What is PD?
Launched in 2015 to celebrate Amazon’s 20th anniversary, Prime Day has grown into one of the largest retail events worldwide, rivaling Black Friday and Cyber Monday. It serves as both a customer appreciation event and a major sales accelerator for Amazon and its vendors.
How It Works:
- Eligibility: Exclusive to Amazon Prime members.
- Timing: Usually held mid-year (June or July), though Amazon sometimes adds additional events (e.g., Prime Day 2 in October).
- Duration: Traditionally 48 hours, but in some markets extended to 3–4 days (PD3, PD4).
- Deals Offered:
- Lightning Deals: Limited-time, limited-quantity offers.
- Best Deals: Multi-day discounted listings.
- Prime Exclusive Discounts: Vendor-funded price reductions for Prime members.
- Vouchers & Coupons: Additional customer-facing incentives.
- Supported by: Heavy ad spend, merchandising support, and fulfilment optimisation.
Benefits for Vendors and Sellers:
- Massive sales uplift: Vendors often experience 3–5x their normal daily volume.
- Brand awareness: Increased visibility leads to higher long-term ranking and reviews.
- Inventory clearance: Ideal for moving older or seasonal stock.
- Customer acquisition: Exposure to millions of active Prime shoppers.
Benefits for Amazon:
- Prime membership growth: Drives sign-ups and renewals.
- Advertising revenue: Significant increase from Sponsored Ads and Brand Campaigns.
- Customer engagement: Strengthens loyalty through exclusive value.
- Supply chain optimisation: Smooths mid-year demand before Q4 peak.
Challenges:
- Operational stress: High demand requires strong fulfilment and inventory planning.
- Ad competition: CPCs spike significantly during the event.
- Strict deadlines: Vendors must submit deals and inventory weeks in advance.
- Post-event returns: Some categories (electronics, fashion) see return spikes.
Why It Matters:
Prime Day is central to Amazon’s retail calendar - it drives billions in revenue, boosts Prime engagement, and sets the stage for Q4 performance. For vendors, participation is almost mandatory for competitive positioning.
Example:
A consumer electronics brand participates in Prime Day (PD) with 30% discounts on headphones and smart speakers, generating +400% sales growth compared to an average day and doubling review count within one week.
In short:
PD (Prime Day) is Amazon’s global mid-year sales event for Prime members, offering deep discounts, massive traffic, and brand exposure across all categories.
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