Amazon's second annual Prime Day in 2016 showcased significant growth with a 50% increase in US orders, reaching an estimated $600M in sales. Despite some technical glitches and challenges for third-party sellers to fully participate, the event successfully drove Amazon's own hardware sales and likely boosted Prime subscriptions. This episode provides crucial insights into the evolving landscape of online retail holidays, Amazon's strategic competitive positioning, and the broader implications for pricing strategies.
Key takeaways
Amazon Prime Day significantly boosts sales, with 2016 seeing an estimated $600M in sales and 50% growth in US orders, indicating the immense potential of created retail holidays.
Third-party sellers face challenges in fully leveraging Prime Day, as evidenced by their 30% sales increase compared to a higher overall growth, highlighting the need for sellers to strategize early for inclusion in deals.
Amazon utilizes Prime Day not only for sales but also for driving Prime subscriptions, then focuses on retaining new members by promoting Prime's ecosystem (shipping, content, etc.).
Other retailers can successfully 'piggyback' on Prime Day by launching their own 'Black Friday in July' campaigns, indicating that Amazon's event stimulates broader e-commerce activity.
Amazon's removal of MSRPs is likely a move to combat artificially inflated list prices and avoid deceptive pricing lawsuits, rather than a tactic to raise its own prices. Sellers should be aware of evolving pricing display practices on marketplaces.
Technical issues during large-scale events like Prime Day can lead to negative sentiment (#Primefail), underscoring the critical need for robust infrastructure and seamless customer experience during peak traffic.
EP037 - Amazon Prime Day Recap Amazon held it's second annual Prime Day on July 12th 2016. Scot and I break-down the good, the bad, and the ugly from this Amazon invented shopping holiday. Amazon claimed it was it's biggest day ever (but was a bit vague about what that meant). Amazon claimed US orders were up 50% this year over last year (up 60% internationally). Last year Amazon said they sold $400M on PrimeDay deals, so assuming a similar AOV this year, that's $600M in sales. Third party sales on Amazon were up 30%, reflecting the fact that it was still difficult for third parties to get in on the prime deals act. Amazon did particularly well selling it's own hardware, such as the Kindle and Echo. There were some early technical problems for some users, prompting the #Primefail hashtag. Amazon didn't disclose numbers, but Prime Day was probably a major driver of new Prime subscriptions. Expect Amazon to promote all the other prime benefits hard over the next month (shipping deals, prime exclusives, music, video content, Prime Now, etc...) to help retain those new Prime members. Several other retailers tried to piggy back on the Prime Day by offering their own "Black Friday in July" sales. Some evidence suggests that it was a higher volume than normal day for many other retailers. Amazon is also eliminating many list (or MSRP) prices from it's site. A number of articles suggest that Amazon may be doing this to enable it to raise it's own pricing, but that's almost certainly NOT what Amazon is doing. More likely they are eliminating list prices in categories where sellers have artificially inflated list price, and to help Amazon avoid deceptive pricing practice law suits. Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 37 of the Jason & Scot show was recorded on Wednesday, July 13th, 2016. <a href= "http://retailgeek.com
What does this episode say about amazon & marketplaces?
Amazon Prime Day significantly boosts sales, with 2016 seeing an estimated $600M in sales and 50% growth in US orders, indicating the immense potential of created retail holidays.
What does this episode say about retail & omnichannel?
Third-party sellers face challenges in fully leveraging Prime Day, as evidenced by their 30% sales increase compared to a higher overall growth, highlighting the need for sellers to strategize early for inclusion in deals.
What does this episode say about dtc strategy?
Amazon utilizes Prime Day not only for sales but also for driving Prime subscriptions, then focuses on retaining new members by promoting Prime's ecosystem (shipping, content, etc.).
What does this episode say about amazon & marketplaces?
Other retailers can successfully 'piggyback' on Prime Day by launching their own 'Black Friday in July' campaigns, indicating that Amazon's event stimulates broader e-commerce activity.
What does this episode say about amazon & marketplaces?
Amazon's removal of MSRPs is likely a move to combat artificially inflated list prices and avoid deceptive pricing lawsuits, rather than a tactic to raise its own prices. Sellers should be aware of evolving pricing display practices on marketplaces.
