How to Develop an Effective Amazon Prime Day Strategy 2024

Every Amazon seller understands that Prime Day is the year’s biggest shopping day. This event, held each summer, is a great opportunity to draw in customers and increase sales. Despite the 2024 dates not being revealed, businesses should prepare in advance. Knowing how to prepare for Prime Day and establishing an effective advertising plan is crucial to fully leveraging this opportunity. We will provide Prime Day tips and strategies to help you craft an Amazon Prime Day strategy for 2024 that drives more sales.

Table of Contents:

1. What is Amazon Prime Day?
2. Prime Day Highlights
3. A Look into Amazon Prime Day 2023 Stats
4. Understanding Amazon’s Prime Day Deal Structure
5. How to Prepare for Amazon Prime Day 2024
6. Best Advertising Tips to Follow to Win Amazon Prime Day
7. Case Study: Helping an eCommerce Client Generate More Sales
8. Final Thoughts

What is Amazon Prime Day?

Amazon Prime Day, held annually in mid-July, is one of the biggest shopping events of the year. Launched in 2015 to mark Amazon’s 20th anniversary, this event offers exclusive deals and discounts on a wide range of products for Prime members. Over the years, Prime Day has grown rapidly to become one of the most anticipated shopping holidays, with shoppers worldwide taking part.

Prime Day offers something for everyone – from tech enthusiasts looking for the latest gadgets to fashionistas searching for the best deals on clothing and accessories. With larger discounts than Black Friday and Cyber Monday, customers can get amazing value on thousands of items from top brands like Apple, Samsung, and Nike. And with lightning deals offering exclusive savings for short periods, shoppers need to act fast if they want to grab a bargain.

Source: Statista

In 2023, Amazon Prime Day lasted a full 48 hours. Such a timeline started in 2019, which was a step up from the initial 24-hour run it had when it first kicked off in 2015. 

Amazon Prime Day has grown significantly since its launch in 2015. With ever-growing discounts and exclusive products only available during this event, it’s no wonder why customers around the world flock to take advantage of this unique opportunity each year.

Prime Day Highlights

Amazon Prime Day sales have been on a steady upward trajectory year by year. Starting in 2015, with $0.9 billion in sales, after 8 years, global sales reached $12.9 billion in 2023. Let’s see the other outcomes of Prime Day over the years.

Source: Statista

2015: Amazon turned 20

On the eve of its birthday, the company introduced Prime Day, a global shopping event. Across Prime-eligible countries such as the U.S., the UK, Spain, Japan, Italy, Germany, France, Canada, and Austria, over 34.4 million items flew off the virtual shelves, equating to a staggering 398 items ordered per second. Sellers on Amazon utilizing Fulfillment by Amazon (FBA) experienced their most prosperous day, with worldwide unit sales skyrocketing by almost 300%.

2016: The 2nd Prime Day event surpassed the previous one by more than 60% worldwide, with more than 50% in the US

During Prime Day, small businesses and Amazon sellers who provided deals to Prime members witnessed their orders nearly triple compared to the previous year. It marked the largest day ever for Amazon Devices worldwide, setting new records for each category of Amazon devices.

2017: Prime Day was expanded beyond 24 hours to give Prime members more shopping opportunities

Tens of millions of Prime members made purchases on Prime Day 2017, representing a surge of over 50% compared to the previous year. Additionally, Mexico and China joined the expanding list of countries participating in Prime Day festivities. 

2018: Prime Day 2018 surpassed the previous year’s scale and quality

It was stretched out to a whopping 36 hours filled with incredible deals. Globally, members snapped up over 100 million products during Prime Day. Moreover, small and medium-sized businesses peddling their wares on Amazon raked in sales surpassing $1.5 billion during this Prime Day extravaganza.

2019: Prime Day 2019 marked a milestone as it ran for a full 48 hours for the very first time

It became the most extensive shopping event in Amazon’s history up to that point, boasting over one million deals exclusively available to Prime members. Across the two-day extravaganza, sales exceeded the combined totals of previous Black Friday and Cyber Monday events. Globally, members snapped up over 175 million items during Prime Day.

2020: Prime Day delivered the 2 biggest days ever for third-party sellers

Nearly all of them are small and medium-sized businesses. In 2020, the pandemic forced Prime Day to depart from July. Amazon spearheaded a promotion that generated over $900 million in sales for small businesses in the two weeks leading up to Prime Day. Independent third-party sellers soared past the $3.5 billion mark in sales on Prime Day, and it’s almost a 60% surge compared to Prime Day 2019, outpacing the growth of Amazon’s retail business. 

