Amazon Prime Day is around the corner, but the submission window for Lighting Deals already has already closed (on 10 May 2019, to be exact). Read on to find out how you can still make a profit!
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.
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?
USA: May 10, 2019 PDT midnight (local time)
Europe: May 17, 2019 MEST midnight (local time)
What Day Is Prime Day?
Amazon keeps the exact day a secret and only reveals the date a few days in advance.
It’s official: Amazon Prime Day 2019 kicks off on 15 July just after midnight and runs through to the end of 16 July — a full 48 hours!
How Long Is Prime Day?
In 2018, Amazon extended Prime Day from 24 to 36 hours for the first time. This year, shoppers have two whole days to buy your deals!
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.
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 — 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.
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 1st
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).
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 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 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.
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.
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.
As part of this module, the Content Monitoring feature gives you a bird’s eye view of any unauthorized changes to your listings.
As a Seller, you will find a similar tool to optimize and track your keyword rankings in the Seller Edition.
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.
Enhance 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).
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).
*UPDATE: How can I add a video to my listing as a seller?
Amazon has apparently not released this feature to all users yet. Especially sellers outside of the USA are unlikely to find the “upload video” button.
Technically, however, it’s already possible — some sellers have successfully added product videos to their listing by simply contacting Amazon’s brand registration support.
Give it a try: http://www.amazon-brand-registry.com/contact_us. Let us know how it went!
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.
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.
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.
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.
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.
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 the 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.
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.
Next time, plan ahead with Sellics — doubling your sales has never been easier!