How to Prepare for Amazon Prime Day 2021

Pattern Marketing

April 29, 2021

 

Ryan Moffet

April 29, 2021

Buckle up: Prime Day 2021 is on its way. The event is expected to, once again, pull big sales numbers for Amazon and third-party sellers participating on the platform.

How can you prepare for Prime Day, and what should you expect? Here’s everything you need to know to pull off a Prime Day event that’s a smash success for your brand, whether or not you make sales.

A look back: Prime Day 2020

Last year’s Prime Day looked quite different than in previous years due to challenges related to Covid-19. Amazon experienced significant inventory and distribution issues at the start of the year and Prime Day was consequently moved from July to October.

In spite of obstacles, the event was once again a big hit for Amazon—the company sold $10.4 billion worth of goods, up 45.2% from 2019 ($7.6 billion). Marketplace sellers had an even better year, surpassing $3.5 billion in total sales across 19 countries in 2020, a nearly 60% increase over Prime Day 2019.

Amazon products—like the Echo Dot and Fire Stick 4K—were once again the event’s best sellers. Other products that did well are the iRobot Roomba Robot Vacuum, LifeStraw Personal Water Filter, and LEGO Star Wars Stormtrooper Helmet, according to Digital Commerce 360.

Prime Day 2020’s proximity to the holiday season was a big contributing factor to the event’s success. Digital Commerce 360 reported that consumers purchased more holiday gifts last year compared to previous Prime Day events, and in another interesting insight, a higher percentage of shoppers browsed sites other than Amazon.com during Prime Day last year than in 2019.

What this data means for marketplace sellers is that Prime Day continues to be a critical sales event, and it offers significant opportunity for growth across all channels.

What Prime Day 2021 will look like

This year’s Prime Day is slated to look closer to normal than it did in 2020, though there will still be Covid limitations in play. The event is anticipated to happen this summer rather than in the fall, and electronics is once again expected to be the dominant category.

Ryan Moffet, Associate Director of Brand Management at Pattern, said Amazon will still be limiting the number of products under certain SKUs that can be held in their fulfillment centers due to the Covid-19 pandemic. To prepare, Moffet said brands will want to set up two SKUs—an FBA and an FBM (Fulfilled by Merchant) or SFP (Seller Fulfilled Prime)—to stay ahead of potential issues.

“If you, for whatever reason, stock out on your FBA inventory, you’ll have a reserve supply that you can ship to customers,” Moffet said.

How to prep for Prime Day 2021

When it comes to Prime Day, not all categories are created equal.

“There are certain categories that just blow it out of the water, and there are other categories where it’s not really advantageous to do discounts or deals on Prime Day, because people just aren’t searching for those types of products,” Moffet said.

Electronics, tech products, and baby products do consistently well on Prime Day, while categories like jewelry and clothing don’t. Knowing what consumers will and won’t be searching for is an important first step for preparing for the event, and much of that information can be found in what media outlets report as Prime Day approaches.

Once you have a sense of a) what consumers are looking for and b) if your products fall under that umbrella, you can prepare for Prime Day by either going all-in or by using targeted advertising.

The All-In Strategy

Brands that sell products complementary or adjacent to those on sale for Prime Day will be the most successful during this event. If you sell something like a Fire Tablet Case, for example, you’re going to move lots of inventory.

Moffet recommends these brands take advantage of all the Amazon discounts they can run, such as lightning deals, deals of the day, coupons, and Prime exclusive discounts. Some deals do have limitations and deadlines for use, so you’ll want to check in your seller account for dates and get signed up early.

Another thing you’ll need to do for a successful Prime Day is ensure you’re able to convert customers and get traffic to your listings. That may require becoming more competitive in the ad space, cleaning up the copy, SEO, or images on your listings, or creating an email list of people who’ve visited your website to get them hyped for Prime Day deals now. Moffet said brands are likely to be more successful converting Prime Day customers than they would be on their own website because Amazon is such a trusted platform.

The Targeted Ad Strategy

Most brands don’t sell products in Prime Day’s hottest categories, and they probably won’t make a lot in sales during the event as a result. Instead of giving out discounts that will needlessly eat into their margins, Moffet said these brands should focus on advertising.

“What Prime Day does, and it does very, very well, is it gets people on the Amazon platform. So alternatively to putting your product on sale, you can go really aggressive on specific advertising tactics, like retargeting ads, so that you can take advantage of the traffic,” Moffet said.

Let’s say a consumer has looked at your product listing in the past 90 days. Chances are they’re going to be on Amazon browsing deals for Prime Day. You can retarget your ad to that customer while they’re on the Amazon platform so your product is at the front of their mind while they’re already in buying mode.

Another thing you can do is retarget the consumers you hit on Prime Day weeks or months down the line when your product is on sale with less competition.

One brand that has successfully incorporated retargeted advertising into their Prime Day strategy is Pandora. Because jewelry isn’t a popular Prime Day category, Pandora—with the help of Pattern—created an ad strategy that targeted Prime Day consumers who had shown interest in their products before and put those products front of mind.

During their peak sales period–right before Christmas–Pandora and Pattern retargeted those same Prime Day consumers. It ended up being a massively successful campaign.

“For every dollar that we put into the ad campaign, we got $24 in revenue out of it. On top of that, I think 70-80% of that revenue was new to brand customers,” Moffet said.

