Amazon Prime Day 2016 – Quick NetElixir Insights

Amazon Prime Day turned out to be another blockbuster event for the world’s biggest online retailer. The online retailer said that July 13, 2016 was its biggest sales day ever, with worldwide orders up by 60%, with respect to the previous Prime Day. In the US alone, the orders were up by 50 percent. (Source: CNBC)

Now, there shouldn’t be any reason why Amazon wouldn’t repeat such a successful event. Last year alone, Amazon sold more units than on the previous Black Friday, and this repeated pattern suggests that Amazon Prime is the biggest asset for Amazon.

The Amazon Prime program is not just about generating revenue. The bigger overall goal is to motivate shoppers to become Amazon Prime subscribers. A Prime subscription offers free two day shipping and other incentives for its members. Prime members are very valuable for Amazon as they spend an estimated $1,500.00 a year on Amazon, while non-members spend close to $625 (Source: CIRP)

As per NetElixir’s Retail Insights Lab, on July 12, the contribution of Amazon to the top-line sales of our clientele rose from 18% to 22%. (compared to the average of the previous week). Channels like Direct and Referrals were not as affected whereas channels like Paid Search, Social, Email and Organic witnessed a decline.

Paid Search declined marginally by 0.5 points, while Organic saw a sharp fall by 5 points. This could also be interpreted as how Amazon is able to cannibalize traffic from Google search.

We can’t wait to see what happens next year!

Note: NetElixir Insights analyzed around nine verticals to come up with the above data.

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