Prime Day 2021 Confirmed: Prep Tips For Brands

Prime Day 2021 will take place on June 21-22. With only a few weeks to prepare, there’s no time to waste!

A good Prime Day can set up your Amazon account for the rest of the year. A lack of preparation can lead to a costly misfire.

In today’s article, the Bobsled project team has shared all of their prep tips for brands looking to win big on Prime Day. Read on!

Look back at last year’s fulfillment coping strategies

Amazon recently hobbled many brands selling on Amazon with unexpected FBA inventory restrictions. With Prime Day right around the corner, the timing couldn’t be worse. Bobsled CEO Kiri Masters discussed the new inventory restrictions in her most recent article on Forbes.

If you have been negatively impacted by this change, the Bobsled team recommends looking at whether any of your 2020 fulfillment strategies could be implemented once again. When FBA inventory restrictions were imposed by Amazon during the early stages of Covid, many brands used FBM (Fulfilled by Merchant) or 3P fulfillment providers as backups. This ensured they stayed in stock while other brands vanished from the search results page.

One major downside is that these alternatives are often more expensive versus FBA fulfillment. However, considering the major spike in traffic and sales during the Prime Day period, these alternatives could still be a very worthwhile short-term solution.

💡Read Kiri’s Forbes article – Amazon Hobbles Merchants’
Prime Day Preparations With Inventory Restrictions

Minimize risk by sending smaller FBA shipments more frequently

How you send inventory to Amazon can make a huge difference.

“If multiple ASINs are a priority, sending in smaller FBA shipments more frequently is the way to go,” explains Bobsled Team Lead Armin Alispahic.

“If a large shipment gets lost or delayed, this could really set you back a long time. Smaller shipments mean less risk and this generally equates to better account health.”

Be prepared to switch to FBM, and if FBA is the only option make sure you prioritize SKUs

If there is one golden rule during Prime Day it is this – do everything in your power to stay in stock!

If a brand has the ability to FBM, this involves a simple flick of a switch. However, you want to make sure that you keep close tabs on any ASINs that have the potential to sell out of FBA inventory during Prime Day. Waiting too long to switch to FBM could cost you thousands in lost revenue.

If FBA is the only option, prioritize intelligently. Select products that have no production issues and where you anticipate high demand during Prime Day.

Get clear on your promo strategy

The Bobsled project team typically favors Prime Exclusive Discounts (PEDs) during Prime Day as they look great in SERP and there are no fees associated with running them. If a brand is forced to do FBM, flash sale and coupons are the only options. Learn what promos worked best last year – Prime Day 2020 Recap.

It’s important to note that a Flash Sale might be the better promo if your Prime Day discount will be your lowest price in the last 30 days. There's a chance you will get a red badge that really stands out in SERP and on the product page (see screenshots below).

💡 Learn more about Amazon Promos – Which Amazon
Promotions Work Best?

Consider FBA removal orders, and do your best to not get overstocked

In light of the new inventory restrictions, some brands may need to consider FBA removal orders on items that are not selling well in order to create room for better selling items.

However, be aware that Amazon is taking a very long time to process removal orders. 

“I have seen firsthand that Amazon is taking a very long time to remove FBA inventory,” explains Bobsled CEO Kiri Masters. “Sometimes it can take months. So the best advice is to not get over-stocked in the first place because those items still count toward your limit until they are removed.”

“Certain brands have had to change their supply chain to accommodate this. This includes smaller inventory orders, finding a ‘holding’ place for our excess inventory, etc. It might not be a big issue for all brands, but for the ones who are affected, it’s a really tough situation.”

Consider driving external traffic to Amazon

Amazon always goes big with a media blitz to promote the Prime Day retail holiday. It’s safe to assume that a large segment of your brand’s customer base may be anticipating a hot Prime Day deal. 

Using your email list and social media channels to send traffic to Amazon will give you a huge advantage over competitor brands that are only trying to compete for clicks within the Amazon marketplace. According to many Bobsled clients, social media was the biggest driver for Prime Day sales over the last couple of years.

Prime Day impacts retailers beyond Amazon

Profitero shared some fascinating new research with Bobsled about the importance of Prime Day to retailers beyond Amazon:

• 2 in 3 consumers plan to shop at Amazon on Prime Day and at least 1 in 3 also plan to shop deals at other retailers during the event.
• 47% of U.S. consumers who plan to spend more on Amazon this year are also planning to spend more at other retailers, too.
• 59% of consumers will "price check" Prime Day deals on other sites before buying on Amazon.
• 1 in 3 consumers believes other retailers offer just as good, if not better, deals than Amazon around Prime Day.

The takeaway here is that brands should be thinking about Prime Day holistically. Amazon is likely to be the ‘showroom’ for most shoppers, but each individual may check out different online retailers before making a purchase decision. Ensuring price consistency and inventory availability for important SKUs across your brand’s major online channels is a necessity.

Above: Screenshot from Profitero

💡Profitero is an ecommerce insights platform, powering sales for 4,000 brands, across 600+ retailers - learn more.

Think about promos immediately after PD

There are ways to keep the Prime Day momentum going even after the event winds down.

“I recommend using flash sales and coupons the day or two following Prime Day,” explains Bobsled Project Manager Lindsay Baker.

“This is because a successful Prime Day period has a tangible halo effect and these types of promos can help brands capture additional sales. The ultimate goal should be leveraging Prime Day promos to obtain a better BSR, which you can maintain by tweaking your paid advertising strategy.”

Find creative ways to stand out

Beyond pay-to-play ventures such as promos and PPC, brands should be considering how they can personalize their Amazon presence.

“In anticipation of the increased traffic due to the allure of Prime Day, I’m making sure that product page content is on point for all of my clients,” explains Bobsled Project Manager Gary Hammerschlag.

“Creating bundles for giftable items, updating your storefront to highlight Prime Day deals and bundles, and leveraging free tools such as Amazon Live and Amazon Posts are other great ways to stand out.”