Amazon Prime Day 2021

Next week sees the return of the Summer Amazon Prime Day event for 2021 after Covid-19 delayed the event globally for 2020. Unfortunately for Canada and India, the event will not be going ahead at this time due to their ongoing struggles with the pandemic.

The Prime Day for 2021 feels like a return to the ‘norm’ as it brings with it a lot of the traditional Prime Day feel. Held over two days in the middle of the year which has been the calling card of Prime Day for many years. In 2020 eCommerce was booming due to a number of reasons but mainly down to the pandemic and many bricks and mortar stores not being open and forcing people online.

For verticals such as grocery and apparel that many customers still preferred the in-store experience for, saw a huge sway to online which was great news for Amazon and meant they had a record-breaking Prime Day in 2020.

Key Insights For Prime Day 2021

Sellers trying to predict big events such as Black Friday and Prime Day and what they should be preparing for their business is nothing new. This is why we are happy to share some professional insights from Chris Elliott who is the Head of Market Insights at Edge by Ascential.

“As much of America opens up once again, this year Amazon might not have the same kind of captive audience as it did when restrictions were tight. However, eCommerce is still booming, and combined with financial stimulus, cheap borrowing rates, and a savings glut, Prime Day will likely still break new sales records. The online shopping boom shows no signs of slowing, and this has only heightened the significance of deal extravaganzas pioneered by Amazon, raising the revenue opportunity for the consumer brands that sell through the platform.

This year, there are three key elements to look out for on Amazon Prime Day:

  • Even greater success for small businesses – Third-party sellers, which are almost all small and medium-sized businesses (SMEs), were very successful last year with Amazon reporting record-breaking sales of $3.5 billion globally. SMEs got a shout-out during Prime Day 2020, with shoppers offered $10 to spend if they spent $10 with a small business and this deal has returned for 2021. Amazon is a great place for small businesses to gain new consumers and build up brand loyalty and Prime Day serves as an opportunity for these sellers to show off their offerings.
  • Deals Galore but pandemic hobbyists are stepping back outside 
    • Cosmetics, fragrance, and clothes: During the lockdowns, sales of cosmetics and fragrances dropped significantly as people were stuck at home. Now with the end of restrictions in sight, sales are starting to rise so Amazon and manufacturers in the category are likely to take advantage of pent-up demand. Amazon may also see this as an opportunity to encourage shoppers to use its Prime Wardrobe service.
    • AmazonFresh: The pandemic saw many shoppers flood online to order their groceries and Amazon was positioned to capitalize on this with their Amazon Prime Now and AmazonFresh services. However, last month Amazon announced that it was discontinuing its Prime Now app and website, consolidating it into existing services like AmazonFresh and its Whole Foods site. Prime Day may serve as an opportunity to showcase Amazon’s new streamlined services so shoppers won’t be surprised when Prime Now is retired. It could also use the shopping festival to add new grocery shoppers now that its offerings have become harmonized. 
    • Home improvement and garden: The pandemic prompted a global DIY boom but this has strained the availability of certain key materials like cement, timber, and paint. New trade rules have put pressure on the supply chain, which were exacerbated by a giant cargo ship getting stuck in the Suez Canal a few months ago. This year we are therefore likely to see less deals in the home improvement and garden categories.
  • Increased competition from rivals – Amazon’s rivals have always challenged the eCommerce giant with their own variations on Prime Day and this year is no different. Target and Walmart have announced deal events for longer than Amazon’s two-day Prime Day extravaganza. Target’s “Deal Days” will start on June 20 and end on June 22 while Walmart’s “Deals for Days” will run from June 20 and end on June 23. Just before Black Friday last year, Walmart also launched its Walmart+ membership which provides shoppers with free shipping on all purchases, discounts on gas, and more. It’s a clear rival to Amazon Prime and we expect to see it promoted prominently during its sales event.

With 90% of purchases on Amazon beginning with search, brands and manufacturers looking to win on Prime Day should include winning keyword auctions for the popular terms shoppers are using to ensure products are visible to shoppers. Moreover, engaging with deals is essential to maximize visibility, those that don’t can have a negative effect after Prime Day with products decreasing in relevancy and organic search rank.

Finally, strong A+ content on product listings is crucial. This includes comprehensive, high-quality imagery and videos, a broad and supportive FAQ section, and clear and precise product descriptions. This content will make shoppers feel reassured about a purchase and ultimately boost conversion rates.”

We want to thank Chris Elliott for sharing his insights with us and for helping sellers best position themselves for Prime Day 2021.

Subscribe to Our Newsletter Today

Stay in touch with the latest business insights for your online business

We do not share your information and you can unsubscribe anytime

Connect With Us And Other Small Business Owners

Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.

Follow us on FacebookTwitter, and LinkedIn to stay up to date with relevant news and business insights for your online business.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *