead In – Determine your product selection based on inventory availability and promotional strategy; then create awareness to potential buyers in the weeks leading up to Prime Day.
- During – Walk the store and encourage consideration and decisions during Prime Day.
- Lead Out – Continue engagement with shoppers after Prime Day and analyze data to help you make decisions for Q4 and future promotional holidays.
DETERMINE MERCHANDISING & PROMOTIONS STRATEGY
When thinking about what you want to showcase, there are several Prime Day strategies when it comes to product selection. There are several approaches based on your product lifecycle:
- Use Prime Day to sell through discontinued or stale inventory: If you are a seller who is struggling with new FBA category storage limits, Prime Day is a great opportunity to sell down slow moving products and increase your space for new product launches or Q4 prep.
- Use Prime Day to jump start the flywheel on new products: For sellers or vendors who aren’t limited to the category requirements and can get inventory at Amazon’s warehouse in time, use this as an opportunity to propel items by doing a combination of aggressive ads, directing traffic to your Amazon Store, coupons, Lightning Deals, and Deals of the Day.
- Use Prime day to protect your best sellers: For vendors or sellers in competitive categories, if you aren’t running promotions and increasing advertising efforts, your competitors are. Consider increasing branded search campaigns and running coupons on your best sellers to stay at the top of search for your top ranked products.
- Use Prime Day to drive traffic to in-stock products: If you are seeing supply chain delays, we encourage you to drive traffic and run promotions on products that may not be top sellers but are evergreen in your catalog and always in stock. The goal of this approach is to increase ranking on slower movers and move them into your bestselling SKUs for the future.
ADJUST ADVERTISING CAMPAIGNS FOR PRIME DAY
It’s essential to be savvy in your spending on Prime Day and take a step back to determine budgets specific to this big event. Balancing the cost of discounting products, advertising and deals can be tricky, and you want to ensure you are not overspending. Amazon has some useful tips, below:
- Test Audience and promoted product strategies for sequencing, featuring, and groupings.
- Test copy strategies for autogen/custom, headlines, featured images, and Store layout.
- Test keyword strategies for branded, category, product, peer, and match type and increase bids to capture impression lift.
- Adjust budgets at least 200% higher than your daily spend and measure performance based on impressions and CTR.
WALK THE STORE
Guarantee your customers are getting the best shopping experience by “walking the store” on Prime Day as well as the days leading up to the event. Here’s how to walk your store:
- Check all your product detail pages prior to and on Prime Day. Ensure all images, titles, A+ pages, and variations are set up correctly and fully optimized for search. Anticipate and plan for errors. If a parent ASIN breaks apart into several orphaned children, ensure you have automatic feed pushes set up to reset and remerge products.
- Update your Store page. Amazon Store pages are getting more popular and typically lead to higher conversion rates and higher AOVs if used effectively. Showcase your halo products on the home page and consider creating a Prime Day tab for all of your promoted products.
- Run Amazon Posts. Amazon Posts are FREE social-like interactions that can be used to target competitor landing pages and similar products. We typically see higher CTRs for Amazon Posts compared to Sponsored Product Ads.
MONITOR AD CAMPAIGNS
According to Amazon, for high-traffic days or big events such as Prime Day, it’s recommended to set a daily budget 2-4x higher than what you would typically set on non-event days. Here are some budgeting best practices:
- Adjust budgets based off prior peak events and double-down on branded and generic terms, using ROAS and new-to-brand sales as KPIs.
- Edit keywords according to lead-in testing results.
- Engage consumers that interacted with your products during previous peak times.
- Set budgets based on campaign objectives and focus on upselling and supporting best-selling products.
- Increase budgets, if necessary, in order to increase visibility throughout the entire day.
POST-EVENT ADVERTISING ADJUSTMENTS
- Decrease budgets based on post-holiday KPIs and goals.
- Review audience and promoted product campaigns and utilize these results to identify audiences for remarketing efforts.
- Monitor lead-up and Prime Day results and modify copy and Store layout based off positive outcomes.
- Review Amazon Attribution results, and change campaigns as needed.
Spend time analyzing your overall sales metrics for Prime Day and performance for the specific products you promoted. Use this analysis to help you understand what worked well and what didn’t. Some questions you’ll want to answer are:
- How did my promoted products (coupons, Deal of the Day, Lightning Deals) compare to products with no promotions? What was the lift in sales, sessions, and conversion for each group?
- How did adjusting my bids affect RoAS? Were there any unexpected keywords that performed well? Did my campaigns go out of budget? Did I overspend?
- What was the halo effect? What was the overall increase or decrease of product ranking one week after Prime? How do sales one week after the event compare to one week prior to the event?
- What was ROI for all my Prime Day campaigns? How did these results compare to my expectations?
- What would I do differently for the next promotional holiday timeframe? (You should start planning for Q4 holidays now!)
Determining a strategic plan will set you in the right direction to capture your audience throughout these three key stages of Prime Day 2021. We are here to help, so if you have any questions on your brand strategy, contact us today.
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