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How To Take Advantage of Amazon Prime Day’s Halo Effect

Posted by Hilda Wandawa on

How To Take Advantage of Amazon Prime Day’s Halo Effect

Amazon Prime Day has grown to be an important sales event in the eCommerce calendar. It’s easy to assume that Prime Day’s powerful earning potential is reserved for Amazon merchants. We’re here to challenge that assumption!

Read on to find out how your eCommerce store can also reap the rewards of Amazon Prime Day 2022.

Amazon Prime Day 2022 At A Glance

Amazon Prime Day 2022 will take place on July 12th and 13th. Sales for 2022 are expected to reach an all-time high of $12.52 billion, with the majority of it coming from American consumers. This, however, doesn’t mean international shoppers won’t make a considerable dent. Prime Day’s expansion into more foreign markets could cause non-US sales to shoot up by 17.3%.

When it comes to products, consumer electronics and apparel are always top sellers. It’s set to be the same story this year with consumer electronics and apparel bringing in $96.97 million and $63.99 million, respectively, in the US alone.

 top categories during amazon prime day | amazon halo effects

(Source: eMarketer)

So, why should you, a non-Amazon merchant, care about Prime Day? A phenomenon known as the Amazon Prime Day halo effect contains the answers.

What Is The Amazon Prime Day Halo Effect and Why Does It Matter to Your Store?

What is the “halo effect”?

The term was first defined by psychologist Edward Thorndike in the 20th century. He stated that a halo effect is a form of cognitive bias where one aspect of a person, brand, or institution influences our overall perception. In other words, an expectation can be created from a single experience. It’s a glowing light that fills the whole room.

When we look at the halo effect through an eCommerce lens, it morphs into something that can be extremely beneficial for e-merchants.

The impact of Amazon Prime Day halo effect to non-Amazon merchants

A large, well-known online sales event, such as Prime Day, may cause shoppers to expect savings from all e-retailers. Thus, they’ll be actively on the hunt for the best deals they can find online. But don’t just take our word for it! Here’s some data-backed evidence that shows the power of the halo effect during Prime Day:

  • A survey by Adobe reveals that 47% of consumers expect other retailers to have online deals
  • In 2021, 20% of Prime Day shoppers bought items from other retailers
  • During Prime Day 2021, worldwide daily average network revenue for retail and service brands increased by 36%

amazon prime days boost sales for its competitors

In the US, sales from rival competitors’ sales events are catching up to Amazon Prime Day (Source: eMarketer)

This means that Amazon Prime Day essentially primes consumers for shopping. It gets them ready to open their wallets for the best deals on the internet, not just on Amazon. As more markets get access to Prime Day savings, and as shoppers are set to spend more this year, you can expect the halo effect to have an even brighter radiance.

How Your Shopify Store Can Take Advantage Of Amazon Prime Day

Have a variety of promotions aimed at different shoppers

During Prime Day, you’re likely to see deal-hunters come to your site for the first time, alongside your regular ones. This could mean that your tried-and-tested promotions won’t resonate with everyone landing in your store. Plus, consumers are searching for the best deals. This makes variety an important factor when it comes to your sales strategy.

deals day on target to catch up with the amazon prime day halo effect

Target offers a range of promotions over its answer to Prime Day; Deals Day. (Source: Black Friday)

Appeal to an assortment of shoppers with deals based on their circumstances and intent. For example, you could give first-time customers an additional discount. Returning customers can make extra savings with a personalized coupon code, or they could get early access to sales. A buy-one-get-one-free offer could be implemented on lower-priced items or slow sellers.

With a wide selection of promotions, you’ll ensure that no matter who comes to your store, there will be a deal that sparks their interest.

Nordstrom’s Anniversary sale begins earlier and lasts longer than prime day

Nordstrom’s Anniversary sale gives shoppers huge savings on major brands like Topshop Madewell and Veronica Beard. They also grant early access to members, and the sale runs for longer than Prime Day. (Source: Jess Ann Kirkby)

To gain a competitive edge, it’s a great idea to provide savings that shoppers won’t find on Amazon. The emphasis and best deals are placed on Amazon products during Prime Day. So, if you stock brands, particularly across apparel and consumer electronics, slash your prices on them.

