Amazon Prime Day's influence can benefit all retailers
Prime Day 2018 set records for Amazon, but it also showed what other retailers can do to profit from it.
The online presence of Prime Day benefits other retailers as well. Consider that more than 75% of Prime Day shoppers visit other online stores before buying anything on Amazon.com.
Target, Walmart, Kohl’s and others seized the opportunity surrounding Prime Day 2018 to help themselves during this year’s 36-hour extravaganza.
Target, in particular, negotiated Prime Day quite well as it registered its largest online shopping day of 2018. Its emphasis on “no membership required” could be seen as a direct jab at Amazon.
The biggest selling items included small appliances, beauty and personal care, baby gear, home, and tech items. Target’s red-hot deals included 30% off Target home brands, 25% off beauty and personal care products, and 30 percent on Google products.
Most of these items were either 25 or 30% off. Target’s REDcard members received an additional 5 percent off and free two-day shipping on most items on Target.com.
It also gave shoppers who spent more than $100 on Target.com on July 17 a free six-month membership for same-day delivery via Shipt. The membership is normally $99 for the year.
Also, Target had a weeklong 15 percent off promotion on select school supplies connected to Back-to-School. In its brief history, Prime Day has now become the unofficial kickoff to the Back-to-School savings season for various retailers.
Target showed that any retailer can take full advantage of the halo effect created by Prime Day. It takes a certain amount of preparation and strategy, but retailers can make Prime Day a "prime day" for themselves.
The volume of online shoppers that Prime Day attracts is enough reason for any retailer to create one of these single-day shopping festivals for themselves. If retailers want to engage their customers during Prime Day and tap into that Halo Effect, they should think strategically.
Walmart launched its Ultimate Summer Specials Sale across the entire site. Laptops, electronics, furniture and more were offered at substantial discounts.
Other retailers with a brick-and-mortar presence also offered great deals. Macy’s got the jump on Prime Day with its Black Friday in July sale. Kohl's held a one-day sale event called, “It’s A Big Deal.” Kohl’s offered discounts on KitchenAid appliances, mattresses, workout clothes, and more a week ahead of Prime Day.
One of Amazon’s biggest online competitors, eBay, offered thousands of exclusive deals. Just like Target, eBay also emphasized that there was no membership required. Ebay also updated its price-matching policy to offer U.S. shoppers 110 percent of the price difference if they were able to find an item for less on an approved competitor's website. (That list includes Amazon.)
Prime Day is obviously a massive day for Amazon, but it has shown to be a prime opportunity for retailers who listen to their customers and plan for it accordingly.
July has turned into a mini shopping holiday not just for Amazon, but for all retailers.
Consumers are already in shopping mode, so retailers that focus on personalized and targeted offerings, and promotional campaigns around Prime Day can all reap the rewards of the Prime Day halo effect.