Amazon designated Wednesday, July 15, 2015 as “Amazon Prime Day,” touting offers and deals that would rival sales typically seen in U.S. retailers on Black Friday. The one-day shopping event is exclusively reserved for subscribers of Amazon Prime.
The special deals and promotions marketed by Amazon created quite a buzz and even prompted retail giant, Walmart, to offer up its own one day sale to garner up competition. Unfortunately, things didn’t go quite as planned for Prime Day, and many consumers are expressing their frustrations via social media.
Although some have found the deals to be worthwhile, the majority of consumers are disappointed in Prime Day. As entrepreneurs, here are four key lessons that we can learn from Prime Day:
- Know Thy Customer!
Amazon has 244 million customers and 50 million Amazon Prime subscribers. The typical Amazon customer is technologically savvy, keen on comparison shopping and is greatly accustomed to great prices, a wide variety of products, and quick shipping methods. These customers know a great deal when they see one… and when they don’t.
- Put Your Bargain Where Your Mouth Is!
Amazon touted that its Prime Day Sale would provide “exclusive access to more deals than Black Friday,” leaving many bargain hunters salivating at this mid-summer treat. The perceived lack of deals by these same consumers is the underlying cause of the huge social media backlash that Amazon is experiencing.
- Know Thy Competitor!
Amazon has a very loyal following who had great expectations for today, and Amazon’s competitors were on high alert. Competitors such as Walmart and Macy’s swooped in and took advantage of the weaknesses in Amazon’s Prime Day. Since Prime Day is exclusive to Amazon Prime members, competitors are opening their websites to one day deals, in addition to free shipping without a minimum order requirement.
- Great Marketing + Poor Execution= Consumer Disappointment.
Amazon did a great job advertising and creating consumer buzz and excitement for Prime Day. Unfortunately, the limited stock, selection, and variety has created a huge disappointment for customers accustomed to Amazon’s down to earth feel and great customer service.
Amazon is extremely consumer driven and has a great track record of correcting its mistakes. Despite the bruised ego the company is experiencing today, we are confident they will be okay.
Did you take advantage of Amazon’s Prime Day? Does Prime Day change your perception of Amazon?