It began as a celebrations. It's currently one of the year's largest online sales occasions.
Amazon's standing as the world's leading e-commerce company was strengthened by Prime Day. See if Prime Day is truly worthwhile for online retailers by learning more about its history and current state.
In this article you will learn:
- Why Did Prime Day Begin and What Does It Mean?
- How long does Prime Day last and when is it?
- Benefits and Drawbacks of Prime Day for Amazon Seller
- Sales on Prime Day from 2015 to 2020
- How Many People Are Prime Members?
- How sellers need to get ready for Prime Day?
- Top-Rated Prime Day Items and Subjects
- The Increase in Anti-Prime Day Activities
- Conclusions
Why Did Prime Day Begin and What Does It Mean?
Every year, Amazon hosts an online sales event called Prime Day wherein Prime members receive massive discounts. It's a strategy to compete with Alibaba's Singles' Day, Black Friday, and Cyber Monday sales and encourage more people to become Prime members.
July 15, 2015 saw the launch of Amazon Prime Day, a celebration marking the 20th anniversary of the launch of Amazon.com.
Just 9 countries took part in the inaugural Prime Day. 20 nations will take part in 2021, with the exception of Canada and India, whose Prime Day has been rescheduled due to COVID-19 concerns.
Amazon and its third-party sellers both profit more from the sales event. But not every 3P seller offers a discount on Prime Day. According to our own survey, just 34% of FBA sellers offered Prime Day discounts in 2020, and 47% will do so in 2021.
Of the 2000 Americans surveyed, 78 percent had heard of Prime Day and 60 percent had taken part in it, according to National Today.
How long does Prime Day last and when is it?
Prime Day has been observed annually in July from 2015 to 2019. But due to the pandemic in 2020, it was moved to October. Additionally, it is scheduled for June of 2021 so that the rescheduled Olympics won't overshadow it.
Initially, it was just a one-day deal. However, because Prime Day now takes place over two days, it has kind of lost its meaning over time. It might also take longer given the rise in "Anti-Prime Day" events. Later on, more about them.
The dates and lengths of each Prime Day to date are listed in the table below.
Benefits and Drawbacks of Prime Day for Amazon Seller
Many sellers experience a significant increase in sales on Prime Day, but not all of them offer discounts. Even if you don't lower your prices, you will still profit from the increased traffic.
See the following list of benefits and drawbacks of Prime Day for sellers:
So, does offering deals on Prime Day make sense?
Your profit margin and the amount you are ready to pay for the exposure—or lose—will determine everything.
Despite the presence of other online sales events, Amazon maintained 87 percent of the market share on Prime Day 2019, according to Edison Trends. Additionally, 76 percent of shoppers wait until Prime Day to make a specific purchase because they anticipate a discount. Therefore, if you have the money, it's definitely worth a try.
Sales on Prime Day from 2015 to 2020
Both Amazon and independent sellers profit billions of dollars from the now two-day sales event. Amazon reported that its third-party sellers had sold over $3.5 billion worth of goods in 2020, a 45.2% increase from the previous year.
Prime Day revenue is trending upward, as seen in the graph below, and we anticipate that this trend will continue in the years to come.
CIRP estimates that yearly spending on Amazon by Prime members is approximately $1,400, compared to non-Prime members' average of only $600.
Amazon also has pre-Prime Day sales in addition to the actual Prime Day. The data for the previous three years regarding Amazon's spending a week prior to Prime Day is displayed in the Edison Trends chart below.
How Many People Are Prime Members?
There were about 150 million Prime members in the US and about 200 million globally as of June 2021.
Right now, a 12-month Prime membership costs $12.99, and an annual subscription costs $119 (taxes included). Additionally, there are discounted student subscription rates available, with monthly and annual rates of $6.49 and $59, respectively.
How sellers need to get ready for Prime Day?
It's highly likely that you will see an increase in sales on Prime Day even if you have no plans to offer discounts. You can do the following to benefit from the circumstance:
- Get your inventory ready beforehand- To prevent stock outs, be sure to take lead time into account. Mid-year is typically Prime Day, so inform your manufacturer ahead of time that they should anticipate a sizable order.
- Pay attention to your numbers- As was already mentioned, even if you don't give discounts, you can still profit from the increased traffic on Amazon. While some sellers give excellent deals, many just keep their prices the same. Just watch that you're not losing money on your sales. If you are, though, make sure it's worthwhile.
- Keep track of deal deadlines- Remember the deadline if you intend to offer discounts and/or coupons. For instance, there is a deadline for submitting Lightning Deals. Additionally, after creation, it would take at least six hours for coupons to become active.
- Make your Amazon listing better- One of the best occasions to leave a positive impression is on Prime Day. Therefore, ensure that the listing copy and images are optimized.
Top-Rated Prime Day Items and Subjects
The Echo Dot and Fire TV Stick 4K are Amazon's top-selling items on Prime Day 2020, but third-party sellers can profit from the extra traffic.
Best-selling non-Amazon items include:
- iRobot Roomba Robot Vacuum
- LifeStraw Personal Water Filter and
- LEGO Star Wars Stormtrooper Helmet
Based on the volume of searches made during the two days of Prime Day 2020, the table below lists the top 10 terms that users searched for on Amazon.com.
The top categories for Prime Day in the US in 2019 and 2020 are displayed in the infographic below. Electronics was the top category in both years.
The Increase in Anti-Prime Day Activities
Many brick and mortar stores are increasing their online sales events as a result of COVID-19 forcing an increasing number of transactions to take place online.
The following enumerates the most noteworthy ones for 2021:
To compete with the Prime membership, other businesses are also providing their own subscription services. Only a few states are currently able to access Best Buy Beta, which was just released. Also relatively new, Walmart+ debuted in 2020.
CONCLUSIONS
The standard for many online sales events was set by Prime Day. Even though there are more businesses vying for customers than Amazon, the company continues to grow its Prime membership and sales.
Have you previously offered Prime Day discounts? In what ways did it benefit your online store?
