Prime Day 2021 - Featured Image

Amazon Prime Day 2021. Deal or bust?

Reading Time: 5 minutes
eBusiness Institute Profile
eBusiness Institute Team
In 2020, Amazon Prime Day was delayed until October due to the pandemic, yet it still resulted in record breaking sales of $10.4 billion with 62% of consumers buying presents for the holiday season[1]. Prime Day 2021 spans 21st and 22nd June and will be the earliest ever. But will sales exceed last year’s total from the holiday season boost?
Prime Day 202 1 - Announcement
Amazon announces Prime Day 2021 as 21-22 June - Image source: Amazon

How might Prime Day 2021 differ from previous years?

Amazon’s Prime Day 2021 will follow a similar format to that of previous years with non-stop deals on everything from electronics to kitchenware promoted by 300,000 sellers worldwide, more than twice as many as last year[2].

There will still be lightning deals (limited time offers that are further restricted to one per customer), and colour coded blue badges will drive consumers to selected bargains. Early deal notifications are available via Alexa and, for a feel good factor, Amazon will donate 5% of your first order to a charity of your choice.

As in previous years, shoppers must be Prime members in order to snap up any of the 2 million Prime Day bargains, but a free 30 day trial period is available. Clearly, Amazon wants to expand membership and they are hoping that free shipping, regular discounts, Prime Reading, Prime Music (4 months free and unlimited access) and Prime Video will be an attractive package for new members. In fact, Prime Video is further enhanced by Amazon’s recent acquisition of MGM studios, allowing 17,000 TV show episodes and 4,000 movies to be added to their media library. 

So not that much is new, and with the physical world opening up again, it remains to be seen whether the rapid growth of online shopping during various lockdowns will continue. Especially as consumers worldwide crave the chance to engage with real people in physical stores after so long in isolation. With some brands and retailers desperate to maintain eCommerce sales growth and others keen to see shoppers return to stores, it’s reasonable to predict that non-Amazon retailers will also consider running promotions and go head-to-head with Prime Day deals. The canny ones know that 67% of Amazon’s deal seeking consumers conduct price checks on other retailers’ websites[3] before making their final purchase decision.

For comparison, read our 2020 Blog – the Covid Edition – to gain an insight into what we expected from last year’s Amazon Prime Day, which was to be held during a worldwide pandemic.

Prime Day 2021 - Promoting small businesses
Amazon uses Prime Day to promote small businesses - Image source: Shutterstock

The warm up has already begun

Once again, Amazon is using Prime Day to promote small businesses and encourage consumers to buy products from them. Prime members are offered a £10 ($10) credit to spend on Prime Day when they make a purchase of £10 ($10) or more on small business products featured in the Amazon store in advance of Prime Day. This promotion runs from 7th-20th June. Strategies like this certainly contributed to last year’s success, which saw 3rd party sellers on Prime Day top $3.5 billion in sales, up 60% on 2019[4]

Consumers are once again willing and ready to spend their savings, hunt for deals and make bigger purchases. All good news as brands seek opportunities to reach more customers.

Also featured are attractive discounts on Amazon’s own branded devices and services. 41% of Prime Day shoppers made a purchase last year in the consumer electronics category[5], helping to make the Echo Dot the most popular item purchased globally in 2020[6].

From Monday 7th June, Amazon devices such as Echo, Fire TV sticks and Ring products will be discounted by 50%. New Prime subscribers can enjoy unlimited access to Amazon Music free for four months, and existing Prime members can save up to 50% on selected movies and TV shows.

Prime Day 2021 Echo Dot
Echo Dot was the best selling product during Prime Day 2020 - Image source: Unsplash

Can brands and retailers go that extra mile and be winners on Prime Day?

Amazon’s dominance of eCommerce has created a scenario where 60% of American retailers now consider Amazon to be a direct threat and competitor[7].

The pandemic and lockdowns drove consumers into the arms of digital retailers and, despite traffic to Amazon’s website being slightly down during last year’s Prime Day, it was still a huge success. Retailers and brands can compete with Amazon and benefit from the extra digital traffic that Prime Day will generate. 

The key to success is to ensure your product content delivers a totally compelling and connected consumer experience. If a brand’s content is detailed, carries ratings and reviews, is consumer friendly, is mobile optimised and has great visuals, and better still uses videos to promote product benefits and connect with lifestyles, then you’re on the winning track to make your product and brand stand out in a crowded marketplace. 

Run a promotion, retail media, check stock and connect in advance with existing and new consumers, but most importantly, ensure that your content is absolutely on the money. 

One of the best ways for brands to ensure success is to understand the importance of a connected commerce experience. The starting point to success is to commission a detailed analysis of your product content. At eBusiness Institute, our Digital Shelf Assessment is one of the most thorough in the market, resulting in an objective review of a brand’s current product content. These findings identify areas where new or existing content can be optimised and linked to a strategy that delivers a connected customer experience and, ultimately, increases sales.

Read our Oral Care Digital Shelf Assessment White Paper to see how it works in practice when we reviewed the product content of some of the top oral care brands.

In conclusion

Whilst Black Friday offers more variety to consumers seeking bargains, Prime Day deals are easier to find and price check. It offers brands (whether selling through Amazon or not) a great opportunity to reach more customers and run alternative promotions with incentives such as free shipping thrown in. Don’t forget, content is king, and eBusiness Institute can help brands to create content that really converts. 

Last year’s belated Prime Day saw 62% of consumers hunting for gifts for the holiday season. In fact, 7% of all Amazon customers only bought gifts on Prime Day 2020[8].

With Prime Day 2021 being the earliest ever, is there scope for a second event later in the year designed to cash in on the holiday season gift buying frenzy? It also remains to be seen what effect the re-opening of physical stores worldwide will have on all eCommerce.

Will the boom continue and, like gamblers playing Blackjack, will it be deal or bust?

eBusiness Institute, helping brands to excel at eCommerce

We create integrated solutions to connect consumer experiences, helping brands to thrive in today’s world and stay future-ready. To find out more about how we can help you create content that converts, contact us to speak with one of our experts.

Contact Us »




Contact Us