Prime Day: retailers see 64 per cent spike in revenue
Prime Day is not just for Amazon, new research has revealed. Brand new figures from CJ Affiliate’s global network reveal that from 2016 to 2017, across the two days of Prime Day retailers globally saw an average year on year revenue growth of 64 per cent and year on year sales grew by 38 per cent. This is a huge increase compared with the average global year on year growth for a day in July of 22 per cent and 15 per cent for sales.
“We’ve seen the effects of Black Friday and Cyber Monday but now retailers and marketers should also be marking Prime Day in their calendars, preparing deals to take advantage of the Amazon-inspired shopping phenomenon. Throughout July, many brands will hold their summer sales, but these figures show that it’s on Prime Day that they’re seeing the biggest returns, and if 2018 follows the growth of 2016 and 2017, this is only set to increase” commented Jules Bazley, regional vice president, CJ Affiliate.
Pets pampered on Prime Day
Prime Day is not only affecting other retailers’ performance, it is also experiencing unexpected areas of growth. Despite Prime Day traditionally being associated with the buying of consumer electronics, revenue growth for these goods only saw an increase of 22 per cent from 2016 to 2017.
Perhaps unsurprisingly for the summer months, Home & Garden wares are the most popular products, but many shoppers are clearly holding off until Prime Day to stock up on their garden furniture and start their home improvement. Sales increased year on year by an average of 197 per cent and average revenue growth for Home & Garden purchases was 263 per cent.
It is also pampered pets who will likely be reaping the benefits this Prime Day with pet ware the other category to see the largest year on year increase in revenue and sales. Revenue grew by 176 per cent and sales by 200 per cent.
For brands looking to cash in on the wider impact of Prime Day on consumers, they will need to be aware of regional differences, with the research revealing discrepancies between customer behaviour in the US and Europe.
In both the US and Europe, the first day of deals saw the greatest number of shoppers clicking on ads, witnessing an increase in ad clicks of 14 per cent and 17 per cent respectively. Europeans are quicker to jump on deals for lots of items, whilst US consumers like to mull over their purchases, buying fewer but higher priced items. In Europe, the greatest increase in revenue and sales was on the first day of Prime Day, with year on year revenue growing by 42 per cent and year on year sales by 58 per cent. For shoppers in the US on the other hand, sales were higher on the second day, increasing by 44 per centand achieving revenue growth of 77 per cent.
“The clear diversity of retail sectors having their revenue and sales influenced by Prime Day is clear proof of how all retailers and marketers can seek to benefit from this mid-summer peak. Knowing the specific products and which day to target certain consumers means that marketers and retailers can better target shoppers and tailor their efforts to maximise this opportunity,” concluded Bazley.