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▶ Video account attention cross-border navigation It is learned that Chinese sellers have suffered a heavy blow under the wave of account bans in 2021, and the craze for entering Amazon is no longer the same as before. Data shows that since the second half of 2021, the growth rate of the number of sellers registered on Amazon has slightly declined, and in the past three years, the share of top Chinese sellers on Amazon has been gradually declining. Now, there are less than two weeks left until Amazon Prime Day 2022. Amid the call for an "annual seller charity conference", Amazon sellers' expectations for a huge sales volume on Prime Day this year seem to have declined, and the growth "bottleneck" facing Amazon Prime Day sales has begun to emerge. ▲ The picture comes from Zhiwubuyan Prime Day sales growth peaked! Is Amazon slimming down? Amazon Prime Day has been a huge success over the past five years. Data shows that since 2015, Amazon Prime Day has not only increased membership subscriptions, but also driven a sharp increase in sales, which seems to have become an excellent opportunity for sellers to increase sales and expand their global business.
However, Numerator data shows that after Amazon set a high average order size of $58.77 on Prime Day in 2020, the average order size on Prime Day in 2021 reversed the growth trend and fell to $54.15, and the spending per item also fell from $33.88 to $30.83. Insider Intelligence predicts that Amazon will generate $7.7 billion in sales during Prime Day next month, a 17% increase from last year. Foreign media reports pointed out that this is far lower than the 65% revenue growth Amazon expected for the event. It is learned that Amazon Prime Day's sales growth has peaked, mainly due to the following factors:- Amazon is reducing its Prime Day budget and discounts , losing market competitiveness amid limited-time flash sales by major competitors.
- Amazon sellers are experiencing a slowdown in growth amid increasing regulation of the platform, geopolitical shocks, and logistics disruptions caused by pandemic lockdowns ;
- Amazon's over-expansion has hit its ceiling, and its marginal benefits have decreased, making it unable to continue growing.
In the past two years, the epidemic has driven the prosperity of online shopping. Amazon's former CEO Bezos led Amazon to a large-scale expansion, repairing warehouses, hiring new employees, etc. After the epidemic subsided, consumers returned to offline stores, and the sequelae caused by blind expansion began to emerge. Revenue from Amazon's core online business fell 3% year to date , and revenue growth from its subscription businesses, including its own-brand stores and Prime Video, also slowed. In the forum, many Amazon sellers also reported that sales in the entire cross-border market during the off-season in 2022 were extremely bleak. A lot of advertising fees were spent on unpopular categories, but in the end they often ended up with nothing. ▲ The picture comes from Zhiwubuyan However, it is also known that in July last year, Andy Jassy took over as CEO of Amazon from Bezos. He realized the sequelae of Amazon's blind expansion and took a series of measures to "slim down" Amazon after taking office: 1. Several expansion plans that were planned during Bezos' tenure have been canceled. Amazon is subletting at least 10 million square feet of warehouse space in its vast logistics network, delaying the construction of new facilities, and renegotiating leases with external warehouse owners. 2. Close non-grocery stores and suspend chain store plans. All of Amazon's non-grocery stores have been closed so far, including 68 bookstores, Amazon 4-star stores and pop-up stores. In April this year, Amazon also suspended plans to add more than 1,500 jobs in retail businesses and closed six underperforming superstores in its Whole Foods Market division. In addition, there are reports that in order to ease the sales pressure throughout the year caused by the high inflation since the beginning of this year, Amazon seems to be planning to hold a second shopping festival for its Prime members in the fourth quarter. To ease the sales pressure throughout the year, Amazon holds a second Prime Day? According to CNBC, Amazon is releasing a "Prime Fall Promotion" notification to selected third-party sellers. This will be the first time that Amazon will hold two shopping events exclusively for Prime members in the same year. In the seller communication group, some sellers also said that they had received notification emails about Amazon Prime’s autumn promotion. ▲ The picture comes from the seller communication group Amazon has not yet announced the date of the promotion. But from the notice, we can know: Starting from June 1, the reporting of flash sales has been opened on the seller platform; On July 22, the reporting of flash sales will be closed on the seller platform; On September 12, the FBA warehousing deadline in the United States is approaching, which means that sellers must deliver goods to the Amazon FBA warehouse before September 12. ▲ The picture comes from the seller communication group In response, a report from Business Insider said that this fall's event sounds more like Prime Day 2.0 , with the two sales in the summer and fall "expected to feature big deals on TVs, sneakers, and other merchandise." It is learned that in the first quarter of this year, Amazon reported a 7% year-on-year revenue growth, marking the company's slowest quarterly revenue growth since 2001. As inflation continues to squeeze shoppers, consumers shift their spending to areas such as travel and entertainment, and e-commerce sales inevitably decline. Therefore, Amazon's Prime autumn promotion will most likely help sellers clear out some of the accumulated extra inventory, relieve Amazon's storage capacity pressure, and increase sales. So far, when asked about the event, an Amazon spokesperson still stated: "We do not comment on rumors or speculation." However, there is no doubt that Amazon has been "worrying a lot" about this year's Prime Day. Recently, not only have Amazon's US, UK and Japan sites released announcements on promotional activities to support small business brands to warm up for Prime Day, but Amazon's Mexican site has also provided new buyers with a coupon of 100 yuan off for purchases over 200 yuan to attract new buyers to join its Prime Day promotion. Since the beginning of this year, due to the fading of the e-commerce dividends caused by the epidemic, many sellers have indeed seen a significant drop in sales in the off-season in the first half of the year. However, some sellers still believe that the focus of this year is still on the peak season in the second half of the year, and there is still a great opportunity to increase sales in the second half of the year. Now, there are only two weeks left until Prime Day 2022 (July 12th to July 13th). Here, we remind all sellers that, judging from the formula of “sales = traffic * conversion = impressions * click-through rate * conversion rate * average order value” , if sellers want to overcome the anxiety of peak season sales, it is still necessary to grasp the traffic-heavy festival of Prime Day. After all, on Prime Day, sellers can not only adjust and supplement keywords to increase keyword traffic, but also increase activity traffic through coupons, promotions, deals and advertising activities. Have you received any invitations to the autumn sales promotion? Welcome to discuss in the comments section~
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