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A common pain point for many direct-to-consumer (DTC) and online retailers is how to increase sales and customer acquisition during the summer months when dips in sales have historically most often been observed.
E-commerce entrepreneurs everywhere know how crucial it is to get an effective marketing strategy in place to address seasonal trends. Amazon Prime Day is a perfect example of making the most out of the toughest of seasons for retailers.
Below, we dive into how Amazon succeeded in creating a brand new holiday, amassed the largest number of sales and new customers they’ve ever experienced, and what e-commerce businesses can learn by utilizing first-party data to increase consumer interest.
Understanding the impact of Amazon Prime Day sales on the e-commerce world
As a means of combating the mid-year slump in consumer interest, Amazon invented Prime Day back in 2015. Introduced in part to celebrate Amazon’s 20th anniversary, the program was originally launched in July and created as a one-day-only retail holiday. Amazon Prime Day sought to overtake Black Friday and Cyber Monday as the sales event of the year.
Consequently, the shopping event has experienced huge successes that extend beyond just Amazon’s own retail sales. All of the small, medium, and niche e-commerce businesses on their platform also benefit greatly from the event. Even retail competitors experience increased sales during that time period.
This year, large U.S. retailers, classified as companies with $1 billion or more in annual sales, experienced a 64 percent spike in e-commerce compared to a typical Monday, according to Adobe Analytics.
To take it to the next level, this summer the company specifically focused on improving the Amazon retail experience for shoppers by leveraging first-party data. The better the online shopping experience, the greater the opportunity for sales and customer acquisition. And this train of thought proved highly successful.
The most important lesson from Amazon Prime Day: First-party data is your best friend
The trend of using first-party data to individualize the shopping experience has rippled through the online shopping world. Online retailers of all sizes can learn a lot from the incredible successes achieved by Amazon Prime Day. For example:
- First-party data is important to improve the online retail experience, particularly during the months where consumers’ shopping behavior takes a dip. Tens of millions of new Prime users were gained in just two days during the promotion, surpassing 100 million people and further diversifying Amazon’s database.
- Using machine learning technology, Amazon was able to turn first-party data into relevant search suggestions for shoppers, thereby creating a unique e-commerce experience for each person.
- Amazon capitalizes on its intricate database of customer data by offering it for free to official brand owners on the website. As a result, Amazon’s success has had a butterfly effect on the businesses that operate on their platform.
- Amazon’s first-party data enables businesses to create targeted advertising campaigns that increase brand recognition and encourage shoppers to buy on the Amazon platform.
Overall, Amazon benefits from the additional traffic and sales, even though the products purchased may not be specifically Amazon’s own products. This symbiotic relationship has led to 2 billion dollars generated in sales within a single day.
What the success of Amazon Prime Day means for the future of e-commerce
The introduction of Amazon Prime Day has had a huge impact on Amazon, its partners, as well as other e-commerce companies. This rippling effect should be taken into consideration when looking at the market moving forward. The platform allows customers to compare prices and find the best deals online, whether that includes Amazon’s products or not, and has created an incremental shopping demand.
Online shopping behavior has been heavily influenced by Amazon’s platform and search functionality. Knowing this allows for other direct-to-consumer and online companies to create their own events and individualized shopping experiences around the same time as Amazon Prime Day in order to maximize sales during this period.
This uptick in e-commerce revenue will undoubtedly change many companies’ summer marketing strategies. If done right, as Amazon proved, there’s potential to make summer sales as successful as Black Friday or Cyber Monday.
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