Amazon Prime Day 2021: Everything you need to know to prepare for the retail event of the year



10 June, 2021

Amazon Prime Day 2021 is a global event that will be held on June 21st and 22nd. According to statements by the company itself, a total of sales of between 3,000 and 6,000 million euros are expected to be generated on these dates.

Next, we will review which tools you have at your disposal in order to take advantage of this event and increase both the sales and visibility of your business in the Amazon ecosystem during Amazon Prime Day 2021.

What is Amazon Prime Day 2021?

Amazon Prime Day 2021 is a global event where exclusive discounts will be given on all Amazon websites for the more than 150 million Prime Customers worldwide.

Its operation on the customer level is very simple: it’s enough to be subscribed to the Amazon Prime program to be able to access the offers programmed by both Sellers and Vendors for these dates. Also, along with the subscription, users get access to other benefits such as products without shipping costs, monthly sales subscriptions, Prime Video, etc.

When is Prime Day 2021?

Prime Day 2021 will take place on June 21st and 22nd, 2021.

After playing hide and seek in all formative presentations, where we could see August 30 as a non-real date, Amazon has already officially confirmed the real dates.

What we saw on Prime Day 2020

Prime Day 2020 was completely unusual. The global socio-economic situation was completely affected by the pandemic, so user behavior (in terms of purchases in digital environments) changed dramatically. This caused the postponing of the usual Prime Day dates (which are always around June or July) to October 13th and 14th of the same year.

However, this generalized situation benefited Amazon, which reached a turnover of 3,500 million dollars in the 19 countries where the event was held. That is, an increase of 660% compared to the 2019 period.

What we can expect from Prime Day 2021

According to statements by Amazon during Prime Day 2021, a total of sales of between 3,000 and 6,000 million euros are expected to be generated during these two days.

To achieve this milestone, it is speculated that all Amazon home automation products such as Echo Dot or Alexa, will have discounts of up to 50% during this celebration.

In addition to the official offers on Amazon products, both Seller and Vendor have had access during the last two months to the programming of Prime Offers campaigns, which being very similar to Flash offers, will automatically put their products at a minimum discount of 15%.

Obviously, the strong discounts will come hand in hand with a sharp increase in Average Cost per Click (CPC) to promote these highly competitive products given the strong discounts.

Alternative offers for sellers on Amazon on Prime Day 2021

Whether you are a Seller or Vendor, you have several tools at your disposal in order to increase your visibility within the Amazon Ecosystem. Let’s review what you can do to sell more on Amazon Prime Day 2021:

  • Discount coupons on Amazon

As you may already know, Amazon Coupons is a program by which Amazon sellers can program discounts in both % and € on the RRPs of their products.

One of its advantages is that they have no cost for the seller beyond assuming the discount itself, and the products increase their visibility both when entering the special Amazon Coupons page, and because of the banner that Amazon has on the main image of the products offered.

Another advantage of this promotion method is that, since it requires the customer to check the coupon application box, this action is not given in many cases, so the seller ends up selling the product at the usual retail price.

  • General Offers and 2×1

If your products are new and do not meet the basic requirements to enter the Official Prime Day Offers, or your margins do not allow you to reach that minimum 15% discount, do not worry: there is a solution.

In Amazon Seller Central and Amazon Vendor Central, you can program all kinds of personalized offers without having to reach that 15%. From Ads / Promotions Management, you will have access to this type of discounts and the 2×1 from Amazon.

Advertising your Prime Offers on Amazon

While it is true that programming offers is very good, they will be of little use if they do not reach your target audience. You should bear in mind that in this period, a growth of more than 100% in the CPC of the main keywords is expected, and therefore, appearing in the best search results in this period will be at least somewhat more expensive than normal.

Knowing this, you must make a crucial decision before designing your strategy for Prime Day 2021: fight for the top positions of the main keywords (assuming the overspend of the CPC on these dates), or look for more long-tail words that although they are going to refer prices, they will always have cheaper bids.

Once you make this decision, take into account what budget you are going to allocate to this Prime Day campaign, and what is your main reference KPI. When we talk about KPI we talk about Key Performance Indicator, that is, which metric is the most important for you (whether it be impressions, orders, revenue or even ROAS).

Types of advertising on Amazon Prime Day 2021

In the Amazon Advertising platform, we can find three basic types of campaigns with which to advertise your products. Let’s see what they are and check out their main characteristics:

  • Sponsored Product:

Sponsored Products campaigns are the most used model within Amazon. With a segmentation capacity both by KW and by categories or products, they are presented as the basic infantry of your strategy.

With them, you will be able to appear both in direct results of the search bar and in related products within products identified with the KW or categories that you have selected as a segment.

According to Amazon data, the increase in visibility in products with this type of advertising campaign is 54% and 40% in orders.

These campaigns are ideal if your KPI’s are ROAS / ACOS, that is, pure and simple profitability.

  • Sponsored Brands

Sponsored Brands campaigns are accessible to Sellers and Vendors with registered brands. If you have not registered your brands on Amazon, you will not be able to access this type of advertising.

The basic advantage of this type of campaign is that you can advertise up to three products at the same time along with your brand logo, which if you want, you can redirect to your Amazon Store.

These campaigns allow the user to quickly identify your products with the brand, so they are ideal for strategies focused on branding.

In addition, since recently, we now in Spain have the ability to program Sponsored Brand Videos, with which you can show short videos of up to 45 seconds to advertise up to one product at a time, which places the target in the Bottom of the Funnel in a faster way (as long as you correctly develop the USP – Unique Selling Proposition of your product).

Sponsored Brands are the middle ground between campaigns with Brand objectives, such as impressions or new buyers, and more conservative options with the goal of achieving return on investment.

  • Sponsored Display

Sponsored Display campaigns are basically your usual banner ad, with the particularity that you can not only apply them on Amazon, but also outside of the platform (as long as you always do it from Amazon Advertising).

This type of campaign is more typical of a strategy where the KPI’s of importance are visibility and not so much profitability. Thanks to its audience segmentation, you can reach millions of users segmented by interest (e.g. “motor”) or life situations (e.g. “recently moved” or “parents with more than three children”).

Sponsored Display is a very interesting option to consider if your goal is to be seen on many different channels, but do not expect a profitability like what campaigns such as Sponsored Products can offer. In addition, Sponsored Display campaigns can be the campaigns with the highest CPCs.

Rocket Digital, your Amazon Partner

In the Retail division of Rocket Digital, we will be happy to help you in the development of your accounts for sale on Amazon, whether you are a Seller or Vendor.

We will draw up an action plan according to your needs and objectives, integrating it into your digital sales ecxosystem and observing even the smallest detail of the nature of your business to achieve your objectives in the fastest and most effective way.

Click here if you are ready to maximize your sales on Amazon!


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