The Big Picture of Prime Day
Amazon Prime Day 2019 has come and gone, leaving marketplace and ecommerce brands alike basking in the afterglow. Now, the sales results are in – and they’re impressive. The 2-day marketplace deals event generated more sales than Black Friday and Cyber Monday 2018 combined, with over 175 million products purchased by Prime members.
Following a shaky start to Prime Day 2018, Amazon was ready to keep the lights on at all costs this year. No major site outages were reported, and page load times were only slightly slower than usual. In a newer move, Amazon pumped ad dollars into Google paid search early in anticipation of the sale to promote their event, creating a bigger buzz than ever, as well as some concern among brands competing for their own terms in PPC.
Overall, Amazon saw extensive YoY Prime Day growth, and Adlucent’s Amazon clients followed the trend with an average of over 160% increase from last year’s sales.
Adlucent Amazon Clients Saw Measurable Prime Day Increases
A variety of Adlucent clients participated in Prime Day by offering promotions on their marketplace products, running coupons, Lightning deals, and Prime Day specials. From mattresses to office supplies, furniture, wellness products, and sports equipment brands, success was the common thread we found across all the categories taking advantage of Amazon Prime Day.
The most staggering results from Adlucent clients selling on Amazon for Prime Day included YoY growth of over 475% and over a 1400% surge in sales compared to an average day on the marketplace. It’s no wonder Prime Day has gotten a reputation in retail as the new Christmas in July.
What Was “In” This Prime Day
As the Adlucent team outlined in our Amazon Prime Day Whitepaper, Electronics made the biggest spark during the sale event.
Amazon reported sales of over 100,000 laptops, 200,000 TVs, 300,000 headphones, not to mention extensive sales of Amazon’s own gadgets like the Echo, Fire, Kindle, and Ring. Similar to in 2018, top-selling items across categories included the LifeStraw Personal Water Filter, the Instant Pot DUO60 and 23andME health and ancestry kits.
Non-Amazon Ecommerce Sites Rode the Prime Day Wave to More Revenue
Brands participating in Prime Day outside of the marketplace enjoyed an average of 37% YoY growth, with promotions accounting for 66% of their revenue boost. As far as the big retail competitors go, there seemed to be a conscious effort by Best Buy, Target and Walmart to avoid promoting the same products as Amazon so as not to create a price war.
“Amazon competitors are not only copying Amazon’s massive 48 hours of hot deals, they are creating events of their own for consumers to look forward to. And it’s working. Best Buy, Walmart and eBay all saw significant increases in search index during the first 24 hours of Prime Day.” – Kiri Masters, Forbes
Spotlight: Arts & Crafts Retailer Competes With Deep Discounts
One Adlucent retailer client that does not sell on Amazon but ran a significant promotion to compete on Prime Day, offering both a sitewide sale and deep discounts on key products, is highlighted below. The Adlucent team increased bids on PLAs and Non-branded Search throughout the day to take advantage of higher efficiency ads than on regular days, while strategically avoiding Prime Day keywords. We also created additional search extensions to highlight deals and were able to get the client more bang for their buck in light of the heavy search traffic.
The result? Our client benefitted from a 49% increase in revenue from Prime Day (July 15th) 2018, spent 4% less on ads and had 55% higher efficiency in spend. Conversion rates were higher than usual since shoppers were ready in "buying mode." An amazing Prime Day – even without going the marketplace route.
Amazon’s Own Agenda: Prime Membership
This Prime Day, Amazon welcomed more new Prime members on July 15th and 16th than ever before, helping them achieve almost $12 billion in revenue from the annual subscription fee alone. The marketplace even began promoting new 1-day shipping nearly a month before Prime Day to help recruit more members. A lot of Prime members are highly engaged and purchase often, making the most of their yearly membership fees and adding to Amazon’s incremental revenue.
Prime Day Has Primed Customers to Consume More and Stay Engaged
Prime Day is keeping the shopping season going past the 2-day event with sales and specials overflowing into the following weeks. Shoppers were offered a $10 credit in exchange for installing “Amazon Assistant,” which follows users’ web searches to suggest lower-priced items on the marketplace as shoppers browse online. In the first Prime Day with Whole Foods under Amazon ownership, members also received $10 credit with any grocery purchase over $10, encouraging them to keep on spending their money with Amazon. As promos continue to linger on the marketplace, it’s no wonder 55% of back to school shoppers plan to shop on Amazon for their Back to School needs.
“Since Prime Day falls right around Back-to-School, it has essentially created a second holiday shopping season for consumers to anticipate. So, brands in relevant Back-to-School categories have the added perk of drawing on this shopper mindset.”
– Getting the Most Out of Amazon Prime Day 2019, Adlucent