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BizReport : Ecommerce : July 12, 2016

Expert: What Amazon Prime Day means for merchants

While Amazon continues to strengthen their online retail hold, one expert believes there are strategies that merchants can use to combat Amazon's hold on online shoppers - even during Prime Day.

by Kristina Knight

Today is the second Amazon Prime Day - a day when the retail giant offers up what they call 'more than 100,000 deals' to members who pay for Prime membership. What can other merchants learn from the Prime strategy?

First, loyalty is key.

"Hype around daily deals is becoming the new normal for many shoppers. Everyone is waiting to hear the actual number of new Prime Members that Amazon will acquire on Prime Day, through Amazon's strategy of capitalizing on this thirst for daily deals. In the long run, non-Amazon retailers may experience customer retention difficulty because of the increased traffic and shopper loyalty to Amazon via Prime Membership. Retailers should not only consider their own daily deal promotional strategies (in search, social and email), but they should also consider partnering with Amazon," said Scott Shamberg, President - US, Performics.

Second, social can build buzz and recognition.

"Even in the days leading up to Prime Day, conversation around Amazon's deals is soaring. #PrimeDay is trending. Get social ads in front of people talking about and following Amazon and related topics to drive engagement. These people have the intent to shop on Prime Day, and you may be able to intercept that demand by promoting deals of your own. Furthermore, readily greet customers when they're searching for time-sensitive, exclusive or increased deals on search engines," said Shamberg.

Third, don't forget about discovery.

"In recent years, product discovery, consideration and purchase has moved well beyond just the Google search page. Many consumers are loyal to Amazon and begin their product search process on Amazon vs. Google. Advertisers must engage these consumers, particularly with new Amazon advertising opportunities, like Amazon Sponsored Search. Amazon Sponsored Search works like traditional paid search, where ads are triggered by queries keyed into Amazon. Going forward, Amazon paid search should be part of all advertisers' performance marketing toolkits," said Shamberg.

Tags: amazon prime day, ecommerce, ecommerce trends, Performics

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