How to Sell on Amazon Prime Day 2019 - The Definitive Guide (for Sellers & Vendors) - Sellics

How to Sell on Amazon Prime Day 2019 — The Definitive Guide (for Sellers & Vendors)

How to Sell on Amazon Prime Day 2019 — The Definitive Guide (for Sellers & Vendors)
By Robin Hanna in Amazon Advertising & PPC Amazon Updates Amazon Marketing Tips Last updated on

Amazon Prime Day may still be a few months away, but the submission window for Lighting Deals is open right now — and closing very soon (on 10 May 2019, to be exact).

Amazon has turned Prime Day into one of the most anticipated e-commerce events of the year.

With more than 100 million purchased products, Amazon declared Prime Day 2018 the biggest shopping event in its history.

Unsurprisingly, Prime Day promotions are expensive. Maybe you’ve never participated in Prime Day because your margins wouldn’t support the elevated ad spend.

But what if you could learn how to sell on Amazon Prime Day to make a substantial profit — and more than double your sales?

In this guide, we reveal how you can prepare for ‘Christmas in July’ and make the most of the ‘halo effect’ that will magnify your conversions for weeks to come.

Content

How to Sell on Amazon Prime Day — Everything You Need to Know

TLDR — The most important information at a glance:

What Is Prime Day?

Launched in 2015 amidst Amazon’s 20 years anniversary, Prime Day is a summer shopping event exclusive to Amazon Prime members.

Openly promoted as a pendant to Black Friday, every Prime Day consistently broke the sales record of the previous year.

Prime Day 2018 was officially the biggest shopping event in Amazon’s history — check out this infographic for more.

When Is the Deadline for Amazon Prime Day Lightning Deal Submissions 2019?

USA: May 10, 2019 PDT midnight (local time)
Europe: May 17, 2019 MEST midnight (local time)

What Day Is Prime Day 2019?

Amazon keeps the exact day a secret and only reveals the date a few days in advance.

That said, we can make an educated guess: Every Prime Day so far has been in early to mid-July, with a bias for Tuesdays. We’re calling 2 July or 9 July.

How Long Is Prime Day 2019?

In 2018, Amazon extended Prime Day from 24 to 36 hours for the first time. We expect this timespan to stay the same or become longer.

At any rate, the lines are blurry here: Sellers will create deals for the weeks before and after Prime Day, making it a month stuffed with bargains.

an infographic showing the history of amazon prime day with details on sales valume related to cyber monday and black friday

Benefits for Sellers & Vendors — Is Prime Day Really Worth It?

Promoting your product to an exclusive and shopping-friendly crowd on one of the most anticipated e-commerce events of the year comes with an impressive price tag.

Prime Day was free for the first two years, but in 2017, Amazon introduced a registration fee of $500 per Lightning Deal.

The intimidating cost of Prime Day Lightning Deals might dishearten sellers who worry if the performance of their products can sustain such an expense.

In fact, this might be a reason for the fee in the first place: a higher cost will cause Sellers to be more deliberate with their promotions — thus increasing the overall quality of Lightning Deals on Prime Day.

Prime Day breaks sales records every year, so the increase in traffic, sales, and exposure may well justify the initial investment.

Check out this video for a behind-the-scenes look at the logistical challenges presented by hosting a 1-day shopping event — across several timezones!

Even if you can afford the sought-after promotion, your product must fulfill certain criteria to be eligible for a Prime Day Lightning Deal.

If you can’t submit your product, don’t worry — there are many more ways to cash in on the purchasing power of Prime Day.

Let’s take a look at your options.

Prepare for Prime Day 2019 — Tips & Procedures for Sellers & Vendors

Create Bargain Discounts: Amazon Deals, Coupons, and Prime Day Promotion

Prime Day Lightning Deals

Lightning Deals are promotions that appear prominently on the Amazon Deals page for a limited time, usually around four hours.

    Sellers who offer Lightning Deals typically experience a noticeable sales boost — especially on Prime Day, when Amazon turns its own marketing machine towards these eye-catching, scarcity-inducing bargains.

Submitting a Lightning Deal doesn’t guarantee that your promotion will be displayed, however.

With the help of an algorithm, Amazon determines the best deals out of the pool of submissions and ranks them according to sales potential.

Deals with the best price, quantity, and inventory are then awarded the best time and position on the Amazon Deals page.

Amazon Lightning Deals: Minimum Requirements for Sellers

Not every seller can take advantage of Lightning Deals. In order to be considered, you must fulfill the following requirements:

  • Professional Seller Account
  • At least 5 Seller Feedback Ratings per month
  • Overall Feedback Rating of at least 3.5 stars

On top of that, you must also offer products that are eligible for Lightning Deals.

You can easily find out whether your products qualify or not by checking for recommendations on your Lightning Deal dashboard.

If you cannot see any recommendations, then your products are not eligible.

