Prime Day has historically taken place in July and it helped kick off a great start to the second half of the year for Amazon, the brands they sell, and for their customers who were looking to get a head start on their holiday shopping.
Last year Amazon extended Prime Day to a 48-hour sales event that surpassed their 2018 Black Friday and Cyber Monday sales combined with over $7.16 billion in products sold in just 48-hours!
This year, it was rumored that Prime Day was going to be pushed to August, but more recently the rumor is that Amazon’s annual Prime Day tentpole sales event is now going to be in October.
There’s still no question that Prime Day 2020 is going to be that big push for non-essential brands who have experienced challenges meeting company sales goals.
Our VP of Client Success here at Channel Bakers, Sarah LaVallee, identified some areas where Amazon was on the right track for what they did deem essential and non-essential. Not just in obvious categories like cleaning supplies and groceries, but also with making categories like toys, puzzles, Nerf guns and video games essential (big thanks from all the parents out there).
We understand why Amazon had to shift priorities and deprioritize purchase flow of certain categories. However, they did come through with their promise to place purchase orders for non-essential products a little earlier than they said they were going to. Initially it was a full stop on non-essential PO’s until early April.
According to Sarah, “We did start to see a lot of clients begin to receive POs that were in non-essential categories. Also around that time, shoppers were beginning to receive their non-essential item deliveries a little faster than previously promised.”
With 145MM new online shoppers since COVID-19 and with Amazon still being the #1 eCommerce site in the United States, non-essential brands may want to continue to leverage Amazon’s unique shopper purchase behavior data to develop strategies that will help their company hit their overall corporate sales goals, not just their Amazon sales target.
Having said that, with that unique data set and Amazon’s ability to tie advertising closer to the point of sale, it’s critical that non-essential brands continue to invest in staying top of mind with the other 197 million shoppers who have already been buying on Amazon prior to COVID-19.
Last year Amazon invested over $100MM dollars to drive traffic to their Prime Day sales event.
For those brands with non-essential products, a huge focus this year will be to get in front of Amazon shoppers and offer highly competitive price points to take advantage of Amazon’s Prime Day push.
Tyler Speer, Channel Bakers’ EMEA Director of Business Development had this to say about those brands whose products were deemed by Amazon as Non-Essential – “Prime Day is going to be the best opportunity that you’ll likely have all year long to get back on track to hit your company’s sales goals by getting in front of the shopper where they are shopping the most.”
We’ll be keeping an eye on watching how other retailers respond to this shift of Prime Day to October. We’ve already seen Walmart cancel Black Friday opening on Thanksgiving. It will also be interesting to see how shoppers respond to three straight months of deals versus the traditional peak buying season starting Black Friday and Cyber Week being the primary time of year to buy gifts.
If you’d like to view Channel Bakers’ full discussion on how brands can “Prime the Pump” in preparation for Amazon, visit this link. To learn more about next steps for non essential brands towards Prime Day, contact our Advertising experts at Channel Bakers.