ChannelAdvisor Scot Wingo By Scot Wingo

Amazon Prime Day Results – Mission Achieved!

Note: This is a special edition of a regular feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2015 schedule can be found in this post.  

Today we are releasing some SSS details from yesterday’s (first of many?) Amazon Prime Day.  It’s important to note that ChannelAdvisor’s data does not include Amazon’s 1P (retail business).  That being said, many of our customers participated directly in Prime Day deals.  Also, our theory is that the excitement around Prime Day may bring in an influx of buyers that not only purchase deals, but also ‘spill over’ into 3P offers.

The baseline of y/y Amazon growth for the last couple of months has been approximately 25%.  If our theory is correct (Prime Day caused a spill over to 3P sellers), we would see an acceleration off of the 25% baseline.   If our theory is incorrect (Prime day did not spill over to 3P sellers), we would see no difference from the 25% baseline. Note that the EU baseline for Q2 was a bit lower at 16%.

The results

When we compare Prime Day this year to the same day last year (July 16 to align with day of week), we find:

  • Amazon US SSS grew 93% y/y
  • Amazon EU SSS grew 53% y/y

The US growth rate for Prime Day was approximately 4X the 25% baseline, which does indicate significant spillover to the 3P sellers on Prime.  The EU growth rate was 3X the rate of their baseline.

Prime Day vs. Black Friday and Cyber Monday

One part of the Prime Day pitch was ‘Black Friday in July.’  With our SSS data, we were able to look at this in the US and the result were interesting.  On an absolute basis:

  • Black Friday – Our customers achieved 97% of the sales on Prime Day that they had on last year’s Black Friday on a SSS basis.
  • Cyber Monday – Our customers achieved 60% of the sales on Prime Day that they had on last year’s Cyber Monday on a SSS basis.

What that means that effectively Amazon delivered on the pitch and they came within 3% of delivering a holiday sales day in July that was the size of Black Friday – pretty amazing and that’s just for 3P sellers (see the top of the post).    While they only achieved 60% of Cyber Monday, that is still pretty impressive.

Bottom line – in the first time trying this Amazon has created a Summer shopping holiday as big as Black Friday — That’s pretty dang impressive and exceeded our highest expectations for Prime Day.

Other learnings

Here are some other interesting tidbits we see in the data from Prime Day:

  • Customers with heavy FBA inventory and/or free shipping saw outsized growth compared to those that did not – this makes sense and is what you would expect with the ‘Prime’ focus for the event.
  • Some customers saw spikes as large as 7X over the same day last year (and non-promotional 2015 July days).  The biggest ‘winners’ were those that participated at all levels: free shipping, FBA + 2-5 PrimeDay special promos (lightning deals) +  sharpening their pencils on their non-deal inventory.
  • We can confirm that “Deal Velocity (unit volume/time)” was at/greater than Black Friday levels as Amazon has reported.

Pin action to other e-commerce channels

When you are bowling and you hit a pin that hits another pin, that’s ‘pin action.’ Another area of interest we wanted to watch closely with Amazon Prime day is cross-channel pin action.  In other words, did Prime Day cause consumers to shop outside of Amazon as well as inside-Amazon.  Some of these retailers decided to launch their own ‘Black Friday in July’ type promotions and in other cases, consumers were inspired by Amazon savings to open up their wallets and do some Summer shopping.

Pin action winners:

  • We did see the category we call ‘other 3PM‘ show some pin action – more than doubling the baseline growth rate on Prime Day.  This includes marketplaces such as BestBuy (200% PrimeDay SSS y/y growth), Sears (88%), and Newegg (40%).  The marketplaces with strong consumer electronics (CE) categories outperformed marketplaces that focus on apparel and other categories validating a strong CE focus for Prime (add space) Day and Black (add space) Friday in July promotions that had consumers on the hunt for Summer CE deals.

No pin action:

  • eBay saw no pin action as their growth rate was in-line with other June/July days.

We are still evaluating some of the other channels such as CSE, Google Shopping and Adwords and will update this post if we find anything of interest there.

Conclusion

By all measures, Amazon seems to have had a great first Prime Day.  In the US they were able to have a day that was 4X the baseline growth and come very close to Black Friday volumes for third-party sellers.  In the EU, there was also strong growth, but not quite as large as the US.  We’ll be watching closely and crossing our fingers that this becomes an annual event.  Next year 7/15 falls on a Friday.

Scot Wingo, Executive Chairman of ChannelAdvisor

 

 

 

 

 

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