Kayla Marci

May 15, 2022

How Fashion Retailers Can Compete Against Amazon Prime Days

Lessons learned from retailers participating in Prime Days 2021 and the trends defining 2022.

The 48-hour mega sale is back to a July slot for the first time since 2019. Though the official date has not yet been confirmed, what we can be sure of is retailers running competitive sales to win market share back from Amazon. 

And with the first day of deals driving the most online sales for the ecomm giant in 2021, surpassing $5.6 bn, this year is anticipated to be bigger than ever. 

Using EDITED Retail Intelligence, we assessed how the industry’s 2021 deals stacked up to previous years and the discounting strategies retailers put in place to trade competitively.

Interested in knowing how EDITED can help uncover your competitors discounting strategies? Get started here.

Amazon Prime Days

 

Direction & Early Trends for 2022

Markdowns will be Conservative

The defining discounting trend to come out of the pandemic is a more pared-back approach to sales as retailers opt for strategies to support their financial recovery. The uncertain landscape paved by new lockdowns in China and continued supply chain struggles will mean retailers remain cautious about slashing prices dramatically over Prime Days. Last year saw a focus on discounting a wide assortment of products at a more subtle markdown – optimal to keep margins intact. Ensure average discount depths don’t exceed 40% and offer discount codes for loyal customers on products that require a steeper reduction to sell through.

Support Small Businesses and Give Back

In the lead-up to the event last year, Amazon rewarded consumers for shopping small businesses with discounts to be used over Prime Days. This strategy can be implemented at multi-brand retailers to highlight artisans or local labels. As The Kindness Economy born from the pandemic continues to be prevalent, discount-adverse retailers can use Prime Days to raise awareness for sustainability or human rights events in July, such as Plastic Free July, Malala Day and Nelson Mandela Day. 

 Amazon Prime Days Amazon Prime Days

Fashion World Email US – Jun 21, 2021 & Aforprick via Amazon
 

A Return to Summer Sales

Though Amazon has not yet confirmed the exact days, the event will return to a July slot for the first time since 2019, with the internet predicting the 18th and 19th. Use the time to clear summer stock ahead of new season drops. However, with fewer restrictions around travel than have been permitted since pre-pandemic times causing a boom in vacation wear, seasonal categories might not need as much incentive to move as in the past few years. Evaluate the performance of swimwear and dresses before setting them up for heavy markdowns and avoid reducing hot products with transseasonal appeal. Cargos, mini skirts and dresses and linen have longevity to continue selling at full price.

Back-to-School Back in Focus

Traditionally, Prime Day was used to kickstart BTS shopping. Its return to a July window makes it the opportune time to sync communications promoting school and college product edits. Working in collegiate apparel, uniforms, footwear and backpacks into pre-and post-Prime offers as the event usually influences month-long sales advertising.

Amazon Prime Days Amazon Prime Days

Monki Email UK – Apr 5, 2022 & Athleta Email US – May 1, 2022
 

Lessons From 2021