July 23, 2018
Over the last four years, Amazon’s annual Prime Day has grown to become another important day for the commerce giant’s annual peak. This year, the 36-hour sales event was their biggest ever, with more than 100 million products sold and the most sign-ups for Prime on a single day in Amazon’s history. As Prime Day continues to expand with each passing year, its effects are being felt beyond the borders of Amazon.
A Prime Day for Small Businesses
With more than half of Amazon’s business now coming from third-party sellers, it’s not surprising to see a sales uplift in other parts of the online commerce landscape. According to Adobe’s Digital Dollar study, a “halo effect” happened in 2017 where online sales jumped even for merchants who didn't participate in Prime Day as a third-party seller. Big name retailers with over $1 billion in revenue saw a 35 percent increase in sales while small business retailers generating below $5 million in revenue saw a 17 percent lift. This year Amazon worked to encourage even more shopping with third-party sellers by offering incentives to merchants using Amazon Pay.
Whether you’re an Amazon third-party seller or an independent business offering generous discounts to coincide with Prime Day, the sale provides the opportunity for a nice mid-summer sales bump. And with the increase in web traffic, it allows retailers to acquire new customers and grow revenue from their already loyal buyer base.
We dug into the Magento Business Intelligence data around Prime Day purchases to develop a profile of the average customer visiting small business retailers. Fifty-four percent of shoppers were first-time buyers and 46 percent were returning shoppers. Of the returning shoppers, 24 percent made a repeat purchase within an average of seventy-eight days, just in time for the holiday. This presents some interesting implications for the role that summertime sales can play in customer acquisition and holiday preparation strategies.
Making the Most of Prime Day and Other Summer Sales
Our partners at Something Digital offered six tips for making the most of Prime day, including:
Offering items that you want to move, impulse buys, and gift cards at a discount
Running promotions on your own site and Headline Search Ads
Participating in Amazon Deals.
But don’t stop there. Think about how you can nurture these new customers to get them back in your store at holiday time and beyond:
Offer relevant recommendations during purchase and after
Offer help, especially if the purchased items require assembly, setup, or special care
Promote subscription to your emails to grow your list