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Your Guide to Amazon Prime Day: All You Need to Know

Amazon Prime Day is the most popular e-commerce shopping event year in and year out. After 7.1 billion worldwide sales in 2019 and 10.4 billion in 2020, coupled with exponential growth throughout the pandemic, 2021 is expected to be the largest grossing year yet. Amazon is the top destination for online product searches, making it even more important that you get your product portfolio and advertising campaigns prepared for Amazon Prime Day in 2021.

You may be wondering:

  • What exactly is Amazon Prime Day?
  • Why is Amazon Prime Day so important?
  • Why should you be involved in Amazon Prime Day?

This article will answer those questions and more. Even though Amazon has not officially released the date for 2021, we know it is sometime in June, so we will give you all the information you need to ensure you are fully prepared by the time Prime Day is here.

Amazon Prime day is a day for shoppers to benefit from special deals and discounts with their favorite brands and products. After a year of uncertainty, many shoppers have turned to online shopping and especially taken a special interest in saving money. For these reasons, Prime Day 2021 is expected to be one of the biggest events in Amazon’s history. 

Not only does Prime Day benefit Amazon’s worldwide network of shoppers, but also all of its vendors and sellers. Shoppers who may not otherwise shop on Amazon tend to flock to the site for this big day to find deals and discounts. Therefore, brands are able to reach up to 5x more new-to-brand shoppers and gain exposure on a scale that would otherwise be impossible. Don’t miss out on this opportunity to get your brand and products in front of millions of shoppers.

Benefits of Prime Day

Aside from the exponential increase in sales that many brands experience during Prime Day, there are also four other major benefits:

Marketing – Amazon takes great steps, both on and off the site to increase traffic during this special day.

 Discoverability – The Deals page features the discounts available to shoppers, therefore helping them discover your brand and making it easier for shoppers to find your products.

Sales Potential – Shoppers are drawn to discounts and more likely to purchase during a temporary price reduction, so offering special promotions will increase your sales during Prime Day

Visibility – Products with deals during Prime Day are marked with special badges in the search results, making them very easy for shoppers to find

Amazon Prime Day Hero
Amazon Prime Day Hero (Source:

How to Prepare

Preparation for Prime Day needs to start weeks in advance. The event will be taking place a bit earlier than usual this year, but with a timeline set for sometime in (most likely late) June, now is the perfect time to start getting ready.

First and foremost, it is important that you stay aware of your stock situation. In a time where campaigns are key, ensuring that you have the stock to support them is vital. It is important to keep an eye on your stock level not only before and during Prime Day, but also during the time after to measure how it affected your sales and to take full advantage of the high rankings that have been achieved during the event.

Next, be sure you select the right ASINs to feature in your prime day deals. Think about which products can actually assert themselves against the competition in terms of pricing, ratings and reviews. Keep in mind that Amazon has restrictions when it comes to setting up deals and promotes those with the best price, quantity and inventory. It is also key to make sure that the products you select have enough ratings to make them competitive.

Finally, it is a very good idea to audit your listings in the time leading up to Prime Day. Read through all your product content and check the titles, bullet points, product descriptions and product images to ensure that everything is correct and up-to-date. It would also be helpful to read through your customer reviews and questions to see what information they would like to know and what kind of language they are using. You can use this knowledge to create content that is tailored to your target audience and written in a way that appeals to them.

Prime Day Promotions

There are a variety of promotions available on Prime Day including Deals, Prime Exclusive Discounts and Prime Member Vouchers. There are many different kinds of Deals (detailed in the next section) while Prime Exclusive Discounts allow brands to offer deals exclusively to those with Prime accounts. These discounts appear as slashed prices on the search results and product detail pages, but products must fulfill eligibility requirements to feature this kind of discount. Finally, Prime Member Vouchers allow brands to offer discounts on top-selling products as well as package deals for loyal customers.

