Amazon Prime Day Ad Strategy 2024

Published on June 19, 2024

About this video

Amazon Prime Day Ad Strategy 2024 - I'm sharing the profit-first point of view when deciding which Ad Strategy to implement during 2024 Prime Day, tune in to learn more about this technique.

Welcome back to Amazonia PPC Agency! I'm Igor, co-founder of an agency dedicated to scaling Amazon brands. In today's insightful video, I dive into the critical elements you need to consider for Amazon Prime Day, including PPC strategies, inventory management, and promotional tactics. Whether you're a seasoned seller or gearing up for your first Prime Day, you'll find valuable strategies to maximize your sales and profitability.

*What You Will Learn*

*Assessing Profit Margins* - I discuss the importance of understanding your profit margins in the context of Prime Day sales and discounts. *Inventory Management* - How to ensure you have enough stock to handle increased sales without leading to detrimental stockouts post-event. *Prime Day PPC Tactics* - Insights into which ads may be worth running during Prime Day and how to manage your advertising spend. *Liquidation of Overstock* - Strategies for using Prime Day as an opportunity to clear out less popular or excess stock. *Recovering from Stockouts* - I provide tips on recovering your ranking post-Prime Day by adjusting your pricing strategy gradually.

*Detailed Explorations Include*

*The Reality of Prime Day Competitiveness* - Understanding the increase in PPC spend and how to strategically manage your bids. *Evaluating the Necessity of Ads* Whether to run ads based on your product's current conversion rates and optimization.

🛠️ *Actionable Advice*

*Preparing for Post-Prime Day* - Planning for inventory levels that will sustain you through and beyond Prime Day. *Optimizing for Mobile* - Ensuring your Amazon storefront and listings are mobile-friendly to capture the mobile shopper market.

For personalized assistance with your Amazon strategy, visit https://amazoniappc.com. We’re here to help you prepare for Prime Day and beyond. -------------------------------- Some product links are affiliate links, which means that if you make a purchase, we'll receive a small commission.

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Transcript

hi guys my name is Igor and I'm the co-founder of Amazonia PPC agency agency dedicated scaling Amazon Brands since 2016 in today's video I'm going to be questioning Prime day actually um every year uh we struggle to find new hacks new Amazon Prime day strategies but the things are pretty simple uh in general we should consider can our margins even withstand Prime Day discounts and volumes of sales do we have enough inventory support the sales velocity um also I'll be I'll be covering maybe if this is only an opportunity to liquidate some of your uh low stock products or maybe Overstock products and consider uh some uh strategies on Amazon ads should you even run ads and if so which ones and how much uh also sharing some of the tips now uh the first topic is are the margins obviously uh very often we end up hearing the revenue revenue revenue everybody's talking about the revenue but what's our profit margin if we are even making profit so on Prime day as you probably know competition is going to be fierce it's going to be slaughterhouse in bpc especially so everybody's going to increase their budget everybody's going to increase the PPC uh spend uh and bits so just to Windows uh top of search or any other um ad placement there that uh that's the the part of the strategy so um you really need to be focusing uh on your margins and decide how much and if it's going to even make sense to to uh participate in Prime day uh aside from that if you're covered with with your margins you should consider really having a good plan in uh product inventory so um having a stock out during the prime day or right after the prime day so uh sellers can concentrate so much on Prime day that they actually don't account that after the prime day you can even be really really low on inventory and that's really uh a killer for ranking on Amazon in general can be a tough to to recover uh after that uh speaking of stockouts not just uh after the prime day but in general throughout the year there's um uh little strategy that can help you get back to where you were after the stock out so you can you should price your product at break even or close to the break even as you can um and over the next 10 days increase your price slowly to to where you were so do that carefully not do not increase it like in two days or three days so do that over the 10 days support your ad support your product with ads where you the the same ads that you had before just continue as is but price your pro product uh really low uh back to the prime day so uh you need to plan your stock levels for Prime day if you consider your strategy you have good margins and you have good deals um uh already prepared you need to already have inventory coming to your Warehouse if you're if you're uh n fbm or the scheduled uh shipment to the Amazon warehouse if you're selling as a fbsl so uh it's not that like you're going to uh wait for Prime date to see what's going to happen and then plan accordingly the the next shipment so you need to account that the inventory should be already coming so uh it's a simple fact but let me state it to remind you if you haven't done that already um also this is a good opportunity to liquidate products with all those uh accumulating fees yeah so you have fees if you're low on stock if you have you have fees if you're overstocked so it's a good opportunity to to also sell out these uh maybe slowly slow moving uh products uh the way I would do it I would I usually recommend to to sellers to price them really at break even maybe even less than that uh because do your mat and see uh maybe it's more profitable for you to just sell them out quickly at a at a really low price and maybe somebody buying that low price and discounted product that if you're selling at at a break even uh you may upsell another product of yours along with it so I would do that to move the the low moving products really and also do that uh with do over stock at the end of the day it it's about your mat so but consider that just uh is it better for you to pay the fees for low stock or overstock or just liquidate those um kind of products um on Prime day now the ads famous ads yeah um definitely you need to know your numbers so how much you are willing to spend um um this can obviously go to the some of the some limits that we are even not aware that can happen during the prime day uh but you're if you're considering running ads on Prime day you should focus your budget on your best performance I wouldn't push your ads on products that have low conversion rate or just not uh optimized correctly um obviously to prepare for Prime day um you need to be preparing for that months before Prime day that that's an everlasting process optimi optimize your listings uh for best possible conversion rates um uh also similar to what I've said before know your margins know your profits for ads so if it's if it's not profit profitable for you to run ads you can easily decide that stop ads completely on Prime day that's also an option uh it may sound strange but if you concentrate on profit on those days when you will see an increase in traffic then it's completely um okay to not run the ads but that makes sense if you did a good job months before that if you optimize your listings correctly you have um astonishing product images uh and you worked on uh on your organic ranking by utilizing the the ads then you're completely fine not using ads okay obviously you will not compete um with the other guys with the product placements and everything else but if your organic ranks are good you're completely okay not running ads and just f Fus on profitability uh on Prime day um so anyway focusing on organic ranking is the thing to do on on Amazon nowadays it's always been but it's more and more um obvious that you need to do that now now for some tips on those of you guys that still going to do it this year uh the good tip is to create a dedicated storefront page uh for Prime day so you should have your deals over there listed like top deals um at the top and also as I mentioned in in the previous video for optimiz optimiz optimizing your listings for for mobile you should be uh optimizing your storefront for mobile especially on Prime day because not everybody's going to be at their desktop shopping uh if not uh most of guys will be shopping on over mobile um so make sure to have a dedicated storefront fancy looking straight to the point uh outlining your best deals uh also you should utilize your Amazon sorry Amazon posts if you acquired U following on your Amazon post you can use this opportunity to uh send messages uh to your uh followers for free like building anticipation that the prime day is coming then they can expect uh a good deals on their favorite products um also you should use your social media uh because as a as someone selling on Amazon you should really build a brand have a brand registry build a website be active on social media so you you you you as a brand should have an Instagram and all the other social media platforms and this is the great opportunity to use that use them to inform your buyers and potential buyers and their peers about the upcoming deals um the the final remark here is that you should really build a real anticipation and treat your bias respectfully because we've seen in the past years that there are some sellers who actually over the months before Prime day they actually increase the prices of their product and then with a discount they're just back to original price so that's not really a good tactic for for long-term um selling on Amazon so treat your buyers respect respectfully now the good option uh to use good ad type to use on on Prime day is sponsor brand ads okay it's going to be expensive if you aim for for top of search but anyway it's a really good attention grabber now there's um a tip how to use ponzo brand ads especially for Prime day so you should only use your um creatives with products added though only the discounted products added to the sponsor Brands and also there's a headline that you can use you can use like save whatever 20% off or $10 off those kind of uh headlines are not allowed but you can uh use something along the lines like great saving Zone whatever uh I don't know Iron straight straightening here straighten irons or whatever some of the beauty products or whatever you uh are selling so create savings or save on on certain products something along those lines um yeah so in general to sum it up uh consider know your know your numbers that's first consider if you can support the the deals if your margins are uh in in line with your strategy and also you you should consider if you should run ads or not um all in all it's a good time of the year to test how things are going before the Q4 and use the opportunity and lesson learned uh Lessons Learned to improve your strategy and uh product listings for the Q4 the second uh Prime day and the other important days in Q4 okay uh let me know what you think and if you need any further explanation on this let me know in the comments and if you need a custom tailored advice from us uh you can contact us over our website enjoy your day

