Amazon Prime Day is a two-day annual sales event hosted by Amazon for consumers subscribed to its Prime membership. This sale allows these prime members access to a wide variety of products and services belonging to both Amazon and other brands at a discount. Prime Day, while being an annual event, does not occur on the same day every year, as Prime Day 2023 will occur a day earlier, on July 11-12.
Behavioral Audience:
Prime Day 2022 was Amazon’s biggest and most successful Prime Day to date. Over 300 million items were purchased worldwide with millions of Prime users taking part. Items such as home goods, beauty products, technology, clothing and apparel, and appliances were all on sale attracting the attention of all demographics.
Amazon itself stated “This year was the biggest Prime Day event for Amazon’s selling partners, most of whom are small and medium-sized businesses, whose sales growth in Amazon’s store outpaced Amazon’s retail business. Customers spent over $3 billion on over 100 million small business items included in the Support Small Businesses to Win Big sweepstakes” (Source).
The behavioral audiences for Amazon Prime Day include:
Deal Seekers: Prime Day offers thousands of discounts on numerous products of varying brands providing deal seekers with an abundance of options.
Impulse Buyers: The limited duration of discounts can encourage impulse buying in order to ensure consumers are able to take advantage of what they perceive to be a good deal.
Amazon Loyalists: As most tech companies do, Amazon has its own loyal following of consumers who choose Amazon services whenever they can, including for shopping, making Prime Day extremely helpful for them.
Gift Shoppers: With so many products on sale, it makes it an ideal time to purchase gifts for friends and family.
Technology Enthusiasts: Technology tends to be quite expensive, so the opportunity to purchase items at a discount cannot be missed.
Seasonal Shoppers: These are shoppers who generally limit their major purchases to certain days of the year such as Black Friday, Cyber Monday, or Prime Day, where deals are abundant.
Market Research:
Amazon Prime Members: Individuals with active Prime memberships are the key demographic to be targeted during Prime Day. This demographic is around 200 million consumers worldwide, with 148.6 million in the US alone. Due to these consumers already having an Amazon membership, it should be easier to entice them to partake in Prime Day Sales as the barrier to entry is non-existent.
The top-selling items during Prime Day 2022 were: (Source).
Health and Wellness: Premium beauty products from LANEIGE, NuFace products, Diapers and Wipes, Vital Proteins Collagen Whey
Tech: Apple Watch Series 7, Vtech and LeapFrog Toys
Home goods: Kitchen Essentials, Chemical Guys car wash products, Pet products
Clothing: Levi’s apparel and accessories
Non-Amazon Prime, Amazon Users: As of 2020, Amazon had over 300 million active customer accounts worldwide. Around 200 million of these accounts were signed up for Amazon Prime. Thus, there are still 100 million active Amazon users who might be enticed to subscribe to Amazon Prime. In a questionnaire published in 2023, the question “Do you currently have access to an Amazon Prime account” was asked, with 52% saying yes, 13% saying they share their account, and 14% saying no, but that they are interested in getting one in the future. This could be done through advertising Prime Day discounts, or through promoting the other benefits of Prime such as free shipping or access to Prime video.
Young Adults (18-34): Young Adults with access to the internet are the most likely to have an Amazon Prime membership. Based on Amazon Prime statistics, 81% of people aged 18-34 with internet access have Amazon Prime. In comparison, people aged 35-54 are only 68%, while 55+ are only 60%. Experts expect that market penetration in 35+ is unlikely to change significantly in the future. Similarly, in a survey asking who is most likely to shop for summer deals online, younger generations were far more positive towards deal hunting than older generations. Gen Z (85%), millennials (79%), Gen X (64%), and Baby Boomers (38%) (Percentage of respondents saying they will shop online).
A study showed that during Prime Day 2022, Young Adults (18-34) made 48% of all purchases, compared to 33% for 35–54-year-olds, and 19% for 55+.
The most popular items among Young Adults were makeup and skincare products, which made up 12% of all Prime Day purchases, with home products (9%), clothing and accessories (7%), and tech (7%) following not far behind.
Men: During Prime Day Sales, historically men have been willing to spend more than women. For instance, during Prime Day 2020, 14% of men spent over $500 during the sale, compared to 9% of women. Similarly, it was also noted that women were more likely to have a total spending below $99 than men. This difference in overall spending can be attributed to the interests of both demographics. Studies show women are more interested in home products, makeup and skincare, and clothing items. In comparison men are more interested in tech products, be it gaming or general consumer products (source), which tend to cost more. To summarize men are more likely to purchase individual and expensive large ticket items than women.
Gift Givers: With the abundance of deals present on Prime Day, those seeking to buy gifts for friends and family will have an abundance of options to choose from, from technology to home goods to toys. Buying items on Prime Day will save any shopper at least a few dollars.
Amazon’s Prime Day differs from regular holiday sales in the fact that it’s limited. Not everyone is able to take advantage of these special offers, rather only a smaller amount of paying consumers have access. Nevertheless, the company racks in billions of dollars every year when the sale comes around, with 2021 Prime Day sales totaling $11.19 billion, with over 250 million products being sold. It’s truly astounding how a sale dedicated to a single company, has risen to the point where Prime Day is now a legitimate rival to Black Friday when it comes to the biggest sales event of the year.
Marketing during Prime Day presents a tremendous opportunity for businesses to maximize their reach and sales potential. With the growing popularity of Prime Day and the increasing number of Amazon Prime members worldwide, businesses can leverage this event to engage with their target audience effectively.
To make the most of Prime Day, it's crucial for businesses to stay up-to-date with the latest trends and customer preferences. Research shows that during Prime Day, customers are actively seeking deals and discounts on a wide range of products across various categories. Therefore, businesses can create personalized promotions that align with these customer needs, offering compelling deals on popular items such as electronics, home goods, fashion, beauty, and more.
Utilizing email marketing, social media platforms, and targeted digital advertising campaigns, businesses can reach their audience directly and capture their attention amidst the buzz of Prime Day. Crafting enticing messages and visually appealing creatives, they can highlight the exclusive nature of the deals and limited-time offers available during this event.
Furthermore, businesses can leverage the power of Amazon Prime membership by emphasizing the benefits that come with it. These benefits include fast and free shipping, access to a vast library of movies and TV shows on Prime Video, and the convenience of Prime Music and Prime Reading. By showcasing the added value of Prime membership beyond the discounts, businesses can incentivize non-Prime members to sign up and participate in the Prime Day festivities.