As people travel, local businesses (not located in tourist destinations) see a dip in their sales. Where there are fewer people, there are fewer sales. According to Gallup, the summer months are on a steady decline until the school year starts. Businesses rely on schools being in session to hold them over until the holidays. The holidays then hold you over until what? The next school year?
Amazon Prime Day has become the answer to the summer sales slump. The goal of Prime Day is to drive sales for retailers while driving prime subscriptions for Amazon. Only people with an Amazon Prime Membership can participate in Prime Day. Prime Day boasts massive discounts that rival Black Friday and Cyber Monday with sales that are higher than both of these “holidays” combined.
If you have a product-based business model, Prime Day is quickly becoming a must. With estimated sales for Prime Day 2017 hovering just over $525 million, it’s no secret that businesses can find themselves making Black Friday-type money in July.
While other big-name retailers are offering sales in an attempt to rival Prime Day, the numbers will never be the same. With Amazon as a global entity, businesses can find an entirely new audience to cater to when they put their products online.
According to CNBC, some businesses saw a 1,371% increase in sales before Prime Day was even over. CNBC states that 40% of the Lightning Deals to be offered this year came from small businesses, proving that small businesses have a place in the Prime Day festivities.
While profit margins may be smaller on Prime Day due to the requirement to cut prices by 20% minimum, the exposure and potential sales volume is worth the small decrease in revenue per unit.
In order for Prime Day to make sense, your business needs a solid plan to retain these new consumers. Creating a stellar customer service plan is the best way to retain the new influx of consumers.
Now is the perfect time to start planning for Prime Day 2018. Will you be participating?