Frequently asked questions

Should every Amazon seller run ads during Prime Day, or is it sometimes better to pause campaigns?

Running ads during Prime Day is not automatic ally the right choice for every seller. CPCs spike significantly as every competitor increases bids, which means the same click that costs a dollar on a normal day can cost considerably more during the event. If your margins cannot absorb that increase and still return a profit, pausing ads entirely and relying on organic rankings is a legitimate strategy. This only works well if you spent the months before Prime Day building strong organic positions, optimizing your listings, and improving conversion rates.

How do I know if my margins can support a Prime Day promotion?

Start by calculating your actual profit per unit after FBA fees, cost of goods, and any deal fees, then apply the discount you are planning to offer and see what remains. If the margin after the discount is too thin to also cover elevated PPC costs during the event, the deal is not worth running. The focus should be on profit per unit rather than revenue, since high sales volume at a loss is still a loss.

Which ad type is most effective to run during Prime Day?

Sponsored Brands ads are the recommended format for Prime Day because they occupy prominent placements and function as strong attention grabbers in a crowded feed. For best results, load the creative only with your discounted products and use a headline that signals savings without violating Amazon's copy guidelines, such as "Great Savings on [product category]" rather than a specific percentage off. Focus your entire budget on your best-converting products and avoid pushing spend toward listings with low conversion rates or unoptimized content.

How much inventory should I prepare for Prime Day, and what happens if I run out?

Your inventory needs to cover the Prime Day sales surge and also the weeks immediately after, since running out of stock post-event can damage your organic ranking at exactly the moment when traffic momentum could carry you forward. A stockout during or after Prime Day typically takes two to four weeks of consistent sales to recover from. Shipments to your warehouse or to Amazon FBA should be en route well before the event, not planned after you see how Prime Day performs.

How do I recover my ranking after a stockout?

The recommended approach is to reprice your product at or close to break-even when stock returns, then raise the price gradually over ten days back to your normal level. Continue running your existing ad campaigns at their usual settings throughout that period without making structural changes. Increasing the price too quickly interrupts the sales velocity your listing needs to rebuild its ranking position.

Can Prime Day be used to move overstock or slow-moving inventory?

Yes, and for some sellers this is the primary reason to participate. Pricing slow-moving products at break-even or slightly below during Prime Day allows you to clear accumulating storage fees quickly. There is also an upsell opportunity if a buyer discovering your brand through a discounted product then browses your other listings. The calculation to make is whether the cost of holding the inventory and continuing to pay fees is greater than the cost of selling at a reduced margin now.