Are You Primed for Amazon Prime Day?
Prime day will soon be here. If you aren't prepared, it’s time to start prepping for one of the biggest online shopping days of the year. The new and improved "Christmas in July" will run for 36 hours and is looking to set records. While revenue is sure to set a new record, so is the number of competing SKUs. As the competition grows, companies need to start running "stress tests" to prepare themselves for what's to come.
Preparing for Prime
Next, to Black Friday and Cyber Monday - Prime Day is one of the more important days of the year to optimize your online strategy. Online sellers need to begin advertising their prime day specials at least two weeks before the event. Amazon will see a high number of ads. The system will become first come first served, so the longer you wait to begin running ads, the less likely they are to be effective.
It's essential that online sellers capitalize on the excitement around prime day and make their SKU pages stand out from the competition. First, review your current SKU standings. How much information do you have? Are there photos and reviews? While it sounds like common sense, but it needs to be said. An updated page almost always leads to higher profits. Customers want details, and in some cases, information can be a determining factor more than price.
With the vast amount of competition, its important online sellers focus on their most profitable products, instead of every item in the store. It is better to have a fantastic day selling one or two products versus having a good day selling your entire inventory with lower profit margins.
Identify the "Prime" Pricing
Many online sellers believe the lowest price will attract the most customers, but it's essential to understand financial margins. Large corporations understand how to manipulate their margins and still make the sale - these people have a complete understanding of financial bookkeeping. As a smaller eCommerce store, it's best to set your price point to reflect your store instead of what is happening in the market.
The price point set is also dependent on inventory levels. If your inventory is low, selling out on Prime day may not be a good idea. With pricing at a lower rate, selling your complete inventory supply could have a negative impact. However, if you have a surplus of a particular product, Prime day offers a perfect solution. Assets on hand can lead to security, but cash gives vendors choices. Online sellers need to focus on a balance point - what is my target revenue and how much product do I expect to sell?
Prime Day is Larger than Life
If Amazon has anything to say Prime Day will be on the same level as Black Friday and Cyber Monday, if not larger. This "holiday" is an excellent opportunity for online sellers to turn inventory reserves into substantial cash flow to help boost summer revenues. If you prepare yourself for the process, the returns can great.
If you're an online seller needing to understand your books or financials further, contact us for a free consultation.