How brands can capitalize on Prime Day 2022

Now is the time for brands to prepare for Amazon Prime Day 2022. Although dates have yet to be announced, preparations are well underway for the massive online shopping event.

In 2021, consumers bought $11.2 billion worth of goods on Amazon.com during Prime Day, up 7.7% from $10.4 billion in 2020. The annual shopping event offers brands a clear opportunity to get exposure by showcasing their products at this high-traffic occasion. However, there are several best practices brands should keep in mind (and prepare for now) to ensure a successful event.​

Deciding on the right deals, tracking inventory, and taking the right marketing approach can all have a positive impact on customer engagement. Not only will this translate into a successful Prime Day, but it will also drive sales well beyond the annual shopping holiday.

Know the offers

Brands need to take a strategic approach to the deals they offer on Prime Day. For starters, brands need to look at the competition and strive to differentiate themselves from them. Many brands offer the same or similar deals several years in a row, so looking at what competitors have done in the past can give brands a good idea of ​​what they might be up to this year. For a deal to be successful, it must offer value not only over a company’s regular offerings, but also over other competitors’ Prime Day promotions.

Brands should also look to their own products to determine which items are ripe for promotions. For example, running deals on top sellers with good margins can help increase brand awareness for other products or accessories. Surplus and seasonal offers that demonstrate elastic demand are also a smart choice and have the added benefit of eliminating excess inventory.

Finally, brands should consider their own performance from previous years. It’s important to understand what worked and what didn’t because doubling down on a failed promotion from the previous year is unlikely to pay dividends. Key places to look for each product include:

  • Elasticity: What is the demand created by a change in the price of a product and which products are most affected?
  • Use: Did last year’s class achieve its goal? If not, what can we do differently this time around?
  • Margins: With a rapidly changing supply chain and rising inflation, what effect has this had on profit margins over the past year and how can brands adjust promotions accordingly?

Inventory preparation

Inventory planning is another key part of a successful Prime Day. Lack of product, shipping delays, and not thinking beyond Prime Day are all things that can damage a brand’s reputation.

Brands need to look into inventory shipments to avoid any issues with their transaction being canceled due to lack of inventory. All deal inventory should now be ready to ship to reduce the risk of out of stock on Prime Day.

Another factor to consider is what happens after Prime Day ends. There is usually a surge in the number of Amazon Prime subscribers signing up for the annual shopping event, which then guarantees their membership for an additional 30 days of shopping on the platform. While it’s more important to have products on shelves for Prime Day itself, brands can also expect a spike in orders after that.

Maximize exposure through advertising

There are several strategic ways to engage with Amazon’s advertising platform to ensure marketing spend is properly allocated for Prime Day. Brands should specifically consider a balanced investment in Amazon Marketing Services (AMS) as well as the company’s demand-side platform, Amazon DSP, to expand the reach of their offerings.

AMS is essentially paid search marketing within Amazon. It allows brands to target search results and product detail pages. This is typically a low-funnel tactic that can yield a high return on advertising spend (ROAS). Allocating budget to AMS will increase a product’s position on search and drive the highest visibility and conversion rate for products on Prime Day. It’s a great way to increase brand exposure, but it’s especially expensive on Prime Day due to increased competition for keywords. Instead of relying solely on AMS, brands should create an integrated ad campaign that reaches consumers looking for the brand, solution, or competitors both on and off Amazon.

This is where DSP comes in. DSP is a method for brands to reach consumers outside of Amazon’s site, retargeting customers who have searched for similar products in the past. This is programmatic marketing that uses proprietary Amazon data to target customers across all devices and formats. It’s a great way to generate brand awareness ahead of Prime Day and leverage Amazon’s relationships with popular third parties like IMDB TV, Twitch, Paramount+ and others.

First day and beyond

Prime Day represents a huge opportunity for brands to learn more about their products and competitors while attracting new customers and reinvigorating loyal customers. In addition to a long day of shopping, deals can create a boost in sales that extends beyond the duration of the deal through a “halo effect.” Some brands saw sales growth the month after closing a deal for both the featured product and the rest of their product catalog. By taking steps to prepare well, from defining bargains to successfully planning and promoting inventory, brands can prepare for a successful Prime Day in 2022.

Jamaal Hackett-Cook is Senior Director, Strategy and Customer Development at Ideoclick, a company that puts e-commerce at the service of your brand through cutting-edge technologies, expert e-commerce services and visionary leadership.

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