2021: Prime Day 2021 marked Amazon’s third-party sellers’ most substantial two-day span on record

Throughout the promotional period, customers splurged on over $1.9 billion worth of more than 70 million small business products, reflecting a staggering increase of over 100% in sales compared to the Prime Day October 2020 promotion.

2022: Prime Day took place in more than 20 countries

During this year’s Prime Day event, Prime members globally sampled over 100,000 items per minute. Prior to Prime Day, customers rallied behind small businesses, contributing to their generating over $3 billion in sales during the three-week buildup.

2023: The company’s largest sales day ever

During the two-day shopping period, Prime members around the globe snapped up over 375 million items. The event hit an all-time high, raking in a staggering $12.9 billion in sales, with the majority originating from the United States.

A Look into Amazon Prime Day 2023 Stats

In 2023, Prime Day on Amazon.com was all about toys and homeware. In the U.S. marketplace, nine out of ten products with the biggest sales boost fell into those categories. The real star was the Qiopertar kitchen bowl, which left others in the dust with a staggering sales growth of 13,008,766%. Toys and games were the big winners on Prime Day sales over at amazon.co.uk. Six of the ten products with the biggest sales boost in the UK marketplace were from this category, and the toy brand Clementoni was a real hit.

Source: Statista

During the Amazon Prime Day sale in July 2023, around 52% of Prime Day shoppers from the United States snagged products they’d been eyeing for sale. Another 43% of surveyed consumers grabbed discounted items featured in Prime Day deals. 

Prime Day has a knack for keeping online shoppers hooked. A global survey conducted before the 2023 edition revealed that 91% of Prime Day participants had already made purchases during past event editions. What’s more, a whopping 85% of consumers familiar with Amazon Prime Day expressed a desire for the sale event to happen twice a year. 

Source: Statista

20% of US consumers consider Prime Day a very important event in their decisions to be Amazon Prime subscribers, and 7% consider this the most important factor. 

Amazon reports that brands that advertised in the lead-up to and during Prime Day experienced a 216% increase in awareness and a 214% increase in consideration compared to the week prior.

In 2023 sellers allocated roughly 14% of their income towards Amazon ads. It’s noteworthy that Amazon’s cost of sales, indicating the number of ads required to yield a return on investment (ROI), decreased by 9% in 2023 compared to 2022. In 2022, sales from sponsored ads skyrocketed by 263% on Amazon Prime Day in the US. Sponsored ads featured during Prime Early Access Sales led to a significant 143% surge in sales on amazon.com. In 2023, businesses allocated 14% of their revenue to Amazon ads during Prime Day, with Amazon even chipping in to cover certain external marketing expenses.

Understanding Amazon’s Prime Day Deal Structure

Amazon Prime Day is exclusively for Amazon Prime members. If you are not already a member, you can still participate in this massive sale event. Simply sign up for Amazon’s free 30-day Prime trial offer. Be sure to cancel before the trial period concludes to avoid any charges. Please note that this free trial is only open to new users who haven’t registered for a trial within the previous 12 months.

Amazon uses several forms of promotions for this sales day. Here’s how they are organized:

• Deals of the day. These are 24-hour deals available on Prime Day. For instance, a deal available on July 11 might not be on July 12. However, do not worry, as a fresh batch of deals will appear on the second day of the sale.
• Lightning deals. These are limited-time offers on specific items, lasting only a few hours or until stock runs out. New lightning deals can emerge as often as every 5 minutes, making the Amazon Prime Day 2023 a thrilling shopping experience.
• Alexa deals. These are deals exclusively available through Amazon’s voice-powered digital assistant, Alexa. By asking your Echo smart speaker, “Alexa, what are your deals?” you can access exclusive offers that are not available elsewhere. Moreover, you can also gain early access to certain deals an hour before they become live on the Amazon website. If you don’t have an Alexa-enabled device, simply download the Alexa app to get access to these exclusive offers.

