Comment from Chris Haines, Director of Consulting at Amplience:
Amazon has stepped up its war for the living room this Prime Day. In its mission to put an Amazon sales assistant in every home, we have already seen heavy discounts across its Echo range.
“The company’s ambition is to control every part of the shopper journey, from inspiration to product search and purchase, and with as few intermediaries as possible. If they have to take a loss to do it then they are more than happy to. What they lose on Alexa, they gain from customers tied to the Amazon marketplace.
“Prime Day also demonstrates why brands have been going about seasonal sales all wrong. When a retailer holds a sale every quarter, they stop feeling special. Customers switch off or may even hold out, hopeful that the next sale will bring even deeper discounts. Yet Amazon successfully markets Prime Day not as a sale, but as an event. When you only open the floodgates for one or two days a year, you ensure shoppers won’t wait until next time.
“Today’s best-performing brands are those able to invite participation from their customers. While Amazon’s customer experience is heavily commoditised – with product pages that focus entirely on the product with no room to tell Amazon’s story – Prime Day manages to galvanise its customers into a community of fans, a captive audience watching only one show.”