Prime Day Was a 36-Hour Marathon Showcasing Amazon’s Willingness to Dominate the Market. Experts Concluded That Amazon Seems Especially Interested in Private Label, Grocery, and Home Improvement
Amazon said that its PrimeDay’18 saw 100 million products being sold. This 36-hour event is now being dubbed as the biggest worldwide shopping fiesta.
Analysts confirmed that products sold via Amazon saw a 3x surge than sales during normal days. Here is a list of product categories that saw huge spikes in sales during Prime Day:
- Electronics – 215%
- Home improvement – 200%
- Beauty products – 186%
- Pet-related products – 134%
- Grocery – 108%
Analysts Observe Sales Figures Post the Prime Day
Key Insights on Amazon’s Sale Structuring
Prime Day patterns are conclusive to indicate how Amazon is pitching its products to customers. Here are the details pertaining to the e-commerce giant’s highest selling product categories on Prime Day.
Amazon appears to be pretty serious about selling self-manufactured electronic products. Alexa, Amazon’s Voice-Assistant Platform was heavily discounted on Prime Day. And it paid off!
Sales of Cloud Cam, an Alexa-integrated device shot up by 1,386%. This figure is 15 times more than what this device would sell on normal days. One of the main reasons for this surge seems to be the pricing of the Cloud Cam. Originally priced at $119.99, Amazon sold it at a flat discount of 50%. The product was sold at $59.99 during Prime Day.
Other electronic bestsellers were –
- Fire TV with 4K Ultra HD
- The Alexa Voice Remote
Prime Day Sees a ‘DIY’ Shopping Frenzy
Brands that sell home improvement products made a killing. With almost all brands seeing a 3X surge in sales, some brands broke sales records by seeing a 30-40x rise in sales. Brands that did significantly well were:
- Etekcity (+4,108%)
- IGotTech (+3,670%)
- Nexx (+3,096%)
- GunVault (+2,923%)
- GerberGear (+2,718%)
Wag –Amazon’s Penetration into The Pet Food Market
Amazon discounted 5 lb bags of its flagship product, WAG dog food. They also announced a heavier 40% off on this product if customers enrolled in Amazon’s ‘Subscribe & Save’ program. Such aggressive pricing strategies ensured that WAG skyrocketed in sales in the pet food segment. Amazon awarded itself the ‘Amazon Choice’ badge in the pet food segment.
Also Read: Could Amazon Have Done Better on Prime Day?
Amazon Grossing from Groceries
Whole foods online stores were involved in Amazon’s Prime Day. Amazon issued $ 10 vouchers to customers for the purchase of goods worth $10 in these stores. The duration of this incentive program was set between July 11 till the end of Prime Day.
Amazon again aggressively marketed its entry into the online grocery segment. This move doubled grocery sales for the e-commerce giant than normal days.
Here is a list of five companies that did the best—
- Izze (+808%)
- Similac (+688%)
- McCafe (+605%)
- RxBar (+556%)
- Quaker (+337%)
US Versus the UK; Which Country Did Better?
Taking hints from the UK Prime Day, Amazon can achieve even better sales in the U.S.A, at least in a few segments.
For example, US grocery sales fell behind when compared with that of The UK (+153% UK vs +108% US).
Cleverly manufactured events like Prime Day are gaining popularity among the masses. Surprisingly, most such sales drives are not even occurring during months that are traditionally marked as shopping seasons.
Hence, brands that wait for seasonal peaks to sell their products will lose ground. Days like ‘Prime Day’ are great platforms for enterprises to showcase their products. Enterprises and brands will only learn about shopping patterns when they sell their products and experiment with their strategy.
Brands should not always and necessarily wait for holiday seasons. If brands lose customers then it is an uphill task for companies to get their customers back.