Amazon’s Prime Day is back for 2022. This year the event spans two days, July 12- July 13. In preparation, we spoke to our experts and scoured the web for predictions. Read on for what to expect and tips your brand can use to make the most of Prime Day.
Prime Day Predictions
Consumers are feeling the squeeze of inflation, and demand has slowed as people pinch their pennies – while some brands are doing the same. Shoppers are more eager than ever to find a good deal on essentials, and Amazon wants to deliver so that Prime members continue to believe in the value of their subscription.
According to a Bobsled poll that garnered results from 72 consumer brands, “many brands will be easing up on their discounting and promotional activity this year with 22% of brands saying they will be discounting less than in 2021.”
The poll also found that brands still believe in the power of Amazon ads, with 54% of marketers polled saying they intend to increase their spend vs. 2021, while 42% plan to spend the same.
Consumer electronics is predicted to remain the No. 1 Prime Day category. Amazon will create demand for electronics by pushing their own products (we’re looking at you, Fire TV, and Ring). However, other electronic brands can capitalize on the increased demand as some shoppers seek alternative brands after Amazon’s ads pique their interest.
Apparel brands are well-positioned to gain sales during Prime Day. The event’s mid-July timing is aligned nicely for these brands to capture back-to-school sales, return to office needs, and demand from the summer wedding season.
Broad predictions from eMarketer include:
- A relatively strong performance on Prime Day despite a slow start to the year for Amazon and other etailers.
- US sales will total $7.76 billion and account for over 60% of all Prime Day sales.
- US sales will rise 16.8%, while non-US sales will increase 17.3% to $4.76 billion.
- Worldwide Prime Day 2022 sales will total $12.52 billion, a year-over-year (YoY) gain of 17.0%.
Advice For Brands on Prime Day
If you are trying to decide whether your brand should participate in Prime Day, the best thing to do is peek at your competitors. Most likely, if they are running promos, it would be beneficial for your brand, too – just make sure you offer a unique and different value proposition. Note that many brands start their Prime Day promotions before the actual event.
Before you start running promotions, make sure you have enough inventory in stock to deliver. Many brands are struggling with excess inventory after over-ordering when inbound shipping was seeing massive delays. If that applies to your brand, consider discounting those products for Prime Day as a win-win solution. It’s also advisable to discount your best-selling products to attract new customers who may become loyal brand fans.
If you have participated in Prime Day in the past, review your performance to evaluate what worked and what didn’t.
Most experts recommend taking a multi-faceted approach to advertising for Prime Day. Start with a pre-event promotion to foster awareness and generate a few early sales. Some shoppers may even start tracking your products for Prime-Day deals. Then, run a more significant day of promotion with a price cut of at least 20%. Follow it up with a smaller post-event promotion for shoppers who missed out on the big day but are still interested in a deal on your goods.
Here are a few statistics, courtesy of Amazon, on the potential of Prime Day:
- Prime Day will bring shopping deals to more than 200 million paid Prime members across the globe.
- Prime members purchased more than 250 million items worldwide during Prime Day 2021.
- 71% of shoppers said they discovered new brands in the lead-up to Prime Day.
- 68% of shoppers said they are likely or highly likely to make a purchase from an Amazon ad during Prime Day.
- 53% of shoppers said they’re likely or highly likely to repurchase after Prime Day.
Last, we’d be remised if we didn’t mention that brands who partner with Spreetail get the benefit of our expert, in-house advertising team. We work with our partner brands to craft winning ad strategies that drive conversion across Amazon and more.
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