Amazon Prime Day 2022 is officially over and the world’s largest online marketplace rolled out its satisfactory statement in which they proudly declare that “Prime Day 2022 was the Biggest Prime Day Event Ever”.
What is Prime Day?
Amazon Prime Day 2002 is a 2-days shopping marathon exclusively reserved for Amazon customers who have the Prime membership. This year it took place con July 12th and 13th.
Prime Day 2022 results
Despite the presence of some perplexities by JP Morgan analysts Doug Anmuth and Bryan Smilek tied to the risk for such an event to bring in less customers and revenue due to the current enthusiasm-killer macroeconomic context, all doubts were erased since day one of the annual shopping marathon when the Adobe Digital Economy Index, indicated how the first day of Prime Day 2022 saw total online sales in the U.S. surpass $6.0 billion, making it the biggest day for online spending so far this year. By comparison, American consumers spent $5.1 billion for last year’s Thanksgiving Day and $10.7 billion on Cyber Monday.
Hence, it goes without saying that day two had all the credentials to become an epic milestone and did not disappoint the expectations registering $5.9 billion in sales for a total of $11.9 billion in revenue in the United States. The best result ever in the eight-year long history of Amazon Prime Day. According to the company, during Amazon Prime Day 2022, more than 300 million items were sold worldwide causing Prime members to save more than $1.7 billion, more than any other Prime Day event.
Among the most interesting shopping trends disclosed there certainly is the fact that during the Prime Day 2022 shopping marathon, US customers purchased more than 60.000 items per minute.
Top Purchased Categories
As always, the tech giant releases a limited amount of concrete data regarding its performances so we precise information regarding overall sales numbers aren’t available, but luckily there are alternative sources of information.
The final update of the Amazon Prime Day tracker by Numerator (based on a survey of Prime Day purchases from 21,306 households) reveals shifts in customers preferences. Household Essentials are in fact the top purchased category for 2022 while Health and Beauty was the top category of choice for 2021.
Despite Toys and Apparel registering the strongest discount levels (15% for the former and 12% for the latter), both have lost a position in comparison to the 2019 results.
The Average Order Value was $52.26, $7.51 more than 2021.
Among the bestseller items we find Apple devices like AirPods and apple watch series 7, Crest teeth whitening strips, Oral B tooth brushes, Levi’s apparel and accessories, Beats by Dre earphones and earbuds and LEGO sets. Amazon’s own devices including Echo speakers, smart plugs, Fire TV and Blink outdoor camera devices registered record sales as well being
The secret of this success
An overwhelming number of attractive discounts were presented in various forms such as Prime deals, coupons, lightning deals. In addition to this, an extremely well oiled marketing machine did the rest of the magic: first it intensely hyped customers preparing them for the big day, then it helped them find their way through the dense sea of offers.
Doug Herrington, CEO of Amazon Worldwide Stores said “Prime Day 2022 is a celebration of our Prime members, who look forward to this event every year, and we’re thrilled to have delivered incredible savings to them once again”. However it should be clear how the intense marketing campaigns weren’t just a way to raise awareness, FOMO and anticipation in Prime Members in order to increase sales, but a way to increase membership subscriptions as well.
Incredible success despite difficult times and technical issues
The two days of shopping arrived within a slow-down context for online sales, but Amazon’s reaction strategy kept the company from suffering significative drawbacks.
In fact, record-high inflation has most definitely played a role during 2022 Prime Day and had the effect of keeping customers from spending or to be more frugal to the least. The scenario in which Amazon Prime Day 2022 took place sees inflation rates hit unprecedented levels (in June US inflation hit 9.1% while in the eurozone’s 19 countries it reached 8.6%).
Secondly, now that the pandemic has been easing off and many reopening have taken place, consumers all around the world feel more comfortable leaving their homes. Even if online shopping has become irreversibly more prominent, the in-store experience competes significantly.
This year’s strategy was, therefore, to set the dates mid July (instead of last year’s June 21st and 22nd) in order to get the back to school audience in need for school supplies and in school-shopping mode to participate …and eventually grab a thing or two on their way to checkout!
Despite genius proactivity, the company had to also deal with technical difficulties that caused offers to show up late, or with missing discount details. Also, the extraordinarily high number of discounted insertions and the absence of an algorithm-induced criteria to display them led to an astonishing 10% cart abandonment.
