Here’s how your business can leverage the next Amazon Prime day
You already know that Amazon Prime Day is a big retail shopping day for Amazon. Maybe you also noticed that more and more retailers are getting on the bandwagon, offering special pricing of their own on the same day.
Those retailers are smart. Riding on the coattails of a giant like Amazon can be pretty lucrative – if you know how to market your product and brand effectively.
So what’s going on behind Amazon Prime Day?
Prime Day doesn’t make money on a lot of the specially priced items it sells that day. The day is used as a way to attract new Prime customers and drive the sales of all Amazon products.
It’s rather like a shark feeding frenzy. Amazon dangles some very popular items at very low prices, and watches the frenzy as new and seasoned customers scoop up your deals – AND shop for all kinds of things – including plenty of items not below retail.
But first, Amazon promotes its brand – and the day – heavily. Think of this as shark bait. First there’s free shipping, then heavy promotion of services like music, video, gadgets, technology, etc. Many consumers buy a Prime Membership too, which of course, increases their spending on Amazon year-round. The hope was to convince potential customers to sign up ahead of Prime Day.
Here’s what MediaRadar Research says about Amazon Prime marketing:
- Amazon begin building anticipation for Amazon Prime Day early. They promoted the event heavily on linear TV, with a 17 percent increasein marketing spending a month prior.
- In the two months before the shopping day, Amazon almost doubled the ad spend behind Amazon Prime Video (compared to 2018).
- Amazon launched a new product, Amazon Prime Wardrobe, a new feature launched last September and spent a lot of time and space on its site and on social media promoting it.
- Other Prime services, like Amazon Prime Music and even the relatively new Amazon Prime Pantry, also received increased ad promotion.
- Building on the success of last year, Amazon’s total ad spending was 28 percent higher in 2019 than in 2018.
What can you do to take advantage of the 2019 pre-holiday Amazon Prime Day?
Consider Prime Day as an opportunity and a challenge for you as a retailer with a product. Take advantage of the unquestioned influx of shoppers — and get ready to advertise your loss-leader across social media.
If you can get an Amazon-endorsed deal for Prime Day, great. But you may not need to go that route.
Just talking up your hot deal at a one-day-only price – with free shipping, if possible – is a great way to start. Then consider where to place your advertising:
- What social media does your customer rely upon?
- Which social media platforms would ideally suit your brand?
- What is your break-out message to this audience?
- Would a product video attract more eyeballs? (yes)
All these are questions you should be asking yourself (or us) right now. After all, the holidays are just weeks away.
So yes, Amazon has a huge budget, and knows what it is doing. They make a tidy bundle on that day – and increase numbers steadily thereafter by getting a huge increase in customers to their site to look for more deals, the following day, the following week, and every week after that.
You are not Amazon. But – you can most certainly take advantage of the urge to buy – the feeding frenzy, if you will – on the day. Let’s talk about your brand and your best price point. And how to maximize eyes on your popular product ahead of retailers’ busiest season.