Prime Day 2022 has concluded and the retail giant is teasing the idea of hosting a second sales-a-thon in Q4. If this is true, this will be the first year when Amazon hosts two big sale events in the same year.
According to a notice viewed by CNBC, Amazon is quietly inviting a select group of sellers to a new Prime Day-type sales event that will be held in the fourth quarter. The company is notifying a handful of third-party sellers via Seller Central. Although the notice doesn’t specify any dates, it instructs sellers to create and submit Lightning Deals by July 22 for the Q4 event. Amazon is calling it the “Prime Fall deal event,” a shopping event exclusively for Prime members. As per Feedvisor, the second Prime Day is said to include the sales of TVs, sneakers, and more.
Why is Amazon hosting a second Prime Day?
Amazon revenue numbers are taking a hit. As shoppers’ mindset is now shifting to travel and entertainment, the growth has slowed to a halt for the first time since 2020. The retail giant has also been navigating a host of financial challenges, including inflation, increased fuel costs, labor shortages and global supply chain disarray. Two months back, Amazon announced a 5% surge in U.S. selling fees and raised the price of its U.S. Prime membership for the first time in four years.
In order to offset the slow growth and drum up additional sales, Amazon might be planning to hold a second Prime Day.
Prime Day 2022 recap
Despite anticipations of low spend because of inflation spikes and concerns surrounding “Prime Day losing momentum,” Amazon has announced that Prime Day 2022 was their biggest Prime Day yet. Customers worldwide spent more than $12 billion, making the two-day sale-a-thon yet another record-breaking event.
Amazon, in a press release, said, “This year was the biggest Prime Day event for Amazon’s selling partners, most of whom are small and medium-sized businesses, whose sales growth in Amazon’s store outpaced Amazon’s retail business.”
Additional stats:
- 300 million items were purchased, up from 250 million in 2021.
- Prime members saved over $1.7 billion, more than any previous Prime Day event.
- Customers spent over $3 billion on more than 100 million small business items.
- Some of the bestselling categories were: Amazon Devices, Consumer Electronics, and Home.
- Some of the best-selling items worldwide were from premium beauty brands, including LANEIGE and NuFACE; Apple Watch Series 7; diapers and wipes from Pampers and The Honest Company; kitchen essentials from Rachael Ray, Le Creuset, and Hamilton Beach; VTech and LeapFrog toys; Vital Proteins Collagen Whey; Levi’s apparel and accessories; Chemical Guys car wash products; and pet products from NUTRO, TEMPTATIONS, and GREENIES.
- Prime members in the U.S. did the most shopping from 8-9 pm on Wednesday, July 13.
As inflation was at a record high, Amazon lured budget-conscious shoppers by offering steep discounts on daily essentials that are on everyone’s grocery list. Although Prime Day has lost some of the momentum it once had, Amazon continues to lead the charge against competitors like Walmart and Target.
Tips to prep for Prime Day fall event
As this is a first-of-its-kind event, sellers are contemplating to make a significant investment. High-traffic events like this can significantly increase CPC without guaranteeing sales. We would recommend creating a budget before going all-out for the event.
The influx of traffic is not predictable, but looking at similar events held by Amazon in the comparable time period (a.k.a Prime Day 2020), we can anticipate that the second Prime Day will help sellers boost their overall Q4 sales.
Sellers who want to participate but spend cautiously can use the following tips to prep their Amazon store before the second Prime Day hits:
#1: Advertise off-Amazon
More and more brands are advertising off Amazon on platforms like Google, Facebook, Instagram and their own website. Our latest blog post explains everything you need to know about driving off-Amazon traffic to your listing.
Related post: How to Drive External Traffic to Amazon Listings
#2: Create campaigns at least five weeks in advance
New campaigns can have trouble gaining impression and visibility, even with high bids. This can be because, during big events like this, Amazon prefers campaigns that have proven sales data.
Refrain yourself and your Amazon PPC expert from creating and experimenting on any new campaigns; instead, add Prime Day and discount-related keywords in your campaigns that are performing well.
#3: Advertise – but on budget
Brands skeptical to go overboard or with a super tight budget can still use Sponsored Products to rake in sales.
Best practices:
- Do not experiment with campaigns and keywords. Instead, focus on keywords with the highest conversion rates.
- Avoid adding broad keywords to minimize wasted spend.
- The campaigns running during the event should include only the top-performing products.
#4: Enhance your creatives
Amazon listing optimization is never a wasted investment. The benefits of having an informative copy, enticing images and professional A+ Content go beyond converting shoppers and increasing sales on Prime Day and Black Friday.
#5: Get your inventory in order
Did you go out of stock this Prime Day? Take a look at the historical data to forecast stock levels and send them to the Amazon warehouse in time. The best approach to estimate the inventory you will need for the event is to look at the past year’s data. A seller announcement showed that the FBA shipping deadline for the second Prime Day is September 12.
#6: Don’t go overboard
Q4 is just around the corner; if you don’t assess your budget, you’ll end up exhausting all the funds before the holidays. We recommend capitalizing on the products you know will sell and campaigns you know will work.
#7: Prep now or regret later
During the lead-up period, Amazon can take days to review and approve Sponsored Brand campaigns, Stores, and A+ Content, which otherwise would take a few hours.
Creating campaigns and getting your detail page “retail ready” well in advance will save you from frustration and disappointment in the days nearing the event.
Hire an Amazon marketing agency to ensure that your copy, imagery, A+ Content and everything a customer interacts with speaks to your brand and highlights something unique that can be found nowhere in the market.
Gear up for successful Q4
Sellers looking to kick start their early holiday sales should prep for Fall Prime Day sooner rather than later. The event will also help ramp up customer demand and sales during otherwise slow-sale weeks leading to Turkey 5.
If you need assistance planning for the second Prime Day and BFCM week, contact us and book a free consultation with our Amazon seller consultants.