Amazon held its second Prime Day of 2023, “Amazon Prime Big Deal Days,” earlier this month, and with more than 150 million items sold from third-party retailers, the event outpaced the October Prime Day Amazon held in 2022. As we head into the 2023 holiday season, what can your eCommerce brand learn from Amazon’s Big Prime Day tactics?
eCommerce Takeaways from Amazon Prime Big Deal Days
1. The Magic of a Loyalty Program Done Right
It’s no secret that loyalty programs have been an eCommerce best practice for several years now, but Amazon’s Big Prime Deal Days highlight what a well-done loyalty program can look like. Top priorities for Amazon when designing their Prime membership program were creating unique, exclusive, and value-add opportunities for their customers, and with over 160 million Prime subscribers, clearly, they’re doing something right.
Amazon held its first Prime Day in 2015 as a way to both celebrate its 20th anniversary and thank Prime members. While the extreme discounts were marketed as a “thank you” to members, they also saw a huge jump in new Prime subscribers, because what they were offering felt so compelling.
In a time when loyalty programs are all the rage but few brands are getting them right, how can you draw customers in with your loyalty program while also making sure they’re satisfied and coming back time and time again?
2. The Allure of Lightning Deals
A huge part of Prime Day is the famous “lightning deals” in addition to the regular Prime Day savings. Lightning deals have become a mainstay when it comes to Amazon Prime Day because they offer limited-time discounts on limited quantities of a specific product and typically only last for a few hours. Even though these deals are timed, since there is also a limited inventory, they may run out before the clock expires, making them feel even more urgent for buyers.
The concept of lightning deals is nothing new – Amazon is playing into all of the same principles of the “expiring coupon,” just using some digital tools to make it more enticing. When it comes to lightning deals, customers see the price, the time left on the deal, and the percentage “claimed” – all building both the urgency and gamification for buyers to click “buy now.” Amazon has seen the effectiveness of lightning deals, with 25% of customers buying items included in lightning deals. Psychologists call this long-studied concept “anticipatory regret” – customers are worried about how they’ll feel if they don’t act, compelling them to take action.
Consider how your eCommerce brand can play into these common consumer behaviors and add strategic expiring deals to your site, urging action.
3. Well-Coordinated Supply Chain + Logistics
One of the biggest learnings from the success of Amazon Prime Day is the importance of well-coordinated supply chain and logistics during these peak events. It’s no secret that Amazon has been known to be “supply chain obsessed” for years, and it’s this impressive execution that has become a huge draw for Prime members. Why would they shop elsewhere when Amazon can deliver it tomorrow with no shipping cost?
But when it comes to a “peak event” like Prime Day – how does Amazon prepare? And what can your brand take away? Anticipating customer demand is top of mind for Amazon in preparation for something like Prime Day, but this has taken many years of finetuning. Underestimating demand can lead to a lack of inventory and frustrated customers, and overestimating leads to excess inventory and associated costs. For peak events, Amazon leans heavily on its vast network of warehouses and fulfillment centers, and by accurately anticipating customer demand, the company can prepare in advance for the increased strain on this network.
As your eCommerce brand is heading into the 2023 holiday season and planning your peak events for 2024, consider how you can prepare your supply chain and logistics network in advance to have smooth operations, even in times with increased sales.
With Amazon’s 2023 October Big Prime Deals Day outpacing last year’s event, it’s clear that there are a lot of best practices that smaller eCommerce brands can take away. As your brand plans for the upcoming holiday season and year ahead, consider how you can play into the Amazon strategies of strong loyalty programs, expiring deals, and a well-coordinated supply chain and logistics plan to take your eCommerce strategy to the next level.
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