Preparing A Sales Strategy For Prime Day 2020: A Step By Step Guide
Prime Day 2020 may have been postponed this year rather than the usual month of July but this means that brands have longer to prepare for the influx of traffic to the site. However, with the unforeseen circumstances of the coronavirus pandemic, your Amazon Prime Day sales strategy may have been completely upturned. For this reason, it is a good idea to think of a new strategy to help optimise your Prime Day sales.
Below are the key steps a brand should take in adapting to the current situation and the areas to consider when determining their approach to Prime Day 2020.
1. Choose your Objective
Usually, brands should consider their Prime Day strategy as part of their overall quarterly or annual Amazon strategy plan. Prime Day should be a major consideration when creating your overall strategy and therefore your objective should correlate with where you are already focusing on. However, there are some circumstances whereby your goal might change over the event. One major reason may be that Coronavirus has made your initial Amazon strategy less potent. In these circumstances, there are three most common objectives over Prime Day to consider; increase overall sales, sell overstock/End of Life products or to launch a new product.
Increasing overall sales
This is probably the most common objective, but it still requires a lot of planning to make it work and it is not enough just to claim that you want to make more sales during Prime Day as a strategy. Brands need to consider how much more sales and at what cost. Coronavirus may have affected your logistical situation or your overall sales so it might seem simple to decide on selling as many products as you can. However, it is a good idea to have a calculated idea as to what the actual outcome may look like in case it causes issues later down the line..
Sell overstock/EOL products
It is common knowledge that Prime Day brings a significant increase in traffic to the marketplace. This means that if you have a large overstock of products you are keen to get rid of, Prime Day may be the perfect opportunity to do so. If you are trying to get rid of old stock to make room for a new product, this might be a handy strategy to implement as to quickly sell end of life products for a good discount. Prime Day is the time where people are more willing to buy products spontaneously but it is still important to establish how much for and by when you want to sell all the products to make sure your inventory level remain sufficient. Be aware that this strategy may not be best in terms of taking advantage of the long-term effects Amazon may have on your brand/ASIN though.
Launching a new product
Using Amazon’s Prime Day to launch a new product can be a highly effective strategy. The increase in sales and traffic can help boost your ASIN’s SEO ranking. However, you may find it difficult to build relevance on search results to begin with as you will have no reviews or sales to initially support your launch. However, Sponsored Ads will also play a big part in determining the success of such a strategy and should be utilised before the event.
2. Define your Budget
If you start selling during Prime Day with no sense of budgeting, you will cause much more stress for yourself. Forming a budget is the only way to have control over your sale strategy. Deciding to create ad campaigns without considering how much you intend to spend over the entire period will lead to overspending or underspending. Moreover, you may discover that ROAS is much lower than you would like. However, remember that during this period, it takes money to make money. Your budget should be higher during Prime Day than other periods as competition is at its highest. Budgeting also allows you to be able to spread your entire Prime Day campaign throughout the event so that you don’t end up losing potential sales after your entire budget is spent in the first few hours. Brands should implement a strategy which also determines the best times of day they should target aggressively and other times where not to as to optimise their budget for the least wasted spend.
There are three factors to consider when defining your budget during Prime day
Your Amazon presence
Are you ranking high on multiple keywords? How much of your budget should be spent on an awareness campaign?
The financial health of your brand
If COVID-19 has truly upset your brand’s finance, this should be taken into consideration. Prime Day can boost your sales but creating a budget that implements too much of your finances may do more harm than good for your brand. Sometimes a smaller budget can be more successful as your strategy will be much more focused.
The ASINs you intend to focus on during Prime Day
It is obvious that with more ASINs to advertise on Amazon, the higher the budget will need to be to see results. Brands should consider whether they should be advertising their entire Amazon catalogue or target specific ASINs over Prime Day 2020.
3. Learn from the past
Einstein claimed that the definition of insanity is doing the same thing over and over and expecting different results. This is the same for your Amazon Prime Day strategy, even if you did well last year, there is no reason not to try to do better. When creating any strategy, you should always look at your Amazon historical data to help develop it. Look at past Prime Day results, how was your performance, what worked well, what did not? By analysing your Amazon sales history, you can better build a strategy by improving past actions where it fell short in previous years. It might be worth looking into your strategy during other major retail events such as Black Friday weekend to also get a more succinct idea of the sort of opportunities you could target including the specific ASINs to place deals on. It is imperative to remember that due to the unique circumstances we all have experienced this year due to the coronavirus pandemic the results this year may not be as easy to forecast as it was before. For example, since more people are stuck at home, due to self-isolation, OTT advertising may prove much more successful for your brand than it was before. Therefore, it is important not to fully rely on past data but instead to use it to develop a new strategy for this year.
Molzi’s Top Tip
Don’t be afraid to try experimenting with a new sales strategy. Prime Day is a great time to try something different than usual to get an idea as to how successful a new ad campaign or store page is.
4. Develop an overall action plan
Despite its name Prime Day rarely lasts just one day. Nor does the effects of Prime Day only affect those specific days; the weeks leading up to and after the spectacle are also important. Therefore, brands must not be complicit in only planning what to do during the specific period.
Ideas to consider before
Firstly, brands should submit the ASINs they plan to advertise on Prime Day, via deals and promotions, at least a month in advance or risk losing the opportunity to do so. This year, Amazon has lengthened the usual shut off point for Lightning deals over Prime Day due to postponing it. They must now be submitted before Friday 10th July.
Secondly, it would be wise to build up awareness and ranking before the event too to give your ASINs an advantage over the competition. Studies show that consumers tend to research the products they want to buy over a retail holiday before the actual event begins. By enticing the buyer in before the event, it is more likely they will ignore other promotions and look specifically for your brand instead.
Ideas to consider during
Prime Day is such a busy and stressful time for any brand. During the event, try to focus on your deals and match the results you are seeing with your bid and budget. Also try to make sure that you are available to deal with any complications that may arise as quickly as possible.
Ideas to consider after
Even though Prime Day has ended, try to maintain your increased ad spend for a few weeks after the event is over or until you see a massive drop in sales velocity. That way you can guarantee you have converted any hesitant buyers who saw your promotions over the holiday. It may also be a good idea to ‘request a review’ from some of your buyers, if not all of them to further build on the increased number of sales and gain a higher rating for your SKUs.
Molzi’s Top Tip
Try to record all your results/changes you make during Prime Day so that you can analyse it later. Also, note down what your competitors appeared to be doing as well. This way, you will have more data to use when planning your brand strategy next year.
Worried about your Prime Day Results this year?
Although it’s unclear when Prime Day will occur this year, we’ve compiled the best guidelines and tips for helping brands prepare to take advantage of the biggest sales event of the year! Register for our email series which will prepare your brand with high-level insights, checklists, tips and tricks to increase revenue and grow sales during this year’s Amazon Prime Day celebration!
Is your Prime Day strategy not up to scratch?
When you think about Prime Day you instantly think about the crowds of consumers desperately snatching bargains but online discounts require dedication and optimisation by the brand. Molzi can help provide this service for you. Our entire team is dedicated to the nitty gritty of maintaining a successful Amazon account from executing the best promotional campaigns that fit within your Amazon strategy, creating mobile-optimised content and stand-out store pages and providing an excellent advertising strategy to target potential consumers. Contact us today to ensure that your Prime Day sales take off!