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 2021, Prime Day sales grew to $11.19 billion. By contrast, Cyber Monday sales for the same year reached just $10.7 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 2022 to achieve even greater sales.
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.
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 a projected 153 million Prime users in 2022, 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.
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.
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 71% 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.
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.
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.
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.
Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.
Developing your ecommerce strategy for digital marketplaces like Amazon, Walmart, Tmall, and Alibaba gets complicated fast—there’s a lot to think about, including marketplace SEO, product photography, advertising tactics, disjointed sellers, distribution logistics, managing ratings and reviews, and more. It can be overwhelming for brands, especially those with small teams, to know which behaviors to optimize for for the highest gains in profitability.
The good news? Revenue performance all comes down to data. Pattern was built on a data science approach to ecommerce success. We find the patterns that drive profitability, then apply them to boost our brand partners’ revenue on ecommerce channels.
And a key pattern we follow for all brands on digital marketplaces is the ecommerce equation: revenue = traffic x conversions x price x availability. As brands zero in on these four pieces of the equation, they can simplify and focus their efforts to reach truly profitable ecommerce growth.
The first part of the equation is traffic—you need to get people to see your listings if you want to generate sales. There are two ways to drive traffic to your products: through organic search and paid search. Striking the right balance between both for your brands is crucial to driving enough of the right traffic to your products, ultimately increasing your ecommerce revenue.
Knowing this, Pattern provides the resources and technology needed to drive traffic to your product listings. Our brand management team, advertising specialists, and SEO technicians work in harmony to create a unified strategy to boost your brand’s organic profile and balance that with a paid advertising approach that works for your brand and listings.
Using this method, we took Feetures socks from ranking on longer-tail terms like “no show athletic socks black” to driving traffic on parent keywords like “no show socks.”
Getting customers to your product listing is only half the battle. Once on your listing, you need customers to convert. Conversion is key to the ecommerce equation because it leads to real product purchases and revenue. Traffic without conversion leads to more time and ad spend without the ROI.
Optimizing your images, product description, bulleted details, customer reviews, and buy box performance is key to successful conversion. If you’re going to spend time and effort driving traffic, you should make sure customers can easily and clearly find what they’re looking for when they arrive at your listing.
While your imagery and descriptions are important, you also need to build customer trust to drive conversions. Studies show that your customer service efforts matter too—84% of people trust online reviews as much as friends, making strong reviews an important factor of conversion on marketplaces.
The good news is as you provide a quality product and a great marketplace experience, you’ll build brand equity, increasing your customer loyalty. Then, as your reputation, reviews, and traffic grow positively, marketplace algorithms will recognize your popularity and improve your rank accordingly. Rank drives both traffic and conversions, helping you to optimize your performance further. As your brand equity grows, your conversions will continue to grow with it.
While setting a strategic price is an important step in your ecommerce strategy, it takes more than that to truly control your price on marketplaces.
Without proper control and with wide distribution, your product could end up in the hands of disjointed sellers who lower your marketplace price to sell their inventory and make quick profits. With one seller lowering price online, other authorized sellers and retail partners are forced to lower their price to compete, creating price erosion and sending your brand down the profitability death spiral.
This Death Spiral damages brand equity, hurts conversions, and can lead to Buy Box Suppression on Amazon, hindering traffic as well. And as prices get lower and lower, your profit margin withers away, decreasing your overall revenue.
Using our data-driven insights and Pattern’s eControl partner Vorys, we help brands implement narrow distribution, identify and take-down unauthorized sellers, eliminate price erosion, and control their price online. Focusing on price control, Pattern helped LifeSeasons, a premium supplement company, take back 91% control of the Buy Box on Amazon.
The last piece of the ecommerce equation is availability. It makes sense to think of availability as a contributing factor in conversion, but we felt that it’s important enough to call out on its own—you can fully optimize your traffic, conversion, and price, but without availability, you can’t grow revenue for your brand.
A lack of availability leads to stock outs, losing conversions to competitors, losing possession of the buy box, poor customer reviews, a decrease in traffic…the list goes on. The best-performing brands on ecommerce digital marketplaces optimize their availability with high-end technology, optimize their cash on hand, and inventory time on hand to keep the ecommerce equation powered and optimized in their favor.
Pattern is committed to solving the ecommerce equation. We partner with brands to provide the expertise, resources, and technology needed to drive traffic, create content that converts, protect price, maintain availability, and ultimately accelerate ecommerce revenue and profitable growth.
Interested in improving the results of your ecommerce equation? Schedule a call.
Join us for Ecommerce Innovators, a podcast that brings together the brightest minds in the industry to explore innovative strategies and trends in global ecommerce. We'll analyze what top brands are doing to accelerate their online success and you’ll hear from top executives who are changing the game for their organizations. Our host is John LeBaron, Chief Revenue Officer at Pattern—the premier partner for global ecommerce acceleration.
In our conversation with John Wessel, CTO and SVP of Product & Digital at Fresh Water Systems, he talks about digital transformation, innovation, and growth. Hear about the many hats John’s wears, how the company has transformed since the 90s to stay cutting edge, the pharmacy part of the business, aligning and prioritizing multiple channels, and competing with Amazon.
Content leads to search ranking. For Fresh Water Systems’ ecommerce site, around 70% of their traffic is to the blog. The secret for content is “well-researched, well-written, long form content that is informative”. John explained that they have an SEO team who writes 5000+ word posts that are researched and documented. People read these blogs and comment, which drives more traffic to the blogs.
Ecommerce is changing the shopping game. John shared an interesting story about a plumber who orders parts every Friday night online, from wherever he can get the best price. He doesn’t have relationships with one supplier or an auto-renew subscription for his parts. Instead, he finds the best price just for the parts he needs every week. John thinks the trend of price shopping will continue, especially as ecommerce grows.
Invest in customer engagement, but don’t invest a lot of time into emails. How many advertising emails do you actually read? Companies often spend a lot of time doing A/B tests and crafting the “perfect” email. However, John pointed out that almost no one reads emails anymore. Instead, invest your time into different brand touchpoints you will have with your customer. You can still send emails, but make sure you dedicate less time to the process.
Listen to the full episode for free on Apple Podcasts, Spotify, or wherever you get your podcasts.