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October 05, 2020

Last Minute Preparation Tips for Amazon Prime Day

Amazon has announced that Prime Day will be October 13 & 14. With the existing delays in the warehouses, limits on inbound shipping, and storage limits, Amazon has not given sellers a lot of time to plan.

Amazon has indicated that they want retailers to use Prime Day as a chance to test their ad and promotion strategies before the expected swell of customers for Black Friday and Christmas sales. These tips can be applied for all of the holiday selling season.

Here are our quick recommendations for how to prepare for Prime Day:

1. Check Your Stock Level and Supply Chains

If you anticipate that you will already have trouble maintaining stock levels through Q4, we recommend that you do not discount your products for Prime Day. While, of course, you'll want to maximize your Prime Day sales, you'll also want to avoid potential stock-outs of your product that could allow your competitors to gain long-term advantages in the search rankings.

Remember to also verify supply chains for product packaging and shipping. We have been seeing an increase in manufacturers struggling to maintain supply chains for packaging for their products and longer lead times to manufacture their products.

2. Send Additional Goods

If you have adequate stock, especially if you plan to offer a discount, send in additional products to ensure stock levels through October. If you usually send your items to Amazon's FBA warehouses via Less Than Truckload (LTL) shipments, you may want to consider small parcel (UPS) or Full Truck Load (FTL) shipments for the remainder of the year.

Remember that storage fees for FBA are significantly higher during Q4. This means it is important that you manage your inventory for oversupply as well as potential stock-outs.

3. Add a Coupon

If you have adequate stock levels, adding a clippable coupon can help provide the "sale" experience at a low cost. Coupons are 60 cents per redemption and show in the search results and most ads.

We recommend you create and test your coupons well before Prime Day. Internally, we are encouraging all brands to have their clippable coupons created for Q4 by October 9th.

4. Review Your Ad Strategy and Budgets

Now is the time to ensure your ad campaigns are optimized, and you have identified whether you want to increase or decrease your ad budget for Prime Day.

With so much emphasis on Prime day, many other advertisers will temporarily increase their bids and budgets. This means without adjusting your strategies, your campaigns might run out of budget earlier in the day. Additionally, keyword phrases that are only marginally profitable may be bid up to where the cost is prohibitive.

5. Add a Merchant Fulfilled Offer

If you anticipate high sales during this period, we recommend that you create an additional MSKU on your products with an MF offer. This allows you to ship additional products from your location to prevent stock-outs.

As Prime Day approaches, it is not uncommon for Amazon to limit the ability for sellers to create new promotions. This is most common with lightning deals. However, we also saw that Amazon limited the creation of coupons during the lockdowns earlier this year. It is important that you take time today to review your ad strategies and get your promotions for Prime Day and Black Friday up as quickly as possible.

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