Pharmapacks, an online seller of health, personal care and beauty products, is packing up operations after a failed IPO and the inability to secure additional…
Christmas in July: 5 Tips for Prime Day Success
Blogs | July 12, 2022
July is the hottest month in the U.S., but temperatures aren’t the only thing on the move this month for online retailers. Major eCommerce platforms, including Amazon, Walmart, and Target, are gearing up for the dog days of all deals. From devices to decor, furniture to footwear, discounts will be applied to all sorts of goods for a limited time in the new Christmas in July eCommerce sale season.
These promotion days bring immense profits during what would otherwise be an off-season for shopping. Take Amazon’s 2021 Prime Day, which generated close to $6.8 billion in gross sales over 48 hours. According to Morgan Stanley’s internet equity analyst team, nearly half of that revenue came from third-party sellers. Prime Day 2021 was the biggest two-day period for third-party sellers on Amazon ever. This year, Amazon Prime Day (July 12-13) will reward those who shop small with big prizes (including Super Bowl tickets) to encourage even more growth for third-party sellers. It is more important than ever that your brand is prepared for the holiday and protected in the marketplace.
5 Tips for Prime Day Success
- Ensure your on-hand inventory and supply chain are equipped to support sales during Prime Day and the following weeks. You don’t want to sell out of a product at discounted prices during Prime Day and lose future full price sales.
- Offer deals on only products that will attract new customers and grow market share versus trying to attract captive customers. An excellent example of this is the printer vs. cartridge scenario. Selling cartridges at a discount will only pull forward demand. However, selling printers at a discounted price will gain new future cartridge customers.
- Offer deals on your most successful products with established good reviews. Ad spend on highly reviewed products gets you a better ROI. Prime Day magnifies ad performance.
- Manage your advertising spend with strict limits. Prime Day search volume is very high, and if you don’t have daily, keyword, and campaign spending limits, you could spend your entire month’s budget during Prime Day.
- Ensure your brand is winning the buy box during Prime Day (and everyday).
At POTOO, we can help your brand make the most of this new eCommerce holiday season. We will assist your brand with inventory management, cleaning up the marketplace from unauthorized third-party sellers, and developing a strategy to maximize long-term profits.
The UConn Masters of Business Analytics and Project Management (MSBAPM) Program partners with local corporations to offer challenging Capstone Projects to graduate students across the…