Finally, there are sure to be shoppers who are in the mood for deals even after Prime Day ends. Consider running your sales event for a day or two longer to capture them whilst they’re still in the spending spirit.

Impress shoppers with your shipping

Consumers love Amazon because of its hold on shipping. In fact, 49% of them choose Amazon due to its shipping options and ability to deliver quickly. Promising free next-day delivery may just simply not be an option for many e-merchants, but that doesn’t mean all hope is lost. Instead, optimize the delivery options you are able to provide.

A free shipping option is going to be a must. 80% of consumers expect free shipping once their order price exceeds a certain amount whilst 66% believe it should be on all orders. These numbers are simply too large to ignore. So be sure to offer free delivery, whether it’s on all orders over the sales period, on orders that go over a certain amount, or a mixture of the two.

order tracking on mavi | amazon prime day

Simple order tracking from Mavi. (Source: Mavi)

Reliability in terms of shipping is another crucial factor. Consumers want to feel assured that their package will arrive on time, and in fact expect it to arrive within a week. Fail to do this, and you’ll have hoards of unhappy customers on your hands.

You can alleviate the stress of an order arriving late by being transparent. Give your customers the ability to track their order, and be clear about how long the delivery will take at checkout. This will go a long way in establishing trust, particularly for first-time visitors.

same day delivery on target

Target offers same-day delivery services, including drive-up and in-store pickup, on all orders during their sale.

You also shouldn’t forget about the delivery option that dominated COVID-era shopping - in-store and local pickup. Shoppers continue to flock to this delivery option as it presents them with even more savings and greater convenience. If you have a brick-and-mortar store, you should definitely offer in-store pickup. You could even sweeten the deal by giving customers extra money off for choosing this delivery method. If you’re solely online, offer curbside pickup for customers that live in your area.

Tell the world about your deals

You need to shout about your sales and capture the attention of the shoppers that have got their eyes peeled for deals. So, an effective marketing strategy tailored to different types of customers is a tool you need to have in your pocket.

First and foremost, pay some attention to your existing customer base. After all, they are up to 10x more likely to purchase than a new customer. Use this as an opportunity to show them just how well you know them and value their loyalty by leveraging the data you’ve collected on them.

Create email campaigns that show your loyal customers the products they’ll love that are going on sale. If you’re offering exclusive discounts or early access for existing customers, use emails to make this known alongside a specially curated, personalized selection of products to get them excited.

Social media’s role in the consumer shopping journey is too big to ignore. Two-thirds are using it to research and discover items they want to buy, so it’s a certainty that this will be the case during Prime Day. To really take hold of these consumers and entice them to your store you’ll need two things: user-generated content (UGC) and video.

red dress effectively uses user generated content on their website

Red Dress uses lots of UGC to connect with their followers on social media. (Source: Instagram)

UGC on your social channels can be reposts of customers modeling your products and gushing about them. This not only gives your products some context but also instills trust in the quality of your products. Try adding these to your Instagram and Facebook stories as a teaser for your upcoming sale. When including them as posts on your pages, make sure they are shoppable.

Video content can work in tandem with UGC. Besides having an ad-like video on your social channels, try including video content of real people using your products. A winning method is to partner with a micro-influencer who will provide a tutorial or review your products to their loyal following.

Read more: How to Utilize the Benefits of User Generated Content

You should then tie all of this into your ad strategy. The competition will be fierce over Prime Day, so adopt a strategy that is fine-tuned towards the specific shoppers you are targeting.

Direct your ad bucks to existing customers as they are the most valuable. Use ad retargeting on search engines and social media to lure your customers back. For new customers, use social media ads that showcase the UGC you have for an extra dose of allure.

