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Amazon is planning a Prime Day-like sale next month

Amazon.com Inc. plans to hold a Prime Day-like sale early next month, according to retailers who sell on Amazon’s marketplace and a consultant who works with Amazon sellers. For now, Amazon remains tight-lipped, refusing to confirm or deny the possibility of another major retail event ahead of the holiday season.

Minda Wong, senior marketing manager for consumer electronics retailer Monoprice Inc., says her company will be participating in an event currently being marketed as “Fall Prime Day,” which she said will take place Oct. 11-12. Monoprice, ranked #250 in the 2022 Digital Commerce 360 ​​Top 1000, will post deals similar to those offered during its recent Prime Day 2022 promotion, which took place July 12-13. If the tentative fall date is released, that means just three months will separate Amazon’s massive sales.

Another retailer that sells health and beauty products through Amazon has anonymously admitted that it will participate in Amazon’s October sale, which is currently under wraps.

Amazon’s “Fall Premiere Deal Event.”

Faheem Naeem, head of Amazon Advantage Unified Commerce, an e-commerce consulting agency that works with Amazon sellers, also says the October event will happen.

“Amazon has shared with its sellers and suppliers that there is a ‘Prime Fall Deal Event’ that appears to resemble Prime,” Naim tells Digital Commerce 360. Based on blackout dates Amazon has shared with retailers using Fulfillment by Amazon , it looks like the event will start on October 11 or possibly October 18, he adds.

“Several deals, including flash deals, are already closed before the event,” says Naeem. “But there are some other types of promotions — like exclusive Prime offers — that are still open to submissions for the event.”

Amazon does not confirm

For now, Amazon won’t comment on the hype surrounding the yet-to-be-announced sales promotion.

“We do not comment on rumors or speculation,” an Amazon spokesperson said in an emailed response to a Digital Commerce 360 ​​inquiry earlier this week. When asked about the October sale reports from marketplace sellers and Naim, she reiterated that Amazon’s public relations team still had nothing to share.

Reactions of other sellers

Dion Rodriguez, Director of Marketing Pool Products Canada, who lists his products on Amazon, says he hasn’t heard of sales in October. But he added that Pool Supplies Canada will participate if the opportunity arises. Pool Supplies is ranked 1223 in the Digital Commerce 360 ​​Next 1000.

“We’ll certainly want to take advantage of this because of slower e-commerce sales this year and the high level of inventory left in our warehouses,” Rodriguez says.

“We could probably look at an additional 10% to 25% off on select items during the sales period, similar to what we’ve done during past Prime sales. Maybe even higher as most of our merchandise offerings are now ‘off-season’ due to the end of summer,” he says.

Medical supply retailer NorthShore Care Supply, No. 767 in the top 100, which also sells through Amazon but hasn’t participated in recent Prime Days, doesn’t know either. Owner Adam Greenberg says he hasn’t received any information about another big Amazon promotion being planned. But even if he had the chance, he says he wouldn’t want to make any significant sales, even if he had excess inventory. The retailer continues to struggle with supply chain delays, and Greenberg prefers to keep extra inventory for regular customers when deliveries can be delayed for months on end.

“Our products are not seasonal like other retailers and they don’t expire within five years, so extra stock will always be sold at retail price at some point in the future,” he adds.

But overall, Naim expects many Amazon sellers to take part in next month’s sale.

“Despite the reluctance of some brands, we expect a large turnout and many brands to participate in the Fall Prime Deal Event to get the needed sales boost,” he adds.

How much do the top 1000 retailers sell on Amazon?

Everything Amazon does has a big impact on consumers and third-party sellers on its marketplace. The web behemoth is #1 in the Top 1000 Digital Commerce 360 ​​for 2022 and No. 3 in art Digital Commerce 360 ​​Global Online Marketplaces Report 2022. More than half — 53.6% — of all top 1,000 retailers and more than three-quarters — 75.3% — of consumer brand manufacturers in the ranking list their products on Amazon, making it by far the favorite sales channel for leading online retailers. – traders of the Northern country. America. Only 17.3% sell on eBay Inc. (No. 5 in the ranking of shopping platforms), and 11.9% choose Walmart Marketplace (No. 11 in the ranking of shopping platforms).

The start of online holiday shopping

Naim and others have reported that Amazon may be calling the October event the “First Early Access Sale” ahead of Cyber ​​5’s traditionally strong promotional period from Thanksgiving to Cyber ​​Monday. The move and the timing — about six weeks before Thanksgiving, when the sale begins on Oct. 11 — will allow Amazon to position the event as the start of the holiday shopping season. With consumers increasingly clamoring for weekend cyber deals that start earlier and earlier each year, some say a marketing campaign would make sense.

Monoprice sees Amazon’s upcoming sale as the start of a holiday sale.

“We’ll be offering lots of exclusive Prime Day discounts to take advantage of early bird shopping, but the biggest deals will be during the traditional Black Friday/Cyber ​​Monday shopping period,” says Wong. “We are also offering a range of discounts on our website which will run for two weeks during the anticipated Autumn Prime Day period.”

Amazon tried a similar strategy in 2020, when the summer premiere was moved to October due to the pandemic, and industry experts expected it to lead to a large seasonal spending, which is usually allocated to the November-December season earlier in the fall. It wasn’t quite like that.

Then, more than a third — 38% — of online shoppers in the Digital Commerce 360 ​​survey after Prime Day did not do any holiday shopping during the October 2020 event. Another third — 33% — said that less than a quarter of their sales purchases were gifts. Thus, timing does not appear to have had a significant impact on performance over the festive period.

Shoppers likely expect heavy holiday discounts amid inflation, overstock

However, holiday shoppers in 2022 face a different retail climate inflation and reports of retailers with large overstocks.

Naim says he believes Amazon is holding an extra event in the fall to give customers more deals to “help deal with inflationary pressures,” boost sales for brands in a year of modest e-commerce growth and increase signups for its Prime membership, which has stagnation in 2022.

According to the results of Digital Commerce 360’s pre-holiday survey of more than 50 retailers, nearly seven in 10 — 69% — of retailers expect high inflation to cause consumers to buy less overall this season. And more than half — 55% — named rising inflation as the main obstacle to their business ahead of the holidays. Respondents also expect consumers to be more comparison shopping this year.

And with many retail executives reporting too much inventory in recent earnings calls, overstocks have dominated industry headlines recently. Nearly one in five — 18% — of retailers in the Digital Commerce 360 ​​survey reported having too much product in the run-up to the holidays, and shoppers took note. According to more than a quarter — 27% — of retailers surveyed, consumers will expect more promotions now that they’ve seen news about unwanted goods leading up to the big shopping period.

All of this represents a real swing of the pendulum from 2021, when supply chain disruptions left retailers unable to keep enough items on their shelves and shoppers plagued by out-of-stock reports during the holidays. Last season, this led to fairly weak discounts because retailers simply didn’t need to cut prices to encourage consumers to buy and get rid of excess merchandise at the end of the year.

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https://www.digitalcommerce360.com/2022/09/23/amazon-plans-prime-day-like-sales-event-next-month/ Amazon is planning a Prime Day-like sale next month

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