Black Friday officially marks the start of the holiday shopping season. Famous for its doorbuster sales, Black Friday creates a consumer frenzy. In fact, 30% of all annual sales happens on this day each year.
Black Friday sales have steadily grown by 3% year over year. That means there’s plenty of room for brands to get their piece of the pie.
But it’s clear that one brand is winning Black Friday: Amazon.
Amazon came out on top in 2018’s Black Friday sales. One-quarter of all Black Friday shopping happened on the Amazon platform; there were more products ordered on Amazon than anywhere else on Black Friday.
Black Friday is a big deal for Amazon, which strategizes for this consumer holiday all year. With billions on the table, brands need to take a cue from Amazon and prepare for Black Friday right now.
2019 Black Friday on Amazon
Black Friday will be on November 29 this year, with Cyber Monday on December 2. But don’t expect Amazon to run deals only on these dates.
Amazon Black Friday deals tend to run for the weeks preceding and following Black Friday itself. In this way, Amazon builds excitement for more than just one day, selling even more product.
As far as its pricing strategy, Amazon is known for slashing prices (often in half) for Black Friday. Here’s how the eCommerce giant uses Black Friday to earn more revenue.
1. Amazon device specials
During Black Friday Amazon slashes the cost of its devices by up to 60%. This is such a hot deal that three out of five items sold on Amazon last year were Amazon devices.
This genius move encourages customers to upgrade their technology. It also increases the number of Amazon devices in the market, which will help with Amazon’s data efforts, especially as it competes for voice search dominance.
2. Subscription discounts
Subscriptions are a great way for brands to earn recurring revenue. To get more subscriptions, Amazon reduced the cost of Audible in half for the first four months. After four months, users pay full price.
While Amazon takes a small hit on profits in those first four months, users tend to stay on with the service once it’s full price again, ensuring long term, recurring revenue.
3. Bundling and Prime perks
Bundles encourage customers to buy. Amazon offered several bundles that not only made customers’ shopping experience easier but boosted overall sales.
For example, Amazon bundled its Echo device with the Hue smart light bulb. Customers could get the bundle at a steep discount and enjoy the benefits of a smart home.
Never underestimate the power of bundling to persuade customers to buy, especially during the frantic Black Friday season.
Amazon also boosted its Black Friday earnings by offering Prime-only sales. These exclusive, limited-time sales encourage customers to buy quickly before the deal is gone. By creating urgency, Amazon brings more customers to purchase.
Black Friday for Your Business
Black Friday is an integral part of Amazon’s strategy. The platform sees more purchases on Black Friday than any other day during the year. And if Amazon prioritizes Black Friday, so should you.
It’s time to get a slice of the pie. Remember, many customers wait until Black Friday to purchase big-ticket items. Black Friday strategies are perfect for moving electronics, appliances, and other products that are normally difficult to sell throughout the year.
Follow in Amazon’s footsteps with these ideas to boost your brand in time for Black Friday.
1. Create PPC campaigns
If you sell on Amazon, you need to get your PPC in gear right now. Many brands ramp up their Amazon Ads budget in the months before Black Friday.
The downside is that everyone has the same idea, so your bids may need to be more competitive to display during the holiday season.
However, even though you may need to increase your budget, your CPCs will likely be lower. This is because customers are already primed to buy when they’re on Amazon for Black Friday; because of this, your ROI will likely go through the roof.
You could try to promote your lowest-performing product on Amazon during this time. This way, you move inventory before the end of the year while maximizing sales. Some brands choose to promote items with the best margins, too.
If you aren’t on Amazon, you should run retargeting ads before Black Friday. These ads are affordable and help you reach out to customers who fell through the cracks. Run an awareness campaign that keeps you top of mind on November 29.
2. Work way ahead of Black Friday
The best Black Friday strategies are actually in motion right now, as summer begins. This allows you to get new users into the funnel and have them converting just in time for Black Friday, when they’re extra primed to buy.
Now is the time to create your strategy and test new ideas. Your competitors are creating their campaigns right now; don’t wait until November to get the ball rolling.
Black Friday comes with its own breed of hysteria. It’s a sad fact that people get trampled in shopping malls over Black Friday deals. Whether it makes sense or not, it’s clear that people want to spend money on Black Friday.
Brands need to appeal to users’ need to impulse shop during Black Friday. For example, Amazon offers Lightning Deals that only last for 24 hours. And they work! Lightning Deals make the customer feel like they got a good deal while you increase sales.
Consider adding language like “exclusive” or “limited-time only” in your marketing. Take it a step further and add a countdown timer or a ticker that counts down as inventory sells.
This encourages customers to act quickly instead of mulling over the purchase. Urgency cuts down on abandoned carts, moves inventory quickly, and brings in a lot of sales.
The Bottom Line
Businesses coined the term “Black Friday” because it’s the day that puts businesses back in the black. Whether you’re trying to find more customers or smash your sales targets for the year, brands can’t ignore the power of Black Friday. Retrace Amazon’s footsteps to create a Black Friday strategy—before it’s too late.
Partner with Logical Media Group to plan your own Black Friday strategy. Our Amazon experts can share optimization tips to get you more business.