However, despite the fact that many issues could have been avoided, it has been a winning event for all parties involved.
Supply chain challenges
While one may think that unprecedented sales volumes lead to unprecedented – read threatening – pressure on warehousing as well as on picking, packing, shipping and customer service, this is not the case.
2022 sees Amazon in the condition to impeccably handle piques of sales (even ginormous ones like the one brought by Amazon Prime Day 2022). In fact, over the past 2 years, Amazon has doubled its fulfillment & distribution network and almost doubled its workforce. The tremendous amount of warehouse space and human resources will certainly come in handy for this spike (and for the upcoming holiday shopping season), but definitely exceeds the needs of an average day. For this reason Amazon has announced that the company will be poring less money into warehousing, logistic operations and transportation for the rest of the year.
However, this will be the perfect training in terms of operations optimisation if we consider that 62% of households shopping Prime Day placed two or more separate orders. Clever strategies are calling to be applied in order not to choke last mile delivery.
Prime day 2.0 is coming!
Is that all, folks? The answer is Nope!
Other Prime days are expected this year.
In fact the July event went live in Austria, Australia, Belgium, Brazil, Canada, China, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Portugal, Singapore, Spain, the UK, the U.S., and for the first time ever in Poland and Sweden.
Later this summer, Prime Day deals events will be held in also in India, Saudi Arabia, the United Arab Emirates, as well as in Egypt for the first time.
Also, Amazon will give life to “Amazon Prime Day 2022 2.0” in the fall and sellers have been already submitting their deals
In fact, not only Amazon is accepting submissions for the aforementioned appointment, but is also collecting deals for Black Friday and Cyber Monday from its sellers. On its Deals page it is indicated that sellers have until “July 22nd, 2022 (11:59 p.m. PDT) to submit recommended Lightning Deals for Prime Fall Deal Event Week“.
Clearly, many are already wondering if this initiative isn’t a little too much and if it’s the right aid to the low growth in online sales that affected all eCom Businesses during the first half of 2022.
Third party sellers – FBA
Third party sellers reportedly gained great benefit from the 2-days parade of epic deals.
According to Amazon’s official communication this year was the biggest Prime Day event for the small and medium-sized companies that sell on Amazon’s marketplace through the FBA (fulfilled by amazon) program. According to Amazon’s data, customers spent over $3 billion on over 100 million items, causing them to grow even more than Amazon’s retail business.
When we talk about third party sellers we intend FBA sellers because pure FBM sellers are not considered eligible for the prime badge… for now.
In fact the tech giant has recently committed to the European Union Antitrust Authority to change this state of things
and to allow sellers to obtain the Prime badge despite using a logistics company and delivery service not directly connected to Amazon as well as giving equal treatment to all sellers in terms of product ranking. (This is another story we will definitely keep you posted on)
Third party sellers – FBM
However advertising has been so consistent and traffic levels on the marketplace were so high that also 100% FBM (fulfilled by merchant) merchants benefited from it and registered a heightened number of sales. Amazon sellers forum presents several testimonies of FBM merchants who narrate their latest experience with Prime Day as the best days of the year for their business despite not preparing for Prime Day or even forgetting about it.
Also, FBM has often been included in the seller’s strategy in various ways with the objective of containing the effects of Amazon’s storage limits.
Preparing for the next Prime Day with Borderl3ss
The undisputed opportunity which Prime Day represents, calls for third party sellers to arrive prepared. Preparation isn’t only a matter of submitting succulent offers, but mostly gaining the ability to promptly restock their assigned FBA warehouse as soon as space frees up. To do this, a support warehouse is needed and this is one way Borderl3ss can make the difference. An external warehouse will not only allow you to sell as much as you can during these special events, but will always put you in the condition of adapting to the ever changing storage rules and limitations that characterize Amazon, keeping it from negatively affecting your sales.
Moreover, you can directly sell through FBM items that you decided to exclude from the FBA program (for example because they don’t sell as fast).
Boprderl3ss can therefore help you protect your Amazon rankings and sales volumes by preventing you from running out of stock. Book a call today with our team to lear more about how we help Amazon merchants and Brand owners to scale their businesses in and across Europe.