Known as summer’s Black Friday, Amazon Prime Day has altered discount strategies worldwide. We use EDITED’s retail data platform to uncover how apparel retailers are squaring up against the e-comm giant and what to expect for the upcoming event.
Last year, Amazon Prime Day was touted as the ‘biggest shopping event ever’ with 100 million products sold. While electronics came out as the top-selling category, customers purchased more than 5 million items in both apparel and beauty. This year, the event is poised to be even bigger with sales for Prime customers held over two days – mark the 15th and 16th of July in your diaries if you haven’t already!
So, what do retailers need to know to win Prime Days? Read on as we reveal the data behind the product that’s flying off the shelves.
Interested in knowing how EDITED can help uncover your competitors discounting strategies over Prime Days? Get started here.
So, what can historical data teach us?
EDITED data confirms US retailers are going head-to-head with Prime Day. More products are selling out as retailers are deepening discounts. In fact. the average discount on Prime Day 2018 was 42.5%, a slight increase from 2017 at 39%. As the presence of Prime Day grows, we can expect to see this trend grow as retailers continue to slash prices to compete with Amazon.
While the number of products discounted for the first time in the six weeks leading up to Prime (including the actual event) saw a slight decline (4.4% YoY), the number of product sellouts have increased by 52%.
Retailers are focused on discount depth over breadth of products to move through older stock to compete with Prime Day tweet
Drilling down to a category level shows tops made up 37.8% of the product first discounted on Prime Day followed by dresses, accessories, and bottoms each making up 14% of the mix. This correlated with the product experiencing sell out during this time. Tops equated to 31.4% of sellouts followed by accessories at 14%, bottoms at 11% and dresses at 10%.
Retailers to watch
It’s not just Amazon that retailers will need to keep eyes on. Target is proving to be a force to be reckoned with over this period, announcing its own promotion days open to all customers. The offer during “Deal Days” includes 30-40% off items including furniture, appliances, toys and sporting goods. Last year, Target’s sales over Prime Day became one of its biggest online shopping days, promoting an ‘up to 40% off clothing’ message on its homepage among other deals. EDITED data confirms the retailer discounted 20% of its assortment over Prime, with 30% as the average markdown percentage. Jump to present day, one week out from Prime Day, 24% of Target’s apparel assortment is currently reduced at an average advertised discount of 28%.
Moreover, Walmart has also announced its plans to beat Amazon at its own game. Its upcoming ‘Summer Savings’ will run from the 14th – 17th of July. The event is open to all customers with free shipping on orders over $35. Walmart’s current state of play a week out is 33% of products discounted with the average reduction at 35%.
Outside of these players, the retailers discounting the most product last Prime Day were Macy’s, Zappos, Nordstrom, and Zara.
UK retailers: We’ve got exciting news for you
EDITED is now tracking Amazon in the UK!
British retailers are increasing their participation in American discounting events. Black Friday sales are now the norm in UK retail calendars. And Prime Day is gaining traction – since 2016, the number of discounts taken for the first time on Prime Day has increased by 83% in the UK.
Use EDITED to compare how your brand is being discounted on Amazon compared to third-party retailers on the lead up to Prime days… and all year round.
Want to get your mitts on this data? Speak to our dedicated team for a demo.