Has your brand been preparing for months for Amazon Prime Day by stocking up on inventory and examining marketing strategies to stand out against the competition? There is extra excitement around this day of the year due to the potential for an increase in traffic and revenue. Unfortunately, not many brands allocate enough inventory or advertising budget to withstand an entire day of consumer shopping.
Many brands begin ramping up product marketing and increasing inventory purchasing months before Amazon Prime Day is announced. This year, with the increased supply chain disruption, it may be difficult for a brand to ascertain which product to appropriately stock, and which to market. So what does this mean for you?
Ensuring you have a strong Prime Day strategy begins with expanding your budget for marketing. Mike Battista from Orca Pacific recommends budgeting for three times your typical amount and tightening your budget months in advance to prepare. Competitors will be doing the same, so to gain the advantage and the appeal of consumers, you will want a healthy budget to promote your products without the fear of disruption or depletion.
On Amazon Prime Day, there are many opportunities for a brand to take advantage of the increased traffic. Lightning deals are a popular strategy, but what about products that are not offered as part of the deal? Products that are not listed can still generate revenue for brands with the help of a different promotional tactic: coupons.
Coupons can be used as a merchandising vehicle to increase your revenue and remove inventory from your shelves. Jeni Doig from Orca Pacific says there is a great opportunity the week before and after Prime Day to take advantage of the increased traffic. Not only do coupons offer the seller more control over their products — with the ability to cancel at any time and to select a set amount of units to be sold — but they can also help you stretch out the sale of a product to avoid inventory constraints.
Increasing your budget for advertising before Amazon Prime Day can be detrimental if you’re not careful. Mike Battista cautions against overspending on your advertising and depleting your inventory too quickly. By doing this, you can diminish your relevancy and remaining inventory with nothing to show for Amazon Prime Day.
Mike says it’s important to balance profitability and driving traffic through advertising. How? He looks at the data to understand the best ways to allocate funds to target a specific audience and remain within a budget. He also uses other tools like coupons and promotional strategies to determine the right time and amount. This way you will have profitable campaigns and a strong inventory.
