Amazon Prime Day 2021 has had its “biggest two days ever” in sales for its third-party sellers, with more than 250 million products purchased by Prime members worldwide, according to the company.
Amazon didn’t reveal specific sales data, which it did in 2020 when the company announced that Prime Day 2020 brought in $3.5 billion for third-party sellers. This year’s best-selling categories included Tools, Beauty, and Nutrition. Total U.S. e-commerce sales during Prime Day exceeded $11 billion, up 6.1 percent from 2020, according to Adobe Analytics’ Digital Economy Index.
Doug Gunterman, co-founder and CEO of NumNum, a maker of baby spoons and plates, says his sales on Prime Day are up 30 percent year over year. Gunterman added that early summer timings this year benefited his company in Pensacola, Florida, as he found summer is usually a low sales period in the kids’ category. “The corona effect on Prime Day will last for weeks,” Gunterman predicts.
Hector Gutierrez, co-founder and CEO of plant-based milk concentrate maker JOI, made a 15 percent off pre-peak day and 25 percent off Prime Day on Mondays and Tuesdays. The Miami-based company saw a 799 percent increase in revenue compared to its daily average in May. “The revenue we incurred as a result of the discounted price more than offset our advertising spend,” Gutierrez said.
However, not all small business owners see Prime Day as a boon for business. Megan Thomas, co-founder of Pinch Spice Market, says this is the last year her Louisville-based spice company will participate in the annual sale because it can no longer justify advertising spend. She’s run Prime Day campaigns for her business since 2019, spending thousands of dollars on advertising and marketing with diminishing returns every year, she says.
“We really started to wonder if we should pay to play on Amazon,” Thomas says. “When it comes to where my advertising money is going, the numbers don’t add up for me.” She says spending advertising dollars on other platforms, such as social media and email campaigns, has proven to be a more cost-effective way to increase sales.
Parker Russell, founder of the Black Ink Coffee Company in Bangor, says his annual Prime Day experience since 2019 has been “quiet,” with his menus often buried in Amazon’s competitive grocery pages. However, an increase in online search traffic from consumers looking for deals around Prime Day led to a 10-fold increase in Black Ink affiliate sales on Mondays and Tuesdays compared to the day’s average. Russell advises other business owners to make deals with affiliates before Prime Day to give out exclusive coupon codes to their followers or offer higher payouts to affiliates for each transaction.
“Or you can simply pay to be the first product they recommend,” he says.