Amazon Prime Day is Amazon’s annual major sales event that offers Prime members major deals and discounts (called Lightning Deals) on a wide range of products. The major sales event started in 2015 as a celebration of the online retailer’s 20th anniversary. Typically, Prime Day takes place in mid-to-late July, with Amazon announcing the dates to customers just a few days before.
That schedule was thrown for a loop in 2020, however, when the COVID-19 pandemic forced Amazon to move Prime Day to October in light of prioritizing essential items and navigating supply chain issues during the summer months. Last year, Prime Day took place on June 20th and 21st – an earlier time slot than ever.
As you navigate the uncertainty, turn to this blog for the latest news and updates to help your brand prepare to profit from Amazon Prime Day 2022.
Post-Prime Day updates
Amazon Prime Day was a record-breaking event once again this year. Amazon Prime Day 2022 brought in over $12 million in sales – nearly triple what it delivered in 2018. That’s 8.1% growth compared in 2021. In 2021, sales grew 7.7% over 2020.
46% of Prime Day shoppers say they spent more during the 2022 event than in 2021.
The average order value (AOV) per Prime Day purchase was $52.26 in 2022 compared to $44.75 during 2021. That’s nearly a 17% year-over-year increase.
Third-party sellers had a particularly successful Prime Day, especially compared to past years. Marketplace product sales grew 11.7% over 2021, compared to sales of Amazon’s own products at just 6.1% growth.
The majority of sales went toward consumer-packaged goods (CPG), with 29% of consumers making purchases in this category. 20% of consumers purchased more expensive items that they say they would have only purchased on sale.
The Prime Day halo effect was in place once again, with around 40% of consumers making purchases from outside of Amazon during Prime Day for the second year in a row.
Around 60% of ROI’s clients participated in Prime Day, and our Amazon experts noticed some particularly interesting trends. Traffic and spend picked up quickly even before Prime Day thanks to excitement around the event and pre-Prime Day deals. This year, Amazon replaced it’s “spend $10, get $10” deal that incentivized shoppers to make purchases in the weeks before Prime Day with a “Support small businesses to win big” raffle that gave shoppers the chance to win prizes for every $1 they spent with 3P sellers during the three weeks leading up to Prime Day.
One of the keys to success for ROI’s clients was to maintain frequent communication to ensure that product feeds were accurate so that advertising aligned with real-time inventory levels. On top of that, adding new deals each day resulted in increased traffic and ad performance, with impression volume around 2x what most clients typically see.
Some exceptional Prime Day wins from ROI clients included:
- Home improvement brand: 128% increase in order revenue and 74% increase in glance views compared to the beginning of July
- Electronics brand: 57% year-over-year ad revenue growth, resulting in over $1 million in revenue
- Food & beverage brand: 246% increase in ad revenue compared to the beginning of July
- Apparel client: 62% increase in ad revenue year-over-year
Prime Day may be over, but there are still plenty of wins to be had on Amazon and other marketplaces for your brand. Reach out to our retail media experts to start discovering untapped opportunities for profitable revenue growth today.
Amazon Prime Day comes to a close
Amazon Prime Day 2022 took place this past Tuesday and Wednesday, June 12 and 13, 2022. The event marked the 7th annual event of can’t-miss deals from Amazon.
Around 60% of ROI’s clients offered Prime Day deals, and ROI CEO Timothy Seward says the discounts are moderate.
“Many brands are doing smaller discounts than they did in 2021 due to rising costs. It’s still a great way to clean house,” he says.
Many of the best Prime Day deals were on personal electronics products, including noise-cancelling Sony headphones that are usually $349.99 for just $228, an all-time low price on the Apple Watch, and 50% off Amazon’s Kindle. Other deals included laptops, smart locks, smartphones, and robot vacuums.
Many discounts started in late June before the event had even kicked off, but the best deals happened during Prime Day.
Other notable deals from the event included a 5-quart KitchenAid mixer that was more than $200 off, a Ninja Foodi indoor grill that was $150 off, and an eco-friendly weighted blanket from BUZIO for 50% off.
More time has to pass for the official data to roll in, but one thing is for sure: Amazon Prime Day 2022 enticed shoppers with unbeatable deals, and the numbers behind sales growth and average order value will be very interesting to see.
Amazon Prime Day 2022 kicks off tomorrow!
Tomorrow is the day consumers and brands everywhere are preparing for: Amazon Prime Day 2022!
Deals are expected on a wide range of items, including furniture, electronics, accessories, and other home goods items. Other retailers like Wayfair and Walmart are already offering competing deals during the same time period, playing into the Prime Day halo effect.
With the event kicking off tomorrow, there’s not much that sellers can do right now in terms of submitting deals or determining strategies. But you can make sure that all your plans are squared away to perform the best they possibly can. Now is the time to make sure that the information in your product feeds is completely accurate. Don’t let a simple mistake cost you profits this week!
