Market Overview

Amazon's U.S. Sales Nearly Tripled on Prime Day 2018, Finds New Profitero Study

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The 36-hour event underscores Amazon's fight for dominance in home
improvement, grocery and private label

Amazon reported that Prime Day 2018 was the "biggest
global shopping event in its history
," with more than 100
million products sold during the 36-hour promotional event. Now, new
analysis from Profitero sheds light on which categories and brands
shined brightest during this year's big event.

Analyzing eight categories in the U.S., Profitero found that Amazon's
sales nearly tripled during Prime Day, compared to average daily sales
the week leading up to the event.

Not surprisingly, electronics was the clear winner with sales spiking
215% on Prime Day versus sales for an "average" day. More surprising was
the lift seen in the home improvement category as sales soared 200%
higher than normal.

Amazon's growing focus and promotional efforts this Prime Day on
everyday household products — such as beauty, grocery and pet — didn't
go unnoticed either. Beauty sales increased by 186% and pet sales went
up by 134%, while grocery sales more than doubled (+108%) on Prime Day
compared with a typical day.

Other key findings from Profitero's analysis:

  • Amazon aims to put Alexa everywhere: Amazon's deep discounts on
    its own brand electronic gadgets paid off big, further extending the
    reach of its voice-assistant platform. For example, sales of Amazon's
    Alexa-integrated Cloud Cam shot up 1,386% (15X higher than normal) on
    Prime Day when it was offered at $59.99 (half off the regular price of
    $119.99). Another bestseller — Fire TV with 4K Ultra HD and Alexa
    Voice Remote — had a 306% sales lift.
  • "Do it yourself" brands build momentum: As noted, Amazon's
    sales of home improvement products tripled on Prime Day. Some brands
    saw sales grow by 30-40X or more. The five brands that saw the biggest
    Prime Day boost: #1 Etekcity (+4,108%); #2 IGotTech (+3,670%); #3 Nexx
    (+3,096%); #4 GunVault (+2,923%) and #5 GerberGear (+2,718%).
  • Amazon's private label push pays off: Amazon's private label
    WAG dog food rocketed up the best-seller ranks in the U.S. following a
    30% discount on all 5 lb. bags. An even heftier 40%-off could be had
    for shoppers who signed up for Subscribe & Save — a crafty way to hook
    customers after the trial incentive. By 2pm EDT on July 17, Amazon
    owned the "Amazon's Choice" badge for dog food. These findings show
    just how serious Amazon is about penetrating some of the
    highest-velocity consumable categories.
  • Grocery focus provides food for thought: Whole Foods stores
    were brought into the fold this Prime Day, with Prime members
    receiving a $10 Amazon credit when they spent $10 at Whole Foods
    starting on July 11 through the end of Prime Day. Amazon also took
    steps to feature and promote its growing online grocery offering. As a
    result, the retailer's grocery sales more than doubled that of a
    typical day. The five brands with the biggest sales bump during Prime
    Day were: #1 Izze (+808%); #2 Similac (+688%); #3 McCafe (+605%); #4
    RxBar (+556%) and #5 Quaker (+337%).
  • The U.K. trumps the U.S. in some categories: Despite Prime
    Day's overwhelming success, Amazon U.S. can take some cues from the
    U.K. to do even better next year. For example, grocery sales in the
    U.K. far surpassed the U.S. by a large margin (+153% U.K. vs +108%
    U.S). Amazon grocery shoppers were courted with a 30% off a first
    "subscribe & save" order and free shipping for Prime Pantry orders,
    giving them an added incentive to buy on Prime Day.

"‘Contrived' online shopping events like Prime Day are proven to drive
significant spikes in traffic and sales volume during times of the year
that historically may not have been seasonal peaks," said Keith
Anderson, SVP of Strategy & Insights at Profitero. "Brands that sit on
the sidelines run the risk of losing market share that's hard to win
back later. On top of that, they lose the opportunity to use Prime Day
as a testing ground to learn what works — and doesn't work — as we
approach the all-important holiday season."

To see the full supporting charts for this analysis, go
here
.

For more detailed analyses, and to find out who were the big winners and
what promotional vehicles worked best this Prime Day, register for
Profitero's Prime
Day 2018 Recap Webinar
on August 16 at 10am EDT/3pm BST.

Methodology Summary

Using its proprietary sales estimation algorithm (which captures 2x to
8x more products in a category than alternative methods), Profitero
analyzed sales for millions of products across 8 representative
categories on Amazon.com in the U.S. from July 9 – July 17, 2018 and 6
categories in the U.K. "Prime Day" data depicted in this analysis
reflect full two-day sales for July 16-17, the dates of the 2018 event.
Only brands with at least $1 million in sales during Prime Day were
considered for the brand-level analysis. When producing public research,
Profitero only releases sales data in the form of percentages, but
Profitero clients can see sales increases for their products and
competitor products in percentages and exact dollars.

About Profitero

Profitero is the eCommerce Performance analytics platform of choice for
leading brands around the world. With Profitero, brands can measure
their digital shelf performance across 8,000+ retailer sites and mobile
apps in 50 countries, gaining actionable insights to improve product
content, search placement, ratings & reviews, availability, assortment
and pricing. Profitero also allows brands to measure their Amazon sales
& share performance, and is the only solution that can correlate Amazon
sales & share performance with changes across the digital shelf. Many of
the world's leading brand manufacturers depend on Profitero's granular
and highly-accurate data to measure and improve their eCommerce
performance. These include Barilla, Beiersdorf, Edgewell, General Mills,
Heineken, Kids II and L'Oreal.

For more information visit www.profitero.com.

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