August can be a time of rest and relaxation for many, but for Amazon providers, it’s the perfect time to get in shape and prepare for the last months of the year, which are usually crucial for sales.
At Amazing, we are well aware of this and consider it a strong month where we work hard so that while our customers enjoy some days off, they can return to find their accounts ready and, in a position, to face the end of the year. Therefore, we want to provide you with a guide of recommendations to implement during this upcoming month (the order does not indicate prioritization – everything is relevant).
1. Learn from Prime Day:
Prime Day is one of the most important events in Amazon’s calendar, and this year has been a resounding success. If you participated, it’s essential to analyze the results and extract key “learnings.” Examine sales metrics, identify the most popular products in your catalog, evaluate the performance of your advertising campaigns, and the effectiveness of your pricing and promotional strategies. Considering market rumors about a possible Prime Day II (like last year’s October 12th event), although nothing has been confirmed yet, it is even more critical to conduct this in-depth analysis and draw relevant conclusions. Consider what will take place and decide on which products you will participate with, what discounts to offer, what advertising investment to allocate to the event, and what objectives to pursue in this second edition of 2023.
2. Manage Warehouse Closure:
This point applies primarily to vendors who are on Amazon in Vendor or 1P format. If you plan to close your warehouse during any period in August, make sure to reflect this information on the Amazon platform. It’s crucial to update the status of your warehouse to avoid problems with purchase orders. As you know, Amazon generates orders through an algorithm, and if you do not activate these closure dates, Amazon will request products without confirmation, which is detrimental to your status as a provider. Additionally, it’s essential that if the closure date is, for example, the second half of August, Amazon can request the necessary inventory in advance based on its consumer demand estimates from historical data.
For those selling in Seller FBA (3P) format, this point does not apply directly, but it’s essential to have good control and stock forecasting in Amazon to cover potential demand during warehouse vacation days. Also, consider that delivery to Amazon’s warehouses and the “picking” process is not a matter of a couple of days but approximately 10 days (it can even be longer depending on reduced warehouse staff during vacation periods).
3. Prepare for Back to School:
The back-to-school season is a significant shopping period in many countries. Additionally, this season is stronger in August in many European and USA countries as schools start earlier than in Spain. If you are an active seller across Europe and/or the USA, you’ll need to closely monitor your account, stock levels, sales, advertising campaigns, promotional plans, and other key aspects during this month.
In the case of Spain, the peak event “week” occurs starting from the last week of August (specifically August 28th) and extends until approximately September 9th. Therefore, you should already have a clear plan for how you will approach the event, specifically:
– If you plan to activate promotions, you can start activating them on the platform if you’re a Seller, and if you’re a Vendor, you should have already closed the deals with the Vendor Manager.
– Finalize your advertising strategy with the specific budget no later than the end of the first week of August. Start setting up campaigns and activate them a few days in advance to gain traction. Apply the learnings from past editions and any relevant insights from the previous Prime Day.
– Ensure sufficient stock levels in your portfolio to avoid running out of merchandise during peak days. If you are unsure about the quantity to send to Amazon’s warehouses, it’s better to overestimate sales by allocating a higher percentage.
This event is highly relevant for specific categories such as stationery, school supplies, books, backpacks, clothing, but also for verticals like household cleaning products, cosmetics, dietary supplements, or diet products. In other words, let’s take advantage of the increased traffic to impact potential consumers browsing those categories and encourage them to add our products to their shopping carts.
4. Review Campaigns and Control Investment:
At any time of the year, it is essential to review and adjust your advertising campaigns on Amazon. In August, dedicate time to analyzing your advertising investment and making appropriate optimizations. Based on our experience on Amazon, August is a month when users, having more free time, frequently browse Amazon, look at many products, compare, and add items to their wish lists that they plan to purchase at the end of their vacation before returning home. Therefore, without proper control of the advertising platform, spending can skyrocket with lower-than-normal performance returns. So, stay vigilant and continue to optimize and review your campaign strategies to avoid any surprises.
5. Production and Stock Estimations:
Q4 is the quarter with the highest volume of sales on Amazon and is critical for most Amazon sellers. Therefore, proper planning of production and stock for your catalog is vital to avoid running out of inventory during peak demand periods. Use historical sales data, market forecasts, and the results from past months and events to make accurate unit estimations. Take into account two points:
– Upcoming events like Back to School, Prime Day Fall, Black Friday, and Christmas.
– The timing of shipping to Amazon in accordance with your forecasts and the actions you plan to execute in these months.
6. Launching New Products:
August is a great time for launching new products on the platform. New products need time to gain traction, and it’s not something that happens overnight. Additionally, you’ll need to work on the product detail pages, integrate these new products into variation listings where applicable, and in some cases, start shipping them to Amazon’s warehouses to begin sales and ensure they are Retail Ready for the busy months ahead. If you sell as a Vendor, don’t forget to activate the B2R (Born to Run) feature to accelerate the attraction to these products and not wait for organic orders without having control over consumer availability timelines.
In summary, the month of August presents an opportunity to prepare and get ready for the last months of the year on Amazon. Utilize this time to analyze your past data, carefully plan your strategies, and ensure you are well-prepared for the hustle and bustle of the upcoming shopping season. With proper preparation, you can maximize your sales and achieve greater success. Go ahead and good luck!
