According to Amazon, Prime Day 2023 was the biggest shopping event ever for marketplace sellers, with the marketplace outpacing even Amazon’s own retail business. US sales were 6.1% higher than in 2022 and total US spending reached $12.7 billion — another new record.
Worldwide, customers bought over 375 million items during the two-day event, and the first day was the single biggest sales day in Amazon’s history.
This is great news for Amazon, but what about sellers?
The truth is, it’s harder than ever to stand out on Amazon. Costs are higher, keeping up with rules is harder, and multiple big sale days vie for customers’ attention.
In this article, we’ll uncover the latest trends and predictions for Amazon Prime Day 2024 and what they could mean for your business. We’ll also explore why it could still be worth investing in Prime Day and how to strategize for maximum payoff.
The Latest on Amazon Prime Day
You already know the score on Amazon Prime Day.
Once — or is it twice? Or three times?— a year, Amazon hosts a huge 48-hour flash sale for its Prime subscription holders. During the two-day event, thousands of sellers flood the marketplace with Amazon deals and discounts to drive shoppers to their stores.
While the exact date hasn’t been announced yet, Amazon has confirmed that Prime Day 2024 is on for July. Along with many other sources, we predict it will take place from July 9-10.
The deadline to submit your Prime Day Deals was May 3, 2024, but if you don’t have any deals set up, there are still other ways to win on Prime Day. Whether you have deals or not, all Prime Day inventory must arrive at Amazon warehouses by June 20.
Is Prime Day Still Worth It for Sellers?
Every year, sellers anxiously await Amazon’s Prime Day announcement. But with inflation concerns and consumer buying shifts, there continues to be some well-warranted chatter around Prime Day’s real return on investment.
Prime Day Data
- The costs of participating in Prime Day continue to rise: According to Ad Badger, average per-click rates for Amazon advertisers are still trending upward. Add that to a laundry list of fee increases, plus downward pricing pressure due to an influx of new sellers, and your Prime Day ROI could take a serious hit compared to previous years.
- Year-over-year growth is leveling off or even shrinking, with just over 6% growth from 2022 to 2023, compared with 8.1% from 2021 to 2022 and 7.1% from 2020 to 2021. The last time Prime Day sales grew by double digits was from 2019 to 2020.
- “Small businesses” won bigger in 2023, but Amazon has a pretty generous definition of “small.” Little-known underdogs (😏) like TUSHY, True Classic, and Caraway increased their average daily sales by 18x or more on day one of Prime Day 2023.
In 2024, some sellers have decided to forgo Prime Day altogether. Others are opting to compete through alternative strategies that take advantage of the Prime Day “halo effect”, such as hosting their own promotions and special offers.
Ultimately, your success with Amazon Prime Day depends on your ability to adapt and respond to the current market. If you can keep your best-sellers in stock, invest in inventory and marketing early, and summon the creative willpower to stand out among the larger players, Prime Day could still bring you a massive payday.
3 Key Amazon Prime Day Predictions
To get your store ready to crush it on Prime Day, zoom in on the top predictions and data insights. You’ll also want to bookmark this Amazon’s Prime Day prep page, which includes
PDF guides and an on-demand webinar to set you up for Prime Day success.
Let’s take a closer look at some of the key trends that could impact your Prime Day results this year.
1. It’s Still All About Tech
Each year, technology devices claim the top spot for deals and shopper interest, especially Amazon devices like Echo and Fire products. Other consumer electronics and gadgets like OLED TVs, Apple iPads, AirPods Pro, Dyson stick vacs, and robot vacuums also do well.
In 2024, consumers are projected to spend $922.5 billion globally on electronics. That’s over $160 billion more than they’ll spend on the next highest category, fashion.
That isn’t to say you can’t profit in other categories. Health and beauty took the lead after electronics on Prime Day 2023, with 42% of Prime Day shoppers making a purchase in this category. It even beat out last year’s popular Household Essentials category, suggesting consumers are investing more in going out (or at least going live) than staying in.
