Average sales lift across portfolio consistent with previous years.
- • 64.8% New % Avg (vs 68% in June
- • 35.2% Repeat % Avg
a PLTFRM Company
Summer Prime Day ‘24: +323% Immediate Sales Lift
Sep 23, 2024
Main Callouts
Brands that VENDO had for Summer Prime 2023 had YoY improvements
Deals were less correlated with performance:
Top performers had strong external strategies:
Additional Key Insights:
PED (Prime Exclusive Discounts):
Amazon Ads Console Crash:
Context
This year, we saw performance impacted by a few variables never before experienced.
Firstly, we saw the COVID e-commerce spike trend down a bit, which was indicated by consumers falling back to in-store shopping on Black Friday at a higher rate. As a result, Sunday and Cyber Monday performed the best of the 5-day main event, which runs from Thanksgiving Thursday to Cyber Monday. Black Friday still saw a lift but not as profound as the last couple of years.
Secondly, Amazon ran 2 Prime Day events in the same year for the 1st time ever, with the 2nd event, “Prime Early Access Sale” (dubbed Fall Prime Day), occurring in October only about 5-6 weeks before Black Friday/Cyber Monday promotions began. Because of this, consumers got a head start on their holiday shopping earlier than ever.
Third, there was a mass Amazon Advertising Console technical glitch, resulting in underspending on Black Friday.
Nevertheless, VENDO was able to deliver on wins for its brand partners as detailed below.
REVENUE
SHORT – TERM (IMMEDIATE)
Main Event vs. Average
- Sales: +502% (6.0x Lift) w/ Outliers
- Sales: +323% (4.2x Lift) Without Outliers
- • 20-25% Discount: +313% (4.1x Lift)
- • 30-40% Discount: +354% (4.5x Lift)
Main Event vs. Prime Day 2023
- +35%
LONG – TERM (BASELINE)
Prior to Event (June ‘24) vs. After Event (August ‘24)
- • 20% Discount during Main Event
- • +5% Baseline June vs Aug (No Outliers)
- • 30% Main Event Discount
- • -4% Baseline June vs Aug (No Outliers)
TACTICS + RESULTS
EVENT STRUCTURE
MAIN-EVENT:
Prime Day prompts ~30% of the U.S. population to make purchases, driven by expectations of major discounts. To stay competitive, it’s crucial to meet these expectations.
- • Recommended Duration: 2 days
- • Recommended Discount: 20-30% (the average across VENDO brands was 25%)
PRE-EVENT:
The goal of this phase is to drive traffic and sales, priming the algorithm before the Main Event. As Amazon launches promotional campaigns leading up to the event, we can anticipate increased traffic, stronger purchase intent, and intensified competitiveness.
Recommended Duration: 3-7 days
Recommended Discount: 10%
Performance by Pre-Event Discount:
- 10% lead-in discount: 4.4x lift
- 5% lead-in discount: 3.4x lift
(Based on brands running 20% main-event discounts)
POST-EVENT:
The focus on the post-event is on growing traffic and sales to secure the momentum from previous stages, helping establish a stronger sales foundation and improve organic search visibility.
Recommended Duration: 3-7 days
Recommended Discount: 10%
Performance by Post-Event Discount:
- 10% lead-in discount: 1.5x lift
AMAZON ADVERTISING
1.2x Increase in % of Sales WoW
- • Ad Spend Increased by 6.51x
- • Ad Revenue lift was 7.17x
- • CVR was 3.83x Higher
YoY, we saw a 0.9x decrease in % of total sales.
- • Ad Spend decreased by -29%
PAGE 1 RANKING CAMPAIGNS
The strategy behind Page 1 is to boost products to the top of the search ranking for various keywords. This involves implementing multiple keywords for each product.
By leveraging our private network of shoppers, VENDO launched 5 products to the top of the Amazon SERP, leading to outsized performance gains:
Brand Store
Brand Store Home Page optimizations during Prime Day have been a crucial part of strategies at VENDO as we see a higher % of sales driven organically to the brand store rather than through ads.
Key Takeaways:
Homepage attributed to 40% of Total Brand Store Sales
Ad Driven Brand Store Sales during Prime
Highest Performing Categories with Brand Store Sales
- • Brand Store Sales 4%
- • Brand Store Sales 10%
Having a dedicated ‘Deals’ page was also impactful for some categories:
- • Bounce rate at 15% with Dwell Time: 60 Seconds
- • Bounce rate at 25% with Higher Dwell Time: 66 Seconds
- • Bounce rate 7% with Dwell Time: 50 Seconds
- • Bounce rate 8% with Dwell Time: 63 Seconds
EXTERNAL TRAFFIC
Paid Search & Social Ads:
Through Google, Meta, and TikTok, we drive traffic to Amazon using both top-of-the-funnel and bottom-of-the-funnel ad campaigns.
Many of our brands create Amazon-specific Google search campaigns, targeting Amazon search keywords. By driving traffic to Amazon, we can improve Amazon organic keyword rankings, track sales using the Amazon Brand Referral Bonus, and improve profitability by earning a 10% referral fee bonus. We also promoted the main event discounts through Amazon-specific UGC on social platforms like Meta & TikTok.
New this year, our larger brands moved up the funnel, driving brand awareness in the weeks leading up to the event. Google, Meta, & TikTok are still some of the best ways to promote brand activations, giveaways, and in-person events, which can build a larger retargeting pool to capitalize during these peak periods.
Influencer + Affiliate Marketing:
- • Within this category, brands that participated in Influencer + Affiliate saw a 29x lift during July vs 4x of those who did not participate.
Email + SMS:
- • Beauty & Personal Care: 6%
- • 6.4x lift for participating brands vs 4.9x for non-participants
- • Clothing, Shoes & Jewelry: 4%
- • Consumer Electronics: 4%
- • Home & Kitchen: 6%
Category Trends
- • Top performer with 6.6x average lift
- • Significant correlation between specific products and sales lifts
VENDO’s Overview + Additional Callouts
Average household spend down YoY:
2023: $180.82 → 2024: $152.33, despite 2024 Prime Day setting new records in sales ($14.2b online +11% YoY)Category Shift:
Average Order Value (AOV):
Deal Satisfaction
Retail Competition Rising:
Amazon’s shopper survey asked whether customers had already shopped or potentially would shop other summer sales (including Target Circle Week, Walmart Deals, Best Buy’s Black Friday in July)
Note: This isn't a direct comparison, but it points to potential YoY growth for Walmart+ memberships.
Why it matters:
This signals a potential shift in consumer behavior and may become a larger focus in future Prime Days, as Walmart and Target continue to gain traction and challenge Amazon’s summer event dominance.