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Threepipe Reply on how marketers can make the most of Amazon Prime Day

The next Amazon Prime Day has just been announced for June 21 and June 22. I say ‘day’ – it is actually 48 hours of discounts. This is now one of an increasing number of Prime Days that Amazon creates, much to the delight and fevered anticipation of swathes of media.

Amazon has grown strongly in the last 12 months as wider retail channels became disrupted. Brands that were already listed or those that pivoted to Amazon because of the disruption have, in many cases, done pretty well.

It’s also becoming very apparent that Amazon is increasingly becoming a platform on which brands can be built, rather than just where a simple sales transaction takes place.

However, not all brands that are available on Amazon are doing well. Why? This is because for some time now they have not invested in the right way – especially the better-known brands.

Like every other e-commerce platform, Amazon has its unique algorithm that determines how ‘visible’ a product is or how easily it can be found. What we have seen, especially over the last 12 months, is that start-up brands are doing particularly well at ‘stealing’ sales away from established brands that consumers are searching for.

These start-up brands have invested in the platform and have better understood how Amazon works, so are building it out to be a very successful sales channel.

Slowly we are seeing more established brands take Amazon more seriously, but for many it took a global pandemic to make this happen and force their hand –especially for those brands that historically relied on more traditional sales channels, such as beauty products whose product discovery and sales were mostly driven by spas and department stores.

There is a great deal that brands can do on Amazon to ensure that they don’t needlessly lose sales to competitors, as well as capture unbranded search opportunities. For many premium brands there has been a lack of understanding of what an Amazon customer wants.

In many categories there is not a great deal of price sensitivity, but it’s more about convenience. A Prime member will typically be an urban-dwelling ABC1 demographic that many premium brands invest lots of money in reaching away from the Amazon platform.

Our dedicated Amazon team offers specialist consultancy to brands, as Amazon is a platform that requires specific focus. As part of Prime Day planning we have made available a checklist that brands need to consider when prepping for what will be a hugely significant sales moment in the year.

Jim Hawker is co-founder at Threepipe Reply.