Before diving into Part 2, be sure to read Part 1 on the new normal for Amazon Prime Day in 2020!
Prime Day has impacted the ecommerce landscape as a whole – it’s not just about Amazon. Different industries tend to see greater success (or failure) with Prime Day. On top of that, many advertisers face challenges on like increased advertising costs and rabid competition for clicks. The reality of Amazon Prime Day is that it’s not for every brand.
Our Amazon Prime Day 2020 Prep video series covers everything brands need to know to navigate the “new normal” for Prime Day. Watch the four-part video series today to uncover strategies & insights around everything from inventory planning to merchandising and SEO readiness to digital advertising strategies.
Lead time considerations will make or break your Prime Day.
With the uncertainty of Prime day dates (although multiple news outlets are reporting that Amazon Prime Day is postponed to October) and supply chain concerns due to COVID-19, will you be able to get the product in time due to supply chain issues?
Paying attention to deal deadlines is a crucial component of a successful Prime Day.
What do inventory levels look like at Amazon, at your warehouse, and for inbound inventory to your warehouse? What are your lead times for each of these buckets and how long is it going to take these items to get to Amazon?
Take into consideration how COVID-19 has impacted this process, with Amazon prioritizing essential goods and experiencing unexpected order increases. You may also want to consider setting up your warehouse for direct-to-consumer fulfillment.
Which products should I promote?
One of the most important decisions you make when preparing for Amazon Prime Day 2020 is deciding which products to promote. Consider the following when selecting your products:
- Excess or out-of-season inventory
- Top products you want to increase brand awareness for
- Newer products that have not gained as much traction as you expected
- Products you want to promote during the holiday season – now’s a great time to start testing!
Has your inventory planning strategy been impacted by COVID-19?
This is an even more important consideration with Amazon Prime Day 2020 being closer to the holidays. In light of COVID-19, it’s important for retailers to consider the stock issues they may face due to inconsistent production. Projections in general will be difficult to make with the unpredictability introduced by the pandemic.
You also need to consider whether you have enough inventory for the products you’re promoting. Look at historical sales and also consider how the pandemic may impact your own order fulfillment. How many weeks of supply will you need on hand?
On top of that, will you have enough stock of your top products for both Prime Day in October and Cyber 5 the next month? In past years, we’ve noticed a trend of consumers beginning their holiday shopping earlier. With the expansion of ecommerce due to coronavirus in 2020, this trend is expected to continue to the holiday season.
When planning your inventory strategy, you’ll have to consider which products are trending up or down due to COVID-19. Check out our blog on how coronavirus is impacting ecommerce for more insights!