How to Develop an Effective Amazon Prime Day Strategy 2023?

Published: 30 March 2023

Updated: 17 July 2023

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Olga is a digital marketing manager @Viden, focused on encouraging growth and delivering results for brands primarily across Amazon Ads through leading optimization and management strategies. She also has experience working with Google Analytics and Google Ads.
How to Develop an Effective Amazon Prime Day Strategy 2023?

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. However, knowing how to prepare for Prime Day and establishing an effective Prime Day advertising plan is crucial to fully leveraging this opportunity. The million-dollar question is: “Have you geared up for Prime Day?” This article is set to provide Prime Day tips and strategies to help you craft your Amazon Prime Day strategy for 2023 and drive more sales. So, let’s explore how you can take advantage of this massive event.

Table of Contents:

  1. What is Amazon Prime Day?
  2. A Look into Amazon Prime Day Stats & Results
  3. Understanding Amazon’s Prime Day Deal Structure
  4. How to Prepare for Amazon Prime Day 2023
  5. Best Advertising Tips to Follow to Win Amazon Prime Day
  6. Case Study: Helping an eCommerce Client Generate More Sales
  7. 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. And with larger discounts than even 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.

The history of Amazon Prime Day

Source: estorefactory.com

But it’s not just about great discounts. Amazon also uses Prime Day as an opportunity to promote new services such as Prime Music or Prime Video. In addition, members can access early access discounts ahead of time so they can plan their purchases and take advantage of even more savings.

Overall, 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.

A Look into Amazon Prime Day Stats & Results

From 2015 to 2022, the statistics show a dramatic increase in sales and revenue as more and more customers sign up for Prime memberships in anticipation of the big day. So, let’s take a closer look at some of the amazing Amazon Prime Day statistics from the past few years.

2022

According to recent statistics, shoppers across the globe spent more than $12 billion during the 48-hour event, with a whopping 300 million items sold across every category imaginable. And more shopping meant savings – Prime members saved over 1.7 $ billion.

Amazon Prime Day sales 2015 - 2022

2022 Prime Day was a huge success for many of ROI’s clients, and there were some truly exceptional wins:

  • Home improvement brand saw an impressive 128% increase in order revenue and a 74% increase in glance views compared to their numbers at the beginning of July
  • Electronics brand experienced a whopping 57% year-over-year ad revenue growth, resulting in over $1 million in revenue
  • Food and beverage brand was also a standout, with a remarkable 246% increase in ad revenue compared to the beginning of July
  • Apparel client got in on the action, experiencing a 62% increase in ad revenue year-over-year
    • 2021

      In a statement released June 23, 2021, Amazon announced that the 2021 event delivered the two biggest days ever for small and medium-sized businesses in Amazon’s stores worldwide. Electronics and home appliances were among the top-selling items, and the most popular product overall was the Amazon Fire Stick TV 4K.

      In total, more than 250 million items were purchased by Prime members. But what came as a surprise was the surge in early back-to-school shopping. With over 600,000 backpacks, 1 million laptops, 1 million headphones, and 240,000 notebooks purchased, it was clear that many were already preparing for the upcoming school year.

      Amazon Prime Day 2021 results

      Source: channelkey.com

      2020

      Amazon Prime Day 2020 was one for the books. Prime Day sales increased by nearly 43% compared to 2019. During the event, Amazon reported over 175 million items that were sold, ranging from household products to tech gadgets. Moreover, small businesses experienced over $3.5 billion in sales, illustrating the annual event’s impact. The table below showcases the top ten searched terms on Amazon.com based on search frequency for the two days of Prime Day 2020.

      Prime Day top terms in 2020

      Source: ecomcrew.com

      And the list of product categories in the US also changed compared to 2019, with electronics dominating the list.

      Leading product categories during Prime Day 2019 and 2020

      Source: statista.com

      As you can see, Prime Day is a significant day for companies looking to boost their sales every year. However, with the intense competition, it’s vital to develop the most effective Prime Day advertising strategies. This includes ensuring your products stand out from the crowd and are easily discoverable by customers.

      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 there 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 2023

      As the Amazon Prime Day 2023 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, 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 that you do your research when it comes to who exactly will be buying your products during Prime Day. Take the time to get familiar 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

        Another great way to prepare for Amazon Prime Day is by optimizing your product listings beforehand.

        • 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. 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:

        • 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 as per your requirements. On the other hand, automatic campaigns allow Amazon’s algorithm to discover new, relevant keywords that you might not have considered. This keyword harvesting can uncover hidden gems that can potentially drive more traffic to your listings.

        • 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.

        • Sponsored brands and prospecting display campaigns

          These campaigns offer a unique way to differentiate your products from competitors. Sponsored brands 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

          It’s essential to 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 to 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.

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

        Amazon Prime Day timeline

        Source: bidx.io

        • 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.

        • 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.

        • Amazon Prime Day shoppers insights

        • Post-Prime Day

          Take some time to 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. Keep track of 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.

      3. 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.

      4. 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.

      5. 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.

      6. 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.

      7. 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.

      Need more recommendations on Amazon advertising?

      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. Compared to 2021, our client saw a 113% increase in ordered product sales in 2022. That’s quite an impressive feat, and we couldn’t be more thrilled for them. Just look at the total sales spike on July 12-13, 2022.

      July 2021 vs. July 2022: Total Sales

      Total sales 2021 vs. 2022

      PPC Spend, Sales, ACOS, ROAS, and Other Data Comparisons

      PPC Spend, Sales, ACOS, ROAS - Prime Day

      And here’re the summaries of what we did:

      • Checked Sponsored Products (SP), Sponsored Brands (SB), and Sponsored Display (SD) campaigns
      • Launched new 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 2023.

      Get the most out of Amazon Prime Day Marketing Strategy 2023

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