July 11, 2017
Amazon Prime Day 2017
Historically, Amazon Prime Day has been held during the second week in July. This year, the only difference is that the company chose to announce details such as the exact date, times and even a preview of sales — something they have not done in years past. While the strategy behind this can be debated, it’s almost certain that 2017 Amazon Prime Day numbers will surpass years past.
With 30 hours of sales beginning July 10th at 9PM EST and continuing through July 11th, this year’s event spans 13 countries (China, India and Mexico have been added to the list) one can imagine the order volume that Prime Day 2017 will generate.
From a logistics perspective, Amazon Prime Day is impressive on many levels — the forecasting, labor planning, inventory management and shipping optimization involved are obviously complex. But Amazon Prime Day doesn’t just impact logistics. Amazon Prime Day creates an avalanche felt across the ecommerce industry.
Does everyone win on Amazon Prime Day?
That really depends on who you ask. The general consensus though is that the Amazon Prime Day Avalanche (coined here first) has historically been a big win, not only for Amazon, but for its sellers, shoppers and even other retailers…if managed correctly.
From a seller perspective, there are many things to keep in mind in order to be successful on Prime Day. First and foremost is inventory planning. Forecasting inventory needs and importing any products from overseas at the optimal time will help limit the amount of time products sit in a fulfillment center waiting for Prime Day sales. Additionally, having the right products and pricing them competitively is crucial to getting inventory off the shelves during the 30 hour sale. However, for a seller it doesn’t stop there. Throughout Prime Day, sellers should stay on top of how well their campaigns are performing, monitoring keywords and click-through rates in order to adjust bidding and daily budgets. Prime Day can be a full time job for sellers and it’s important to remember, it’s a marathon not a sprint. But by planning ahead and dedicating staff to manage the channel during the sale, sellers can benefit from sales revenue and increased brand awareness.
For retailers, Prime Day is also an opportunity to offer mega sales through ecommerce sites, something Walmart did during the very first Amazon Prime Day. Their tactic that year was “No Admission Fee. You shouldn’t have to pay $100 to get great deals,” clearly taking a stab at Amazon’s Prime Membership fees. This year, other retailers are taking advantage of the “Christmas in July” feel of Amazon Prime by launching their own sales campaigns. J.C. Penney for example is launching a sale to run July 10-11th and will reduce the free shipping amount from $99 to $49. Sur La Table, a kitchen supply retailer, is hosting “Lime Day” on July 10th, riding of the avalanche of Prime Day by advertising with “Get Primed for Lime Day.”
While some experts caution retailers against getting into a pricing war with Amazon, they note that while Prime Day may have originated as a day to celebrate Amazon’s anniversary, today it is an event that benefits online shopping as a whole. A professor from the School of Business at the University of Maryland, P.K. Kannan, put it best: “If the other retailers have a significant presence online, then they can expect what we call ‘spillover traffic.’” So while not all retailers have prepared themselves for an epic battle with Amazon, the online community as a whole has the opportunity to capitalize on the Amazon Prime Day Avalanche.
To Prime Day or not to Prime Day?
Whether or not you’re a loyal Amazon-ist, an occasional browser, loyal to a specific retailer or a curmudgeon who hates online shopping, the bottom line is that Amazon Prime Day has created an ecommerce frenzy. If you’re a seller or a retailer looking to boost mid-year revenue, it’s a prime opportunity (see what I did there) to take advantage of the flurry of online shopping.