Amazon Lightning Deals: Minimum Requirements for Vendors

  • Average customer review rating of at least 3 stars
  • Retail offer must be active
  • Meets projected customer demand threshold
  • Discounted price is
    – at least 20% off the current Amazon retail website price
    – at least 5% lower than the lowest price in the past 28 days
    – the lowest price as of January 1, 2019

What Is Amazon Per-Unit Funding?

As a vendor, you are responsible for agreeing on promotional funding with Amazon. That means you decide on a so-called “per-unit funding” that is added to the Base Merchandising Fee ($500 per Lightning Deal on Prime Day).

    For example: If 100 units sell during the promotion and you agreed on a funding amount of $2 per unit, the cost to you will be $200. If no units were sold, your cost is $0.

To help you plan your budget, you can also agree on a “max unit quantity”, i.e. the maximum number of units you want to provide funding for. Using the above example, if you agree to fund 100 units a funding amount of $2 per unit, your maximum cost will be $200.

Don’t have a product eligible for Prime Day? Missed the deadline for Lightning Deals? No problem!

Here are some tips to profit from the generous Prime Day traffic.

Amazon Coupons

Amazon Coupons are a great way to grab the attention of a bargain-hunting Prime Day shopper.

Buyers might be so focussed on finding cheap deals that they skim straight past products without the Lightning Deal label.

Coupons tag each product with an unmistakable discount label, guaranteeing visibility on every page and granting customers a discount of your choice.

In addition, the bright orange coupon labels also decorate your Sponsored Products ads, so you can make your discounted product even more conspicuous if you promote it.

amazon coupons show up everywhere, even on sponsorered products and lightning deals

Amazon shoppers can discover coupons:

  • on Amazon’s Coupons home page
  • in their search results
  • on product pages
  • in their shopping cart
  • on the Offer Listings page
  • in your Brand Store
  • in your Sponsored Products ads

Good to know for Prime Day: A coupon will only become active two days after you created it — at the earliest. Set a reminder for the beginning of July.

    Put your best foot forward
    The shopping frenzy of Prime Day might tempt you to shift slow-moving stock, rescue inventory from looming long-term fees, or boost sales on a poor-performing product.

    Our recommendation: Don’t. Prime day is not a magic bullet that will save these shelf warmers. Instead, focus on optimizing and promoting your well-performing products.

    They will receive much more visibility and sell better, thus increasing your ROI and improving your sales rank on Amazon.

Deal of the Day

Only for Vendors. Like Lightning Deals, ‘Deal of the Day’ promotions feature prominently on the Amazon Deals page, but they run for 24h instead of just a few hours.

On normal days, they are often the first deal a shopper will see — on Prime Day, there’s a good chance that bargain-hungry buyers will go for a ‘Deal of the Day’ as well.

amazon deal of the day is available to vendors and visible for 24 hours

Prime Day Seller Best Practices — How Sellers & Vendors Can Exploit the Full Potential of ‘Black Friday in Summer’

Get ready for Prime Day — Audit your best-selling listings

Since your focus is on your showrunners, make sure they shine bright.

Check if your titles, bullets, images, and descriptions are up to date — vendors in particular encounter changes without approval on a regular basis.

The Sellics Vendor Edition, enables you to easyily identify any optimization potential across your product selection: The Content & SEO module offers you an automatic and detailed content analysis.

As part of this module, the Content Monitoring feature gives you a bird’s eye view of any unauthorized changes to your listings.

the sellics content monitoring feature in the content & SEO medule of the vendor edition

As a Seller, you will find a similar tool to optimize and track your keyword rankings in the Seller Edition.

    Want to see the impact an optimized listing can have on Prime Day? Try out Sellics for two weeks — it’s free and ends automatically (no credit card required).

Show Your Customers Some Love

Of course you care about customer feedback — make sure that everyone sees it. Manage negative reviews and answer any open questions.

You should react to negative feedback as fast as possible.

Sellics will instantly notify you about new reviews, so you don’t need to check manually anymore. Vendors can access this feedback management in the Chatter Module.

the chatter module in the sellics vendor edition enables feedback review management

Pimp Your Listing with Amazon’s Brand Features

Vendors and Sellers with a registered brand on Amazon can make use of the increasingly powerful visual content, like Amazon Brand Stores, A+ Content (Vendors) and Enhanced Brand Content (Sellers).

a+ content video part of amazon sellics vendor edition

Use the time until Prime Day by fleshing out your listings — you can even add videos as a Seller now! The Sellics VE Content & SEO module will show you which of your listings already have A+ Content (and which don’t).

sellics vendor edition content monitoring tool

Boost Prime Day Visibility With Amazon Ads

Use Amazon Advertising, especially Sponsored Products and Sponsored Brands, to drive as much traffic as possible to your discounted products and deals on Prime Day.

