How Retailers Can Capitalize on Amazon Prime Day
Since its debut in 2015, Amazon Prime Day has become one of the biggest e-commerce events of the year. On Prime Day, Amazon slashes the price of thousands of its products, exclusively for Prime members. Prime Day 2018 was the biggest yet, creating a ripple effect across various retailers that resulted in an online shopping environment comparable to Cyber Monday—Amazon’s peers and competitors saw increased shopping rates of over 100%.
Prime Day 2019 is expected to be even bigger. An estimated 82% of U.S. households now have a Prime membership—that’s a 139% increase in members since Amazon’s inaugural Prime Day 2015. As the ecommerce event continues to snowball, we offer some tips for retailers to capitalize on the ensuing ripple effect this year.
Emphasize that everyone is a customer
Participating in Prime Day requires a Prime membership—the price of which increased in 2018 to $119 a year, up from $99. An Amazon consumer shopping survey found that 45% of U.S. consumers don’t have Prime. Furthermore, the survey found that 32% of Prime members are considering canceling due to the price hike.
That leaves a sizable portion of online shoppers who may be locked out of Prime Day, who may be attracted to concurrent sales that they can participate in that require no membership requirements or fees.
Ensure your visibility to comparison shoppers
Deals on Prime Day run out fast. While a perk of shopping online is the ability to compare prices, customers will have only so much time to do so on Prime Day. Even if a retailer sets their price to compete with Amazon, that retailer will still lose if customers can’t find that offer quickly enough.
Retailers need to make it as easy as possible for customers to conduct price comparisons. This means calibrating your shopping engine strategy so that customers can see on aggregate marketplace platforms like Google Shopping when your prices beat Amazon’s.
Retailers can also capture the attention of comparison shoppers by cutting through the noise. With Customer Intelligence, retailers can leverage their first-party data for insights into which products each customer wants—and advertise deals on those products early—to deliver personalized messaging that engages in-market shoppers and encourages conversion.
Provide value, not just discounts
It can be difficult for smaller retailers to compete with Amazon when it comes to price slashing. Instead of offering discounts alone, retailers should offer customers value in other ways—such as a loyalty or rewards program, a gift card for a future purchase, or free shipping without a minimum threshold. Retailers could also offer free same-day pickup in-store, which may even beat Amazon at the immediacy game—while also creating the opportunity to upsell those customers with in-store offers.
The point isn’t to beat Amazon at its own game. Instead, retailers simply need to focus on delivering a positive shopping experience to their customers, leveraging customer data and technology that boosts omnichannel engagement and builds brand loyalty that extends beyond Prime Day.