A month has passed since Amazon’s Prime Day 2020 and brands are now busy focusing on preparations for Black Friday and a busy Christmas shopping period. However, understanding Prime Day’s results is guaranteed to help brands understand what to expect from the rest of Q4. For this reason, Molzi’s Head of ecommerce, Ricky Goodwin, has analysed both Amazon Prime Day in the UK this year as well as Molzi’s own results and written up these results for you to see below!
Prime Day 2020 was a highly anticipated event unlike any other. Due to the COVID pandemic, Prime Day was postponed from its usual month of July and moved to October. However, moving the 2-day event made predicting the sales results much more difficult. The extra health measures to ensure safety at Amazon’s fulfilment centres coupled with entire countries in lockdown and its proximity to other Q4 holidays resulted in major concerns over how successful Amazon Prime Day 2020 could be.
However, these concerns turned out to be unfounded as Prime Day 2020 performed remarkably well. Amazon announced that third-party sellers surpassed $3.5 billion in sales during this year’s Prime Day which was almost a 60% year-on-year increase. However, third-party sellers weren’t the only ones to succeed this year. In fact, Amazon confirmed to CNN Business that this Prime Day resulted in beating its own personal record since the annual event started in 2015. Although Amazon has yet to release exact results regarding Prime Day, eMarketer estimated that overall Prime Day sales made close to $10 billion in sales revenue ($9.91B).
Prime Day 2020 results in the UK
Curious as to the overall success of Prime Day 2020 in the UK, we decided to review the top 100 search terms typed into Amazon UK over Prime Day 2020. By placing them into overall broader categories, we could analyse their average conversion and click share to discover some interesting results about Prime Day 2020 in the UK.
As expected, the Electronics category made up over 30% of the top 100 most popular search terms over Prime Day. Our Prime Day 2020 insights survey predicted that this would be the most popular category, with 38% of UK respondents claiming that they were likely to buy technology products during the event this year. The data that Amazon has provided has evidenced this fairly definitively.
Other categories which people were searching for this year were Amazon Devices at 15% and Gaming at 12%. This again comes as no surprise considering Amazon launched their new ranges in September and Sony & Microsoft both announced the release date for the PS5 and Xbox Series X, two flagship console ranges being released in November.
However, what was surprising in these top 3 highly searched for categories was the top placed product held a very high click and conversion share. Customers knew what they wanted to buy and purchased them straightaway rather than shopping around for a similar product with a better deal. In contrast, Prime Day shoppers in other categories were much more likely to look around and compare different ASINs when searching for categories such as Alcohol, Toys and Seasonal.
The best-selling Prime Day 2020 categories in the UK included; Hardware, Spirits, Small Devices and Skin Care. Performance from our clients echoed this. In particular, we noticed that our clients that sat within the Beer, Wine & Spirits category did remarkably well during the event. Arguably, this can be in part to Prime Day’s proximity to the holiday season. Shoppers are stocking up on alcoholic beverages for Christmas.
Molzi’s Prime Day 2020 Results
Of our clients who participated in Prime Day deals, we saw on average a 739% uplift in shipped COGs vs their trailing 2 week average. However, those that did not set deals also saw an average of 13% uplift.
It is evident that, whilst the majority of our clients benefited from the uptick in traffic during Prime Day 2020, it was those who participated in deals and leveraged placement features who really reaped the benefit of the 2-day event.
Furthermore, those that participated in deals also saw a second week uplift vs their trailing two week average of circa 30% where as those not participating only saw a 9% uplift.
A quick rundown of results for Molzi’s clients
On average we:
- Achieved an average CPC of 70p
- Increased ad sales by 163%
- Achieved an average ACoS of 16%
- And received over 33M impressions overall for our clients
Molzi’s key takeaways from Prime Day 2020
It is evident to me that where your deal is shown is key to ensuring customers can navigate seamlessly through to purchase. We noticed that brands that set deals, but held poor placement on Amazon’s site did not perform as well as their peers.
For example, one of our Technology clients achieved a placement on Amazon UK’s homepage which enabled 1000s of units to be sold in a matter of hours. Having the best deals or discounts will make your ASIN more enticing but you must remember that you are competing with hundreds of thousands of products for both shelf space and discoverability. In short, your ASIN has to be seen to get results.
We also noted that many products have subsequently gone Out Of Stock since their Prime Day success which has meant that they have not been able to capitalise on the continued momentum from Prime Day. Furthermore, getting stock into Amazon has been slowed by the pandemic; it is taking longer to start selling again so potential sales are being lost. To reap the full benefit of Prime Day, one must manage their inventory levels to ensure they can also capture the halo effect of Post-Prime Day performance which will in turn allow you to manage the margin mix of your ASINs.
Molzi’s key takeaways for the rest of Q4
Prime Day 2020 has been a major test for suppliers, big and small, with many hurdles brands have had to overcome and adapt to. However, supply chains are robust and often bounce back quickly. COVID-19, has catapulted major traffic to ecommerce marketplaces such as Amazon, much more quicker than anticipated, but make no mistake, it is hear to stay. Customers will have been spoilt on delivery promise, convenience and ultimately on price (especially through Q4’s retail holidays). Suppliers that have acted early to secure enough stock and ensured they have Brexit impacts catered for will do well into the New Year. With a second lockdown in place as we head through the tail end of November, we expect to see added pressure on distribution centres throughout the UK.
Customers will have noticed Amazon’s subtle advertising in recent weeks to shop early to avoid disappointment. This is a clear nod to the challenges and demand that should be anticipated through the remainder of Q4. We are in for a major Black Friday, as customers look to bag those final deals and gifts for their loved ones before Christmas. Shoppers will still have a taste for deals and, with the animosity surrounding leaving the house and going to physical stores, they will definitely be back for Black Friday weekend. For more insights into Black Friday, download our Black Friday & Q4 2020 insights report.