Interviews, insight & analysis on Ecommerce

ECA Open Forum: Amazon Prime Day

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?

We’ll update this story as new comments come in

Justine O’Neill, Senior Director, Analytic Partners

“Amazon Prime Day may seem to be all about one platform, but there are larger forces at play with ads on Amazon. We know that advertising on Amazon has a 20% higher return on investment relative to a brand’s average marketing ROI. But it doesn’t stop there.

Amazon’s impact reaches well beyond their website – especially when it comes to Amazon ads – and that includes Prime Day. All media has multi-channel impact and even ads on Amazon drive significant impact off that platform – in other words, advertising on Amazon helps drive brick & mortar sales. In fact, up to 70-90% of the impact of Amazon Display Ads is on non-Amazon sales channels. 

There is no silver bullet for how to allocate Amazon ad spend, as levels are very dependent on business priorities, competitive actions and what type of product is being offered.

We recommend a test and learn approach for our clients, to understand not only what works, but how well it works – and why – to make informed decisions for future success.”

Jat Sahi, Retail Consulting Industry Lead for Fujitsu UK

“Irrespective of the easing or tightening of restrictions this month, an earlier than usual Amazon Prime Day is set to break sales records the world over – as it has done every year since 2015. And, while the date itself may have changed, the retail giant is primed to make the same splash over what might otherwise have been a dormant shopping period.

“With social distancing measures still firmly in place and foreign travel seemingly cancelled, the usual spend on summer holiday wares will likely falter – but spending on products to make a summer at home more entertaining could yet work in Amazon’s favour. Between the pent up demand accumulated over lockdown and the eCommerce gold rush that’s materialised from the pandemic, Amazon’s steadfast supply chains are watertight enough to provide the speed and convenience consumers are on the hunt for. And it’s not all at the expense of its competitors; Amazon’s third party vendors are set to enjoy the same uptick in sales today and tomorrow thanks to its unflinching digital infrastructure.

“After a difficult year for the retail sector, Amazon has refused to stop innovating and creating. With an ever-growing workforce and significant physical footprint, this year’s Prime Day could even be Amazon’s biggest ever. For smaller retailers struggling to decide on their next steps, it’ll be a case of joining them this year – because they certainly won’t beat them”

Steve Ricketts, Head of eCommerce at MediaCom

“Throughout the pandemic there has been a significant shift in consumer shopping behaviour towards eCommerce – something Amazon is taking full advantage of this Prime Day. For many, Amazon is now the start of the purchasing journey, ahead of the likes of Google, and through their extensive customer base it possesses a rich supply of first-party customer data which informs sales and marketing. Thanks to this, Amazon can offer unprecedented levels of targeting, discounts and incentives which guarantees that Prime Day is one of the biggest retail events of the year.”

“However, Amazon needs to further invest in tools for more branded content and customer engagement experiences if it hopes to keep this up. One area that is rapidly posing a challenge to the brand is the emergence of social commerce. If executed correctly, social commerce creates unique customer experiences that remain on the social platform, instead of directing users to a retailer, while simultaneously increasing sales revenue and growth at scale. Through the use of APIs and digital tools, Amazon might look to create a more intuitive platform that incentives other brands to sell their goods on its platform. Implementing this more robust digital strategy will entice consumers to form an even stronger affiliation with Amazon and maintain its position as the largest and most successful online retailer in the world.”


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