Today is June 4th, which means Prime Day is on the horizon. While there’s not an official announcement from Amazon just yet, we know for sure that it is happening some time in July this year. Prime is an excellent opportunity for sellers and vendors: even if your products are not in the usual Prime categories, the increased traffic coming in from deal hunters are sure to give you a little bump in visibility and sales.
TABLE OF CONTENTS
1. What is Prime Day?
2. What to Sell for Prime Day?
3. Choose the Right Products for Prime Day
3.1. Identify Your Best Sellers
3.2. Keep up with Trending Categories
3.3. Stay Seasonal Savvy
3.4. Unearth Hidden Gems
3.5. Complement with Bundles
3.6. Utilize Private Label Power
3.7. Clear out Leftover Inventory
4. Additional Considerations
4.1. Pay Attention to Your Profit Margin
4.2. Ensure Timely Fulfillment
4.3. Outperform the Competition
5. How VASO Group Helps You Position Your Catalog for Prime Day
What is Prime Day?
Amazon prides itself on delivering “savings, convenience, and entertainment, all in a single membership” for its Prime subscribers. Prime Day, as the name suggests, is a multi-day online event exclusively for Prime members to shop great deals on participating products and brands. Because price is a crucial factor in this event, Amazon sellers must take into account their pricing model (or Amazon’s pricing model, if you’re 1P) to avoid unnecessary loss from too steep discounts and maximize profits.
What to Sell for Prime Day?
All brands are encouraged to participate in Prime Day (as long as you submit your Prime items and their deals, you’re good to go), but is it really a good idea to send all of your catalog to Prime? Shoppers don’t look for everything and anything – many online shopping communities specifically advise people to target electronics, TVs, smart home appliances, or household appliances. Others also recommend waiting for invite-only deals to get the best bang for your buck.
What does this mean to sellers? It means that unless you have a super discounted electronics item for sale during Prime, you are tapping into a market that is further away from a purchase in your category. With that being said, it’s clear that you need a strategy for choosing products in your catalog that will most appeal to your customers during this sales event.
Choose the Right Products for Prime Day
There are several ways to choose which products you want to highlight for Prime Day, depending on what your goal is for the event. If you want to drive the most sales, consider submitting your best sellers for deals. On the other hand, if you want to bring more attention to your lesser known products that are a hit, or want to clear out leftover inventory, opt for a more aggressive sales strategy.
Identify Your Best Sellers
To find best sellers that have performed consistently well, look at your sales data from previous Prime Days and similar sales events. The top performing items in your dataset will be prime (pun intended!) candidates for Prime Day discounts.
Keep up with Trending Categories
Research popular categories for Prime Day. Look at what competitors are highlighting and what trends emerge from Amazon’s “Movers and Shakers” list or internal sales data (if you’re a vendor). Electronics, home goods, kitchenware, beauty products, and toys are historically strong performers.
Stay Seasonal Savvy
Consider seasonal trends. Is there a summer product that’s nearing the end of its prime selling season? A discount on these items could clear inventory and generate sales.
Unearth Hidden Gems
Do you have products with good reviews but lagging sales? Consider offering deeper discounts on them to clear inventory and potentially attract new customers who might be price-sensitive.
Complement with Bundles
Look for products that can be bundled together at a discount. This is a great way to move slow-selling items and introduce customers to complementary products they might not have considered otherwise. Consider themed bundles for holidays or specific customer interests (e.g., a “Gamer’s Getaway Bundle” with a headset, controller, and game).
Utilize Private Label Power
If you’re a private label seller, leverage the unique selling proposition of your products. Highlight their quality, unique features, or ethical sourcing practices to attract customers looking for alternatives to major brands.
Clear out Leftover Inventory
If you have discontinued products or lingering inventory you need to clear out to avoid excess storage fees, look into submitting these items for Prime Day. Offer a deep discount to drive more discovery and encourage purchases. Or you can also utilize Amazon Outlet and submit outlet deals there to increase sell-through.
Additional Considerations
In addition to all the above considerations when choosing your Prime Day products, there are some others to keep in mind so that you can make the best out of the event and not miss out on sales.
Pay Attention to Your Profit Margin
Selling products for below market value hurts your overall category and sets unrealistic pricing expectations for your customers’ future purchases. Don’t get caught in the discount trap. Instead of lowering your prices at all costs to get ahead of your competition, market your products based on the value they can add to your customers’ lives. This way, your higher price is seen less as an obstacle, but more a slight price bump for much more value. Also, don’t discount everything in your catalog. Prioritize products that offer you some wiggle room for discounts while maintaining healthy profit margins so you still turn a profit.
Ensure Timely Fulfillment
Delivery means everything, and timely delivery is the perfect finishing touch for the highly enjoyable shopping experience that customers are so used to on Prime Day. If you handle shipping for your own Amazon business (FBM), ensure you can fulfill orders quickly and efficiently. If Amazon handles the shipping for you (FBA or 1P), ensure that you clearly communicate expected delivery dates to your customers and be readily available for any bumps on the journey. Choosing products also plays a crucial role here: Prime members expect fast delivery, so prioritize products with readily available inventory and streamlined fulfillment options.
Outperform the Competition
A good seller learns from their competitor’s strategy and mimics it, whereas a great seller anticipates their competitor’s strategy and outperforms it. For Prime Day, this quote resonates truer than ever. In an event where pricing and advertising can make or break the deal, you must be one step ahead of your competition. Research your competitors. What products are they likely to discount? Can you offer a better deal on a similar product in your catalog? If you cannot, can you highlight a unique selling point of your offering that will justify the higher cost compared to your competitor?
How VASO Group Helps You Position Your Catalog for Prime Day
Our account management experts have years of experience when it comes to Prime Day preparation. We know what Amazon is looking for, and we also know what your customers are looking for when it comes to product offerings during this massive sales event. We have the ability to assess your current catalog and uncover your best sellers, your hidden gems, and your lingering inventory that needs to get cleared out. Our team can also give you a comprehensive view of your category’s market, giving you informative insights into your competitors’ pricing and promotion strategy. Rest assured that you are in good hands, and we will be there at every step of the way.
Are you ready for Prime Day 2024? Reach out to us at VASO Group if you want personalized recommendations on which products to sell during this sales event.