As an online seller, checking sales figures is just as important as fulfilling orders.
Information is power. Reviewing your figures, as well as Amazon’s, can provide valuable insights. The information you obtain can help increase your revenue and propel your business.
The best of 2020 and Amazon’s holiday shopping recap showcases how potential customers shop. This data can help you pivot in your business and create a profitable 2021.
- Facebook, Google, and Instagram ads helped increase profits for all three platforms (including Amazon)
- E-commerce isn’t going anywhere
- Prime members are the ideal customers
- Third-party retailers earned 60% more than last year during Amazon Prime Day
Best of 2020: 5 Takeaways from Amazon’s Holiday Shopping Recap
Amazon has had its most profitable holiday shopping to date.
Though Amazon hasn’t released all of its sales figures yet, it provided the following information to news sources:
- Independent sellers on Amazon reached over $4.8 billion in sales worldwide between Black Friday and Cyber Monday (up 60% from 2019)
- Over 71,000 small- to medium-sized businesses surpassed $100,000 in sales so far during the 2020 holiday season
- Amazon may earn 42 cents of every dollar spent by online shoppers
All of this is despite a global pandemic, civil unrest, and a contentious election season. Clearly, Amazon is doing something right. If you follow their lead, you can see record profits, too.
We’ve put together the most relevant statistics to help you realign your Amazon marketing strategy.
1. Amazon Prime Day Started the Holiday Season off Right
Amazon Prime Day normally occurs in July. Due to the pandemic, Amazon postponed the online event until October 13th and 14th. The 48-hour event boasted some impressive numbers.
- Small- and medium-sized businesses grossed more than $3.5 billion (60% more than they earned in 2019)
- Third-party sellers are now growing more than Amazon’s own retail business
2. Cross Promotion Impacted Sales for Everyone
Even brands that don’t sell on Amazon can profit during Amazon Prime Day. Shopping ads on Google and Facebook caused sales growth to outpace spending for these platforms, as well as Amazon.
Retailers on Amazon benefitted from the online ads on Google, Facebook, and Instagram. Sales attributed to Facebook increased by 79%. The increase in Instagram’s sales is mind-blowing, rising by 159%.
3. Online Shopping Is Here to Stay
Online shopping was popular before the pandemic. However, due to the stay-at-home and quarantine orders, more people than ever are shopping online. The United Nations anticipates that the changes made in 2020 will have a lasting impact on the world’s economy.
Online purchases over the year increased by up to 10% in most product categories. The highest gains were in:
- Household appliances
- Personal care products
- Information and communications technology
So far, the top-selling categories on Amazon during the 2020 holiday season are:
- Gift cards
- Camera and photo products
- Video games
- Clothing, jewelry, and shoes
4. Black Friday and Cyber Monday Were Big Earners
Last year, Amazon sales on Thanksgiving Day amounted to $5.1 billion. In 2020, sales increased by 22%. Black Friday sales increased as well, totaling $9 billion. Cyber Monday saw a 15% spike, with figures coming in at nearly $11 billion. To date, the 2020 Cyber Monday numbers made that day the largest for online shopping in US history. On December 1st, Taylor Schreiner of Adobe Digital Insights said he expects the 2020 holiday shopping season will continue to shatter records.
5. Amazon Prime Members Spend More
On Amazon Prime Day alone, Prime members saved nearly $1.5 billion. The more they save, the more they’re willing to spend. Reports show that Prime members spent over double that of non-Prime members, $1400 in 2019 compared to $600 respectively. It makes sense that the 2020 numbers (when they’re released next year) will certainly exceed current numbers due to the increased online shopping rate.
How the 2020 Amazon Holiday Data Can Help an Amazon Seller
Data from the best of 2020 Amazon holiday shopping recap is encouraging, Amazon sellers can see there’s enormous potential for revenue growth. Particularly inspiring are the numbers for third-party sellers. As an Amazon marketplace seller, you and others like you have the potential to out-earn Amazon in 2021.
Here are some steps you can take to make that happen.
- Plan ahead: Start focusing on your inventory before Amazon Prime Day (which is typically in July). It could be one of your highest-earning days. Don’t get stuck without product stock! Increase your inventory in July just as much as you would in November in preparation for Black Friday. Talking to your supplier or manufacturer can help you to be better prepared. Find out about their production timeline, whether they have any blackout/holiday/non-production dates, and when they’re the busiest.
- Take advantage of video marketing: Video has continued to gain in popularity and importance over the past five years. Nearly 90% of marketers who use video in their marketing say they see positive ROI (up from 33% in 2015). Amazon sellers can utilize Sponsored Brands videos to stand out amongst their competitors.
- Incorporate Amazon Live: Amazon Live is like QVC. Hosts discuss and demonstrate their products, and the interactive process makes buyers more confident in their purchases.
- Start using Instagram for Amazon: The 2020 stats showed that Instagram advertising helped raise sales by nearly 160%. To start seeing sales increases for your brand, leverage Instagram to show customers images and how-to videos to engage your audience and educate them about your brand and the products you sell. People know and trust Amazon—therefore, potential customers are more likely to invest with Amazon-affiliated brands.
Don’t Let the Pandemic Hold You Back
Some people feared the pandemic would completely upend the US economy. However, many citizens are not in dire straits. They’re still spending their money online at a record-shattering pace.
As an Amazon seller, you can take advantage of the e-commerce shift. Online shopping is here to stay. Gather the sales data that can help your business grow and put what you learn into action. Doing so can ensure you have amazing sales figures in 2021.
What did you learn about your business last year? Share those trends and any exciting developments with us on Facebook! .