Survey: Retailers hold out hope for Prime Day

Most retailers are still planning for Amazon’s Prime Day sales event to boost growth, even amid reports it may be postponed.

E-commerce analytics provider Profitero surveyed 160 global e-commerce executives between March 17-19, the time when Amazon told vendors and sellers it was halting shipments of non-essential products and when many consumers were being instructed to stay home. Reports had also started circulating that Amazon will postpone Prime Day this year due to COVID-19 concerns.

One third of respondents (34%) said they were proceeding with their Prime Day 2020 efforts as planned, while 37% said their plans were up in the air due to COVID-19 (another 29% were neutral). An optimistic 56% of respondents believed there is a chance Prime Day could be even more successful this year (if it happens) because more consumers are shopping online due to the pandemic. 

Ninety percent of respondents participating in Prime Day said they intend to spend the same amount (49%) or more (41%) this year vs. last year. Two-thirds (68%) of respondents expect a unit sales lift of three times or greater from their Prime Day promotions. 

In addition to investing directly on Amazon this Prime Day, more than one-third of respondents plan to invest elsewhere too. About four in 10 (39%) plan “mid- summer” promotions with other retailers; 38% are investing on other platforms (Google, social media and deal sites) to drive traffic back to Amazon.

Examining retailers’ motivations for participating in Prime Day, the survey found driving unit sales lift (80%) is the top priority on Prime Day. Other popular reasons included acquiring new customers (59%), driving brand awareness (57%), and competitive market share play (54%). 

In order to get found and drive traffic to their product pages, the vast majority of respondents (87%) say they’ll be investing in Amazon advertising on Prime Day. Less than half (43%) plan to run lightning deals, and 39% intend to offer other Amazon promos like Prime Member Promotion (PMP) or coupons. Only 7% will use Live TV promos and 2% will use Twitch streaming.