There is no question — Prime Day has gained notoriety over the last few years.
Since its launch in 2015, Amazon Prime Day has gained major traction and excitement for many brands and products worldwide.
With all of the hype surrounding this day, it seems like a no brainer that every ecommerce business, and especially those on Amazon, should participate. But, is it really worth your time and effort? We’re breaking down the pros and cons of Prime Day and whether or not you should do it.
The scoop on Prime Day
- What is Prime Day?
- Possible pros to participating
- Potential cons to selling
- Should you participate?
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What is Prime Day?
For those Amazon shoppers who are also Prime members, they have exclusive access to deals promoted on Prime Day. It’s an annual event that claims to have over a million deals worldwide for its members. Discounts on products and special offers span from music, to books, all the way to electronic devices.
While Prime Day typically takes place in July, it has been officially announced that it will happen in June this year. There has also been talk of there being two Prime Days as well, (one in June and again in October), to compete with Walmart’s new “Big Save” fall event, but no confirmation has been made as of yet.
As this is a day specifically solicited to those members, the hype draws attention and increases memberships for Amazon because of the desire to have access to deals. It is absolutely a benefit to Amazon, but is it a benefit for its sellers?
Let’s take a look and find out.
Possible Pros to Participating
One of the major benefits to Prime Day for any ecommerce seller is the exposure. By offering deals on products, buyers will be drawn to your store and likely get the chance to browse through your products. It’s a chance to do some serious brand marketing.
Consider the possibilities. Whether or not buyers actually buy your product that day, they still saw all that you have to offer. They clicked through your store, got to learn about your products, your company, or at least potentially saw one of your ads. This type of marketing is great to get buyers to your page. Maybe they don’t purchase today, but they’ll remember your product later on when they’re in the market to purchase again.
Have you been holding onto inventory that just hasn’t sold? Prime Day is a great opportunity to slash some prices and get those products out the door. If you held onto them any longer, they might not sell, and you’d be in the hole for your investment. Prime Day gives you the opportunity to make some profit even if lower than your original ROI goals.
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Potential Cons to Selling
As retail days have grown and more companies participate, consumers have gotten smart. They know which days have the best deals and which ones offer them the best value. To date, Cyber Monday is still considered the biggest ecommerce day of the year, topping even Black Friday. If consumers have specific items they are willing to wait for, they aren’t participating in every retail holiday, and holding out for the best one.
In recent years, while Prime Day does offer some stellar deals, the big deals of Cyber Monday just trample those offerings. Knowing this, some consumers might not participate in Prime Day. So even though offering deals on this day can still provide you an ROI, they might not have as much of a return as they do on Cyber Monday, or another retail day.
Additionally, slashing prices to move inventory might not equal an abundance of sales. While you might get rid of products you haven’t been able to sell, dropping prices on newer items could also leave you with less sales than just selling at a higher price for a longer span of time. It’s definitely important to consider your end goal and what outcome you are trying to achieve.
Should You Participate?
The long and the short of it is — it depends. The tried and true benefit is marketing and brand awareness. Otherwise, unless you have inventory you are trying to get rid of, the ROI on Prime Day for sellers isn’t guaranteed to be high. So, it really comes down to what the needs of your store are and what your ultimate goal is for the big day.
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