Amazon Deals

There are a variety of different kinds of deals available for vendors and sellers on Amazon. The type(s) of deals you choose to use during Prime Day will depend on your product portfolio size, your category, your target audience and the amount of budget you have available. Below, you will find an outline of the different kinds of deals and also the details that will help you make an informed decision about which ones to use.

Coupons

What is it: Digital coupons that allow you to offer discounts for a single ASIN or a range of ASINs

Timing: Can last up to a year but require at least 3 weeks of advanced planning

Use: Optimal for the advertising of product groups and by repetition of advertising intervals 

How and where it appears: Displayed on Amazon Deals page, coupon home page or product detail pages as a little green banner showing a percentage off or the amount of the coupon 

Benefits: This is a highly visible option that can help you easily monitor campaign performance and track it in real time

Financing: Definable total budget

AMazon Coupons

Lightning Deal

What is it: The classic Prime Day deal – a Lightning Deal is a promotion where an item is featured for several hours on Amazon’s “Today’s Deals” page. 

Timing: Up to 6 hours and requires at least 4 weeks advanced planning

Use: Optimal for new products and short-term sales. There are only a limited number of discounts available, so it is necessary to get started as soon as possible (these offers will run out-of-stock) and only a limited number of discounts on an item can be offered for a short period. Offers will run until the stock is depleted or the campaign runs out.

How and where it appears: Placed directly on the Today’s Deals page.

Benefits: The placement of these deals generate much more traffic and gain much higher visibility than other offers 

Financing: Per-Unit funding and rebates on Amazon orders (for vendors only)

Amazon Lightning deal

Deal of the Day

What is it: 24-hour offers 

Timing: Run for one day

Use: Optimal to increase visibility for new or declining products, NOT for best-performing ASINs 

How and where it appears: Vendors can influence where ads are placed and on which day they are shown, whereas sellers have more restrictions (reach out to us for more information about how you can use these deals) 

Benefits: Help to increase visibility of new products or products that are not performing as well as you would like them to

Amazon Deal of the Day

Price Discount

What is it: This is a much longer term deal with a shorter lead-in

Timing: Run for up to 12 months with only 24 hours required in advance

Use: Optimal for long-term advertising campaigns. Per-unit funding and manufacturers are responsible for all financing during the deal term 

How and where it appears: As slashed price on any product on which the deal is active

Benefits: This is an option that can be used all year long and you have the ability to define your budget and choose the discount.

Financing: Per-Unit funding

Amazon Price Discount on Prime Day

Best Deals

What is it: Advertising of product groups

Timing: Can run up to 2 weeks and need at least 4 weeks in advance. These deals can be used a little before Prime Day and after Prime Week

Use: Similar to lightning deals, just a little less noticeable on the Deals Page and can run a bit longer.

How and where it appears: Best Deals appear as an orange box at the bottom of a product

Benefits: Bring attention to your brand and products and increase sales

Financing: Per-Unit funding

Amazon Best Deals

Prime Day Spotlight Deals

What is it: This is a feature of the most popular products on Prime Day, offering huge savings

Timing: Run for 48 hours and last until Amazon runs out of stock

Use: Features all the biggest deals in one prominent spot

How and where it appears: These deals are promoted on the Amazon start page

Benefits: Makes it very easy for Amazon to feature the biggest deals and for shoppers to find the best discounts

Amazon Spotlight deals

Creating Campaign Deals: Step-by-Step Guide

1) Goal setting– Short-term increase of turnover, winning new customers, pushing new products and reducing overstock

2) Choose deal type– Sales is the overall goal, but the needs for each product line will differ, and this will help determine which deal type to use.

  • You don’t need every single deal for every ASIN, so evaluate each and plan a strategy

Tip: Some need up to 4 weeks of preparation so be sure to keep a timeline of when you need to plan each item – organization is key!

3) Check your deal performance to ensure they are running the way you want them to and watch them VERY closely for the duration

4) Initiate Amazon assessment. This may take several weeks as it may require a lot of feedback loops and possible coordination with your vendor management

5) Plan the implementation and make your product selection

Tip: Keep an eye on your financing and margins and consider the lead time required

6) Push your deals with Sponsored Advertising and DSP

Push Deals with Sponsored Advertising

Pre-Prime Day Phase:

This is the phase in which you want to make sure you have a good balance of marketing and deal management. People are searching for special deals, so if they are searching and find your deals, they will likely also explore the rest of your product portfolio.

