Amazon’s Prime Day, scheduled for 15 July 2015 is being touted as
“…Christmas in July, bigger than Black Friday or a U.S. version of Singles Day,
the blowout online shopping event in China that generates billions of dollars
in sales.”1 Whether it lives up to the hype, or just transpires as a
20th birthday celebration for Amazon, Prime Day has the potential to
have a major impact on e-retailers, and by extension all fulfillment and
distribution channels.
For e-retailers, participation in
the sale could be huge. “Amazon Prime members convert at a rate of 74%, according to a recent study from website traffic
measurement firm Millward Brown Digital on the online shopping behavior of
Prime members. When Prime members shop with other online retailers, such as
Wal-Mart Stores Inc., Target Inc. and Home Depot Inc., they convert on average
6% of the time, the study suggests.”1 The potential increase in sales generated
from the event could make or break the e-retailer depending on their pricing
and profitability. But hand in hand with
increased sales comes additional shipping demands, and with Amazon Prime, that
means free two-day or cheap one-day shipping.
If the volume spikes more than Amazon and its shipping partners
have planned, e-retailers and consumers could see delays during the days following
the sale. So what can you do to plan for Amazon’s Prime
Day?
If you’re an e-retailer, a 3PL partner can provide options to minimize any potential delays
for your customers. A great 3PL will be already be evaluating and
implementing strategies to reduce any negative shipping impact resulting
from the event. Talk to Vision today, to
learn how you can leverage our strategic planning and fulfillment optimization.
Vision Consumer Products Fulfillment has decades of
experience and industry expertise in consumer products fulfillment
services. No matter who your customer
is, we treat your customer as our own.
We know what makes a raving fan out of an individual customer, as well
as what makes a business partner trust you with their business. Call or email us to learn how. We’re certain we’ll be the best fulfillment warehouse partner you
have ever had!
1 https://www.internetretailer.com/2015/07/08/amazons-prime-day-could-push-e-retailers-margins-lower
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