How to Prepare for Amazon Prime Day 2024

As Amazon Prime Day 2024 approaches, it’s crucial for sellers to prime their product listings for the big day. Here’s how you can prepare for the event:

1. Develop an effective pricing strategy. Developing an effective pricing strategy is essential to succeed on Prime Day. Consider offering discounts or bundles on products that have been popular in the past and adjust the pricing accordingly based on supply-and-demand levels during the event period. Additionally, factor in shipping costs when setting prices so that customers receive orders quickly without incurring extra expenses due to delayed shipping times caused by high demand during peak periods of the event period.Once you’ve determined how much money you can spend on Amazon Ads services, stick to that budget. You don’t want to blow through all your cash before Prime Day actually arrives. Be realistic about what you can reasonably expect from your ad campaigns so that you don’t end up overspending or wasting money.
2. Research your target audience. It’s also important to do your research regarding who exactly will be buying your products during Prime Day. Take the time to familiarize yourself with their behaviors, interests, demographics, etc., so that you can create ads tailored specifically for them. Knowing your target audience will allow you to craft more effective campaigns that will likely generate more interest and sales on Prime Day.
3. Optimize your product listings. Optimizing your product listings beforehand is another great way to prepare for Amazon Prime Day.
   • Title and bullet points: Develop captivating and detailed titles that perfectly portray your product, and formulate enticing bullet points highlighting product benefits to attract potential buyers
   • Quality images: Include high-resolution images from various perspectives to provide a comprehensive product view
   • Relevant keywords: Identify high-converting and high-volume keywords using reverse ASIN search against your top competitor; strategically integrate these keywords into your product listings for improved visibility and conversion rates
   • Featured video and A+ content: Include a featured video that underscores your product’s key attributes and advantages; use A+ content to enrich your customers’ shopping experience
   • A/B testing: Experiment with different variations of your product listing to discover what resonates best with your audience

   Make any necessary updates or changes before the start of the big day. This will ensure customers have access to accurate product information without any confusion or delays caused by outdated information.

4. Update your website. Finally, ensure that your website is up-to-date before launching any promotions or campaigns associated with Amazon Prime Day 2023. This includes ensuring all links are working properly and updating outdated content or design elements. This way, customers will have a positive experience when visiting your website ahead of making any purchases from your store or brand during (or even after) this highly anticipated shopping holiday.
5. Frequent review of search term reports. To optimize your campaigns, download and analyze your search term reports regularly. These reports offer valuable insights into which keywords are driving the most conversions, thus helping you refine your campaign strategy, tweak your keywords, and improve overall performance.
6. Create manual and automatic campaigns. Manual campaigns allow you to target specific keywords that have a proven track record of driving a high return on investment (ROI). It enables you to have greater control over your campaign, allowing you to tweak it as per your requirements. On the other hand, automatic campaigns allow Amazon’s algorithm to discover new, relevant keywords you might not have considered. This keyword harvesting can uncover hidden gems that potentially drive more traffic to your listings.
7. Set up your Amazon PPC campaign in advance. A carefully designed and implemented Amazon PPC campaign is a powerful tool that can enhance your product’s visibility and sales. To get the most out of your PPC campaigns during Prime Day, you should prepare in advance. Here’s an extended guide on how you can do this:
   • Sponsored brands and prospecting display campaigns. These campaigns offer a unique way to differentiate your products from competitors. Sponsored brand campaigns let you feature specific products you wish to highlight during Prime Day, increasing awareness among your target audience. Meanwhile, display campaigns, such as sponsored display and DSP, enable you to reach customers on other websites and apps, expanding your reach and capturing consumer attention beyond Amazon.
   • Budget allocation for brand awareness and prospecting. To generate interest and anticipation among potential customers leading up to Prime Day, devote approximately 60-70% of your budget to brand awareness and prospecting campaigns. This investment will help you reach a wider audience and draw them to your products.
   • Plan campaign approvals in advance. Remember that all campaigns need to be approved by Amazon before they go live. As Prime Day approaches, the approval process may slow due to the surge in submissions. To avoid last-minute hiccups, it’s recommended that you submit your campaigns for review at least a week in advance.

Best Advertising Tips to Follow to Win Amazon Prime Day

As every year Amazon Prime Day gets bigger and more competitive, it’s important to follow the best advertising tips to grab potential customers’ attention.

Consider the Prime Day timeline

Here’s the catch: you should promote the event beforehand, during the big day, and follow up afterward to ensure you get the best deals possible. Usually, the Prime Day timeline looks like this and includes three stages:

