As the digital marketplace continues to evolve, Amazon’s annual Prime Day event has become a pivotal moment for sellers worldwide. This year, the event was marked by a significant shift in consumer behavior, with small and medium-sized businesses taking center stage. If you’re curious to learn about the ins and outs of this record-breaking event, keep reading—our commerce team will take you on a tour behind the scenes.
A big win for small and medium-sized businesses.
This year’s Prime Day marked a significant milestone for small and medium-sized businesses, as they emerged as the new power players in the sales landscape. This shift was not a mere coincidence, but actually the result of Amazon’s strategic decision to amplify these businesses by showcasing more deals of their products than ever before.
Today’s consumers, especially younger shoppers, are not just buying products—they’re buying into the values that these products represent. They increasingly focus on aligning their personal values with their purchasing habits and show a preference for brands that reflect their own beliefs and principles. This trend is particularly evident in the growing support for small and medium-sized businesses, as they tend to have more compelling stories and unique products and provide a personal touch that resonates with consumers. These brands often represent entrepreneurship, innovation and local community support, and these values are strongly appreciated by today’s conscious consumers.
As for results, the first day of Prime Day 2023 shattered last year's record, and thus became the single largest sales day on the platform. According to Amazon, Prime members worldwide purchased more than 375 million items, saving over $2.5 billion through deals across the platform. This surge in sales showcases the growing popularity and anticipation of Prime Day among Amazon’s customer base. Furthermore, Numerator revealed that out of more than one million households, approximately 52% had strategically delayed their purchases until Prime Day to take advantage of the sales, which goes to show that many consumers not only engage with, but even plan around the event.
According to Amazon, the top-selling categories were Home, Fashion and Beauty, while Numerator reported that the most popular items included Temptations Cat Treats, Amazon Fire TV Stick, Liquid I.V. Packets, Echo Dot 5, and Blink Outdoor Camera. These items reflect a diverse range of consumer interests and needs, from pet care to home entertainment and health.
Adobe Analytics states that online spending in the United States climbed 6.1% to $12.7 billion, demonstrating the significant economic impact of Prime Day. However, these impressive results fell short of Adobe’s forecast, as they predicted a 9.5% year-over-year (YoY) growth in total online sales in the US. This discrepancy suggests that while Prime Day continues to be a major sales event, there may actually be room for further optimization and growth.
Helping brands put strategic power behind their Prime Day sales.
This year’s remarkable results underscore the importance of understanding consumer behavior and strategic planning—rather than a mere reflection of broader market trends, these outcomes are, in fact, the product of innovative strategies and meticulous execution behind the scenes for Amazon sellers.
In the dynamic landscape of Prime Day 2023, our team of commerce experts strategically guided our clients through the complexities of the event. Harnessing Amazon’s innovative features and aligning them with holistic strategies, we were able to tap into the pulse of consumer behavior and drive unprecedented growth for the brands we partner with. Beyond capitalizing on the event, we set out to understand and leverage the unique opportunities that Prime Day presents.
Our approach to the big event was underpinned by a strong promotions, coupons and deals strategy.
We utilized a lead-out strategy in conjunction with Amazon’s newly introduced Invite-Only “waitlist” feature for Prime Day Deals across many clients. This direct targeting strategy allowed Prime members to identify exclusive deals and request an invite on the products they were interested in prior to the event, essentially prompting them to make purchases ahead of time—a strategy that was designed to not only build momentum and anticipation, but encourage early engagement and sales. Let’s take a look at different categories to see how effective this approach has proven to be.
- Mattress/Bedding category: One client outsold their forecast by six times through the first day of Prime Day, catapulting their sales rank from #56 to #1 within just a day and a half. This remarkable performance earned them several “Amazon’s Choice” badges, and they are now recognized as “Overall Pick.”
- Lifestyle Apparel category: For another client, Prime Day 2023 marked their first participation in the event. They successfully sold through their forecast on the 25 featured products, which had a ripple effect, boosting their entire brand visibility and sales even after Prime Day ended.
- Beauty category: One client in this category saw a significant +203% YoY increase in sales and a +109% YoY increase in ROAS. This success was driven by a multi-pronged strategy that included creating campaigns that were coupled with promotions and sponsored ads in the lead-up to the event, optimizing bids and launching Amazon posts during Prime Day, and running remarketing ads afterwards.
- Supplements category: A client in the supplements category witnessed a 50% YoY increase in topline sales numbers and a staggering 396% increase in Brand Store traffic on the first day of Prime Day. Their strong performance within their category was largely due to our strategic use of coupons across ‘Tier 1’ Amazon Standard Identification Numbers (ASINs), which significantly improved clickthrough rates and conversion rates on ads. This strategy not only boosted their sales during the event, but also added 64 new Subscribe and Save customers, setting the stage for continued success after Prime Day.
Drawing from our foundational principles, which have consistently driven success, our team adopted a holistic approach to Prime Day 2023. We tailored our promotional, content, operational and data strategies to each and every brand’s unique needs, ensuring a personalized and effective approach to the event. This blend of strategies allowed us to navigate the complexities of Prime Day while maximizing opportunities for our clients.
Packing up our learnings and taking them to the next big shopping event.
Prime Day 2023 can be considered a landmark ecommerce event, as it has demonstrated the power of strategic planning, innovative features, and gaining a deep understanding of consumer behavior. The success stories of our clients underscore the potential of Prime Day as a platform for growth and visibility. As we look ahead, these insights will guide our strategies and help us continually adapt to and innovate in the ever-evolving digital marketplace. Whether you’re a small business owner or a global brand, the lessons from Prime Day offer valuable support in navigating the world of ecommerce and maximizing the opportunities that such tentpole events present.
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