Amazon Prime Day 2023 just keeps getting better.
Ever since its founding, Amazon simply keeps innovating. The first Prime Day changed the landscape for online sellers and buyers by connecting them to new deals and opportunities. Then in 2020, they did it all over again by introducing a second Prime Day during the year. Now, sellers look at these events as critical parts of their growth plan. Luckily, for them, the data is in and Amazon Prime Day 2023 appears to be just what the industry needed! We broke down the data we’ve collected from 2023 and compared it to what we saw in 2022. In short, our customers saw huge successes — and we’ll show you why that’s important. Read on for key details and takeaways from this momentous sales opportunity.
What is Amazon Prime Day?
Before we get into the 2023 results, let’s have a quick refresher for sellers new to Amazon Prime Day. Prime Day is an event focused on savings exclusively for Amazon Prime members. It originally started in July 2015 to celebrate Amazon’s 20th birthday. Prime members who log in will be greeted with personalized deals from top brands, making it the ideal time to shop, including higher-budget items.
Amazon Prime Day 2023: A Day of Highs
July’s Prime Day had an impressive turnout for both shoppers and sellers. In fact, our customers saw almost every metric we track increase when set against Prime Day 2022:
- Impressions increased by 12%
- Clicks increased by 21%
- Ad Sales increased by 24%
- Cost-per-click (CPC) increased by 5%
- Ad Cost of Sales (ACoS) increased by 9%
- CVR stayed the same as the year previous
This continued growth truly shows the value of Amazon Prime Day. Despite its debut nearly a decade ago, customers do not tire of savings opportunities. This likely means consumers plan purchases around Prime Day, becoming part of their yearly shopping routine. In the same way, sellers who participate in the event can expect to see boosts in all of their metrics. While this is powerful as it often means more customers and sales, there is something to consider when every metric goes up. This includes your costs. Days like this mean increased competition which then translates to higher CPCs and spend for you.
This is a critical reminder to plan accordingly for Prime Day. You are most likely going to see increased demand, sales, competition, and spend. For optimal success, it’s imperative that you allocate an appropriate budget to outbid your competitors. Couple this with a more focused ad strategy to win critical keywords and placements. To keep your customers happy, plan for competitive pricing and ensure your inventory is stocked and ready for the demand.
Performance Isn’t Guaranteed
Despite all of the positive effects of Prime Day noted above, three categories saw major spikes in their ACoS:
- Video Games increased by 178%
- Appliances increased by 40%
- Baby Products increased by 37%
While video games experienced a huge spike in ACoS, it saw decreases in CPC by 49% while appliances and baby products saw increases in CPC by 23% and 1%, respectively. While the increases are to be expected, the decrease in video games leads to questions. If the competition for the category is lower (as indicated by the decreased CPC), why was ACoS so much higher?
This is a strong reminder to consider external circumstances that may affect your sales. Even during an auspicious time like Prime Day, certain categories may underperform, whether due to demand, timeliness, interest, or other factors. That’s why it’s critical to set up your listings, ads, and other factors to have the best odds, regardless of what befalls your account.
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