Blog | Zenventory

7 Ways to Maximize Your Prime Day Profits | Zenventory

Written by Catherine O'Toole | Jul 24, 2024 4:03:51 PM

Congratulations on surviving Amazon Prime Day 2024! With the big event now behind us, here are 7 ways to help maximize your Prime Day profits and help you plan for the future.

 

#1: Re-evaluate your pricing strategy

Re-evaluate your pricing strategy to maximize your profits. Any prices that you updated for Amazon Prime Day will need to be readjusted. Give your shop a thorough review to ensure your prices are optimized for selling post-Prime Day. It's important to strike a balance between competitive pricing and maximizing your profit margin.

Consider conducting market research to determine if your prices are in line with your competitors. Keep an eye on pricing trends and adjust accordingly. By regularly monitoring and adjusting your prices, you'll stay competitive and maximize sales.

 

#2: Use your prime day sales data to optimize your ad budget

Amazon Prime Day often involves higher advertising budgets to capture the attention of shoppers. Now that Prime Day is over, it's time to update your budget to pre-event pricing.

Also, as you analyze your past data and performance from Amazon Prime Day, you might find that some product listings sold better than others. You can also use the data to identify which products did not perform as expected. Based on this information, you can optimize your ad budget going forward by allocating the advertising funds to the sponsored product ads that performed well.

 

#3: Ask for reviews

Customer reviews can help establish trust and credibility for your products. Take advantage of your sales during Prime Day and reach out to every new customer for a review as part of your post-event follow-ups.

There are a couple of ways that you can request a review. You can use the "Request a Review" feature in your seller central on Amazon, or you can use an email marketing tool to ask customers to review their most recent purchase. Positive reviews can set you apart from your competitors and drive future sales.

 

#4: Analyze your Prime Day performance

With Amazon Prime Day over, it will help you in the future to analyze performance and use that insight to help you prepare for the next event and increase your profits for upcoming events like Black Friday.

Here are some ways you can analyze your performance:

  • Promotional strategies: Did you have enough sales to make up for the money spent on discounts?
  • Sponsored ads: How did you advertise during Amazon Prime Day? Did you run out of your budget early? Were there any unique search terms that you can use going forward?
  • Surprises: Did you have any products that surprised you and moved faster than expected?
  • Stock inventory: How were your inventory levels during Prime Day? Did you understock or overstock?
  • Review: Is there anything you wish you had done differently? (Examples: run coupons, promotions, advertising, inventory changes, etc.)

 

#5: Expand your reach

While Amazon Prime Day is primarily focused on Amazon, don't limit yourself to a single sales channel. Expand your reach to a wider audience and maximize your sales. Consider selling on other platforms like eBay, Walmart, or Shopify.

Diversifying your sales channels can help you reach new customers and reduce your reliance on a single platform. Each channel may have its own unique audience and opportunities. However, exercise caution when expanding to other platforms. In the past, Amazon removed the sought-after buy box from sellers after discovering lower prices on Target's online marketplace. 

 

#6: Offer exclusive post-Prime Day sales

Don't lose the momentum generated during Amazon Prime Day. Continue to engage your audience by offering exclusive deals and time-limited promotions to entice customers to make additional purchases. 

Send out targeted advertising campaigns to inform your customers about these exclusive deals. Leverage the sense of urgency and the desire for savings to encourage immediate action.

 

#7: Correct inventory issues

Maintaining a healthy and accurate stock inventory is critical for maximizing your profits. After Amazon Prime Day, it's important to address any inventory issues you may have encountered. Here are some ways to ensure your inventory health is in order after the event.

Overstocked inventory Vs. understocked inventory

Which is worse: overstocked or understocked inventory? Both affect your bottom line and business.

Overstocked inventory

In addition to the storage fees from overstocked items, Amazon continually updates their Fulfilled by Amazon (FBA) Inventory Performance Index (IPI), so overstock can affect your IPI history and your current IPI score.

Understocked inventory

Understocked items hurt your bottom line because you can't sell something you don't have. Sold-out products can't generate sales and profits, and you can lose out on potential business.

 

Say goodbye to inventory issues &
Hello to increased profits

To avoid the pitfalls of dealing with overstocked or understocked inventory, consider a professional-grade solution like Zenventory. The best inventory management software for your business will provide many benefits, like:

  • A centralized product catalog for all your sales channels
  • Cycle count management to identify losses early and keep your inventory accurate
  • Low stock alerts to avoid stock outages
  • Kitting & bundling features to increase the profitability of your average order
  • And more!

To see first-hand how an inventory management system can help you, book a free product tour with one of our product experts.

 

Final thoughts

You can't relive the past, but you can use what you have learned to help you in the future. Amazon Prime Day, Black Fridays, and Cyber Mondays are not going away, and they are a golden opportunity to plant the seeds for your brand's future success if you go into them ready and armed with the right tools. Utilize the valuable insights from Amazon Prime Day to optimize your future earnings and streamline your planning process. Take advantage of tools like Zenventory to simplify your operations and make your business endeavors more efficient.