Amazon Prime Day 2022 dates announced: July 12 & 13
Amazon announced today that Prime Day 2022 will take place on July 12 and July 13. The event will begin at midnight PST on July 12 and run for 48 hours. Shoppers must be Prime members in order to participate. 65% of US consumers have a Prime membership, and 88% of Prime members plan to shop this year’s sale.
As a potential recession looms, inflation increases, and consumers continue to feel wary of spending money on discretionary items, Prime shoppers are expected to spend around 35% less in 2022 compared to 2021.
Around 60% of the money that consumers spend on Prime Day will go to Amazon. The other 40% will go to other retailers with competing deals who are taking advantage of the Prime Day halo effect. Target, Walmart, Best Buy, and others plan on having major online and in-store deals during the same time period as Prime Day.
Amazon also tapped into influencer marketing with musical artist Jon Batiste to promote the event with a song and music video.
Stay tuned to this blog for more stats and updates as they roll in about Prime Day 2022.
Amazon Prime Day 2022: Happening next month!
With Amazon Prime Day 2022 quickly approaching and many deadlines for brands already passed, the clock is ticking for brands to ensure they have a profitable strategy in place to drive revenue and increase year-over-year sales.
Navigating supply chain challenges will still pose an issue to many Amazon sellers this year, but brands can navigate this by prioritizing discounts on items that have a backlog or already have a high amount of stock. According to ROI’s State of Digital Marketing Survey, 37% of digital marketers say shipping and fulfillment are top-of-mind.
Shoppers can expect deals on a wide range of items, including electronics and home goods. Amazon has already started some pre-Prime Day deals on items like the Apple Watch, Airpods, and home exercise equipment.
Amazon has yet to announce an exact date for Prime Day 2022, but they have confirmed that it will occur in July. In the past, Amazon has announced the date 2-3 weeks ahead of time.
Prime Day AOV: What to expect
Nearly 2 out of every 3 (63.4%) US households were subscribed to Amazon Prime in 2021 compared to 35.6% in 2016. That’s over 153 million Prime users, up from just 124 million before the pandemic in 2019.
However, average order value (AOV) was smaller last year than in previous years. The average US Prime Day order was $52.33 in 2021, compared to $54.34 in 2020 and $58.77 in 2019.
Shoppers who spent less than $100 during Prime Day 2020 were 4x less likely to shop in 2021. Shoppers who spent over $500 over Prime Day 2020 were 2x more likely to spend more.
The pandemic pushed consumers to be more wary about spending their discretionary income, which may be partially to blame. Stock shortages, delivery delays, and the prioritization of essential items also may have caused Prime Day shoppers to spend less last year.
Since then, shoppers have indicated that they’re more comfortable spending that money – but with inflation rising and supply chain strain persisting, that could be canceled out. AOVs may also increase because product prices are going up, not because shoppers are making bigger purchases.
As Prime Day 2022 approaches and news gets released, you can count on this blog for all of the latest updates. In the meantime, make sure you’re caught up on the latest digital stats in our Ecommerce Marketing Trends Report.
Amazon Prime Day confirmed for July
In a Q1 2022 earnings call on April 28th, Amazon confirmed that Prime Day 2022 will take place in July. No further details were provided on when in July the event will take place.
Amazon Prime Day 2022 will take place online in 20 countries, with savings on “products from national brands and small businesses across every category” according to the call.
Amazon also shared updates on Q1 sales, revealing that operating cash flow decreased 41% year-over-year and while net sales increased 7%. Amazon’s net loss in Q1 2022 was $3.8 billion. Amazon referenced inflation and supply chain pressures on the call.
A new benefit for Prime members called Buy with Prime was announced on the call. Buy with Prime will enable members to use Prime benefits like fast and free delivery to shop directly with participating online merchants.
Other announcements from the call include the launch of Amazon Aware, a new brand of apparel, home, and beauty products on Amazon that use recycled or organic materials, as well as updates to View in 3D, a feature that enables shoppers to view a shoe being sold on Amazon at any angle.
The Prime Day Halo Effect
Major retailers like Best Buy, Target, and Walmart have caught onto the fact that Amazon Prime Day is an opportunity for them to drive revenue by offering their own competitive deals. All of these retailers launched major sales last year during the same time period as Prime Day.
The Prime Day halo effect shined in 2021, with 20% of Prime Day shoppers also purchasing from another retailer on Prime Day.
Only 64% of Prime Day shoppers bought solely from Amazon on Prime Day 2021.
Amazon Prime Day 2021 took place on June 21 and 22. Walmart hosted a new sales event called Walmart Deals for Days from June 20-23, with deals focused on kitchen items, vacuums, smart watches, beauty products, and more. Target also hosted a Deal Days event with in-store and online discounts on similar items from June 20-22.
