The highly-anticipated Prime Day has come and gone. While many consumers were disappointed that “more deals than Black Friday,” didn’t actually mean better deals than Black Friday, the monumental sales event did result in a significant sales increase for both Amazon and third-party sellers on its marketplace.
Here’s two reasons why Prime Day makes it clear it is the perfect time to be a third-party seller on marketplaces, especially Amazon, the world’s biggest retailer:
1) Sales Increase
ChannelAdvisor reported that Amazon saw a sales increase of 93% in the U.S. on Prime Day and 53% in Europe. “Worldwide order growth increased 266% over the same day last year and 18% more than Black Friday 2014 — all in an event exclusively available to Prime members,” Amazon Prime Vice President Greg Greeley said. “Customers ordered 34.4 million items across Prime-eligible countries, breaking all Black Friday records with 398 items ordered per second.” While Amazon did not disclose the number of Prime membership sign-ups initiated by the promotion, the large increase in sales throughout the day allows the retail giant to mark Prime Day as a success.
All the hype and excitement leading up to Prime Day also inspired Amazon’s own big-time competitor, Walmart, to announce its very own Rollback Savings for a period beyond a single day sale. Between the two major marketplaces, third-party sellers who are on both Amazon and Walmart can take advantage of the additional exposure on these sites.
Trend Nation saw sales increase from both Prime Day and Walmart’s Rollback Savings. “Both our FBM and FBA sales approximately doubled compared to the same day week over week and Walmart was up almost 70%,” stated Elliot Cole, Director of Financial Planning at Trend Nation.” However, the effects of the marketplace promotions were not limited to Prime Day alone. “Sales for for the 7-day period that started with Prime Day was up 35% on Amazon and 28% on Walmart compared to the prior week,” says Cole.
2) Constant Exposure
Amazon, eBay, and Walmart, are the top three most popular retail websites in the U.S., and they just happen to be three of the biggest online marketplaces in the world. As of March 2015, their combined site traffic totals 379 million visitors per month, with Amazon leading the way with 175 million visits monthly.
That number does not take into account the numbers from Q2, including Prime Day. According to Experian, Amazon.com had over 86.4 million visits from mobile and desktop browsers on Prime Day – almost 50% of its average monthly traffic garnered from that single day. The potential amount of exposure a third-party seller receives on Amazon, and any of its large competitors, could mean exponential sales increases with consistent exposure, constantly fueled by News and Media, and customers on social media platforms.
Over a month later as the dust clears from Prime Day, it has become evident that online marketplaces like Amazon and Walmart are only beginning to start throwing punches. The ultimate winners at the end are going to be the third-party sellers taking advantage of the online competition and the way in which it fuels search for products within the marketplaces, ultimately resulting in more sales and increased exposure.