Prime Day 2018 Recap

Agenda

2 Is Prime Day worth doing?

3 What lessons can we learn?

1 Prime Day recap

Despite a “ruff” start …

• Bigger than Cyber Monday, Black Friday, Prime Day 2017

• Promoted more than 1 million deals globally

• Sold more than 100 million products worldwide

• Started earlier (7/3 deals); lasted longer—36 hours

• Added more countries: Australia, Luxembourg, Singapore & the Netherlands

• Featured Prime Day Launches of exclusive new items, content & special-edition products

100 millionProducts sold worldwide

36 hoursup from 30 hrs in 2017

“Biggest global shopping event in Amazon’s history”

17 countries+4 versus last year

Omnichannel event with growing grocery focus

And some aggressive own label support

Prime Day impact beyond Amazon

“Hot offers drove the highest single day of traffic and sales of 2018 on Target.com as savings kicked off early Tuesday morning, with day-long deals on a broad assortment of Target-exclusive brands and top national brands.”—Target press release

July 18, 2018

Our approach

Sales and ShareU.S. — 8 categoriesU.K. — 6 categories

Proprietary sales estimation algorithm enables analysis of millions of products

Deep-dive pricing & promotions analysis

of 1,600+ promoted products

Sales data in % terms for publicly consumed research

Is Prime Day worth doing?

Prime Day Sneak Peak week

How do you feel about 3-4X sales lift?

Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628

Prime Day 2018, sales change (%) vs average daily sales of promoted products

Rising tide differs by category

Prime Day 2018 sales lift vs average daily sales of previous week

Source: Profitero2018 Prime Day sales indexed vs daily sales of previous week

Clear winner

U.S. could take cues from U.K.

Huge deals on Amazon brands drive electronics

“Amazon Cloud Cam was the best-selling security camera deal in Amazon history”

> “… biggest event ever for Echo devices with screens, Echo Show and Echo Spot”

>“Best-sellers worldwide were the Fire TV Stick with Alexa Voice Remote and Echo Dot

>

$100 off deal started July 3 — predating actual “Prime Day”

Source: Profitero2018 Prime Day sales lift vs daily sales of previous week

Prime Day 2018 sales lift — selected Amazon devices

Prime Day can boost ‘smaller’ categories & brands

Little known BWS brand shot up best-seller ranks on Prime Day

16% off

Sales change vs average sales of the period

Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628

Bigger deals usually mean bigger lift

No need to break the bank—or margins—to play

Big deals can have huge payday

Prime Day 2018, sales lift by discount bucket

But, even 20% off Lightning Deal pays off

+2,445% sales lift

Lightning Deal: 20% off20% off deal …

Evidence of halo effect is mixed

Prime Day 2018, sales change (%) vs average daily sales of promoted products

Source: Profitero2018 Prime Day sales lift vs average daily sales, Amazon.comTime period: July 9- July 24, 2018Number of products:1,628

48% of promoted products on Prime Day experienced higher sales the week after vs the previous week

Products can earn their badge on Prime Day

Products can earn their badge on Prime Day

Essential to focus on the fundamentals

Assortment & Availability

Pricing & Profitability

Search

CategoryPlacement

Ratings & Reviews Product Content

1.Availability

2.Traffic

3.Conversion

1P/3P Sales Analytics

Inventory planning is crucial

Lessons learned from Prime Day 2018

Prime Day is getting

more important…

and competitive

Participation alone

may not be enough

—focus on

fundamentals

Exposure can

boost category &

brand growth

Bigger deals mean

more lift

… But no need to

break the bank

to get benefit

Apply lessons

to other

seasonal events

But you don’t need

to play to win

Promo events can

be great way to

earn badges

Questions? Contact us

If you have questions about any of the data shared today, please contact us at:

insights@profitero.com

To see a snapshot of your sales and digital shelf performance, sign up for our 30 day free trial:

http://insights.profitero.com/Free-Trial

On average, companies that participate in Profitero’s Free Trial are able to identify

opportunities to improve sales by 41%.

Prime Day 2018 Recap