Amazon Prime Day 2021 was the biggest event to date for the e-commerce giant, but as with any major event, there were both positives and negatives. There were more deals than ever, bringing in record sales and especially major growth for small businesses. Sellers faced challenges with the global supply chain and stocking and shipping complications due to Covid-19 and some discounts were not as thrilling as previous years.
We evaluated the performance of our clients and analyzed sales data compared to general performance as well as previous Prime Days. We also looked at Amazon’s post-Prime Day reports to develop an informative Prime Day 2021 Recap.
Ultimately, Prime Day is meant to simultaneously benefit Amazon, sellers and shoppers. The goal is to bring in more Prime subscribers, to boost sales and promote products on Amazon. This year, Amazon also made it a goal to promote small businesses and third-party (3P) sellers.
Prime Day and the days leading up to it only reinforced the symbiotic relationship between Amazon and 3P sellers. Sellers allow Amazon to provide their shoppers with a wide variety of products, but Amazon gives these sellers and small businesses a platform to reach a much larger audience and make more sales than would ever be possible on their own.
Leading up to Prime Day, from June 7- June 20, Amazon offered a special promotion dedicated to supporting small businesses. The Spend 10, Get 10 program in the US included over 300,000 sellers and offered a $10 credit to Prime shoppers who spent at least $10 on small business products.
The two week promotion alone brought in $1.9B for small businesses and was only the start of the momentum that carried on through the 2-day event. Prime Day resulted in a total of over $11B in sales and sales for 3P sellers this year had a greater than 100% year over year increase from Prime Day 2020, also with potentially 5x more new-to-brand shoppers.
Product and Category Review
- Bestselling categories (globally, according to Amazon): Smart Tech dominated the market. Also popular: tools, beauty, nutrition, baby care, electronics, apparel and household products
- Highest average discounts: Toys – 12%
- Lowest average discounts: Electronics – 2%
- Top performing products: robot vacuums, coffee makers and accessories, among other smart tech and electronics, including Amazon branded products
- Global supply chain issues combined with worldwide shipping container shortages still resulting from Covid-19 complications caused backups in inventory
- Many factories are also temporarily shut down
- Sellers had difficulty keeping stock up
- Larger brands with more flexible budgets could plan ahead and order up to 3 months in advance and store stock, but smaller businesses with less budget had a difficult time keeping stock levels up
According to Adobe Index Data, the typical Prime Day 2021 shopper was a high-income, suburban female aged 35 to 44.
- 45% of orders were placed for $20 or less
- 55% of purchasers placed two or more separate orders
- 65% purchased only at Amazon
- 20% purchased only another merchant
- Prime Day in general performs much better in the US marketplace than in the EU. While there is some uplift in the EU, it is nowhere near that of the US
- There were generally higher CPCs on the 2nd Prime Day across all accounts and markets
- The highest traffic was on the first day, with the exception of the Mexico Marketplace, for which the second day saw more traffic
- Overall, we anticipated more traffic and, therefore, had a difficult time spending the entire deal budget
- All other indicators were very individualized depending on deal setup, budget and categories
factor-a Performance Conclusions
Q: Do all ASINs react similarly to the discounts?
A: No, there are several ASINs with a huge drop in the conversion rate despite better price offers.
Our conclusion: These ASINs should be removed by more promising candidates or improved from a content perspective.
Q: Did we drive enough traffic for our clients’ products?
A: Partially yes. We did set up additional advertising campaigns, but decided against integrating the deal ASINs on a special brand store page.
Our conclusion: To integrate deal ASINs and make use of Sponsored Brands Ads as well, longer running deal types are recommended and more transparency is needed on the exact deal times.
Q: Did we achieve long-term benefits for the performance?
A: Partially no. Since we also put some lower priced items on the deal, we also reduced our margins.
Our conclusion: Considering the ROI, we should consider testing deals on bundles even more due to the added benefit for both parties. Customers get a complete set of replacement parts for a great price, while we keep good margins.
With a successful Prime Day in the rearview, there is no time to rest before beginning to prepare for the next shopping events. So, what’s next? The holidays are much closer than you think, so it is about time to start considering and preparing your deals for Black Friday and Cyber Monday. And… there are even some rumors about a second Prime Day in October, since it was such a success in 2020, but let’s see.
We are here to help you prepare your product portfolio for your most successful holiday season yet. Send us a message so we can discuss how we can help you take your Amazon business to the moon. Or reach out to our experts if you have any questions about Prime Day or the upcoming holidays. We are looking forward to hearing from you.