Amazon Vice President Greg Greeley hailed Prime Day as a “huge success” and confirmed that sales on the day exceeded those of Black Friday 2014. The 24 hour event, to celebrate Amazon’s 20 years in business, boosted sales by 18 percent more than Black Friday 2014 and 266 percent more than the same day last year.
Despite the encouraging sales statistics the event was widely criticised on social media; many shoppers perceived there to be a lack of deals on desirable items and the stream for #PrimeDay contained many messages expressing disappointment.
According to an Adobe analysis of shopper sentiment on social media, regarding Prime Day, 58 percent of tweets expressed a negative sentiment. The severity of shopper disappointment is highlighted by the fact that #PrimeDayFail was a top trending hashtag on the day, at one point surpassing #PrimeDay.
Although there was shopper backlash on social media, the Prime Day discounts did help Amazon achieve its main target. In its press statement Amazon declared that more new members signed up to trial Amazon Prime on Prime Day, than on any other day in Amazon’s 20 year history.
Although promoted as a one-off event, Amazon has confirmed that following the success of Prime Day, it will now become an annual event.
Lightning Deals by Category
Brand View has analysed the range of products promoted by Amazon Lightning Deals on Amazon.co.uk on Prime Day.
20 percent of products promoted by the Lightning Deals were in the home, office and garden category. The second most promoted category was clothing, shoes and jewellery with 18 percent, followed by the technology category with 16 percent.
Lightning Deals: Average Depth of Cut
The Lightning Deals on products in the car care category had the lowest average depth of cut at 24.6 percent; the Muc-Off glass cleaner was the only car care product promoted with a depth of cut of over 40 percent.
The technology category had the third lowest average depth of cut, at 27.4 percent. This is likely due to the fact that Amazon aims to be competitively priced for this category throughout the year.
The Lightning Deals on the clothing, shoes and jewellery category had the greatest average depth of cut; this category was also the second most promoted category, at 42.8 percent.
The clothing, shoes and jewellery category featured the two Lightning Deals with the greatest price reductions.The Thomas Earnshaw Armagh Skeleton Men’s watch was reduced by 82 percent from £387.66 to £69.99 and the So & Co New York Soho Women’s Quartz watch reduced by 79.1 percent to £42.20. Both products have since returned to their original prices.
Amazon website 21 July 2015
Average depth of cut: Technology Category
According to the public reaction to Prime Day, many shoppers were hoping to find a bargain in the technology category.
On Prime Day Amazon offered the greatest depth of cut in the technology category on its own products; the greatest price reduction was on its headphones, which were reduced from £19.99 to £9.99.
The grooming technology category was well represented with promotions on Braun, Philips and Wahl products – Braun products had the greatest average depth of cut at 30 percent.
Both Braun and Philips products on promotion were epilators and men’s shavers. However, the Wahl products featured on promotion were hair clippers and body groomers.
The greatest price reduction in the technology category was on a micro usb data cable; this was reduced from £11.99 to £4.49.
Many shoppers expressed their frustration regarding deals on lower cost items in the technology category, as they wanted to see offers on bigger ticket items, such as TV’s and laptops, similar to those promoted on Black Friday.
How did Prime Day deals compare to competitors?
When comparing the price of six TV and laptop products promoted on Amazon Prime Day, with the price of competitor retailers Argos, Currys, John Lewis and Very, we see that Amazon was cheapest on five of the six products.
The greatest price difference was for the 48” Sony Bravia TV; the TV was 40.2 percent cheaper at Amazon, compared to Argos and Very, and 33.2 percent cheaper than Currys and John Lewis.
Amazon’s 18.2 percent reduction on the Asus X550ze was not enough to outcompete Currys, who promoted the product at two pence cheaper than Amazon. However, Amazon Prime members would benefit from free next day delivery.
Will Amazon change its promotional strategy next year?
Amazon will undoubtedly be pleased with the sales boost it experienced as a result of Prime Day. However, it may wish to consider the public backlash on social media, when planning promotional strategies for next year’s event.
Competitor retailers were given relatively short notice about Prime Day and quickly created competing sales events. Competitors now have a full year to prepare for the next Prime Day and will be better placed to challenge Amazon.
Amazon will likely offer bigger and better deals on Prime Day 2016; it may even offer promotions in more countries than on Prime Day 2015. To improve the public’s reaction to Prime Day 2016 Amazon may look to offer more deals of the day on big ticket items such as TV’s, laptops and tablets.
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