A Prime Day like no other:
Prime Day is Amazon’s biggest event of the year, this year, as the pandemic continues to change consumer behaviour and we see the seismic shift to online shopping, the retailing giant solidifies its position as the marketplace of choice. So, how do Brands take hold of this opportunity, cut through the noise and entice buyers?
We’d like to share some of the learnings and more importantly, the strategic and tactical solutions that are working for Brands, as they reimagine their eCommerce strategies to address near-term demands on the run up to Prime Day whilst planning for long-term growth.
Optimise Your Amazon Product Listing
Optimising your product pages to present your products effectively is vital, not only to improve the visibility of your products on Amazon but also to improve the customer experience of your Brand.
Compelling product descriptions, clear feature bullets and strong imagery with clear product photos improve the shopping experience for the customer and increases the likelihood that they’ll buy from you. Shoppers will always look at the images before reading the bullet points.
An optimised listing also has a positive effect on your organic search results.
Manage Price Points & Sell At The Price That Fits Your Pricing Strategy
Brands can tackle squeezed margins on the run up to Prime day even if they find themselves under extraordinary margin pressure when selling to Amazon directly (1P). This is generally triggered by the price war to win the buy box. Amazon will, of course, seek to maximize their margins and push what is selling best. They then make it clear to the Brands that they need better prices or they will stop ordering some or all of the products. This can equate to millions in lost revenue if the “demands” aren’t met. If you sell direct to Amazon via the 1P program, Amazon acts as a retailer and can implement price adjustments independently.
However, if you use the Amazon Hybrid Selling Model, Brands have price autonomy over their products. The Hybrid Model delivers flexibility and gives more control back to the Brand.
Understand Buyer Behaviour
It’s important Brands understand who their customers are, and how they like to shop. You can use this shopper and customer behaviour data to understand their digital footprint and what that means for your Brand and selling strategy, especially on the run up to Prime Day.
That lucrative sale is more likely to happen if you recognise and reward loyal customers. To ensure customers, regardless of where they are shopping from, will want to return to your online store to check out your Prime Day deals, you need to deliver a personalised experience from search, to buy button but also from the warehouse to their house. A smooth customer journey has never been more important.
Add New Product Offerings and/or Unique Bundles Based on Buyer Behaviour
Based on customer behavioural insights Brands can offer new products and unique bundles.
Giving the customer what they want and an attractive price point will always pique their curiosity. You can add new exclusive Prime day bundles to delight customers and boost sales. Advertising the fact that it’s a “Prime Day Exclusive” always helps!
Focus on Average Order Value (AoV)
Having a high average order value can offset your advertising costs and create a larger profit margins, this is a good strategy and gives Brands an alternative to offering a blanket discounts. Bundling products, based on buyer preferences, will enable a higher AoV.
Ensure Product Availability
You can’t sell if your product is out of stock! Brands rely on Amazon to keep ordering products from them to ensure availability online to their buyers. However, there are often situations where Amazon does not place orders, such as insufficient profitability low demand for that product, or poor performance as a supplier. This diminishes sales velocity for an ASIN as out of stocks means zero conversion and leads to product list suppression.
Solution? Work with a trusted 3rd Party (3p) Partner. If Amazon loses the Buy Box due to lack of product availability, you have the option to “move up” with your 3P seller account and avoid an out of stock situation, since sellers have full control over their stock. In order to obtain the Buy Box, a good seller performance is vital. With a 3P partner, such as Luzern, you can positively influence the factors that keep your products up, such as delivery conditions and customer evaluations.
Be Smart with Your Ad Spend
On the run up to Prime Day the Amazon Advertising spend by most Brands will jump. Many are happy to increase the spend as they see sufficient RoAS. If you increase budgets to drive traffic it makes sense to also to be smart about bottom of the funnel tactics. For example, if your products are selling on Amazon, be sure to spend money carefully at the SKU level to drive conversions.
Sharpen your Cart Abandonment Rate Strategy
Reduce lost sales with a proven approach to cart abandonment. Deliver friendly reminders, and time based prompts to ensure no sale is left behind.
Consider Dropship/ Fulfilled by Merchant
Brands can be faced with fluctuating demand on the run up to Prime day, in fact, at any time! Many are turning to micro-fulfilment and meeting demand with decentralised distribution models. The risk associated with unpredictability can be mitigated by using these point-to-point shipping solutions.
Switching to FBM (Fulfilled by Merchant) ensures your customers get the products they want on their marketplace of choice.
If you have stock in your own warehouse or even at other location you can still meet the demand from your customers by using FBM. A third party partner, like Luzern, can integrate directly to fulfil orders. When a customer places an order it can be shipped directly to them.
We take the complexity out, implementing the whole process for you.
By using the FBM/ Dropship model, brands have more control over inventory and ultimately can keep the business moving, even in uncertain times.
This Fulfilment model enables you to build up listings and history, growing sales and margin across 3P as well as protecting any existing direct relationship with customers, avoiding channel conflict or any “race to the bottom” pricing battles. Luzern, as your 3rd party provider, can assist with warehousing, order processing and delivery, ensuring supply, in stock and ready for sale on Amazon.
Talk to the Experts!
With almost 15 years working with numerous leading Brands, Luzern’s Amazon Experts know what it takes to have a successful Prime Day, both the strategies that work on the run up to Prime as well as what it takes to sustain online growth, profitably, during the biggest shopping season of the year and into 2021.