As Amazon Prime Day number 3 approaches – which will most likely fall around July 12, possibly featuring deals running for a week – there are different approaches merchants can take in response to the new mega-ecommerce event, sort of a U.S. version of Singles Day in China.
Amazon sellers had until early May to submit their applications for “lightning deals” to be considered as Prime Day offerings. In 2016, Prime Day orders were up by more than 60% worldwide over the inaugural event in 2015, and up by more than 50% in the U.S. Amazon said it was the “biggest day ever” for its own devices globally, and led to massive Prime signups.
Steve Weber, president and CEO of nChannel, said one approach is to offer special deals and promotions in advance of Prime Day, in a sense drafting off the massive buzz and consumer excitement about midsummer deals.
“Certainly you want to think about the timing, running something in advance of Prime Day, maybe a flash sale,” Weber said. “A lot of our merchants are independent. Yes they sell on Amazon but they also have unique goods, like (backpack seller) Herschel Supply. I advise merchants to be prepared for an influx of customers by picking maybe one or two items to put on sale. It’s also a great time to do a clearance the day before, especially this close to back to school.”
Weber said merchants need to decide if their strategic focus for Prime Day is on moving product or new customer acquisition, either of which could pay out nicely. For instance, if you’re looking to move product, don’t be concerned about competing with Amazon’s big event, he said.
“If you’re targeting existing customers with overstock, for…