Amazon Prime Day is a big deal for buyers and sellers alike. Since its debut in 2015, Prime Day has given Black Friday a run for its money by offering online shoppers massive deals and discounts. This event is a golden opportunity for Amazon sellers to earn substantial profits.
Amazon just announced that Prime Day 2017 will be on July 11th this year. Last year’s Prime Day was huge – over 34 million items were ordered, that’s almost 24,000 items per minute. And this year is expected to be even bigger, with a couple of changes. Instead of only 24 hours, Prime Day 2017 will run for 30 hours. Additionally, if rumors can be believed, there may also be special Prime deals for the entire week.
You need to maximize Amazon sales during this special event, but how do you do that? We have seven great Amazon Prime Day tips to get the most out of this occasion.
#1 – Have Prime-Eligible Products
To take advantage of Prime Day, your products must be eligible for Prime. There are a couple of ways to do this. First, you can use Fulfillment By Amazon (FBA) – that’s the most common way to engage Prime customers.
If you plan to fulfill orders yourself, but still want to participate in Prime benefits, you can do that – with some strict seller performance requirements. The Seller-Fulfilled Prime (SFP) program lets sellers list products with the Prime badge as long as the following demands are met:
- Provide one-day and two-day shipping, and use the Amazon Buy Shipping API
- Have a cancellation rate under 1%
- Use Buy Shipping Services for 95% of Prime trial orders
- Ship on-time, 99% of the time
You may not be able to complete the tough trial period for the SFP program before this year’s Prime Day, but you will be ready for the holiday season.
#2 – Get a Lightning Deal Invite
To participate in Lightning Deals, a seller must be picked by Amazon. There isn’t a way for sellers to apply for it. If you are chosen, Amazon will send an email with an invitation. There are some things that can improve your chances of being hand-picked. Amazon typically selects retailers who meet the following criteria:
- A product in a high-demand category, like electronics, with at least 3-star ratings.
- An exciting deal that is only available to Prime members.
- At least $5,000 worth of stock, so plan ahead.
#3 – Run Your Own Promotion
While the first two tips on the list may be outside of your immediate control, there are still ways to take advantage of Prime Day. You can run your own Prime Day deal by setting up a promotion on Seller Central. Offering discounts on products is a great way to incentivize customers to buy more.
#4 – Remember Non-Prime Shoppers
Yes, it’s Prime Day. Your priority should be attracting Prime members, but non-Prime customers will be shopping too. It’s really an opportunity to reach all types of buyers. Offering deals like free shipping on non-Prime products is a great way to increase your chances of winning the Buy Box and encourage non-Prime shoppers to buy.
#5 – Reduce Your Prices
Prime Day is famous for the sheer amount of sales that are made. In the previous years, sellers have had anywhere from double to 40 times their regular daily sales on Prime Day.
One easy way to take advantage of all the potential sales is to lower prices to make them extra competitive. If you decide to do this, make sure there is enough stock-on-hand to avoid overselling.
#6 – Streamline Operations
Prime Day is going to be a busy day, don’t underestimate what that means for your operations. Last year, Amazon received 18% more orders on Prime Day than it did on Black Friday. How is that for busy? You must be prepared logistically for the additional demand.
If you are in the SFP program and have to meet Amazon’s requirements, make sure you’ve thought of the following:
- Do you have enough shipping materials available?
- Do you have enough man-power to handle fulfilling the extra orders on time?
- Remember that shipping errors will damage your seller metrics, so be sure you are ready.
#7 – Don’t Run Out of Inventory
You must have enough inventory for Prime Day. If there are a ton of orders and no stock to fill them, you could risk suspension. Focus on your best-selling products that are well-stocked. While Prime Day may be a good day to get rid of slow-moving merchandise, it may spell disaster if you aren’t paying close attention to stock levels. Use an inventory management system that automatically syncs your stock levels as sales are made.
If you participated in previous Prime Days, look at the sales data to help forecast this year’s inventory requirements. Don’t forget that the event will be 30 hours rather than 24, that’s 25% more time to sell.
Make Amazon Prime Day Profitable
No matter how you sell on Amazon – FBA, FBM, or SFP – you have the potential to make great money on Prime Day. Don’t let the opportunity pass you by. Use these tips to plan ahead, be prepared and sell, sell, sell.