1) Start your campaigns weeks before – this will help you gain learnings beforehand, especially if you plan on advertising newly listed products (this allows the algorithm to get to know how your campaign performs best in terms of search terms, placements, etc.)

2) Increase the visibility of your most important/ relevant keywords beforehand- consider bidding aggressively on your product’s most important keywords now in order to increase organic ranking in time for Prime Day

3) Optimize campaigns in advance- do your keyword research before and make sure the campaigns are optimized by Prime Day

Brand Store

Brand Awareness can be very expensive on Prime Day, so a focus on product deals is much more strategic. Check out all our tips for building a successful Brand Store.

Tip: Pause your non-deal ASINs on Prime Day because advertising non-deal ASINs on generic keywords could get expensive.

1) You can set up a deal store page so customers can find your ASINs that have deals and then discover all of your available ASINs 

2) Amazon takes several days to activate your store page, so set it up at least one week before you would like it to be active

Amazon Brand Store

Sponsored Brands

Take advantage of promotional tools with AMS.

1) Shows three deal ASINs at a time with deal badges

2) Link your Sponsored Brands to your Brand Store and Special Deal Page. Make sure you communicate your deal through your creatives (logo & claim) but make sure not to mention specific numbers (i.e. 25% off). However, you can say things like “Save Now!”

Note: If you have deal claims, your ad can only run in the specific time range of your deal. You can set up campaigns with a general claim and then change the claim when Prime Day comes closer.

3) Add long-tail keywords and seasonal terms (i.e. Prime Day or deal-related search terms)

4) Make sure that you are winning the top of search placements in order to bring awareness to deals. Those with placements at the end of the search results page do NOT show a deal badge

Note: Sponsored Brands with custom images and Store Spotlights will not show the deal badge.

5) Choose a deliberate and precise product targeting strategy. Consider whether you want to target your own ASINs or competitor ASINs and create a deliberate strategy around the price segments, categories, etc. you are focusing on

Amazon Sponsored Brands custom Image
Sponsored Brands Custom Image Example (Source: screenshot Amazon.de)

Sponsored Brands Video Ads

Video ads are a new form of Sponsored Brands Ads available on mobile and desktop to bring awareness to your brand and products and drive high click-through rates. Select a single product to feature and when customers click the video, they will be redirected to the product detail page. 

Sponsored Products

Strongest performing ad type when it comes to sales and especially beneficial when it comes to price discounts or coupons. Make sure your Sponsored Products campaigns are done right, so you can access their full potential.

1) You can also use category targeting to achieve the highest possible visibility and bring maximum visibility to your deals

Sponsored Display Ads

Show discounts and deal claims on your product detail pages- same rules apply. Check out everything you need to know about Sponsored Display Ads.

1) Use these ads to drive more traffic to your deals

2) Because they are displayed on the PDP, you can reach customers at the end of the sales funnel, just one click away from adding something to their carts

Sponsored Display Ads
Sponsored Display Ads Example (Source: screenshot Amazon.com)

Budgets & Bidding

1) Bid high enough on your most relevant keywords. Bids will be high, but so will the conversion rate, so you will see a large benefit.

2) Evening hours tend to be the highest time of purchase, so it is important to ensure your budget is high enough that your campaign runs until the end of the day (increase your daily budget at least one day before)

3) In the AMS console, always look at the column that says status rather than the filter. The higher the budget, the higher the sales (keep in mind that the workload for maximizing your sales on that day is relatively low, so have a high enough budget to promote your deals).

Tip: Don’t launch new products on Prime Day, but rather a few days before (make sure your Brand Store is up and your ASINs are already launched well in advance)

Pushing Deals with DSP

Amazon Demand Side Platform (DSP) serves as an add-on to Sponsored Advertising, so the most important thing is to make sure your Sponsored Advertising is completely set. This way, you will have a solid foundation to build on.

