Amazon Prime Day 2019

By Jeff Malmad, Executive Director, Shop+ Lead, Mindshare USA

Amazon’s Prime Day is becoming an eponym—a name that begins to function as a generic description of a concept. We saw that on full display Monday and Tuesday, where countless retail sites offered 48 hours of deals in response to Prime Day. From Target to Walmart to Dollar General to Kroger and many more, almost everyone had offers during what should have been Amazon’s sole 48-hour period.

Background:
Amazon Prime Day expanded its sale window from 36 hours in 2018, to 48 hours in 2019 across 18 countries. According to Amazon, this year’s Prime Day surpassed sales of Black Friday and Cyber Monday combined. Amazon also had their largest sign-up of Prime Members on July 15, and almost broke that record on July 16. And in April, Amazon shared that there are over 100 million Prime subscribers worldwide.

Prime Day has its roots in Alibaba’s Singles Day, and historically dwarfed the ecommerce sales that occur on Alibaba. For comparison, Singles Day delivered over $30 billion in sales in a 24-hour period in 2018, and it is projected Amazon will have delivered $5.8 billion in sales in a 48-hour period. Amazon Prime Day is only available to Prime members who spend $119 a year, but other competitor retail sites just offered specific deals with no subscription fee to become part of the cultural moment.

Details and Implications:  
Though Amazon is the leader of ecommerce in the U.S., all retailers benefited from the Prime Day halo. According to Adobe Analytics, large retailers saw a 68% sales increase over the 48 hours on Monday and Tuesday.

The implications of Prime Day have yearlong effects. From a brand standpoint, regardless of category, online retail destinations continue to grow in importance in the omni-channel shopper experience. Brands should focus retail media on a sustain-and-scale approach. For example, sustain a consistent presence on ecommerce destinations, through search, display, and social. Then scale spend during key seasonality and events through sponsorships and share of voice ownership.

Ecommerce is nothing new, but the way retailers are leveraging their platforms for brands is always evolving. This requires brands to understand the retailer’s capabilities in the pre-shop, shop, and post shop experience, and how data and media can intercept and convert consumers on that journey. The growth of ecomm and events like Prime Day have also showcased the importance of being retail ready through a simplified and easy to understand consumer friendly product page.

Summary:

According to Amazon, out of the 175 million items purchased this year, millions of those items were Alexa-enabled, allowing for consumers to more easily engage and buy from Amazon day in and day out. This will continue to fuel the importance of enabling your digital assets to allow ease of purchase across all retail and direct-to-consumer platforms. That said, given how prevalent Prime Day has become across other retailers, in several years, we’ll look back and remind the next generation that Prime Day was a day that Amazon created, not a general internet sales holiday.

Further Reading:
CNBC | Business Insider | Forbes