It’s Amazon Prime Day 2016 on Tuesday 12th July!
So let’s get the bad stuff out the way initially. To say 2015’s Amazon Prime Day fell short with Prime customers may be something of an understatement.
Many suggesting that Amazon’s selection of sales was underwhelming. ThinkHeroPro mocked the failings very well in this video.
Amazon Prime Day…enough! You had your chance last time.
— Michael Kukielka (@DetroitBORG) July 7, 2016
Despite Amazon’s mentions being up 50% on Prime Day 2015, it was reported by Appeagle that only 42% of that was positive. The same seems to have occurred in the run up to 2016…
.@Amazon Prime Day is July 12, so if you need Tupperware or a pallet of pipe cleaners, remember to plan accordingly.
— not Jony Ive (@JonyIveParody) June 30, 2016
However, it may have been bad news for customers, but it certainly wasn’t bad news for sellers like you.
Sales were up 266% on the same day from the previous year, whilst there was 18% more sales on Prime Day, as opposed to Black Friday. Which is regarded as the busiest shopping day of the year.
Why will it be different this time around?
There’s more of everything! There’s more prime customers to sell to, Amazon is featuring more Amazon sellers in ‘Lightning Deals’ and there’s generally more small business sellers to peak customers interest.
Here’s the facts:
- More of 30% of Lightning Deals will be from Amazon sellers
- Over 100% increase in small businesses participating in Prime Day 2016
- 6 million increase in Prime Users in last 6 months
The increase in Lightning Deals is important as these feature on Amazon’s Today Deals page. This is almost guaranteed to increase sales for your products.
You can find the requirements to feature as a Lightning Deal from CPC Strategy.
It’s worth noting as well that there is likely to be a great spike in Prime customers nearer to Tuesday’s Prime Day. Especially as Prime customers can gain access to Lightning Deals 30 minutes before anyone else.
Prime users spend 140% more per year than non-Prime users
So what can you do now to increase your Amazon sales during Prime Day?
1. Sponsored Ads
The sole aim of sponsored ads is to get your ad featured on the first page of Amazon’s results pages.
This can help:
- Receive more buy box traffic
- Increase visability
- Promote new offers
- Bring attention to poor performing products
- Launch new products and gather feedback
With sponsored ads you only pay for clicks and you won’t pay for impressions. Additionally you can also pay for the sponsored ads directly from your Amazon sales.
Bidding on the right keywords is essential as Amazon shoppers have a high intent to purchase. Get this right and you’re on to a winner. Head to the search term report in your account to search for the best performing keywords.
Seller Central> Advertising Reports> Search Term Report
2. Heavy discounts
This may seem like a rash decision, but the long term benefits of this will make it worthwhile.
As you wind down quarter 3, it could be a good decision to liquidate old stock heading in to quarter 4. Just so that you can start with a clean state.
I spoke to Aaron, an Amazon seller this time last year who did just this. He ran discounts as high as 80%, which led to him being featured on the ‘New & Noteworthy’ and ‘Hot Deals’ sections.
This led to great publicity with the SlickDeals community, which garnered even more traffic.
Lastly, Aaron found that his related products also began selling well because of the traffic he was getting. These products were pitched at full price as well, which was great for his profit margin.
Offer high discounts on one item and your full priced related products will also generate sales
3. Social Media
Promoting your products on platforms such as Twitter and Instagram and using relevant hashtags is a great way of creating hype around your product.
Check out a tool like Hashtagify.me which will identify the best performing hashtags. For example they suggest using #PrimeDay #PrimeDayDeals #HappyPrimeDay #AmazonPrimeDay.
Customers will be searching for these hashtags in order to get the best deals. To ensure your tweet is at the top of results you’ll need retweets and favourites.
That’s where Buzzsumo comes in. I talk about this tool a lot, but I think it’s fantastic and it comes with a 14 day free trial (which you can extend if you ask nicely).
You can search for influential people within your industry and reach out to them via Twitter, without having to leave Buzzsumo.
You can also save influencers and then reach out to them in bulk. Perhaps a good idea over the weekend, to create some anticipation about your deals.
4. Stock = ranking
Amazon has many permutations when factoring who wins the ‘buy box’, such as price, delivery, seller rating and fulfilment method.
Another important factor is stock. Hopefully you should be expecting a spike in orders on Prime Day 2016 if you follow the steps thus far. Therefore, it’s important that you fulfil them as this will effect you in both the short term for Prime Day, but also in the long term with your Amazon seller score.
Furthermore, Amazon rewards sellers with a higher ranking if their products are continually stocked. Syncing your Amazon stock with your other stores is essential and that’s where inventory management can come in.
This ensures that you are always competing on Amazon, without effecting your other stores (eBay, website, physical store). Which will have a great impact on your sales.
5. Product bundling
Product bundling is a great way of creating real value to your products. Also, it’s also ideal if you want to get rid of products that are clogging up your warehouse.
Inventory management software is ideal as it can bring all your stock information together in one place. It updates your stock in real time across all of your channels, which stops the risk of you overselling across your channels, and disappointing customers.
People like the idea of getting some free. So perhaps up the value of a product and add another in with it. You may lose a little on that product but it’s a very attractive incentive for customers.
6. Get a media review
It isn’t too late to do this. We’ve all seen the bog standard reviews “Nice product, would recommend” and the more sarcastic one’s that take the internet by storm.
What also works well is a ‘media review’, which could include pictures or video. Get a friend or family member to do this over the weekend leading up to Prime Day.
Currently you can’t offer a 100% discount on Amazon, so offer 99% off and tell your friend to purchase it. They’ll pay next to nothing for the product and you will get a verified review that looks brilliant.
Customers will find this helpful as seen from the one above, which will help your conversion rate dramatically.
Sell outside of the U.S? Want to break into the U.S to make more sales? Join us on 22nd July!
Written by Richard Protheroe
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