New Digital Age and Ecommerce Age have teamed up for today’s Open Forum to ask the industry about Amazon Prime Day ( which is actually two days). How effective is it for brands, how best to sell on the platform and what will be the effect on retailers?
This is the second part of this series. Part one is here
Rik Moore, Head of Insight, Strategy & Planning, The Kite Factory
Whilst there are the obvious routes around discounting on-platform to drive sales, there are other less-linear opportunities this kind of marketing opens up. For example, if a product relies on customers having certain hardware, for example having a coffee-pod machine if you’re trying to sell coffee pods, brands need to be asking themselves what new opportunities can they take advantage of with this spike in new owners coming into market. They must take advantage of “offer suspicion” and capture those customers that are feeling underwhelmed by the deals they can see on Prime Day. If they are now researching category or product price elsewhere, brands may be able to pick up new custom with timely contextual advertising.
Stephen Warrington, Global Vice President of Ecommerce and Retail at Jellyfish
“Amazon Prime Day has become a mainstay in the calendar, a peak moment that no retailer can afford to ignore. It’s an unparalleled opportunity to reach a global network of shoppers, expand share of voice and maximise ROI. But, there is a fine balancing act to be achieved here for retailers and brands – shy away from Amazon’s worldwide audience, or create a strategy alongside the eCommerce giant? The stark reality is that consumers have changed their approach to shopping now – they not only see Amazon as a place to purchase high-quality brands, but as a place to engage, build relationships and create stronger connections with products and services.
“Part of this is down to Amazon’s approach to innovation – it often leads the way in technology-driven adoption, be it voice-activation, drone delivery and even the ‘Brand Store’, which enables retailers to design their own virtual storefront and create a seamless shopping experience. For partnering retailers, it’s about finding the right balance between working with Amazon’s array of technology and creating a strategy that offers access to the heart of Amazon’s vast audience, both before, during and after the 48-hour shopping bonanza. For the retailers that already sell on Amazon, Prime Day does offer potential to increase sales, but it still comes at a cost in the form of market share. It’s a tightrope that, unfortunately, many retailers have to walk.”
Dubose Cole, Head of Strategy at VaynerMedia London
There are inevitable dates in the retail calendar that we all cannot ignore. Amazon Prime Day is a great example of a brand using their place in consumer culture to marshall attention and behaviour across. It is now in fact the biggest natural moment of consumer attention created by a single brand. Amazon did this by providing consistent value to consumers to establish “Prime Day” over the years
However, a brand “anniversary or holiday” is only as valuable as its experience, which other marketers or brands need to complement. For others, it is worth approaching Prime Day as any cultural event or holiday, considering how different audiences will experience it before, during and after – leveraging the right moments based on objectives and relationship with the Amazon ecosystem to capture attention.
Any brand that is considering joining the day will also need to add value, either through competing against it before or after, or indeed complimenting the Amazon experience throughout. Providing early deals in the run up or second chances after are rich areas for those who want to compete with the event, while complimentary brands can celebrate the day and deals consumers have found in the moment.
Hugh Fletcher, Global head of Consultancy and Innovation at Wunderman Thompson Commerce
“The 48-hour shopping mania that is Amazon’s Prime Day is likely to be the biggest yet. This ‘peak’ day is absolutely vital to Amazon but it’s not just about deals; it’s also about attraction. Turning shoppers into Prime members is a key strategic goal for the company as Prime members spend a higher percentage of their online spend via Amazon than non-Prime members. What’s more, With Covid-19 causing havoc for retailers, 35% of all shopping during lockdown was completed through Amazon, and, as of today, we’re likely to see this loyal customer base visiting the platform in their droves to snap up the latest deals.
“During the pandemic period, while many retailers’ supply chains faltered due to increased demand, Amazon has thrived. n fact, ue to its variety, competitive price points, and next day delivery, it not only benefitted from the pent-up demand, but its stellar performance also increased consumers’ positive perception of the brand by 25%. Amazon’s success over the last 12-months has proven that brands need to feature on the platform to cash in on the global audience it demands, it’s no longer a ‘nice to have’. This is especially true as last year, the platform committed to spending more than £75 million on promotional activities leading up to Prime Day to enable smaller businesses around the world increase their sales funnel and reach new audiences – with this figure likely to be replicated again this time around.
“With millions of consumers now well aware of the benefits of online shopping, Amazon is set to triumph today and tomorrow. With the easing of restrictions hanging in the balance, it’s now up to brands to seize the moment and devise a staunch strategy with Amazon which complements their own channels and satisfies consumers at every touch-point.”
