Are You Ready for Amazon Prime Day?
4
Jun

Are You Ready for Amazon Prime Day?

Prime Day is a one-day global sales event. You might think of it as Black Friday for Amazon Prime members.  In fact, Amazon hints that they offer more deals on Prime Day than they do on Black Friday. If you are an Amazon seller, here are a few Q&As about the big day.

When is it? 

Amazon is very cagey about the actual date and may not reveal it until July.  Based on Prime Day’s four-year history, however, we can expect the day to fall during the second week in July.

Can anyone participate? 

No.  Prime Day is by invitation only.  In the past, sellers have received a letter stating that they have been chosen to participate.  But just because you are selected to join the Prime Day event doesn’t mean that you can sell whatever you desire.  Amazon specifies what products they want you to sell, and you are invited to submit “Lightning Deal” offers.  Amazon can then choose to accept or reject your offer.

How much will my sales increase? 

Some Prime Day sellers have found that they have sold upwards of 50 times the amount that they usually sell in a day.  Your volume will vary based on how good of a deal you offer and how in demand your product is.

How should I craft my deals?

Consider pricing your deals at 10-30 percent off the three-month average price for that item.

How much inventory do I need to supply?

Prime Day participants who use FBA can consider supplying several thousand dollars worth of inventory.  Depending on the price of your product, the quantity will vary.

Can I increase my chances of getting chosen for Prime Day? 

Amazon is very cryptic about how they pick their Prime Day participants, but selling high quality products and bringing in plenty of glowing reviews will undoubtedly boost your chances.

If I’m not chosen to participate, can I still benefit from Prime Day?

Yes.  Even vendors who are not invited to offer Lightning Deals on the mega-shopping day report increases in sales on Prime Day.  Buyers often save up “things I need to buy on Amazon” lists in their heads or shopping carts.  Prime Day gives them an excuse to sit down and purchase Lightning Deals plus those other items that they have been meaning to buy.  Since Amazon sales tend to go up across the board on Prime Day, make sure that you beef up your inventory in advance.

If I am selling Lightning Deals on Prime Day, will my FBA fees change? 

No—except that they will apply to your discounted price rather than the original price.

If you’re chosen to participate in Prime Day, submit Lightning Deal offers that will appeal to customers while still maintaining a reasonable profit margin for your company.  If you aren’t chosen, continue to offer great products and earn your customer’s confidence.