This holiday shopping season is poised to be an interesting one given high inflation, a fragile economy, and geopolitical events that are affecting supply chains. To get a jump on the season, Amazon is planning its second Prime Day (called Prime Early Access Sale) in 2022 on Oct. 11-12.
In this Prime Day Primer, we look at the reasons behind Amazon’s decision to hold a second Prime Day this year and the opportunities it presents for consumers and third-party sellers in the marketplace.
Why is Amazon holding a second Prime Day in 2022?
Last year, Amazon tested the month of October by having a two-day beauty event. It mimicked Prime Day but was limited to the beauty category. The numbers must have shown there was reasonably strong consumer demand in October to try a second Amazon Prime Day in 2022.
What does it hope to gain?
Consumer demand remains soft, especially when you factor inflation into the retail landscape. Sellers on Amazon are seeing lower sales for non-essential items, and there is a lot of concern about how the holiday shopping season will shake out.
Amazon Prime Day of 2022 is an opportunity for the e-commerce giant to boost demand immediately and scoop up early holiday spending by consumers, rather than waiting until Black Friday/Cyber Monday when every other retailer rolls out competing deals.
What should shoppers expect?
Consumers can expect to see deals on a wide range of seasonal items, from Halloween through Christmas. Many Amazon sellers are still sitting on seasonal inventory they ordered last year, but it didn’t arrive at U.S. ports until after the first of the year due to supply chain issues. Amazon also famously pushes hot electronics deals and beauty deals for the holidays.
Smart shoppers should check the pricing on their essentials and items they re-order on a regular basis. Don’t be surprised to see these showcased on the Prime Early Access sale.
Is this a sign of panic by Amazon?
It’s not panic. It’s a good strategy. Over the past two-plus years, consumers have proven they will shop online – rather than in a retail store – if the deals are good.
In addition, consumers are likely to stick to stricter holiday budgets this year. With this second Amazon Prime Day of 2022, Amazon is trying to get a bigger piece of those budgeted dollars earlier in the season, rather than waiting to compete with every other retailer in November and December.
What should Amazon Third-Party Sellers Do?
Sell. Given the inventory many sellers are currently holding, especially for those who sell seasonal goods and may be holding last year’s inventory, you must take this opportunity to move product and cash in to help stave off any potential losses.
Don’t worry too much about the date on the calendar either, you need to take every opportunity given to you in this current environment to sell, sell, sell. Especially at times like Amazon Prime Day, which provide such a big audience.
While this holiday season may be more challenging for consumers and sellers alike, for those with a sharp eye and a keen mind to make a good deal, there will still be ample opportunity to find success.