Amazon DSP ads
Amazon DSP Example

Pre-Prime Day Phase

1) Landing Page: make sure your Brand Store is up and ready to go (keep in mind that banner ads can take 1-3 days to be processed and published)

  • Get everything into the system a few weeks before prime day
  • Unlike with Sponsored Ads, in DSP you can say numbers (i.e. up to 25% off!) as long as they are also listed on the Brand Store page
  • Double check that all the images adhere to the Amazon Creative policy (not sure how? We know exactly how to navigate Amazon’s policies and would be happy to help- send us a message now)

2) Start your campaigns at least a week before. Take the time before Prime Day to gain learnings about bidding and placements so you can ensure that everything is optimized before Prime Day

Note: Audiences can be tricky because you have to work to find the right combination of segments and make sure campaigns are optimized with the best CPM (cost per thousand impressions). If you don’t achieve your desired visibility or CTR, make sure to adjust these aspects before Prime Day. Keep in mind also that keywords are a bit easier to add in and switch out

3) Take the whole-funnel approach for campaign setup by increasing new-to-brand customer rate through consideration campaigns. It is important to take a look at the big picture, making sure you are getting as many new-to-brand and new-to-category customers as possible with broader in-market targeting.

Convert customers by running retargeting campaigns during Prime Day (i.e. send customers to brand stores / pages with Sponsored Products, Sponsored Brands or Sponsored Display ads) and target those customers again.

Retargeting tips:

  • Show shoppers ads based on the product pages they have looked at (both on and off Amazon) bringing them back onto Amazon
  • Run retargeting campaigns hand-in-hand with consideration, meaning less focus on conversion and more on bringing traffic to pages
  • Give reminders to those shoppers who have not yet converted to return to your product pages. Use the leverage gained both throughout and after Prime Day
  • Competitor Conquest Campaigns– If you notice a specific competitor or group of competitors that keep winning bids, set up these campaigns (works like Sponsored Products and Sponsored Display ads to target specific ASINs)

4) Specifications for Creatives for Display Ads or Dynamic eCommerce Ads with the look and feel of Amazon

  • Consideration campaigns– banner ads to drive customers to a Brand Store or customized deal pages
  • Retargeting– use Dynamic eCommerce Ads (automatically show deals with the look and feel of Amazon)
  • Engage customers further by customizing your Dynamic eCommerce Ads (image, customer review, title) and showing deals automatically. Deals appear automatically as the little orange banner (also for campaigns that are already running if they contain a deal ASIN)

Keep in mind: Setting up extra campaigns through DSP to drive traffic to your Brand Store, optimizing current campaigns and making sure all ASINs are included so you can run retargeting are all VERY important steps to ultimate Prime Day success.

What Happens After Prime Day?

In the days following Prime Day, you will likely see a decrease in sales and conversion rate, but do not worry- this is completely normal after big events such as Prime Day. Due to the market saturation following Prime Day, consumers are not in such a spending mood for the days following, but this phase does not last long. Shortly after, you can expect to see higher average sales and better rankings in the weeks following if you had successful deals and advertising management during Prime Day.

Tip: Make sure that you are able to take advantage of your higher rankings and higher product detail page histories by ensuring you have enough stock AFTER Prime Day in order to keep up with the increased demand.

If you follow our tips and prepare fully, after Prime Day you will likely see higher sales, ratings and reviews (higher client engagement), more queries, returns and refunds. You can benefit not only from the increased sales and visibility, but also from the performance of your products during Prime Day.

Evaluate your performance and learn from it to help you perform stronger in the next Prime Day as well as throughout the entire year. We want to help you succeed- reach out to our experts now and let us help you optimize your Prime Day performance.

Looking for more? Check out our most recent live stream with everything you need to know about preparing for Amazon Prime Day 2021.

Prime Day 2021 Live Stream

About the author

Ton Beentjes

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