July 11th has come and gone, and with it went the free Slurpee at 7-Eleven, the free Chick-fil-A for those who dressed up like a cow, and the biggest online shopping day in Amazon history: Amazon Prime Day 2017.
Amazon’s third annual Prime Day, which offered exclusive online deals for Amazon Prime members during a 30-hour shopping event, saw record sales – beating its combined numbers for both Black Friday and Cyber Monday.
In fact, according to a statement by the company, “Tens of millions of Prime members made a purchase on Prime Day 2017 – more than 50 percent higher than the prior year.”
With Amazon Prime members ordering more than 6,000 items per minute on Prime Day, which led to an estimated $2 billion in sales during the slowest season for retail – there are plenty of insights to be gleaned from the e-commerce giant’s record-setting day.
AMAZON PRIME DAY TAKEAWAYS FOR MARKETERS, RETAILERS & CONSUMERS MARKETERS
For marketers, it’s important to look at how Amazon utilizes Prime Day. Although Amazon doesn’t disclose its Prime membership count, the company said it picked up “hundreds of thousands” of new members after its 2015 Prime Day event and likely picked up even more this year.
And, attracting new Prime members goes beyond collecting the $99 annual fee, since subscribers tend to spend more on the site and engage more with Amazon’s various services.
The company also utilizes Prime Day to acquire third-party sellers and entrepreneurs who participate in the event and improve the site’s product assortment. But, while the event definitely helps out small businesses to get their products on the market, it crushes big retail companies.
Retailers around the country have tried to compete with Prime Day offering summertime “Black Friday” sales. J.C. Penney reprised its “Penney Palooza,” and Kohl’s and Best Buy are also offering competing deals. Which is exactly what they, and other retailers, should be doing.
Retailers can benefit from the reactive behavior of consumers on Prime Day, who are – or at least should be – comparing prices across the board to make sure they’re getting the best deals.
And these “best deals” that shoppers think they’re getting on Prime Day, might not be as great as they think.
While prices were slashed on Amazon’s own products, such as the Amazon Echo and Amazon Fire tablets, many of the retail giant’s other deals were only slightly less than the retail price. In fact, The Wirecutter, a consumer product review website, found just 76 “good deals” on Amazon out of the 14,750 it scanned during Prime Day 2017.
Overall, there’s a lot that can be learned from Prime Day. Marketers can observe Prime’s simplicity and its offers that drive member loyalty; retailers can meet the needs of shoppers who are price-matching; and shoppers can realize that, while they might be blown away by the seemingly exclusive deals on Prime Day, the real deals that day were at 7-Eleven and Chick-fil-A.