How Amazon Sellers Approached The Cyber 5 In 2021

How Amazon Sellers Approached The Cyber 5 In 2021
Written by publishing team

On Black Friday, data started pouring into the Cyber ​​Monday sales event (“Cyber ​​5” or “Turkey 5”).

I wrote a black friday synopsis on amazon

Earlier this week, assuming the Friday event was disappointing compared to previous years. Indeed, recent analysis from Adobe Analytics found that sales fell year-over-year for both Black Friday and Internet Monday.

Amazon said in a blog post today that it was “Black Friday and Cyber ​​Monday that broke the company’s record,” but it didn’t specify exactly what kind of record was broken.

Across a group of 100 clients at my two Bobsled Marketing companies, we found that sales grew during the holidays, but not as fast as they did last year. Sales during the 5-day period increased by 52% compared to the previous year (2020). Compared to a 109% increase in sales last year (2020 compared to 2019).

While the results have been muted, there are still lessons to be learned from the event. Here are the trends on my radar from these early findings.

Brands started pitching deals earlier

Many brands set up their discounts earlier than usual this year. Among our customers at Bobsled Marketing, many deals started early in the Thanksgiving week. Some of these opted for a tiered promotional plan, where the discounts started small but increased during the holiday event. This had the advantage of attracting early adopters who didn’t want to risk running out of stock, but also shoppers motivated by higher discounts. At the same time, brands weren’t coming up with the best deal possible, keeping profit margins up.

The Cyber ​​5 holiday, along with other shopping events like Prime Day, presents the challenge that a lot of “window shopping” takes place in the days leading up to the event. As a result, we generally see higher ad impressions, but lower actual sales and ROAS. Brands that offer promotions or discounts during the “window shopping” period may actually be able to drive these purchases forward and capture market share.

Discounts were less

By anecdotally, shoppers appear to be disappointed with the depth of the discount this year.

Amazon’s language in its press release was intriguing—instead of discussing the amount of the discount, the main line was about how some products are discounted on Amazon more deeply than other retailers: other retailers”

According to a recent study by e-commerce analytics company Profitero, Amazon had the lowest prices with an average of 14% compared to all other major retailers. This distracts from the fact that discounts across the retail system may have been smaller overall.

Brands seem to be taking a similar approach outside of Amazon, too. Direct mail consulting firm Belardi Wong asked their clients if they should be more or less promotional during Cyber ​​5 this weekend compared to last year. 26% said they would be more promotional, while 48% said they would maintain the same level of promotions.

Deals don’t work at all

As usual, there are brands that absolutely stick to the discount. About 10% of our customers at Bobsled Marketing have refrained from running promotions or increasing their advertising budget during the period – much in line with previous years. Reasons for the decline range from philosophical aversion to the holiday, to not having enough stock to run deals.

Despite the lack of deals, many of these brands saw an increase in sales during the shopping event, although the increase in sales was generally less than those who took an active position.

Black Friday vs. Internet Monday

Perhaps due to the fact that the deals started earlier this year, Cyber ​​Monday was less competitive for the brands that were advertising their products on Amazon.

Among our group of clients, we found that the average CPC was $1.67 on Black Friday and significantly lower at $1.28 on Internet Monday (compared to an average of $1.17).

However, conversion rates on Cyber ​​Monday (11%) were lower than on Black Friday (16%), which means a relative decline in terms of which day it would have been better to invest. Black Friday was more competitive but shoppers were willing to buy, and less inclined to wait for deals on Monday.

What successful brands have done

For brands that have achieved great results, their success can be tied to an overarching common denominator: they have actively promoted their deals.

Many have run pay-per-click ads on the site, which is an effective strategy since many promotions like Prime Exclusive Deals and coupons are prominently featured in the ad unit.

Some brands have benefited from external marketing channels as well. Brands with a strong email list and organic social media following have used these channels to promote their deals on Amazon.

Others chose to spread the word through influencers. This year TikTok became a more popular channel. Influencers on TikTok, as on other social media channels, can set up Amazon affiliate accounts and receive commissions on purchases made via their tracking links.

Other premium brands have benefited from a public relations process that has allowed them to appear in gift guides or deal guides through mainstream or niche media publications.

What do I do with everything

Overall, the guide to running a successful Amazon Cyber ​​5 campaign hasn’t changed much. In 2020, I was excited about Amazon Live Video as an innovative promotional channel, but this feature received less “air time” from Amazon itself and certainly less focus from brands this year.

While overall sales growth slowed in 2021, the big takeaway is the fact that Cyber ​​5 is no longer just a 5-day event. Shoppers are trained to look for bargains early on and early in the season. This is an important lesson to take in planning for 2022.


About the author

publishing team