1. Pre-promotion. Start by researching trending items with high demand to capitalize on specific customer needs. Additionally, review competitor promotions and consider running promotions focusing on unique features your product or service offers. Also, consider offering exclusive discounts or bundles to appeal to customers looking for value deals on this big shopping day. Create a marketing budget in advance so you know what resources are available before making any commitments. Finally, develop a plan for communicating your promotions across multiple channels, such as email newsletters, social media platforms, etc., so that customers can easily find out about your offerings anywhere.
2. During Amazon Prime Day. When the big day arrives, it’s time to execute. During these 24 hours, share your promotional messages frequently and consistently across all channels for potential customers to see them. Also, to maximize your profits, we recommend ramping up your retargeting spend by 300-500%. Not only will this help you reach more customers, but it will also keep your brand top-of-mind for those on the fence about purchasing. With over half of the shoppers relying on ads to remind them to buy products after Prime Day, this is your chance to convert more customers and drive sales for the rest of the year. Besides, try using different types of content, such as videos or images, that stand out from other posts in their newsfeeds and draw attention. It’s also important to update the promotion details throughout the day; consider offering flash sales with limited-time discounts or new bundles as incentives for people who haven’t yet made purchases on this busy shopping day.
3. Post-Prime Day. Review what worked well and what could be improved regarding messaging, content delivery methods, etc., so you can refine your strategies for future events like this one. Track customer feedback about your promotions through reviews or surveys so you can continue refining how you approach these events over time and build better relationships with current and potential customers.

Keep your customers’ interests in mind

Take the time to understand your customers’ needs and preferences. Whether offering exclusive discounts on popular items or highlighting new products that align with their interests, keeping your customers in mind will build long-term loyalty and relationship with them. For example, many people are on the hunt for the latest tech items and gadgets during Prime Day, so make sure to tailor your offerings accordingly. Consider featuring products over $100 that will catch your customers’ attention. Additionally, set up crazy auto campaigns or new keywords to increase your visibility and sales.

Prepare for window shoppers

Put your coupons out seven days before Prime Day so that when people start browsing, they already have them. This can provide a huge advantage as customers will already be incentivized to purchase from your store. It’s a common misconception that window shoppers are a waste of time. They can still impact your sales. With the right strategies in place, they can be transformed into loyal customers.

Be realistic

Remember that Prime Day is just like any other retail sale. In fact, if you take a closer look at the past year’s Christmas and Cyber sales, you’ll see similar deals and discounts. So, if you saw a 2x or 3x increase during those sales, you can expect the same results from Prime Day. The key is to be prepared and have a game plan for the items you want to sell. Don’t get caught up in a frenzy, and have realistic expectations.

Focus on the audience you already have

Don’t get caught up in the idea that bidding on new keywords will magically boost your sales. Instead, utilize the customers who have already shown interest in your brand. Utilize your coupon advantage and take advantage of your organic rankings for the keywords you’ve already established. By doing so, you’ll be able to drive traffic to your products without spending time and money on untested strategies. Remember, the loyal customers you already have are more likely to convert and help you see significant returns during Amazon Prime Day.

Add coupons

Many businesses overlook the power of organic rankings and the potential of using coupons to leverage them. If you already rank strongly on a sought-after item like headphones, a coupon could be the key to getting more clicks and conversions than you ever would with paid ads alone. Of course, you should still increase your spending a bit, but there’s no need to go wild trying to claw your way to the top of the rankings. You can maximize your profits on Prime Day without breaking the bank by focusing on smart coupon usage and a solid organic foundation. So If you want to boost your sales during Amazon Prime Day, these tactics might be the answer you’ve been searching for. And the best part? They’re all backed up by real-life case studies. Let’s take a look at one of them.

Case Study: Helping an eCommerce Client Generate More Sales

We’ve been working with one particular client since the beginning of the year, and while the performance spike may not be as obvious because of this, the numbers speak for themselves. Look at the total sales spike from June 1 to July 31.

Here are the summaries of what we did:

• Checked Sponsored Products (SP), Sponsored Brands (SB), and Sponsored Display (SD) campaigns
• Launched additional campaigns for new products and relaunched old campaigns with good historical performance
• Set up possible 7-day deals between June 27 – July 24
• Put coupons with 15-20% discounts for the product without 7-day deals
• Optimized advertising campaigns and fine-tuned our bids and targets, knowing traffic would increase by 30% the week leading up to Prime Day
• Evaluated the budget to ensure we weren’t running out of budget during that period, especially for top-performing campaigns
• Increased bids on keywords throughout Prime Day and allocated extra budget for the two-day duration to ensure high-priority products were promoted above organic search results as consumer intentions would be to buy, not browse, during Prime Day
• Checked and updated variations and bundles, giving Prime Day customers a great deal and generating better margins
• Updated the Storefront to ensure all category pages included up-to-date products
• Sent traffic to the Storefront to contribute to the sales growth

Final Thoughts

Prime Day is a great opportunity for Amazon sellers — but only if they plan ahead. By following these tips and strategies, you’ll be well-prepared for the big day when it finally arrives. So take some time now, even if it feels far away. And if you feel overwhelmed by the advertising opportunities on Amazon Prime Day, we’re happy to help you.

Contact us today and let us help you take advantage of Amazon Prime Day 2024.