Any FBA seller knows that Prime Day is not something that you want to miss out on. But what are the secrets to unlocking your best Prime Day yet?
What started as a way for Amazon to commemorate its 20th anniversary, has quickly snowballed into a multi-day shopping event that attracts millions of customers to the online shopping platform. Amazon sellers have reported doubling, tripling, and even quadrupling their revenues during past Prime Days so it is important for an FBA seller to have a plan in place so that they can fully reap the rewards.
In fact, last year's (2017) Prime Day resulted in over 10,000,000 new deals. That's 6,000 transactions per minute, an extraordinary feat, particularly in the middle of summer, an otherwise "dead" month for retail.
So, what can you do this year to ensure your Prime Deals hit hard?
Price it Right
The average discount on Prime Day in 2017 was 35 - 45%. 35% for the Amazon-warehoused products, and on the higher end of the spectrum for 3rd party sellers.
But this didn't apply to the more popular categories, like appliances, electronics, and kids toys. According to the CNBC report above, those categories actually saw a slight increase.
So, what are you going to do? Capitalize on the lack of discounts in popular categories by going big in that category, or follow the lead of everybody else, and use it as a time to unload your less desirable cargo?
Having multiple, high resolution images of your products is always a key factor in successful selling on Amazon, but it is even more crucial on Prime Day. Both traffic of buyers and amount of inventory being listed are at an all time high on Prime Day. A clean, clear, eye-catching image just might be the difference between a customer purchasing your product or the listing next to yours.
Lightning Deals are one of the foundational features that attracts buyers to shop on Prime Day. When a product goes on Lightning Deal it is deeply discounted for a very limited amount of time and while inventory remains. These factors create a sense of urgency with the buyers and if priced correctly, inventory moves quickly.
In addition to that Amazon charges anywhere from $300-$750 for Lightning Deal listings during Prime Day with the option of paying an additional $300 to be a listed as a featured Lightning Deal the week before Prime Day. While this might seem high at first, keep in mind that a successful Amazon FBA seller can see their sales skyrocket during Prime Day making the rewards outweigh the risks.
Utilize the Sponsored Products Feature
Increased traffic means increased exposure but also increased competition. Utilizing Amazon’s Sponsored Products feature can help your products move to the forefront and get noticed. It is important to keep in mind that your everyday budget for a Sponsored Product will not be enough on Prime Day due to increased traffic so be sure that you budget for additional spend.
Timing is Everything
While Amazon doesn’t typically give months of advance notice for when Prime Day will be, most sellers plan for it to fall within the 2nd week of July as it has in previous years. Start your campaign early to give yourself time to test out different keywords to see what works and what doesn’t. You can even engage your social media following and give them a first look and the amazing deals that you’ll be offering.
Proper inventory management is key to a successful Prime Day. Plan for more that you think you will actually need to avoid costly stock outs. Leave yourself plenty of time for shipping inventory from manufacturer to warehouse and leave room for unforeseen delays, you never want to be caught with low stock during Prime Day!
Consider warehousing additional stock with your freight forwarder like ETC International Freight System. With warehousing fees that are often lower than Amazon, your products can be kept ready and waiting for a quick dispatch to the FBA center once your stock levels begin to dip. There will be no need to worry about running out of product at a crucial time due to shipping or customs delays because the products have already been imported and are on hand and ready to go.
Prime Day can be a make it or break it time for an Amazon FBA seller but with proper planning and great support from your trustworthy freight forwarder, who is fluent in the needs of FBA sellers, success is surely within your reach.