Amazon Prime Day is one of the most anticipated sales events for Amazon sellers and shoppers alike. After a successful Prime Day 2023, Envision Horizons is thrilled to share our performance insights and tips for navigating this Amazon sales event in the years to come. In this blog post, we’ll delve into the data, highlight key trends, and provide valuable tips for maximizing your success as an Amazon Seller during Prime Day.
Prime Day 2023: A Record-Breaking Event
Our clients experienced an impressive surge in sales during Prime Day, achieving an average of 854% compared to their average sales in June. Returning customers made up only 22% of total sales, making Prime Day a gateway for acquiring new customers. New to Bank (NTB) customer acquisition surged by 46%. Active clients participating in both Prime Day 2022 and 2023 saw an impressive 108% average Year-over-Year growth. And for those who offered deals of 30% or higher, the sales increase soared to an astounding average of 1,619% compared to their June averages.
Advertising Metrics: Insights and Trends
Understanding the advertising metrics during Prime Day is crucial for optimizing your Amazon campaigns. We observed several noteworthy trends during the event:
- Cost Per Click (CPC): The Cost Per Click increased by 90% during Prime Day, reaching $4.06, compared to the previous month’s average of $2.13. This highlights the heightened competition and the need for strategic bidding.
- Click-Through Rate (CTR): The average CTR decreased by 23% during Prime Day, indicating the importance of crafting compelling ad copy and leveraging relevant keywords to stand out amidst the heightened competition.
- Conversion Rate (CVR): Envision Horizons’ clients experienced a remarkable 46% increase in Conversion Rate during Prime Day, with an average CVR of 21.94% compared to the 3% CVR during the days leading up to the event. This surge in conversions demonstrates the power of engaging product listings and well-optimized product pages.
- Advertising Cost of Sale (ACOS): Despite the increased advertising competition, Envision Horizon’s Advertising Cost of Sale remained relatively stable, with an average ACOS of 31%. This emphasizes the importance of efficient budget allocation and strategic targeting.
- Customer Acquisition Cost (CAC): The average CAC on Prime Day was $17, compared to last month’s average of $9.5 is a result of category CPCs increasing massively.
Shifting Sales Channels: Ad Sales vs. Organic Sales
Another significant trend we observed was the shift in sales channels during Prime Day. While ad sales accounted for 44% of total sales in June, Prime Day witnessed a change in dynamics, with ad sales representing 29% and organic sales taking the lead at 71%. This highlights the potential for organic visibility and the need to optimize both ad campaigns and organic strategies for optimal results.
Customer Habit Insights: Shopping and Search Trends
Understanding customer behavior during Prime Day is essential for tailoring your marketing strategies. Prime Day shoppers were most active on mobile devices, with 73% of sessions coming from mobile and 27% from desktop. Compared to the average session in June where 71% of sessions occurred on mobile, and 29% were on desktop. Balancing your optimization efforts across both mobile and desktop platforms can help you capture a wider audience.
Tips from the Envision Horizons Team: Maximizing Success on Prime Day
Drawing from our experience and client successes, here are some valuable tips for Amazon sellers participating in Prime Day:
- Leverage Amazon’s Curated Placements: Amazon’s curated placements played a vital role in driving sales during Prime Day. Aligning your PR team with your Prime Day strategy is essential for securing these valuable placements and maximizing visibility.
- Referral Fee Optimization: Avoid setting a high list price with a permanent slash-through, as it can impact your referral fees negatively. Optimize your pricing strategy to maximize profitability.
- DSP and Buy Box Management: If you run out of stock or lose the Buy Box while using Amazon’s DSP (Demand-Side Platform), remember to disable DSP for the affected product. DSP is not Buy Box-aware, so manual intervention is necessary.
- Prime Exclusive Discount (PED) Considerations: Be cautious when combining Prime Exclusive Discount and Prime Exclusive Best Deal on the same SKU. Dual promotions may result in the suppression of both. Additionally, running a website deal, even with the same discount, can impact PEDs. Keep in mind that PEDs only work on FBA inventory.
- Strategic Coverage and Budget Monitoring: Consider shifting coverage during peak times to ensure sufficient support for your campaigns. Having someone available for late-night budget monitoring can help seize opportunities and make real-time adjustments.
- Promote Top-Selling Products: Rather than using Prime Day solely for liquidating slow-moving inventory, focus on promoting your top-selling products. Capitalize on the increased customer traffic to drive significant sales growth.
- Reliable Data and Reporting: Keep in mind that reports and data, especially inventory and sales, may not be reliable or up to date during Prime Day. Stay agile and make data-driven decisions based on the available information.
General Amazon Data: Prime Day 2023 Highlights
Prime Day 2023 witnessed remarkable achievements worldwide. Independent sellers on Amazon outpaced Amazon’s retail business growth, with the first day of Prime Day setting a new record as the largest sales day in Amazon’s history. Members purchased over 375 million items and saved over $2.5 billion globally. The average order size during Prime Day increased to $54.05, reflecting a positive trend compared to the previous year.
Recap: Prime Day 2023
Prime Day 2023 proved to be a monumental sales event, with Envision Horizons and our clients achieving outstanding results. By analyzing the data, understanding customer habits, and implementing our expert tips, Amazon sellers can optimize their performance during Prime Day and future Amazon sales events. Subscribe to our newsletter for more e-commerce content to stay ahead of the competition.