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Report: Understanding Amazon Prime Day’s Effect on Ecommerce

Posted by | July 20, 2016 Blue Acorn Labs | No Comments
amazon prime day

What happens when a Goliath ecommerce company creates its own holiday? It creates waves, and lots of them. Although both the media and consumers agreed that last year’s inaugural Amazon Prime Day was a bust, this year the company reported that it was the biggest day in company history. More specifically, the company reported a 60% growth in sales on Prime Day in 2016 vs. 2015. On the flip side, smaller retailers, including some that also sell on Amazon, saw two very different sets of results.

Due to last year’s rocky launch of Prime Day, smaller retailers actually saw positive growth in their key performance indicators. Unfortunately, the same retailers saw a shift in the other direction in 2016, with revenue, conversion rates, and other KPIs declining. Going forward, Prime Day will likely continue to affect smaller retailers, but the direction will be challenging to predict. As such, it’s important that brands understand how such massive promotions can affect their business and advertising budgets. They should also learn to avoid making snap decisions in an attempt to counter the effects of Prime Day.

“Trying to change the narrative and fight a macro event like Amazon Prime Day is like trying to fight the weather,” said Blue Acorn Data Scientist Samantha Previte. “With regard to revenue, while you think you might be safe from the event’s effects—for example you don’t sell in the same vertical, or you have a solid customer base—you’re not. Amazon’s tentacles stretch far and wide, and macro-level events like this, if successful, will have a significant impact on all ecommerce metrics.”

Amazon Prime Day Data

The follow data is based on an aggregate of 22 retailers across a wide range of industries. The data points listed below are based on the percent of change and not the direct key performance indicator (KPI). When looking at the year-over-year percent of change between 2015 and 2016, there is across-the-board positive results due to retailers coming out ahead during Amazon’s first failed attempt at Prime Day.

2015 2016 Year-Over-Year
Revenue Per Day 26.76% -3.19% 30.43%
Transactions Per Day 3.50% -12.51% 8.87%
Sessions Per Day 11.75% -8.21% 15.19%
Users Per Day 33.14% +13.59% 12.87%
Pageviews Per Day 4.07% -8.20% 4.07%
Conversion Rate -7.37% -4.69% -5.48%
Average Order Value 22.47% +10.65% 19.80%
Revenue Per Visitor -4.79% -14.77% 15.56%

*Percent of change

How Did Prime Day Affect Your Brand?

Did you see a dip or even positive boost in KPIs during Prime day? Let us know in the comments, we’d love to expand on this story and our research.

Visualizing the Data

Download the Infographic

About Elliot Volkman

Elliot is Blue Acorn's Digital Marketing Manager. He hold a master's degree in communication from Gonzaga, and has several awards for journalism and digital marketing. In his spare time he likes to brew beer and contribute to the digital world through his non-profit, Digital District.

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