Prime Day 2023: Essential Tips and Strategies for Amazon Sellers
Simple Tips to Remember for Prime Day 2023
As Amazon Prime Day 2023 approaches, there are plenty of questions in the minds of Amazon sellers. They want to know the best strategies, what to spend, whether to offer coupons, and if it's a good idea to arrange Lightning Deals. In this article, we'll try to answer these questions and discuss the key aspects you need to focus on for a successful Prime Day 2023.
Understanding the Prime Day Psychology
Prime Day is a unique event in the e-commerce calendar. While some sellers have previous experience with it, for others, this will be their first time. Either way, understanding the psychology behind Prime Day is crucial.
- What do customers want? High-ticket items are the main attraction. Expensive electronics, new gadgets, home goods – these are the items most customers are looking for. They are not typically on Amazon for low-priced widgets. Your sales might spike as customers add more items to their cart, but keep in mind that high-ticket items are the main driver.
- The Window Shopper Phenomenon: In the lead-up to Prime Day, a lot of people are clicking around without making a purchase. They're scouting for potential deals they might want to snatch up when the time comes. As a result, you may notice that your Advertising Cost of Sale (ACoS) is spiking, but don't let this discourage you. Be patient, people are researching your products, and these clicks could soon turn into sales.
- Be realistic: Review your past year's data. Don't expect to achieve ten times more than you did last Prime Day. Keep your goals realistic and grounded in your past performance data.
To Deal or Not to Deal: A Data-Driven Approach
You might be wondering whether or not to offer deals. To help you make an informed decision, here's a insight to what we learnt from the clients we managed last Prime Day.
Our data shows that brands running deals saw a significant increase in sales - especially vendor accounts participating in 'multiple-vendor' best & top deals. Deals alway work particular well for 'high-consideration' purchases - such has high ASP (premium price) products where they see massive spike in sales - so the main challenge is forecasting enough inventory to maximise sales during this event without being left with profit-eating over-stock after the event.
Remember that running a deal doesn't necessarily mean you'll lose money. If planned correctly with an expert team, it can be an excellent opportunity to attract new customers and increase your sales - due to the post deal period 'halo effect'.
Spend and Deals Strategy
When planning for Prime Day, you should group your PPC budget and deal spend into a single total budget. This holistic view will allow you to balance your spending better and maximize your return on investment.
Lightning Deals drive a sense of urgency. When someone sees a lightning deal with a countdown timer, they're more likely to make a purchase decision. Therefore, Lightning Deals can be a powerful tool during Prime Day.
However, it's essential to balance your Lightning Deals with sponsored ads. Amazon Ads recommends running deals and sponsored ads simultaneously to increase conversions.
Coupons vs. Ad Spend
While planning your budget, it's essential to consider both coupons and ad spend. Over-discounting your products or overspending on ads can easily lead to losses. Instead, you should strike a balance between the two. If you want to run a heavily discounted coupon, then control your ad budget, and vice versa.
Moreover, if you rank for a high-volume keyword, a coupon might be more beneficial than ad spend. Remember that on Prime Day, your best selling products with the highest volume keywords will sell the most.
Every Prime Day is unique, and the strategies that work for one seller may not work for another. However, by understanding the psychology of Prime Day, making data-driven decisions, and creating a balanced spend and deals strategy, you can set yourself up for success