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TRANSCRIPT
Prime Day 2018 Recap
Agenda
2 Is Prime Day worth doing?
3 What lessons can we learn?
1 Prime Day recap
Despite a “ruff” start …
• Bigger than Cyber Monday, Black Friday, Prime Day 2017
• Promoted more than 1 million deals globally
• Sold more than 100 million products worldwide
• Started earlier (7/3 deals); lasted longer—36 hours
• Added more countries: Australia, Luxembourg, Singapore & the Netherlands
• Featured Prime Day Launches of exclusive new items, content & special-edition products
100 millionProducts sold worldwide
36 hoursup from 30 hrs in 2017
“Biggest global shopping event in Amazon’s history”
17 countries+4 versus last year
Omnichannel event with growing grocery focus
And some aggressive own label support
Prime Day impact beyond Amazon
“Hot offers drove the highest single day of traffic and sales of 2018 on Target.com as savings kicked off early Tuesday morning, with day-long deals on a broad assortment of Target-exclusive brands and top national brands.”—Target press release
July 18, 2018
Our approach
Sales and ShareU.S. — 8 categoriesU.K. — 6 categories
Proprietary sales estimation algorithm enables analysis of millions of products
Deep-dive pricing & promotions analysis
of 1,600+ promoted products
Sales data in % terms for publicly consumed research
Is Prime Day worth doing?
Prime Day Sneak Peak week
How do you feel about 3-4X sales lift?
Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628
Prime Day 2018, sales change (%) vs average daily sales of promoted products
Rising tide differs by category
Prime Day 2018 sales lift vs average daily sales of previous week
Source: Profitero2018 Prime Day sales indexed vs daily sales of previous week
Clear winner
U.S. could take cues from U.K.
Huge deals on Amazon brands drive electronics
“Amazon Cloud Cam was the best-selling security camera deal in Amazon history”
> “… biggest event ever for Echo devices with screens, Echo Show and Echo Spot”
>“Best-sellers worldwide were the Fire TV Stick with Alexa Voice Remote and Echo Dot
>
$100 off deal started July 3 — predating actual “Prime Day”
Source: Profitero2018 Prime Day sales lift vs daily sales of previous week
Prime Day 2018 sales lift — selected Amazon devices
Prime Day can boost ‘smaller’ categories & brands
Little known BWS brand shot up best-seller ranks on Prime Day
16% off
Sales change vs average sales of the period
Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628
Bigger deals usually mean bigger lift
No need to break the bank—or margins—to play
Big deals can have huge payday
Prime Day 2018, sales lift by discount bucket
But, even 20% off Lightning Deal pays off
+2,445% sales lift
Lightning Deal: 20% off20% off deal …
Evidence of halo effect is mixed
Prime Day 2018, sales change (%) vs average daily sales of promoted products
Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628
48% of promoted products on Prime Day experienced higher sales the week after vs the previous week
Products can earn their badge on Prime Day
Products can earn their badge on Prime Day
Essential to focus on the fundamentals
Assortment & Availability
Pricing & Profitability
Search
CategoryPlacement
Ratings & Reviews Product Content
1.Availability
2.Traffic
3.Conversion
1P/3P Sales Analytics
Inventory planning is crucial
Lessons learned from Prime Day 2018
Prime Day is getting
more important…
and competitive
Participation alone
may not be enough
—focus on
fundamentals
Exposure can
boost category &
brand growth
Bigger deals mean
more lift
… But no need to
break the bank
to get benefit
Apply lessons
to other
seasonal events
But you don’t need
to play to win
Promo events can
be great way to
earn badges
Questions? Contact us
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Prime Day 2018 Recap