The Prime Day Play: Leverage Your Best-Selling Categories
Regardless of your category, one of the best ways to win on Prime Day is to make sure you’re stocked and ready to sell your top movers.
- Review past sales data to forecast the right amount of inventory and aim to replenish early.
- If you’ve had success with product bundles in the past, plan to run special promos to increase your Average Order Value (AOV).
- Keep an eye on growing product categories, like beauty and personal care, and see if your brand aligns with any niche. Prime Day 2024 could be a prime time to launch a new product or put more resources behind an old standby.
2. The Best Prime Day Deals Will Be ON Amazon
In past years, e-commerce sellers could easily use Prime Day to drive Shopify and other off-Amazon traffic — especially as on-Amazon Prime Day exclusive deals got more disappointing over the years.
But in 2023, something interesting happened: Average order value on Amazon itself decreased, even as total sales on the platform went up. This suggests that more customers than ever were shopping on Amazon, but distributing their Prime Day purchases across various stores, like Target, Walmart, and Best Buy, to get the lowest prices.
In 2024, despite Amazon Prime members threatening to cancel in droves (mainly over changes to Prime Video), actual data shows Amazon prime membership is sky high and growing. Couple that with the fact that Amazon is doing the most to recruit and retain more members, and it’s safe to assume that sellers can expect an even bigger audience on the marketplace.
The Prime Day Play: Stress Cost-Savings
The bottom line is, customers will go wherever prices are the lowest. But they’re also making it clear that, given the choice, they’d rather shop on Amazon — if they can afford it. With the rise in Prime subscriptions, it could be a good time to re-focus on offering the best savings on Amazon to capture more new shoppers as it works to regain its reputation as the best place to get great deals.
- To retain new Prime Member traffic, offer the best savings you can on Amazon itself by using promotions and competitive pricing tools to appeal to sale-savvy customers.
- Help your followers save money (and win sales) by letting them know they don’t need to pay for Prime to take advantage of your Prime Day deals. Use your onsite content, social media, and email campaigns to encourage customers to sign up for a free 30-day trial, even if they won’t stick around after the big event.
- Remind your audience that, if they’re students or receive government assistance, they could be eligible for special discounts and other perks on Prime.
3. Another Prime Early Access Sale Seems Unlikely
In October 2022, Amazon offered an additional two-day sale, dubbed the Prime Early Access sale. The move may have been a tactical play to help Amazon combat its ongoing inventory glut or to capitalize on the trend of early holiday shopping.
Last year, we predicted another October sale in 2023, and we were right: Amazon introduced Prime Big Deal Days. But in 2024, with inventory levels back to normal, most US brands don’t need extra opportunities to offload excess stock.
Plus, after modest Big Spring Sale results, adding a third sale to the mix could mean lukewarm results. That said, some analysts think a broader, multi-sale strategy might be here to stay.
The Prime Day Play: Keep Your Plans Flexible and Your Eyes Open for Other Sales
While the Amazon Prime Big Deal Days wasn’t as successful as the real Prime Day, customers still spent an average of over $124 per household. Not only that, 72% of Prime Big Deal Days shoppers said they shop at both sales events.
If another sale does happen, it pays to be prepared with the right inventory and promotions.
- Budget for a potential extra sale in October, so you can stock up inventory and amp up ad spend if that fall sale happens.
- If you missed out on any 2024 Prime Day deadlines, consider trying a Lightning Sale or other discount deal if there’s another Prime Early Access event. Then analyze your sales and use the data to fine-tune your Black Friday promotions.
A Winning Game-Plan for Your Next Shopping Event
Whether it’s Prime Day or Black Friday, increasing your sales on Amazon is all about formulating the right plan, then sticking with it.
With a clear view of what to expect and a strategy for making the most of it, Prime Day 2024 can deliver a strong uptick in sales — especially, if you have the cash on-hand to ramp up your inventory and advertising.
At SellersFi, we’re committed to helping e-commerce entrepreneurs achieve their goals no matter how big or small. To learn more, check out our full suite of funding solutions specifically designed for Amazon sellers.
