As an Amazon seller, whether you have participated in Prime Day in the past, or you’re considering it for the first time, you’re probably very aware of the massive marketplace event. With omnichannel advertising campaigns promoting unprecedented deals, limited availability, Amazon creates a sense of urgency to buy and buy now.
The data shows the event’s popularity has experienced steady and substantial growth over time. In 2022, Prime Day sales grew to $12 billion, with consumers purchasing more than 300 million items worldwide. By contrast, Cyber Monday sales for the same year reached just $11.3 billion, making Amazon Prime Day one of the biggest, if not the biggest, ecommerce sales events in the United States. And, because of its past performance, we fully expect Prime Day 2023, July 11-12, to achieve even greater sales.
Prime Day Boosts the Ecommerce Equation
At Pattern, we’ve developed a data-driven revenue model for brands: traffic x conversions x price x availability = revenue. Our teams implement this model time and time again to improve brands’ performance on marketplaces like Amazon. When every aspect of the equation is optimized, your products are positioned to grow their profitability.
Prime Day focuses our efforts for brands on optimizing traffic because as you increase the traffic to your listings, you improve your ability to generate revenue.
How Does Prime Day Create New Traffic?
Simply put—everyone wants a deal, and Prime users wait all year for Prime Day exclusively for lower than normal promotional prices. So shoppers show up in greater numbers during Prime Day. With 161.7 million Prime users in 2023, the audience and opportunity that comes with Prime Day is quite significant. In fact, Amazon reports a 216% increase in awareness and 214% increase in consideration for brands that advertised throughout all phases of Prime Day.
Other ecommerce retailers have taken notice, too. Amazon’s Prime Day has become so powerful in driving overall retail traffic that traditional brick and mortar shops now plan their own promotions around Prime Day, hoping to take advantage of deal-hungry customers. In addition, rival marketplaces have started launching their own version of the sales event, with Walmart creating Walmart+ Weekend, and Target creating Deal Days.
It’s evident that where there’s smoke, there’s fire and where there’s deals, there’s customers.
Why is Prime Day Traffic Important?
As more brands and marketplaces take note of the opportunities that Prime Day brings, it’s important that you stay competitive and strategize to take advantage of the event’s benefits too. Below are two reasons Prime Day traffic is a significant bonus to your brand and you should be prepared to activate your own brand efforts timed to Prime Day promotions.
1. More Advertising Bang from Amazon’s Buck
As an Amazon seller, Prime Day drives cheaper, higher-volume traffic to your advertised products than you can get at any other time. Amazon’s investment in Prime Day’s success is a win for all sellers—as they say, a rising tide lifts all ships. Amazon reports that 82% of shoppers learn about new brands leading up to Prime Day, and 75% are likely to purchase a product during Prime Day they discovered during the lead-up to the event. Amazon also reported that during Prime Day, there’s also the opportunity to increase brand loyalty with 69% of shoppers surveyed saying they were likely or highly likely to buy other products from the same brand.
Brands that choose to run deals and ads during Prime Day can be part of Amazon’s own advertising without having to spend any extra advertising dollars to get directly in front of its Prime customer base. WIth our long history, fundamental knowledge of, and deep relationship with Amazon, Pattern can help its brands attain these coveted spots.
In addition, brands pushing Prime-Day-Exclusive deals can also show up on category deal pages and under the Prime-exclusive deal filter, two new ways for consumers to discover your brand. In turn, being listed in deals pages and filter increases the likelihood to gain new traffic because of Amazon’s investment in advertising participating products.
2. Gain Amazon-Exclusive Customers
Considering the large number of products available on Amazon and the benefits of free, fast shipping for Prime members, customers are increasingly turning only to Amazon to shop. In a survey of 2,000 U.S. consumers, 89% reported being more likely to buy products from Amazon than other ecommerce sites, and the number jumped to 96% of Amazon Prime members.
It is highly unlikely that this amount of traffic would end up on your direct-to-consumer site, so capturing them on Amazon may be the only way to win their business. When pushing a Prime Day promotion, you’re not taking traffic away from your website, you’re adding consumer traffic you would have missed.
Pattern Drives Traffic for Your Brand to Win on Prime Day and Beyond
As an ecommerce accelerator, and one of Amazon’s top sellers, our brand and advertising experts know how the event can generate new traffic opportunities for your brand and how to take advantage of Prime Day traffic. Increasing traffic is one of the key parts of the ecommerce equation. When multiplied by conversion, availability, and price, we know higher traffic drives profitability for your brand.
As a Pattern partner, we leverage our data-driven insights from years of experience on Amazon as well as our premier leadership position on the marketplace to put your brand ahead of the competition, on Prime Day and beyond.
Are you ready for Prime Day? Get in touch today.
