Amazon is poised to host the longest Prime Day yet in 2018, starting midday on July 16 and running through the next day. And with its record-long hours of sales, the marketplace will most likely shatter last year's record.
And while the day is profitable for Amazon, the sale can be a burden on sellers that are looking to reach consumers with their unique offers. According to Feedvisor data, which compared sellers' profitability during Prime Day 2017 versus two weeks earlier, sellers made 60% more profit during the one-day sale cycle.
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Therefore, Victor Rosenman, CEO of Feedvisor, offers up four tips for sellers in order to help them make the biggest profit possible on Prime Day 2018.
This is not a test
The general rule is that 20% of a seller's items generate 80% of its sales. Therefore, don’t use Prime Day traffic to launch new products or test new products. Instead, optimize the most popular items to drive the highest possible rate of sale volume.
Drop prices as low as possible
On such a competitive day, sellers should drop their prices in order to get rid of as much inventory as possible. The seller with the lower-priced listing is most likely to win the purchase.
Don't waste ad dollars
Searches and sales on Amazon are always elevated on Prime Day and the few weeks following, so save advertising dollars for the period after the sale.
Expect a dip in margins
The average dip in profit margins on Prime Day 2017 was around 2%, but the decline was slow and carried through over a few weeks after the holiday. Sellers can expect their margins to get pulled down slightly as other merchants are selling inventory aggressively.