Best Buy hosted a major in-store sales event called The Bigger Deal Savings Event last year from June 15-22 that helped bring a 190% QoQ increase in foot traffic growth. Comparatively, Target was up 20.7% and Walmart was up 8.4% over the same time period.
25% of Prime Day shoppers considered taking advantage of Walmart’s Deals for Days and Target’s Deal Days.
To participate in Prime Day, shoppers must be Amazon Prime members. One benefit that other retailers that host their own sale events during this period have over Amazon is that membership is not required, reducing for customers some of the friction that comes with participating in the sale.
While membership wasn’t required for Walmart’s Deal Days, Walmart did host an online membership-online sales event similar to Prime Day in February 2022. The retailer’s Exclusive Access Event included deals on electronics, kitchen products, furniture, and more.
The Walmart+ membership costs $98 per year or $12.95 per month. Starting in February 2022, Amazon increased its Prime membership cost to $139 per year from $119 or $14.99 per month from $12.99.
Competing retailers like Target, Walmart, and Best Buy have yet to announce details about their competing discounts, but past years suggest that there will be a lot of deals on technology and home items from these retailers during mid-June 2022.
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Key Prime Day deadlines + navigating the supply chain
In an early March 2022 announcement, Amazon shared the following key dates:
- April 29: Deadline to submit a deal for Prime Day consideration
- June 20: Deadline for your shipment of products you’ll be selling on Prime Day to arrive at Amazon fulfillment centers
One of the most crucial components of selling through ecommerce is to make sure you can actually produce and ship the items that your shoppers buy. For Amazon Prime Day, it will be critical to ensure you have the optimal amount of each SKU for Fulfillment by Amazon (FBA) by June 20.
In the March announcement, Amazon acknowledged that “due to ongoing global supply chain challenges, it might take longer than usual to ship inventory to fulfillment centers.”
Preparing early will be the key to success for brands that participate in Amazon Prime Day 2022.
Amazon has been investing heavily in delivery airplane fleets since the onset of the pandemic to navigate shipping delays and high ecommerce demand. Amazon flies an average of 187 delivery planes per day and has more than 80 jets, compared to 85 flights and 50 jets in early 2020. On top of that, 73% of US consumers live within 100 miles of an Amazon Air airport compared to 54% in May 2020.
While supply chain woes could pose concerns for Prime Day 2022, if your brand does it right, the event could actually help. Prime Day is a great opportunity for brands to clear out inventory of overstocked products to make room for new product launches or other items that consumers are more interested in buying. It will also be a great opportunity for Amazon to clear out inventory of its own tech products to make room for new ones.
Some brands may hold back on providing huge price drops this year due to supply chain concerns. On top of that, the global chip shortage that’s making production difficult or even impossible for many electronics companies could mean that tech products aren’t as heavily emphasized or discounted this year. Inflation may also mean that prices aren’t as low.
To dive more into the global supply chain strain and its impact on ecommerce brands, visit our article Supply Chain Strain: News & Updates on Shipping, Inventory, & Fulfillment.
Amazon Prime Day 2022: What to Expect
After feeling fluctuations from the coronavirus pandemic, Amazon Prime Day is returning in 2022 to face a transformed ecommerce world. As per usual, Amazon has yet to announce the dates, but CNET, CBS, and TechRadar project a return to the mid-July timeslot that Prime Day took every year until 2020.
Many news outlets predict Amazon Prime Day 2022 will take place on Monday, July 18 and Tuesday, July 19.
Prime Day has transformed significantly in the seven years it’s existed. 2017 was the first year that Amazon Prime Day lasted two days instead of just one. Until 2020, it happened around the same time in mid-July every year. One thing has stayed true: It consistently happens on either a Monday and Tuesday or Tuesday and Wednesday.
What did Prime Day look like in 2021? Prime Day sales reached $11.2 billion last year, up 7.7% from $10.4 billion in 2020 and 56.3% from $7.2 billion in 2019. While Prime Day sales did rise, growth was much less significant than for previous events. In the years before the pandemic, Prime Day sales growth averaged at 68.1% year-over-year. In 2020, that dropped to 45.2%.
Gross merchandise volume (GMV) also grew but at a slower rate than in previous years, up approximately 7% YoY in 2021 compared to 54% in 2020.
Shoppers have also increased the amount of products they buy. Consumers purchased over 250 million items over the course of Amazon Prime Day 2021 compared to 175 million items in 2019.
A huge range of products go on sale during Amazon Prime Day. Health & beauty, consumer electronics, apparel & shoes, and home goods were the top categories during last year’s Prime Day.
Some of the top sellers from 2020 and 2021 include the Echo Dot, Apple products, TVs, vacuums, coffee makers, and sports apparel. Amazon always has significant deals on its own products during Prime Day, including the Fire TV Stick and Kindle. This year, shoppers could also see deals on Amazon’s new Halo View Fitness Tracker.