    Remember that your Sponsored Products ads will draw additional attention to your Prime Day offers because they will bear the distinct labeling of Lightning Deals and Coupons.

1 — Increase your Prime Day advertising budgets and bids

You will face fierce competition on Prime Day, so it’s time to show your claws and get aggressive — raise your bids.

2 — Make use of the new dynamic bidding strategies and the option to adjust your bids by placement

Consider setting your bidding strategy to Up and Down. Amazon will increase your (new) default bid if a click is likely to convert.

amazon sellics bidding strategy adjust bids by placement ppc prime day
    Modifying your bids for the Top of Search placement increases your chance to appear in the top ad positions. It allows you to capture the main share of impressions and removes the need to bid as high for the other ad placements.

Check out our Ultimate Guide to Dynamic Bidding Strategies and Placement Modifiers for more.

This way, you’ll maximize the likelihood that your listings receive enough impressions amid the heightened competition.

3 — Optimize your existing campaigns

Spring cleaning your PPC campaigns is just as important as optimizing your product listing.

After all, you’re spending a considerable sum of money on Prime Day, so it’s crucial that your campaigns run as efficient as possible.

Have you researched better keywords? Added negative keywords? Spotted keywords without impressions that you need to activate on your listing?

4 — Use Sponsored Brands to Guide Shoppers to Your Store

Vendors and Sellers with Brand Registry can use Sponsored Brands (previously ‘Headline Search Ads’) to funnel shoppers to a brand-specific environment.

amazon sponsored brands strategy sellics

This is a very effective strategy because you can design a distinct Prime Day landing page and tailor your brand store to highlight your Prime Day specials.

As a bonus, you can easily share the brand store in your external outreach campaign via social media and email.

5 — Create a campaign explicitly for Amazon Prime Day

Please note: This strategy is only for new products or those you have not advertised yet.

Amazon advertising campaigns need time to acquire a decent quality score.

If you plan to advertise new items (or those you haven’t advertised before), we recommend you start your new campaigns about two months before an event — in this case, usually during the submission window for the Prime Day Lightning Deals.

    Aiming to raise brand awareness on Prime Day can be tricky — and expensive. Instead, we suggest you direct your advertising efforts to your products with Prime Day offers. Shoppers are hunting for bargains — if they like your promotion, they are more likely to browse your other products and connect with your brand.

6 — Use Sellics Ad Scheduling to target peak shopping times

Please note: This strategy is only for experienced Prime Day advertisers. If you don’t know your peak times, you should promote your deals throughout the event.

If you have a limited budget and/or know when your target group is active during Prime Day, you can increase the efficiency of your ads with Ad Scheduling in Sellics.

prime day dayparting amazon sellics gif ad scheduling

This strategy might also be useful if you are promoting your products in a different time zone.

7 — Don’t Disappear — Keep an Eye on Your Daily Budget

On Prime Day, your campaign budgets might run dry quicker than expected. Once this happens, your ads will disappear, so make sure you’re supplying enough cash to stay visible.

If you’re worried about the expense, remember that your organic sales might also benefit from the halo effect.

For more control, you can set your ‘daily account budget’ to a fixed spending limit on Prime Day.

8 — Stock up on Inventory (Or Let Prime Day Wipe Your Shelves)

If you follow this guide, your sales will increase significantly on Prime Day — which can boost your Amazon bestseller rank (BSR), causing increased sales to continue well into following weeks (the so-called halo effect).

Be prepared for the best case scenario: Make sure you have enough inventory so that you don’t sell out during (or after) Prime Day and the halo effect.

    Plan ahead — So much can go wrong when you ship in more product. What if your supplier can’t deliver the goods, the postal service strikes or your shipment gets held at customs…

Prime Day promotions aren’t cheap. Your investment needs protection, and by stocking up on your best products, you show your customers the reliability of your brand.

9 — Spread the Word About Your Amazon Seller Prime Day Campaign

Last but not least, go the extra mile and tell everyone about your jaw-dropping deals: Use #AmazonPrimeDay and a link to your deals in email blasts, social media posts, and paid traffic.

After Amazon Prime Day — Cleaning Once the Dust Has Settled (And What to Do Next)

Experience is a harsh but illuminative teacher. Prime Day didn’t go as expected? Now you know which parts of your Amazon business need improvement.

The most likely pitfalls will be your inventory replenishment, using the right keywords to reach your target impressions, and optimized content to convert all that extra traffic into buying customers.

A steep increase in sales usually comes with an increase in customer engagement — be prepared to answer many more questions, but also to handle more returns and refunds.

Gradually, things will return to normal and you can reset your ad budgets and bids.

    Congratulations! You took a leap of faith — and finally invested in one of the most intense sales events of the year. Now that you know what to expect, you’ll be perfectly prepared for the upcoming waves of frenzied shopping: Black Friday, Cyber Monday, and Christmas.

Next time, plan ahead with Sellics — doubling your sales has never been easier!

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