There’s still time for sellers to prepare for it by quickly implementing strategies that will position them to have their most profitable period of sales before, during and after Prime Day officially ends.
Things have changed in 2022.
And these concerns are without factoring in how rising inflation may impact shopper spending on Prime Day. In response to increases in prices for such essentials as gasoline and groceries (without cost-of-living adjustments from employers), sellers can expect shoppers to be spending less money on consumer goods or impulse buying as they try to stick to their household budgets.
Amazon’s recent Fuel Surcharge will also have repercussions for seller profit margins during the Prime Day event. It tacks on a 5% fuel and inflation surcharge for FBA sellers, increasing fulfillment fees. These fees range from $0.15 for the smallest and lightest products to $8.54 (plus 4 cents per pound over 90 pounds) for heavy, oversized, and dangerous products.
Sellers should check the current FBA fulfillment fees to determine how great of a range of discounts they can offer for their various products without sacrificing profitability, and whether or not FBA is still a good option.
While shoppers may have experienced substantial financial strains in recent years and have adapted their spending habits to reflect the economic uncertainties (job loss, income fluctuation) caused by the Coronavirus, some industry watchers believe these factors will make Prime Day deals even more attractive than they’ve been in the past.
They feel there will be considerable pressure on consumers to obtain the best deals possible when buying products, which make the special discounts, coupon codes and slashed pricing of Prime Day irresistible.
Only time will tell.
But until the final Prime Day sales data is in, here are 10 tips for…
Sellers should share their brand story/mission and take time to review their product pages before Prime Day to ensure that their listings are well-written, compelling shoppers to click the ‘buy’ button.
Pro Tip: The main product image can’t include multiple angles, lifestyle shots, or text, but subsequent images can be more varied.
Sellers that stick with FBA should double check to make sure that they are not overpaying because some of their inventory sizes are not correct, which can generate additional/higher shipping or storage fees. For example, if a seller has larger products that have not previously sold quickly that require a lot of warehouse space, those products will incur additional long-term storage fees.
Sellers who choose Seller Fulfilled Prime need to consider if they have the staff and how deeply it will bite into profits to pay the extra hours needed for them to quickly fulfill and ship orders, handle customer service requests, returns, etc., during the higher volume days throughout the Prime Day event.
Product offers with a Prime Exclusive Discount will show a discounted price with the regular price crossed out. Shoppers will also see a savings summary in the search results and on product detail pages. Prices adjusted for discounts are displayed on the Featured Offer detail page for Prime members.
Always remember to weigh profit margins when setting discounts especially when offering sales and coupons that can be combined, which might result in steep savings for shoppers but could cut significantly into Prime Day profits.
There are restrictions on the types of items and kinds of discounts for these deals, and those restrictions are even stricter for Prime Day sales. Sellers should make sure that they are compliant with Amazon’s Eligibility Criteria for Prime Day. Sellers must submit these soon, as the deadline to have discounts submitted for Prime Day is July 8.
Pro Tip: Plan to start your promotions about two weeks before Prime Day, allowing you to see how your ads are performing, and adjust if necessary, so you have solid campaigns prepped for Prime Day. Also, by promoting early on your social channels, you have a chance to send out several rounds of reminders to your customers to remember to check out your sales on Prime Day.
Pro Tip: Sellers should set a reminder to create coupons no later than 2 days before Prime Day, so that the coupons will be live on time. Coupons should also reflect the duration of the offer or savings period.
Storefronts also give sellers the extra benefit of providing valuable insights that allow them to see shopper behavior, adapt their marketing strategy, and then execute updates that lead to higher conversion rates during Prime Day.
Pro Tip: Don’t overlook off-Amazon sales. Sell products through other retailers and distribution channels, or on your own website, offering discounts in these locations as well. Prime Day shoppers don’t limit themselves to Amazon. Remember to track your off-Amazon traffic and conversions with Amazon Attribution.
By extending your promotions to other distribution channels you increase the odds of shopper discovery and additional sales during the Prime Day event.
Automate Pricing to Stay Competitive. Amazon’s automated pricing tool will adjust sellers’ prices based on rules that they set up beforehand, so they can be competitive and win the Featured Offer box, despite the heavy price competition during the Prime Day period. Sellers set up specific pricing rules for each of their products and can adjust or remove them whenever they want.
There’s no perfect strategy that works for every Amazon seller when it comes to advertising for Prime Day and beyond. Discovering an exact formula for consistently converting shoppers takes time and effort and can often mean working with an experienced team of Amazon advertising experts.
If you are not satisfied and want to improve the performance of your ads, Entourage Management Services can work with you to create an end-to-end advertising roadmap designed for your unique needs and sales goals.
Entourage: Software to Scale Amazon Ads and Results Driven Management.
He is the owner and founder of PPC Entourage, one of the original amazon ad software and management companies. Mike started off as a physical therapist in 2015 and just knew there had to be a better way so he started his ecommerce journey. Using the power of Amazon Ads, he built a 7 figure brand in less than one year. Now he helps other sellers do the same with free valuable education, PPC Entourage software and the ad agency. He is also the author of the Amazon Ads Playbook series.
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