Product

9 min

Prime Day 2020: Data, Trends and Key Takeaways for the Holiday Season.

By Gloria Abromeit on October 21, 2020

Prime Day 2020 did not bring the staggering results we saw in 2019.

Amazon stated publicly that Prime Day 2020 posted the two biggest sales days for small and medium businesses in Amazon stores worldwide, but did not mention further metrics that indicate the event was as successful as previous years.

We took a look at performance data from across our customer base to help inform your strategy through cyber week and the remainder of the holiday season.

Prime Day by the numbers: 2019 vs. 2020

Originally, Prime Day was designed to fuel sales during the "sluggish summer season" and was held in mid-July. For advertisers, it was often the force that propelled the flywheel, and set the baseline for the year to come.

This year, however, proximity to the holiday season paired with a late announcement and limited event promotions, did not present the same opportunities for advertisers.

As a result of the drastic shift in consumer behavior from stay-at-home orders earlier this year, we have seen a sustained increase in shopping traffic on Amazon - shoppers have been browsing and buying at higher levels for the last 6 months. As a result, the limited Prime Day deals that were available may not have been enough to entice shoppers to purchase more.

Overall Sales Increase 2019 vs. 2020

*Baseline made up of aggregate average sales previous 4 weekdays (Mondays & Tuesdays).

img-prime day-sales (1).png

Insights & Key Takeaways:

  • Day 1 was more successful than Day 2 in both years, meaning that the first day is when people are actually purchasing products.

  • Takeaway for next year: Ensure your best deals and focus are on Day 1 vs Day 2 to engage higher converting traffic.

  • Both days saw less of a sales increase in 2020 versus 2019. While sales did increase over the two deal days, the lift was not as not as strong this year.

  • Takeaway: Consumers may already have what they need from perusing online this year and are not quite shopping for Christmas gifts yet. We anticipate a slighter higher sales increase on the deal days in November (BFCM).

Average Order Value 2019 vs. 2020

*Baseline made up of aggregate average sales previous 4 weekdays (Mondays & Tuesdays).

img-prime day-aov.png

Insights & Key Takeaways:

  • Average Order Values (AOV) increased dramatically this year primarily in the Electronics and Health & Supplements categories.

  • The Health & Supplements category saw the highest AOV increase, typically realizing a $37 AOV, on both Prime Days it rose to $80. This is consistent with similar pandemic-related growth trends we've seen in this category, with an increased number of shoppers purchasing health-focused products.

  • Tip for upcoming deal days: Bundles are a great way to display various items in one ASIN and can increase your AOV + ROAS. We're encouraging our customers to consider creating bundles for Black Friday & Cyber Monday. Boost awareness of the ASINs in these bundles with higher funnel ad units like Sponsored Brands + Sponsored Brands Video.

Measuring the Impact of AI-Powered Strategies for Prime Day

Perpetua offered a Prime Day program in 2019 to increase budgets automatically in 3 stages:

  1. Ramp-up: 50% budget increase 2 days leading up to Prime Day

  2. During: 100% budget increase on the actual Prime Days

  3. Ramp-down: 50% budget decrease 2 days following Prime Day

This year, we allowed customers to engage with Perpetua's AI-powered ad engine and customize their Prime Day strategies with Perpetua Recommendations. Advertisers were able to define budget and target ACOS for their goals, depending on their strategy. This, paired with Perpetua's ability to bid more aggressively during higher traffic times, resulted in significantly higher conversions for those who participated than those who didn't.

img-prime day-conversions.png

Insights & Key Takeaways:

  • Companies who opted-in to Perpetua’s Prime Day program or implemented a custom strategy on their account saw higher overall conversions across both Prime Days compared to advertisers who did not.

  • Tip for the next Deal Days: leverage Perpetua's AI-powered, automated Prime Day strategies for Black Friday and Cyber Monday.

  • Increasing your budgets and bidding more aggressively can get your products to gain more impressions, clicks and conversions on the days where there are a much higher number of consumers shopping on Amazon and ready to press the Add-To-Cart button.

To get started with Perpetua, or if we can help support your Q4 advertising strategy in any way, let us know at hello@perpetua.io.