How Small Businesses Can Leverage Amazon Prime Day All Summer Long
Source: U.S. Chamber of Commerce
Small businesses can learn from Amazon and use the same strategies the e-commerce giant employs to drive sales even if they don't sell on Amazon.
Why it matters:
- Amazon is raising the stakes for its summer Prime Day promotion, expanding it from two days to four days, and adding limited-time deal drops to create more urgency to buy.
- The summer sales event has become a leading indicator of how
consumers are shopping, as retailers and brands start preparing for the holiday season. - As e-commerce brands large and small join Amazon in offering deals, SMBs can mirror the excitement and urgency of Prime Day with differentiated messaging like, ‘Skip the algorithm. Shop local’; lean into the back-to-school business, a big purchase during the shopping bonanza; and reward loyal shoppers with exclusive offers.
Amazon launched its first Prime Day in 2015 as a one-day sales event designed to entice consumers to buy a Prime membership, then $79 annually.
Since then, the annual summer sales promotion has turned into a multi-day event, the standard annual membership fee has increased to $139, and Prime Day has grown beyond a membership drive to an economic bellwether of how consumers are thinking, and how they will spend for the rest of the year.
It has inspired nearly every other major retailer to simultaneously host their own versions of Prime Day. Last year, consumers spent $14.2 billion on U.S. e-commerce sites during the two-day Prime event, up 11% over 2023, according to data from Adobe Analytics.
“Prime Day is massive, and not just for Amazon,” Mike Ford, CEO of marketing data and analytics company Skydeo, told CO—. “It’s become a retail tentpole that lifts the entire ecosystem.”
“The real opportunity,” Ford said, “is in the “Prime Week mindset, w
hen consumers are primed – pun intended – to shop, look for deals, and try new brands.”
Over the years, Amazon has developed strategies for boosting Prime Day sales that small businesses can tap into, and benefit from, whether they sell on Amazon or not.
“You don’t have to sell on Amazon to ride the Prime Day wave,” Dave Charest, Director of Small Business Success at digital marketing platform Constant Contact, told CO—.
“Shoppers are already in a buying mindset – and smart small businesses can absolutely lean into that,” he said.
This year’s Amazon Prime Day will take place July 8 to 11. Here are ways small businesses can leverage Amazon’s favorite Prime Day strategies all summer long:
Lean into ‘shop local’ messaging
Amazon, the world’s largest online retailer, realizes than many consumers would rather be supporting small or local businesses while grabbing deals. That’s why it always emphasizes that most of its sales during Prime Day are made by third-party sellers who use the Amazon platform, most of them small businesses. It also lets small business sellers display a Small Business badge on their pages and directs shoppers to small business sellers.
“Make it clear that this is your version of Prime Day, and why shopping with you is a better choice – personal service, local support, community impact, unique products – all of the things that make your small business stand out,” Charest said.
“For physical retailers, a last-minute sidewalk sale, gift-with-purchase, or local delivery perk can be just enough to get people in the door,” he said.
It’s prime time for back-to-school offers
Amazon has found that back-to-school-related purchases have been a key growth driver. Parents increasingly are seeing Prime Day offers as the signal to start back-to-school shopping.
Adobe Analytics reported that last year sales of backpacks, lunchboxes, and other school supplies surged 216% during the two-day Prime event, compared to daily sales levels for the prior month. Sales of kids’ apparel soared 165%.
In its report on how consumers respond to sales events, The New E-Commerce Calendar, Intuit, Inc. found that parents (56%) were more likely than non-parents (47%) to make an Amazon Prime Day-related purchase.
Prime Day sellers will be bombarding parents with online messages about back-to-school deals during the Prime Day event. Small businesses that sell back-to-school-related products should be aware of how Prime Day is pushing the school shopping season earlier, and time their promotions accordingly.
Keep your messages clear, concise, compelling, and consistent, and ‘mirror the urgency and excitement of Prime Day’
Clarity and urgency are important when trying to get shoppers’ attention, Ford of Skydeo said. “Shoppers don’t have time to decode complex offers – ‘25% off everything, today only’ will outperform “Earn $20 after your third purchase’ every time,” he said.
With social media messaging, “keep it simple, punchy, and timely,” Constant Contact’s Charest said. Small businesses should “mirror the urgency and excitement of Prime Day with language like ‘No membership needed,’ ‘Shop small. Save big,” or ‘Skip the algorithm. Shop local.’
“The key is speed,” Charest said. “Use email, SMS, and social posts to get the word out quickly, with clear, direct calls to action that make it easy for your audience to act,” he said.
Sending a message that is consistent with a brand’s or small business’s identity is important, Jillian Ryan, Senior Manager, Content Marketing Strategy at Intuit Mailchimp, told CO—.
“Brands should tell a consistent story all year, and every campaign should reinforce your brand identity,” Ryan said. “If you are going to lean into the sales messaging of Amazon Prime Day, make sure you have a story that aligns to your brand’s purpose,” she said.
Intuit’s New E-Commerce Calendar research found that 25% of shoppers are prompted to buy because of messages they received before the sales event that were not necessarily discount driven. So, businesses should be reaching out to customers before and after the sale moment, “not just day of,” Ryan said.
Another messaging tip is to “reward customers for shopping with you, and give them exclusive access,” Ryan said.
“This means you can segment your [message] list to send targeted promotions … to your highest valued customers,” she said. “Let them know you want to reward them with a special incentive.”
Follow up after Prime Day: ‘This is your golden opportunity to build a relationship’
If someone makes a purchase during the four Prime Days, “follow-up quickly, within 3 to 5 days, with a thank you email, a usage tip, or a loyalty offer,” Ford of Skydeo said.
“This is your golden opportunity to build a relationship,” he said. “Show them you understand what they bought, what they care about, and how your brand fits into their life going forward,” he said.