Amazon’s Upcoming Prime Day to Serve as Barometer of Economic Recovery and Consumer Spending 

October 1, 2020  by Laurie Northington in Business Strategy, Industry   

The sales extravaganza, which has grown into a 48 hour global phenomenon spanning 18 countries, is a pivotal moment for marketplace sellers – last year, record-breaking sales of over $7 billion surpassed Black Friday and Cyber Monday combined, with marketplace sellers clearing $2.29 billion.

Post-pandemic, the online marketplace has become the new virtual mall, presenting a lifeline opportunity for retailers to grow their business in a recessionary market. A huge 1.1 million sellers are expected to join Amazon by the end of the year.

“This will be a make or break event for some Amazon sellers,” said Ning Wang, co-founder and chief business officer at PingPong Payments. “This delayed Prime Day gives merchants a window of opportunity to catapult into the lead in the run up to the festive season, with the first major online sales event post-Covid. A huge 82 percent of U.S. households have a Prime membership, which gives sellers a unique opportunity to tap into a dedicated 150 million strong, and counting, network of shoppers who are committed to the platform – a dream scenario for any e-tailer.”

There is a growing appetite for international expansion, said Wang, as the number of high growth cross-border sellers increased 25 percent this year. “For cross-border merchants, Amazon Prime Day has long been one of the most important events of the year,” said Wang. Selling cross-border, however, presents a golden opportunity that is largely untapped in the U.S. market – only 32 percent of the top 500 Amazon merchants currently sell internationally. The ultimate Amazon cross-border seller can expose their products to an audience of half a billion consumers around the world, and reach over 170 countries. Taking advantage of growth markets abroad is hugely valuable to maximizing seller profits, especially considering 85 percent of the world’s purchasing power falls outside the US, with the likes of global spending superpowers such as the UK, Germany, China and Japan.”

“Amazon Marketplace sellers account for an astonishing 350 million product listings in total, which can be a very daunting environment for sellers,” added Wang. “In order to stand-out, capitalize on the e-commerce boom and maximize sales this Amazon Prime Day, it is vital sellers become more strategic. Fast growth e-commerce sellers know to prepare for Prime Day months in advance, by reinforcing inventory operations and addressing the turmoil caused by Covid-19. By having the right network of partners in place ahead of time, sellers can avoid disrupted supply chains and dreaded stock shortages at critical moments. Partnering with the right cross-border payment companies, that specialize in convenient quick money transfers, can help merchants instantly move money to all corners of the world – from collecting international marketplace payments, to ensuring overseas suppliers are paid on time. This saves online sellers precious time and money – crucially allowing more to be invested in important optimizations, such as effective fulfillment strategies.”