Prep for Amazon Prime Day 2024: Seller Tips for 10x Sales Growth

As the 2024 Amazon Prime Day approaches, sellers are gearing up for the final preparations. In this article, we’ve invited three seasoned sellers who have consistently led their brands to the top of the Best Seller lists during previous Amazon Prime Days. They will share their secrets and reveal the three key actions to take before the big event.

 

 

Seller Profiles

Brand: ROCKBROS

Main Products: Cycling gear, outdoor equipment, skiing gear

• Launched on the North American site in 2012; European site in 2019
• Participated in Amazon Prime Day since 2016, totaling eight events

2023 Prime Day Results: Combined sales in North America and Europe exceeded $1.5 million, a 3-6x increase from regular days.

Insights shared by: Frank, Head of North American site; Lisa, Head of European site.

 

Brand: EarFun

Main Products: Audio products

• Launched on North American, Japanese, and European sites in 2019; Middle East, Australian, and Indian sites in 2023
• Participated in Amazon Prime Day since 2019, totaling five events

2023 Prime Day Results: Sales reached approximately $2 million, a 9-10x increase from regular days.

Insights shared by: Mary, Head of North American site.

 

Key Action 1: Understand the Strategic Role of Amazon Prime Day in Business Planning

 

Many Amazon sellers view the increase in sales as the sole objective for the 2024 Prime Day. However, for ROCKBROS and EarFun, the significance extends far beyond mere sales, contributing to about 10% of their annual performance. The real value lies in leveraging Prime Day as a critical promotional milestone that drives business growth throughout the year.

 

Mary, Head of North American site at EarFun:

"Prime Day is not just about the sales within 48 hours. The traffic and exposure it generates serve as a key marketing milestone for the entire year. Q2 is our launch period for new products, and we strive to include major new releases in Prime Day promotions. This exposure helps build listing weight and sales rankings, aiding second-half promotions. Additionally, brand awareness improves significantly, as seen with the doubling of flagship store follower growth during Prime Day compared to regular days. It also helps clear excess inventory, reducing subsequent stock pressure and enhancing overall shop turnover."

 

Frank, Head of North American site at ROCKBROS:

"Each Prime Day not only promotes spring and summer new products but also boosts different product lines at various lifecycle stages. Many ROCKBROS products meet their sales goals through Prime Day. Though Prime Day sales remain a stable portion of our annual performance, these promotions enhance rankings, helping both new and existing products stay competitive in the market."

 

Key Action 2: Develop a Diverse and Phased Marketing Strategy

 

Frank, Head of North American site at ROCKBROS:

"Due to the high conversion rate during peak seasons, marketing investments are elevated before and during Prime Day. A 2-4% increase in ACOS compared to regular days is reasonable. We allocate 10% of our budget to in-site promotions, with increased DSP budgets. From June to August, monthly budgets may account for 15-20% of our annual spend, primarily focusing on Amazon."

 

Efficient Use of Promotional Tools to Drive Sales Growth

Lisa, Head of European Operations at ROCKBROS, says:
"Last year, our European site mainly used Coupons and Prime Exclusive Discounts as promotional tools on Amazon. This led to an overall sales increase of about 50% compared to Prime Day 2022."

 

Combining In-Site and Off-Site Efforts to Maximize Prime Day Traffic

This year, ROCKBROS is also boosting off-site efforts with overseas influencers (KOLs) and offline promotions. Over the past few years, the brand has built a solid following and influence through its international social media channels. During Prime Day, they plan to leverage high-quality video content and KOLs to drive external traffic to their Amazon listings, creating sales peaks by combining in-site and off-site promotions.

Similarly, EarFun is increasing its marketing investment during the peak season compared to regular periods.

 

Mary, Head of North American Operations at EarFun, says:

"We typically increase our investment by over 50% compared to regular periods. It's crucial to boost in-site rankings before the peak season. The higher the ranking during the event, the better the deals perform. Therefore, promotional and advertising activities must be well-prepared before Prime Day."

 

Promotion Tools Are the Most Direct Way to Boost Sales and Rankings

 

Mary, Head of North American Operations at EarFun, says:

"We use various in-site tools like Lightning Deals, 7-day Deals, and Prime Exclusive Discounts. Almost every product maintains a Coupon status. Last year, nearly 70% of our Prime Day traffic came from in-site promotions, with 7-day Deals being the most effective. Running a 7-day promotion significantly helps accumulate listing weight. Besides in-site preparations, we start off-site promotions 1-2 weeks in advance, directing external traffic to our Amazon listings. Combining in-site and off-site efforts, we aim to boost key product rankings to the top 50-100 before the big event, maximizing potential during Prime Day.

Beyond just selling, brand exposure is our top priority. During last year's Prime Day, 80-90% of our customers were new. This level of promotion is highly effective for new product launches and brand awareness. Since EarFun's major new products launch in Q2, Mary mentioned they allocate their budget based on product positioning. They focus on promoting a key product, with around 60% of the budget dedicated to it. Thanks to this strategy, one of EarFun's new products sold over 20,000 units on Prime Day."

 

Key Action 3: Conduct Thorough Last-Minute Checks and Final Preparations

 

As Prime Day nears, thorough checks are essential. Key areas to review include:

1. Ensuring Adequate Stock: Prevent stockouts by restocking quickly or using expedited shipping methods.

2. Confirming Promotional Activities: Ensure all Deals are approved. If not, promptly set up Prime Exclusive Discounts and Coupons.

3. Improving Rankings: Use promotional tools to boost rankings if they are not ideal before Prime Day.

4. Finalizing External Promotions: Coordinate schedules and materials with external promotional resources such as KOLs and media.

5. Maintaining Pricing Strategy: Keep a consistent pricing strategy to ensure profitability during the peak season.

 

 

Quick Q&A with Amazon Sellers:

 

Q1: What’s the overall sentiment for this year’s Prime Day?

Mary: Everyone’s expectations are really high this year. One noticeable thing is that many have started stocking up much earlier than usual.

 

Q2: How manageable are post-promotion return rates?

Frank: We are confident in the quality of our products. Our regular return rate is about 8-9%, and it slightly increases to around 10-12% after the big promotion. This range is acceptable.

 

Q3: How do you sustain the effects of the big promotion?

Mary: Traffic tends to drop after the promotion, so we continue to maintain a higher advertising budget for about 1-2 weeks. This helps stabilize product rankings.

 

Q4: Any words of encouragement for fellow sellers participating in Prime Day this year?

Frank & Lisa: We wish ourselves and all participating Amazon sellers great success, with record-breaking sales and exceeding targets!

Mary: Prime Day is the biggest and only major promotion in the first half of the year. Here’s to everyone achieving fantastic sales!

 

Forest Shipping wishes all Amazon sellers a successful and rewarding Prime Day next week!