This year, Amazon Prime Day will be held from July 12-13, bringing it back to the month Amazon held Prime Day every year from 2015 to 2019 (2020’s was in October, and last year’s took place in June).
With ongoing supply chain issues and growing inflation, a Prime Day event could mean big changes for consumers and businesses alike. We’ll explain what these might be, and how sellers can prepare for a profitable Prime Day.
Four reasons Prime Day 2022 will be different
Over the past two years, U.S. consumers cut their overall spending and largely shifted from in-person to online shopping. Amazon has remained the top shopping destination in the U.S. throughout the COVID-19 pandemic, leading in-store retail giants like Walmart and Target and ecommerce mainstays like eBay and Etsy.
Here are the major factors that could make Prime Day 2022 play out differently from Prime Days past.
1. Consumers are reducing their spending
In our recent survey of 950 U.S. consumers, many expressed their concerns about inflation, which climbed to 75% over the past year. In response to the increase in prices of essentials such as fuel and groceries, consumers anticipated spending less money in early 2022, and could continue down this path into the year as they try to stick to their household budgets or save for larger purchases.
- 38% of consumers are reducing their overall spending
- 72% of consumers say rising inflation is affecting their spending on consumer goods
- 70% of consumers are making fewer impulse purchases in 2022
- 52% of consumers are saving up for a big purchase such as a new home or a vacation
2. Consumers are more serious about saving money
Many Americans experienced significant financial strain in the past two years, and have changed their spending habits to adapt to fluctuations in income, job loss, and the economic uncertainty caused by COVID-19. This could make Prime Day deals even more attractive than they’ve been in the past.
- 53% of consumers are compelled to purchase a product when they get a deal, coupon, or discount code
- 47% of consumers will only purchase products that are on sale or discounted
- 47% of consumers will only purchase from their favorite brands due to affordability
3. Consumers plan to spend more on their homes and self-care
According to our survey, home improvement and the homebody economy are thriving in 2022. While some consumers have returned back to their pre-pandemic lives, 60% of consumers still plan to spend more time at home in 2022.
Although just because consumers plan to spend more time at home, it does not mean they won’t be purchasing anything:
- 50% of consumers are willing to spend more money on their homes now than before 2020
- 62% of consumers have put a focus on self-care and wellness products
- 61% of consumers have a greater interest of cooking at home versus eating at a restaurant
- 45% of consumers have a greater interest in interior design and home decor
What Amazon sellers can do to prepare for Prime Day 2022
Sellers: in order to fully reap the rewards of Amazon Prime Day, it’s important to take steps now to get your business ready for the potential uptick in sales. Our seller calendar can help you keep track of important, upcoming dates like Prime Day — we’ll go over the details here.
1. Send your FBA inventory shipments on time
Amazon has released Prime Day FBA inventory cut-off deadlines for 2022. In order to avoid stockouts when the event comes around, FBA sellers should make sure any new inventory reaches fulfillment centers by June 20th.
2. Offer customers multiple ways to save
In order to entice customers to purchase your products on Prime Day, we and Amazon suggest you create deals, discounts, and promotions on your listings.
Some sellers don’t run Prime Day deals at all and see a bump in sales simply due to the increased traffic. But it’s a good idea to offer customers ways to save. Here are three ways to do it.
- Use Amazon Coupons. A coupon is the best way to let customers know you’re offering discounted Prime Day prices because it shows up as a bright green tag next to the list price on the product detail page — customers can’t miss it, and they don’t have to go hunting for deals on a separate page. June 10 is the deadline to submit Prime Day coupons for the U.S. marketplace.
- Offer Lightning Deals. Lightning Deals are discounted prices available for a few hours at a time as a flash sale. Prime Day shoppers can browse available Lightning Deals on Amazon’s Prime Deal page, so it’s a good way to make your product more visible during the event. The catch is that they’re a bit more expensive to run during Prime Day than during other times of the year — but they can really pay off.
- Create a Promotion. In Seller Central, Amazon sellers can create different promotions such as “buy one get one free” or “buy one get one 50% off.” You can also create a custom social media promo code to share with your audience or an influencer off of Amazon. You will receive a custom marketing page to send potential customers to.
- Adjust your list price. While Amazon does not recommend you simply lower your price, this is another option on Prime Day. If you add a list price then a sale price, Amazon will display the discount offered on your listing. Last year, this functionality was disabled but we’ve noticed it is back.
Note that customers can use Coupons simultaneously with other promotions like Lightning Deals to save even more money on Prime Day.
3. Optimize your listings
Sellers should also focus on listing optimization in advance of Prime Day. While discounted prices are important to today’s shoppers, your product listing needs to be as attractive as possible to clinch those conversions.
- Audit your listings: Check your title, bullet points, images, and descriptions to make sure they’re up to date.
- Split test your A+ content: If you are brand-registered, consider using Amazon’s split-testing feature to maximize your listing’s conversion potential.