Optimize product discovery to boost sales

To get the most out of shoppers that land in your store, you need to make it as easy as possible for them to find what they want.

Make sure that you have carefully curated collections that will appeal to different types of deal-hunters. Try having a mixture of collections based on the offers available and the product type. You can then display all of them on a dedicated Sales page.

For your homepage, include collections that are most popular among Prime Day shoppers - clothing and electronics - or the ones that have the most savings.

You also should get the search function in your store in top shape. The search box is where 43% of online shoppers immediately navigate to. Searchers are also more likely to purchase a product, so this deserves lots of attention. Some tips for optimizing your search function include:

  • Instant search results as you type accompanied by images
  • Suggestions and autocomplete
  • Pushing the most popular sale items to the top of the results
  • Displaying original price alongside sale price
  • No search result page populated with trending or featured sale items
  • Inclusion of star rating

ninewest upgrade site search using boost product filter and search for shopify store

Nine West makes use of the powerful search features of Boost Product Filter & Search, making looking for sale items a breeze. (Source: Nine West)

You’ll also need to make narrowing down the products in your collections a simple task for visitors. Get them closer to the sale items they desire with effective filtering capabilities. For filters to be up to the task they should:

  • Be relevant to the category and collection
  • Allow for multiple filters to be selected at once
  • Void of jargon
  • Easily editable

If you’re a Shopify store owner you can get all of these search and filtering capabilities plus more with the Boost Product Filter & Search app.

Find out more:

Notifications can also provide a good push towards a sale. They have the ability to steer visitors in the right direction towards products they may be interested in and incentivize a purchase.

Make a personal connection with shoppers by leveraging data like on-site activity and past purchases to inform notifications. The aim here is to quickly direct customers to the savings of most interest to them.

headphone zone uses push notification to boost sales

Headphone Zone uses web push notifications to drive visitors to specific products. (Source: Push Owl)

You’ll likely have loads of new consumers visiting who won’t be familiar with how you operate. Clearly displaying your delivery and returns information is a must to put these new shoppers at ease. With this knowledge, they’ll feel much more comfortable buying from your store.

Display delivery and returns information in a banner at the top of your homepage and collection pages. It’s a good idea to also include this on product pages as well as at checkout to eliminate the chance of shoppers missing this information.

Keep the ball rolling after Prime Day

With so many new customers heading your way thanks to the halo effect, there’s an opportunity to make more sales post Prime Day.

One of the best ways to do this is to go the extra mile to make them feel appreciated. For instance, you could include free samples in their order. Or send a post-purchase email to check if they’re happy with their purchase and offer assistance. These small acts of kindness can warm the hearts of new customers, making them more likely to do business with you again and refer friends.

email marketing reminds shoppers of their interested products on fenty beauty

Fenty Beauty makes a point of showing their appreciation and willingness to help. (Source: Klaviyo)

Capturing new visitors’ data is another path to retaining customers. However, this is not always an easy task. If giving over personal information is too complicated, is prompted at the wrong time, or is not perceived as worthwhile, you can wave goodbye to your chances.

Instead, encourage visitors to sign up to your newsletter for extra money off their order at checkout to cause minimal disturbance to shopping. The sign-up process should be quick and easy. Simply allowing new customers to press a button to connect via their Google or Facebook account is best.

Once you have their information, you can start sending personalized emails to encourage them to return. Use their past purchase to curate products they may be interested in buying next. You could add an extra appeal by offering free delivery on their next order. Keep your social media presence strong and engaging, so you can stay at the top of new followers’ minds.

Wrapping Up

Prime Day is a great opportunity to embrace new customers and nurture existing ones. The halo effect the sales event creates means that every online retailer has the potential to skyrocket their sales. By putting these simple yet effective tactics into play, your store will be in a peak position for success.

You can get your store ready now with the Boost Product Filter & Search. With tons of features that are guaranteed to optimize product discovery on Shopify stores, it’s a tool you can’t afford to bypass!