For cross-border merchants, Amazon Prime Day has long been one of the most important shopping events of the year. Amazon Prime Day 2019 sales hit a record $7.16 billion, compared with $4.19 billion in 2018 revenue and just behind $7.4 billion online sales of Black Friday 2019.
This year, sellers are forced to rearrange their Amazon Prime Day selling strategy. As the COVID-19 pandemic continues to complicate and devastate the global economy, Amazon moves Prime Day events from the traditional timeframe in July to early October. In addition, we have seen a drastic change in consumer buying behavior, with shopping demand for a range of products serving home and living increased sharply, while tourism and entertainment related goods recorded a sharp decline in sales.
As Amazon Prime Day 2020 is drawing closer, now is the right time to take the necessary preparatory steps for your Amazon store. Below, we'll cover the factors that make 2020 Amazon Prime Day shopping really different, especially how you should manage your inventory and how to market your online store to maximize sales.
1. New Inventory Management Rules on Amazon Seller Central
There are three fundamental changes in Amazon Seller Central pertaining to this year's Prime Day event:
Minimum IPI (Inventory Performance Index) Threshold: Amazon changed their IPI minimum threshold requirement to 500 points, which is critical to ensure that products are in your Amazon stores are not in redundancy or shortages. In addition, you should always maintain a reasonable amount of products sold to your customers, as well as the amount of inventory currently stuck in stock. This can be a big challenge, especially if you don't have good control of the shipping process.
Number of products limits: Regardless of whether your IPI score is higher or lower than 500, you are subject to the ASIN count limit. This will be identified for each ASIN separately, based on its previous sales rate performance.
Free stock removal program: To help sellers remove stuck or obsolete inventory and improve their IPI scores, Amazon has started offering a free drop-off service. fees.
2. How will this affect your preparation for Amazon Prime Day?
The Seller Fulfilled Prime program is a great way to deal with Amazon's new inventory management regulations. This program is great for high performing accounts that meet the following conditions:
- Product delivery rate is 99%.
- The product cancellation rate is 0.5% lower.
- A valid follow-up rate is 99%.
Additionally, Jelena Nuhanovic, from Amazonia PPC, shared his experience on how to scientifically and properly plan and prepare your stockpiles for Prime Day:
“Amazon's new rule is clearly aimed at reducing their inventory. So there are a few steps you should take while preparing for your Amazon Prime Day campaign:
Negotiate with your suppliers: If you can, negotiate with your suppliers for a better price in case you order more product to ship to Amazon's warehouse. You can use your savings to maintain some of your inventory with a third-party service provider.
Set aside a budget to proactively cover air freight shipments: Air freight is the best and fastest way to get your small inventory to warehouses. Amazon in case you sell out faster than expected. This will help you avoid the expensive charges for air shipments during the peak season without a specific plan in advance. It also helps you avoid a prolonged inventory shortage. ”
3. Effectively market your online store for Amazon Prime Day 2020
This year's Amazon Prime Day will be very special, in that it is likely to take place only a few weeks before the start of the biggest shopping events of the year like BlackFriday or Cyber ââMonday. Here are some tips that can help you effectively market your online store so that it really stands out at this Prime Day event:
Product Listing Catalog Optimization on Amazon
Product Listing Catalog optimization is a dual process that involves:
- Natural ranking optimization (for the A9 algorithm).
- Optimize conversion rates by creating good ad content that engages and resonates with your customers.
Discounts & coupons implementation
Every customer is looking forward to receiving many special offers and discounts on Prime Day. Take advantage of this opportunity to your advantage by implementing special discount policies for your products to create a strong impression on customers about your brand and attract more customers. intimate goods.
Advertise on a website that promotes discounts and works with influencers in a very small group: There are many websites dedicated to promoting discount promotions prices of e-commerce businesses. If you're going to be running deals, sites like these can help drive traffic to your store and boost your organic rankings (Amazon's algorithm really appreciates this). In addition, partnering with a micro-influencer is also a great way to drive traffic and improve conversion rates on your online store.
Consider additional ad types: Amazon now offers a variety of ad campaign types, including sponsored product ads, sponsored brand ads, and display ads. sponsor. One of the most recent ad formats that really helps you get the attention of your customers online is video ads. Using this ad format will help you generate a high clickthrough rate. Also, the product targeting approach to sponsored display ads (in beta) currently has a lower cost-per-click than usual.
Research specific Prime ad campaigns: You can drive more traffic by targeting “prime” related keywords in your Amazon advertising campaigns, including “ prime day deals ”and“ lighting deals of the day ”, or product-specific phrases, such as“ prime day tv deals ”.
Use Amazon Posts: Amazon Posts is an effective tool for building brand awareness. This feature was recently introduced in the Amazon Ads Dashboard, allowing advertisers to write short formatted content that is intended to increase user engagement and make their products stand out. on Amazon. This content is free and very easy to do. Amazon has recently allowed posts to run (similar to the boosted posts feature on Facebook), so we'll be excited to see how this feature will evolve in the near future.
In the context of the COVID-19 pandemic still having a very negative impact on all areas of our daily life, the preparations for the Amazon Prime Day 2020 sales campaign will never be easy against sellers. It's important to have control of your business in areas where you can. The change in consumer behavior can provide great opportunities for cross-border sellers, an important factor you'll need to keep in mind while preparing for this year's Amazon Prime Day.