In conclusion

Success on Prime Day can be achieved by having both the right strategy and really honing the good things your brand is already doing to push sales on Amazon.

“If you think about the basics of Amazon, doing those basics really, really well for Prime Day is that much more important, so making sure that you have inventory, making sure that the content on your product detail page is really good, and it’s really clear what the product is,” Moffet said.

Drive traffic to your listings through your ad strategy, increase your conversion, and offer the right price, and it’ll be hard to not have a successful Prime Day. Learn how Pattern can help with your Prime Day strategy, product listing optimizations, and marketplace success with your free demo.

Explore Our Ecommerce Resource Library

Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.

Global Ecommerce Weekly News: 27th September 2022
Blog

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)

Global Ecommerce: Weekly News (20th September 2022)
Blog

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/amazon-to-raise-delivery-drivers-pay-and-add-more-work-benefits/) Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/amazon-to-give-away-shipping-software-to-merchants/) --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/walmart-launches-virtual-fitting-rooms-to-drive-clothing-sales/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2da7f0f8f8-EMAILCAMPAIGN202209150742&utmmedium=email&utmterm=0d23e2768b6-2da7f0f8f8-61040615) THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/thg-slashes-forecast-as-cost-of-living-crisis-hits-consumers-wallets/) --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/post-office-partners-with-dhl-express-to-provide-click-and-collect-services/) US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/us-consumer-watchdog-to-start-regulating-bnpl-sector/) Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/13/japan-ecommerce-market-to-grow-by-6-9-in-2022/) Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](https://searchengineland.com/ecommerce-brands-spent-60-more-on-tiktok-ads-in-q2-387876)

Global Ecommerce: Weekly News (13th September 2022)
Blog

Global Ecommerce Weekly News: 13th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon scales back on US warehouse facilities Amazon is shutting down two facilities with 300 employees, discarding plans for 42 facilities, and delaying plans to open a further 21 buildings across the US. The ecommerce giant is scaling back on hiring as well as the expansion of its vast delivery network, as it was left with an excess of space following its rapid expansion during the pandemic. [Read more on Business Insider](https://www.businessinsider.com/amazon-closes-2-facilities-scraps-plans-42-new-buildings-report-2022-9?r=US&IR=T) --- Other Marketplace News --- JD.com is ‘betting’ on ecommerce grocery market Amidst a slowing economy and a decline in ecommerce, Chinese ecommerce giant JD.com has increased its urgency to seek new growth engines. The company is looking to boost its online grocery business through offline partnerships and expansion into lower-tier cities, where it may be able to unleash more consumption power. [Read more on The Star](https://www.thestar.com.my/tech/tech-news/2022/09/08/chinese-ecommerce-giant-jdcom-bets-big-on-online-grocery-lower-tier-markets-amid-slowing-economy) Shopee shuts operations in Argentina, Chile, Colombia, and Mexico Sea’s ecommerce arm, Shopee, has shut local operations in some LATAM countries but will continue to maintain cross-border operations in a few markets. Latin America is Sea’s most important region following South-east Asia, accounting for close to 19% of its revenue in 2021. The move away from these countries is largely due to increased levels of macro uncertainty and rising interest and inflation rates, and rather putting a focus on its core operations. [Read more on Straits Times](https://www.straitstimes.com/business/companies-markets/seas-shopee-shuts-operations-in-argentina-chile-colombia-mexico-sources) --- Other Ecommerce News --- Instagram scales back in-stream shopping elements Instagram is re-examining its approach as it hasn’t been able to make ‘fetch’ happen. ‘Fetch’ in this context being the online shopping trends which have become all-consuming in China, and what Western social platforms have been hoping to add into their apps to make them more addictive and revenue-generating. Consumers have not been swayed by the latest shopping tools on TikTok and Instagram, leading to Instagram scaling back its in-stream shopping program. [Read more on SocialMediaToday](https://www.socialmediatoday.com/news/instagram-scales-back-in-stream-shopping-elements-as-it-re-examines-its-app/631276/) FedEx Express supporting the growth of cross border ecommerce FedEx express has expanded its international commerce shipping service to four more markets across the Asia Pacific, Middle East and Africa (AMEA) region in an effort to support the strong development of ecommerce in this region. Three of the fastest growing markets, the Philippines, Indonesia and Vietnam are leading Southeast Asia’s ecommerce sales, which is set to reach $100 billion by 2023. [Read more on Post & Parcel](https://postandparcel.info/149889/news/e-commerce/fedex-express-supports-the-growth-of-cross-border-e-commerce-within-the-amea-region/) India ramps up hiring as companies prepare for shoppers Ecommerce companies are getting ready for the festive season by rapidly expanding their temporary workforce. As ecommerce in India grows, the country is predicted to have 372 million online shoppers by the end of 2022. The festive season this year, running from October to December, is expected to see a two-fold increase in logistics and delivery alone. During this period, companies are predicted to add 20% more to their existing workforce base, with a 8-10% higher pay scale compared to last year. [Read more on Business Insider India](https://www.businessinsider.in/business/ecommerce/news/the-great-indian-festival-of-hiring-e-commerce-companies-gear-up-for-indias-shoppers/articleshow/94000346.cms)