Amazon’s Prime Day 2022 set record-breaking numbers for the company’s selling partners, as consumers spent more than $3 billion on more than 100 million items from small businesses, according to the press release.
With deals similar to those of the Cyber Five — the shopping season from Thanksgiving through Cyber Monday — Prime Day could have the potential to affect future sales during the busiest shopping quarter of the year.
Read on to learn more about Amazon’s historic Prime Day numbers and the strategies you can implement before the holiday e-commerce shopping season.
Selling on Third-Party Websites Pays Off
With more than 200 million Prime Members worldwide, the event was Amazon’s most successful Prime Day to date for its selling partners, most of which are small and medium-sized businesses.
Sales from third-party merchants made up more than 37% of total Prime Day purchases this year, according to Digital Commerce 360. Third-party merchant sales also increased by nearly 12% compared to 2021, illustrating the potential for future growth when partnering with Amazon.
This trend could benefit hundreds of subscription boxes looking to expand their reach through a partnership with Amazon. The online retail giant is partnering with award-winning brands like Bitsbox (the 2022 Cube Awards winner for Best Kids Subscription) through its Amazon Subscription Boxes program.
“[It’s] our fastest growing channel for new customers,” Scott Lininger, Bitsbox CEO, said.
On the consumer side, Amazon revealed that 96% of Prime Day customers were active Prime members. Furthermore, those members saved nearly $2 billion — the largest savings in Prime Day history, according to the company.
“Prime Day is a celebration of our Prime members, who look forward to this event every year, and we’re thrilled to have delivered incredible savings to them once again,” said Doug Herrington, CEO of Amazon Worldwide Stores, in the press release.
Prioritizing customer relationships can have tangible results. Focus your efforts on strengthening your connections with consumers, as loyalty can lead to greater connections to your brand.
“By having a membership, you feel bonded to that company because you’ve made an investment in it,” said Dave Cobban, Founding Partner of UNBRKBLE, in his joint session at SubSummit 2021.
2022 Consumer Behavior Trends Highlighted by Prime Day
Prime Day 2022’s success highlighted several consumer behavior trends every subscription innovator should monitor.
For starters, 34% of Prime Day shoppers compared prices before proceeding with their Amazon purchases, suggesting that consumers are looking for deals due to the ongoing rising costs.
“If the economy is a bit unstable, consumers are going to continue to look for promotions,” said Kevin Chung, Lead E-Commerce Strategist at FedEx, during his SubSummit 2022 session.
Furthermore, 78% of Prime Day shoppers were female, according to Numerator, and the most popular product categories were:
- Household Essentials (29%)
- Health & Beauty (28%)
- Consumer Electronics (27%)
This trend is not exclusive to Prime Day; Beauty/Personal Care accounted for 54% of all U.S. subscriptions in 2021, according to Recharge.
When planning your promotions, identifying your target audience is crucial, especially when your product is designed for a specific user.
Purchasing Habits for Holiday E-commerce Shopping
Although Prime Day 2022 had a variety of deals to entice customers, only 35% of shoppers spent more this year compared to the last.
This is mostly due to inflation: 83% of shoppers claimed to have been impacted by rising prices:
- 34% waited to purchase an item until it was discounted during the sale.
- 28% passed up sale items because they were not necessities.
Subscription brands should be focused on customer lifetime value (LTV) during the upcoming months, according to Patrick Campbell of ProfitWell.
“The best subscription companies have more than 20% of new revenue coming from existing customers,” he said at SubSummit 2022. Nurturing your current subscriber relationships through appealing prices or even convenient and flexible purchasing processes can prove to be beneficial as inflation impacts consumers.
Prime Day Sets the Tone for 2022 Holiday Season
It’s more crucial than ever to prioritize your customer relationships, as sales during the 2022 Cyber Five period are predicted to decline compared to the previous year.
Consider what deals and promotions you could implement into your offering for the upcoming e-commerce shopping quarter. Sixty percent of items purchased during Prime Day 2022 were for the shopper themself or their household; these consumers are still on the lookout for gifts.
Remember to also take note of your target demographic and be ready to reevaluate your strategies. When focusing your efforts on perfecting your offering, ensure it satisfies your existing subscribers.
“With consumers becoming more aware of the effects of inflation, it’s critical for brands to add value to their offerings without raising their prices,” said Paul Chambers, CEO and Co-Founder of SUBTA, in the company’s 2022 Annual Report.
- Amazon’s Prime Day 2022 set record-breaking numbers for the company’s selling partners, as customers spent over $3 billion on more than 100 million items from small businesses.
- Evaluate how you prioritize your customer relationships, as 96% of Prime Day customers were Amazon Prime members.
- Focus on targeting your audience demographic in your upcoming promotions for the holiday season.
- Consider what deals and promotions you could implement into your offering for the upcoming e-commerce shopping quarter.