Prime Day performance, new seller terms, social integration and lower price widget

Prime Day results

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This year's Prime Day was bigger than 2018's Black Friday weekend. Amazon reported that they sold 175 million items worldwide. The globalisation of the Amazon platform and a coordinated launch across major cities around the world has enabled them to reach more shopper with more deals.

Data from various sources (e.g. Jumpscout) implied that this year's Prime Day was 21% higher than last year. The 2nd day was bigger than the first with approx 8-10% more sales happening on Tuesday 16th July.

Outside of the Amazon devices, the best selling items in the UK were the Sony PlayStation Classic Console, Oral-B SmartSeries Electric Toothbrush, and Shark Vacuum Cleaner. Amazon also reported high sales across beauty, pet food and homeware.

Whilst Prime Day was a great success, other retailers also saw a major uplift in sales, demonstrating that, with the event in its fifth year that they too are benefiting from the annual event. Adobe Digital Insights found that the largest retailers (those with revenues over $1 billion) saw their average daily revenues jump by 54% on Monday, and 72% on Tuesday. Meanwhile, small-to-medium-sized retailers saw a 28% increase in sales.

Now the dust has settled on the event, it's important that all brands that participated undertake a full analysis of performance. With Black Friday weekend only four months away, Prime Day provides valuable learning to ensure you put in place the right strategy to drive growth and maintain profitability.

New EU seller terms

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We reported in this newsletter last November that the German competition authorities were investigating into Amazon's dominance, following a large number of complaints from sellers.

Following the investigation, Amazon has agreed to make a raft of changes to the business terms it offers sellers on its marketplaces following an intervention by Germany’s Federal Cartel Office (FCO). For many sellers, Amazon is their livelihood, so new terms that offer them some protection against Amazon's policies will be comforting news.

Among the changes Amazon has agreed to make are amendments to its liability provisions towards sellers to bring it into line with European standards for b2b relations, and changes to account termination and blocking to remove its unlimited right to do so without justification, meaning ordinary account terminations will in future require 30 days notice.

They have also agreed to remove exclusivity of the court of jurisdiction, meaning European sellers with a dispute against it may not only be able to instigate legal proceedings in Luxembourg but could, under certain conditions, be able to take it to a domestic court in future. Other changes include reductions to confidentiality requirements Amazon has used to bind what sellers can say about it in public; product information rights and quality requirements; and over product reviews and seller ratings.

The new business terms, which will come into effect in 30 days time, will apply not just to all Amazon’s European marketplaces but also to its marketplaces worldwide, including in North American and Asia.

New widgets on trial

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Our eagle-eyed team has spotted some new widgets on trial in the UK and US this week.

Social integration (US)

In the US, Amazon has been trialing the integration of social feeds into product detail pages. The new widget was spotted on the HIPPEAS product pages on Amazon's mobile application. If Amazon decides to implement this module permanently it would bring some much-needed life to the page and give some emotional and inspiring content. We are interested to see how they decide to implement it. Will it just include social posts shared from Amazon? And will positive social content have any effect on the Amazon algorithm? Watch this space.

Lower-priced items (UK)

Amazon is continually looking for ways to offer customers the best deals on products in their search. With this goal in mind, Amazon is trialing a lower price widget at the top of product detail pages. We spotted the new module in the beauty category, but have not seen it pop up anywhere else yet. The widget titled ' Lower-priced items to consider' highlights similar products that are available at a lower price. All products are Prime and have a high rating on Amazon.