Study: Average Product Prices Higher in Run Up to Amazon Prime Day
Incubeta, the independent digital marketing services group, released the findings and insights on how products performed during Amazon Prime Day. Using its Amazon dashboard Incubeta found the average product price to be just 0.5% higher in the day following Prime Day and 5% lower compared to the days leading up to the discounted event on the 13th and 14th October.
As 75% of consumers start their shopping journey using the Amazon search box, there’s a huge opportunity for retailers and brands to prosper as the shift to online spending accelerates. Incubeta developed a tool to monitor product performance in the Amazon search engine results pages, which enables brands to; see how well competitor products are performing, push price and review competitive products, identify keyword gaps, maintain top position on key search terms, and maximize share of voice across keywords.
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Price Comparisons for Pre and Post-Prime Day
Looking at the categories which had the largest price reduction on Prime Day, Garden Furniture and Home showed the most discounted products as prices increased by 16% and 10% respectively following the event. However, when comparing the average price post-Prime Day to what it was before Prime Day, both categories had decreased (17% Garden Furniture, 15% Home) suggesting prices are more competitive after Prime Day than before.
This trend was seen across other categories except for Home Office and Baby which showed a decrease in price following Prime Day, with baby products seeing a 14% price drop.
Looking at the percentage of the search space for a product listed, the largest changes were seen in the Kitchen category where the share of voice was 12% lower following Prime Day but still 25% higher prior to the 13th and 14th October. This pattern was seen across other verticals too, which shows that post-Prime Day is cheaper and more competitive than pre-Prime Day.
By using the Amazon dashboard, Incubeta also viewed which sellers were optimizing advertising and found paid ads decreased after Prime Day compared to before and on the day itself, 7% and 10% respectively.
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A Market Monitor Tool – Amazon Dashboard
Peter Munton, Senior Performance Manager at Incubeta comments: “Lockdown brought shopping online, and with tougher restrictions being reintroduced in some parts of the country, consumers are preferring to make their purchases online. This will only accelerate in the coming months. This drastic change in consumer behaviour means we will see a Q4 like never before.
“Coupled with this is the development and maturation of Amazon’s advertising platform, which has continued to grow throughout 2020. It’s now become an increasingly popular advertising channel and the competition between brands is on the rise, so a thought out and concise strategy is necessary.
“However, Amazon advertising itself is limited, and many retailers are unaware of the untapped potential. That’s why we’ve developed our own proprietary Market Monitor Tool to help retailers obtain valuable performance insights.”
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