Amazon Prime Day has always been a great opportunity for explosive sales, but this year, affected by multiple factors such as continued economic expansion and consumption downgrade, coupled with the double impact of Walmart Week promotion on the eve of Member Day and Temu's ultra-low price discounts, many sellers are beginning to worry about this year's order volume.
As Prime Day is about to begin, peak season traffic is likely to be divided up, and Amazon has also signaled that it will increase discounts to attract consumers . Amazon offers discount coupons up to $250 Previously, Amazon announced that Temu did not meet the eligibility criteria of the fair pricing policy, so it excluded Temu from the price search algorithm. Although the direct conflict between the two was avoided on the surface, price is the core of driving growth, and Amazon has not given up the price competition with other platforms .
Whether it is the 20% discount subsidy that was suspected to be a bug some time ago, or the "Amazon Discount Plan" mentioned by Amazon customer service, they all imply that Amazon may launch a subsidy campaign. It is learned that yesterday, a seller found an activity in the Amazon background to "reactivate Prime membership advertising activities to obtain advertising discount coupons". The value of advertising discount coupons on different sites is also different, up to US$250. ▲ The picture comes from Zhiwubuyan It is understood that for this event, the advertising discount coupons will not be received in real time. Sellers need to activate a brand promotion campaign on the Amazon platform before July 17 and let the advertising campaign run for 30 days. Sellers also need to monitor the background delivery data by themselves, because the click fees generated during this period and the fees exceeding the advertising discount coupons applied for need to be borne by the sellers . After that, on August 25, sellers can receive the advertising discount coupons distributed by Amazon. It is worth noting that not all sellers can participate in this event. Only sellers who have received invitations for Amazon advertising discount coupons can apply for them . Some sellers said that with this discount coupon, the advertising costs invested during Prime Day may be higher, but they are also worried that if they do not use it, they will fall behind sellers who use advertising discounts, which will affect their orders. Sellers have different reactions to Prime Day this year. Some sellers expressed their active participation, saying they would not participate in flash sales and other activities, but would only offer member-exclusive discounts and adjust advertising budgets and price cuts based on the situation. Some sellers said they would just sit back and watch the big sellers’ orders explode. Some sellers jokingly called themselves Amazon philanthropists, sending warmth to overseas consumers with the goal of “clearing out long-term, unsalable, and redundant products.” Through observation, we can find that many sellers have the mentality of "it's better if there is a surge in orders, but if there is no surge in orders but as long as the loss is small, it is a profit." The reason why sellers have lowered their expectations for Prime Day is not only due to the economic impact, but also due to the impact of traffic dispersion. Traffic is declining, can discounts save the day? It is reported that Amazon's two-day Prime Day promotion covers more than 20 sites including the United States and the United Kingdom. However, due to the continued rise in inflation, the consumption level of users has dropped significantly, and the platform's traffic has also shown a downward trend. Taking Amazon's UK site as an example, according to a survey by Global Data, the number of people with Prime membership in the UK has soared by 24.7% since 2019. In 2022, the total number of Prime members will reach 67.8%. However, there is a more fatal problem. The total number of Prime members has soared, but the proportion of consumers who have purchased goods during Amazon Prime Day has not increased explosively . Since 2019, the membership participation rate of Prime Day has only increased by 10.9% . With the ongoing cost of living crisis and soaring inflation, consumers are eager for products to offer greater discounts. Affected by the current environment, this year's consumers are more concerned about and weigh the discounts on products during Prime Day . Vivek Pandya, chief analyst at Adobe Digital Insights, said: "As inflation and interest rates continue to put pressure on consumer spending, large discount events like Prime Day are seen by consumers as an opportunity to get extra value." Overall, Prime Day is both an opportunity and a challenge. Amazon may be able to stand out from the crowd by offering more powerful discounts than its competitors.
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