Amazon Prime Day 2019

Amazon Prime Day 2019 – Wiest & Co. Analysis

By any measure, Amazon Prime Day, July 15 & 16, 2019, was a huge event and consumer success.  Global Amazon Prime sales reached $7.16 Billion, up from $4.19B in 2018.

But what should it mean for brands and for competing retailers? In brief, here are three key findings and takeaways.

1. It’s Huge – While Amazon does not release its sales, Internet Retailer conducted a survey that estimated 175 million products were sold, growing from 100 million last year. This makes this shopping event the third largest for online U.S. sales, after Black Friday and Cyber Monday. It also helped that Prime 2019 was 12 hours longer than its predecessor. Globally, it still lags far behind Singles Day by Alibaba at more than $30 Billion.

And smart retailers promoted their own sales — with large retailers ($1 Billion+ in sales) lifting their sales 68% over average day sales; niche retailers (<$5M in sales) also gaining 25%.

Takeaway 1: Ride the Coattails – What would your revenue look like if you added two new best shopping days to your site? For a summer shopping event that didn’t exist before 2005, this is a great opportunity to activate your customer base.

2. Email Drove ResultsSeparately, Adobe Analytics reported that retailers with excellent email experience enjoyed a 54% lift in average daily sales; companies with only good email experience still prospered with a 29% lift. And shoppers responded, with purchases, 49% of which were generated by increased traffic and 46% driven by increased conversion. Larger shopping carts were responsible for the balance. This shows that interactions with your brands and as a retailer are key to success for Prime Day.

Takeaway 2: Email to Build Pre-Awareness To score on Prime Day you have to prepare and email is the #1 way to activate your customers.  Plan for it and build shopper awareness long before the days arrive.

3. Yes, Amazon will Eat your Lunch - If you had any doubt, note this. In 2015, Marketplace Sellers comprised 48% of Prime Day sales; in 2019 their share had dropped to 32%. That’s right, two of three Prime Day sales are from Amazon products, such as Echo Dots and Fire Sticks. Yes, it’s Amazon’s day, but with its private label products, Amazon is out to capture every dollar from its shoppers — to your loss as a brand or certainly as a competing retailer. Amazon Prime 2019 - Share of SalesTakeaway 3: Rule Your Customer’s Value Vertical - Brand building and retailing are rough and tumble businesses. With the huge awareness of Amazon and its Prime Day, competing retailers and global brands must own mind share of their customers. While the Prime Day event primarily focuses on top line growth, its success also reflects the ability of Amazon to delivery values, by offering products they like, at a price they love and at the convenience of their fingertips.  To retain your customers, you too will have to deeply understand your customers and mind your costs and deliver superior value.

To read more, please check these retailing sites.

https://www.digitalcommerce360.com/article/amazon-prime-day-data/

https://www.mytotalretail.com/article/a-recap-of-amazon-prime-day-results/

If you’d like to discuss this or learn more about online retail strategy, please contact us. Wiest & Co. is a marketing and management consulting firm based in San Francisco, California.

 

 

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