Prime Day: Everything Amazon sellers need to know about making the most from deals

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With Amazon announcing on Wednesday that the 2023 Prime Day sales event will take place July 11-July 12, now’s an especially good opportunity for sellers to ramp up promotions.

This year, there are some new deal offers Amazon is trying out, including exclusive deals on fast-selling items for Prime subscription club members, as well as Prime Day deals that will be available on third-party retailer websites, backed by Amazon’s inventory and shipping infrastructure.

Every year, there are various planning steps sellers should be taking ahead of Prime Day, including reviewing the sales strategies they will use, from temporary, deep discounts known as Lightning Deals, to coupons and social media promotion codes. The options that sellers choose will depend on a variety of factors including the product, budget, following on social media, and timing. This means strategizing carefully to maximize your return on investment and reap the rewards of more loyal customers and higher sales, not only during Prime Day, but all year long. The goal of any deal is getting more products in more hands, because you want customers to become loyal. You’re wasting money if you don’t achieve that,” said Phil Masiello. He is the chief executive officer of CrunchGrowth, a digital marketing firm. Here are some ways that small businesses can use promotions to boost sales during Prime Day and beyond. Amazon’s Seller Central calculator can be used by e-commerce entrepreneurs to estimate costs and profits of selling products on Amazon. They can then factor in the cost of the promotion to help determine what to run so as not to eat too deeply into profits, said Troy Evans, product manager at Skai, an omnichannel marketing platform.

Often it can be a judgment call. Evans says that even if a promotion isn’t the most profitable one, it may be worth it because it can boost sales. The trade-off is that. “

Sellers should also be aware of the fact that Amazon customers are price-conscious, and take that into account when deciding on their prices, according to Gia Ching. She is managing director of GCC Consulting, an online marketing and design firm. Even 50 cents will make a significant difference. Your product can be made or broken by this. Lightning Deals can teach you a lot. Although it is likely too late for a Lightning Deal to be approved by Prime Day, sellers can think about how they could use the strategy at a later date.

“I’ve seen just as much success for Lightning Deals at other times of the year,” said Nick Mattar, founder and chief executive of Digital Detroit, a digital marketing company.

Lightning Deals tend to generate excitement because they are only available for a short time. Clicking on the “Today’s Deals”, “Prime Day” link on Amazon’s home page will allow customers to view all available offers. There are also downsides. Masiello explained that sellers pay a fee for each deal. This can range from $150 to $500, depending on when the deal is made and what day it’s done. Amazon charges a fee even if the deal doesn’t work out. There are also eligibility requirements and sellers must meet Amazon’s threshold for inventory. A professional seller, for example, must have a rating of at least 3,5 stars. A product must also have a history of sales in Amazon stores, and at least a three-star rating. Amazon offers additional criteria on how to make products eligible for deals. Additional criteria on how to make products eligible for deals is available from Amazon.

Before deciding to offer a Lightning Deal, sellers should seek to understand how competitors’ items perform with similar promotions. This is likely information that a business would have to pay for. Masiello’s firm, which offers this type

of market research, says that subscription-based tools can help sellers find this information. Prices range from $50 up to $1,000 per month depending on factors such as data sources, tool functionality, and the size of the audience. For Prime Day, sellers need to focus Lightning Deals not on seasonal products but rather items that people are interested in all year round. Categories that have sold the most in the past include electronics, household appliances, premium brand skin care and personal care, technology products, and fashion items.

Coupons can increase sales as much as Lightning Deals

Sellers could also choose to offer a coupon to customers for a certain dollar amount or percentage off. Customers can find coupon deals on Amazon’s home page, filter them or see the offer in an individual product listing. Mattar stated that “Any type of promotion or coupon on Prime Day will generally have a similar increase in sales percentage as a Lightning Deal.” Sellers need to be prepared, though the lead-time isn’t quite as long as with a Lightning Deal. Evans recommends that sellers allow Amazon one to two business days to approve coupons. Use Amazon Seller Central to create promo codes

Along with the revenue calculator, Amazon also offers details on how products can be eligible for discounts. E-commerce businesses are able to create discount codes via Seller Central, Amazon’s management portal for 3rd-party sellers. The code can be shared on social media or by email. Evans explained that this method avoids the coupon charge, but consumers must take an extra step to redeem the code. Mattar added that for sellers to see a difference in their sales, they “need a social media following established and active,” he said. It doesn’t need to be a celebrity. They can work with someone who has a large and engaged audience. “Influencers can be expensive, but if you can accurately project what the uptick in sales could be, you can stand to profit from working with one,” Mattar said.

Putting items on sales won’t make them stand out on Prime Day

Discounting can be a viable tool in a seller’s toolbelt, but simply placing an item on sale won’t likely be enough to generate buzz on Prime Day, Ching said. It’s because, unlike Lightning Deals and coupons, there is no link for sale items on Amazon. “It’s only going to capture people who are already looking for your product or people that have been considering your product,” Ching said.

Also, your competitors will also be offering discounts on Prime Day, so that might be a more profitable strategy for another time of year, particularly if you are consistently able to offer a price that’s lower than your top competitors — assuming your margin allows for it, Evans said. Promotions need to be tied to a broader business strategy

The new invite-only deals Amazon announced on Wednesday seem to be a way to “claim” the best Prime Day deals ahead of time, Mattar said. He has mostly seen invitations for Amazon products such as the 43-inch UHD TV, which costs $99, so he believes that this is a way to “claim” Prime Day deals ahead of time. In fact, the weeks before Prime Day will be just as busy, according to him. Why not get in early? We know that Amazon will offer some of the biggest discounts on Prime Day. The key is that not all invitations that are requested are granted, so for this first year the Prime customers should plan on still checking the Amazon store when Prime Day begins,” Mattar said. Eventually, this concept is likely to be rolled out to Amazon sellers, he said, and it will be a way to extend Lightning Deals. If someone wants to purchase your product at a discounted price, they will request it. They can then buy it later at the same discount. It will be harder to sell products at normal prices. “

The Amazon deal concepts reinforce a fundamental point that e-commerce entrepreneurs use to guide their Prime Day activities. Sellers should not act in isolation, whether it’s for Prime Day or at any other time. “It should always be a part of your larger marketing strategy.” Mattar stated that running a promotion without a plan for the next step is a wasted opportunity.