Retailers primed to capitalise on Amazon sales
Retailers primed to capitalise on Amazon sales
As the digital shopping world continues to flock to Amazon’s annual Prime Day, retailers worldwide are in the midst of a fierce battle.
With over 375 million items purchased by Prime members in 2023, the shopping extravaganza has become a pivotal event.
However, BDO in Australia's national leader of retail, Salim Biskri, said that behind the scenes, logistical hurdles loom large.
“Retailers must manage inventory, fulfillment, and real-time updates to meet soaring demand,” he said.
“For brands, it’s a high-stakes competition—grabbing attention amid the noise of discounts and deals.”
“This is a competitive event with a large number of brands trying to compete for customers attention. It also creates logistical challenges for retailers that don’t have adequate planning inventory systems.
“Effective marketing campaigns, eye-catching product listings, and compelling offers are essential to capture customer interest.”
But despite the challenges, Salim said the event is one that retailers across various industries now benefit from, particularly given the global scale it operates on.
“Prime Day might be an Amazon invention, but retailers of all kinds see returns from this new holiday worldwide,” Salim said.
“In 2023, Prime members worldwide purchased more than 375 million items and estimated sales amounted to USD 12.9 billion.
“It has proven that it is a key event for some retailers and also can be used as an ideal test run for retailers in preparation of Black Friday/Cyber Monday and Christmas holiday shopping season.
Salim said while sales is the key focus, the day offers numerous opportunities.
“For retailers this day is a good opportunity to strengthen their brand presence on a global scale. Even lesser-known brands can gain visibility on the Amazon platform during this event.
“Retailers benefit from heightened visibility due to the influx of shoppers, however the brand awareness and exposure can extend beyond Prime Day itself and drive new future business.”
While the discounts and deals offered may drive increased sales, Salim cautioned retailers to factor in lower margins given as advertising costs are required and warned of a highly competitive market.
For media enquiries:
Tate Papworth
Manager, Media
E: tate.papworth@bdo.com.au
Ph: 0433 411 189