Watch This for Five Important things to be Aware of For Prime Day 2024

With Prime Day 2024 approaching, there are several key areas you need to focus on. We'll cover what customers are most likely to buy, how to prepare for window shoppers, handling cost-per-click increases, evaluating Prime exclusive discounts, and understanding the impact of new Amazon fees. Let's dive in!

Understanding Prime Day Timing and Trends

Firstly, it's important to note the timing of Prime Day. Last year, Prime Day was held on the 11th and 12th of July. While the exact date for this year isn't confirmed yet, it's reasonable to anticipate it will be around the second week of July. Planning for it to be around the 15th is a safe bet.

Customer Purchase Behavior

What are customers most likely to buy? High-value items priced over $100 tend to be popular. This includes expensive cookware sets, appliances, electronics like gaming consoles and TVs, and cool gadgets. Many purchases are geared towards birthday gifts or items customers had previously considered but didn't buy. To capture these buyers, running sponsored display purchase remarketing and views remarketing campaigns is essential. This strategy is effective both before and after Prime Day, especially if you are offering discounts.

Dealing with Window Shoppers

Window shoppers are a common phenomenon leading up to Prime Day. Expect increased impressions and clicks but lower conversion rates. This results in a higher ACOS (Advertising Cost of Sales) because sales are harder to come by, and the conversion rate drops. Typically, you might see lower sales 7 to 10 days before Prime Day. It's crucial to manage your budget wisely during this period. Avoid depleting your budget too early but also don't set overly high budgets that could lead to inefficient spending.

Preparing for Cost-Per-Click Increases

Anticipate cost-per-click (CPC) increases around the first week of July. Amazon encourages higher bids through Prime Day suggested bids, which can disrupt the market equilibrium. Larger brands may fuel this spend, making it more challenging for smaller brands. Keep track of your budgets and optimize your campaigns to cut back on wasted spend well before Prime Day. If you're planning on running tests, do so early and pause any ineffective campaigns by the first of July to ensure efficient spending.

Evaluating Prime Exclusive Deals

Are Prime Day exclusive deals worth it? It depends. Prime Day exclusive deals involve upfront costs, whereas coupons are more cost-effective and can have a similar impact. Coupons offer flexibility and don't require an upfront payment, making them a good alternative. Brands we've worked with find that 5-10% coupons work well without the additional cost. Evaluate whether Prime Day exclusive deals align with your brand's strategy or if coupons might be a better fit.

Click-Through Rate (CTR): High CTR is often a result of relevant keywords. Broad keywords may have higher CPC but lower CTR. Test and refine these keywords based on performance. If a broad keyword doesn't perform well, consider removing it or adjusting the bid to ensure you're not overspending on low-converting terms.

Budget Management

Reasonable Budgets: Ensure budgets match the CPC. For higher CPC keywords, allocate sufficient budgets to gather data over time. Segment high CPC keywords into single keyword campaigns for better control. This way, you can monitor performance closely and adjust bids or budgets as needed.

Utilizing Negatives: Regularly add negative exact and phrase match keywords to reduce wasted spend. Automate this process using tools like Scale Insights, which offers a 10% lifetime discount and a 30-day free trial. Negatives help refine your targeting and ensure your ads are shown to the most relevant audience.

Navigating New Amazon Fees

New Amazon FBA fees, including low inventory storage fees, will impact Prime Day for the first time. If you've been letting your inventory dwindle, you'll be affected. However, if you manage your stock levels properly, you should be fine. Aim to have at least 90 days' worth of stock based on last year's data. Overstock fees are also a concern, so avoid sending excessive stock. Balance is key—forecast accurately to avoid both low stock and overstock fees.

Conclusion

We hope you found these tips helpful for preparing for Prime Day 2024. For more Amazon PPC and FBA insights, subscribe to our channel and stay up-to-date with all our content. If you need help with your Amazon PPC, contact us at kickstartppc.com to schedule an audit and see how we can assist you. Until the next blog, have a great day and best of luck with Prime Day!

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