4. Boost your marketing strategy
Make sure customers find your listings on Prime Day by boosting your brand’s visibility, on and off Amazon. Start now, so by the time Prime Day rolls around, you can entice your broadened audience with incredible deals.
- Review your PPC (pay-per-click) campaigns. Consider bidding more aggressively for your product’s most important keywords to increase your organic ranking by Prime Day. If you’re a brand-registered seller, now’s the time to take advantage of your access to Amazon’s advanced PPC advertising solutions. These include Sponsored Brands, Sponsored Brands Video, and Sponsored Display ads.
- Run off-Amazon ads: Drive external traffic to your Prime Day deals to increase sales. Try using Facebook and Google ads’ sophisticated targeting capabilities, and remember to track your off-Amazon traffic and conversions with Amazon Attribution.
- Use social media to alert customers to your upcoming Prime Day deals. Consumers are increasingly interested in finding products on Facebook, Instagram, YouTube, and even TikTok — capturing their interest with posts, Instagram Stories, and short videos letting them know how much they can save on your products on Prime Day. You can even recycle some of that content through Amazon Posts.
- Automate your review requests. Accumulating great product ratings and reviews is an essential component of your marketing strategy. Make it easier on yourself by automatically requesting reviews from your Amazon customers.
5. How you prepare can also depend on your Amazon business model
When it comes to private label products, your most important Prime Day consideration is your inventory. There’s still time to stock up so you can meet extra demand on Prime Day, but you’ll need to get moving to make this year’s deadline (June 20th for U.S. marketplace sellers).
To help speed up the process of getting your stock into Amazon’s fulfillment centers, you may want to look for a supplier closer to the U.S. than China — especially since the new China lockdowns may cause major supply chain issues.You can find high-quality manufacturers from all over the world using Jungle Scout’s Supplier Database.
Because Prime Day encourages high-volume traffic, it’s a great opportunity for arbitrage sellers to offer products that don’t normally sell well.
This is also the perfect time to review your current inventory and price old stock to sell. You can also do some research and sourcing of new products now, to build up your inventory for the big event.
About Amazon Prime Day
In 2015, Amazon introduced Prime Day — a day of deals and sales across Amazon.com — as a way to celebrate their Prime members on Amazon’s 20th birthday. The first iteration of Prime Day happened on July 15 and ran for 24 hours. Now, Prime Day runs for two full days. Initially, Prime Day deals were only available in nine countries, but the list expanded each year, with the number of participating countries reaching 18 in 2019.
The sales event has been a massive success ever since — even the events of 2020 couldn’t stop it.
Prime Day success over the years
Amazon raked in even more earnings during Prime Day 2015 than it did during its record-breaking 2014 Black Friday sales event. Additionally, in its first year, FBA sellers worldwide saw a 300% increase in sales, with 34.4 million goods sold.
The following year, in 2016, Prime Day grew. Belgium participated (bringing the total number of participating countries to 10), sales worldwide were 60% higher than in 2015, and 3P sellers offering deals nearly tripled their orders year-over-year.
Prime Day 2017 saw even greater growth, not only in terms of products sold (50% more than in 2016) and participating countries (up from 10 to 12) but in the length of time the deal day lasted as well — from 24 hours to 30.
Then, in 2018 and due to the success of the extended hours, Amazon took it a step further and ran Prime Day for 36 hours. Once again, it paid off.
Prime members worldwide bought over 100 million products, SMEs (small and medium-sized enterprises) earned over $1.5 billion in revenue, and it was Amazon’s largest day-and-a-half of sales globally.
Finally, Prime Day 2019 ran for 48 hours, and sales eclipsed 2018’s Black Friday and Cyber Monday sales combined.
During that two-day time frame, shoppers bought more than 175 million items, generating over $2 billion in revenue for third-party sellers. In fact, some sellers reported experiencing an increase in sales anywhere from 23% to 200%.
Amid concerns about the COVID-19 pandemic, which caused manufacturing slowdowns and the prioritization of essential goods, Amazon delayed Prime Day 2020 until October 13-14 in the U.S. Despite Americans’ widely reduced consumer spending during that time, Prime Day still charted record-breaking sales, with Prime members saving over $1.4 billion over the course of the event.
In 2021, Prime Day occurred on June 21-22, earlier than any other year. Despite some consumers being more cautious about their spending, it didn’t stop everyone from finding a good deal during this year’s event.
Prime Day 2021 marked another record year for Amazon with total event sales reaching $11.2 billion, compared to $10.4 billion in 2020. Amazon also highlighted Prime Day 2021 as the biggest two-day period ever for third-party sellers.
Between February 4-8, 2022, Jungle Scout conducted an anonymous survey among a panel of 950 U.S. consumers about their buying preferences and behaviors. Respondents represent every U.S. state, all genders, and ages 18 to 75+, as well as all employment types and varying income levels. See our Consumer Trends Report page for more information.