Prime Day, EU Investigates Amazon for Antitrust, AVS Benchmark
Amazon’s Prime Day Showed Y/Y Increases in Duration, Items Sold, and Competition
Amazon announced that over 175 million items were purchased during this week’s Prime Day event (up from 100mm+ last year), surpassing Black Friday and Cyber Monday’s combined 2018 sales. Our research indicated that some of the key changes from last year’s Prime Day included increasing the duration of the event from 36 hours to two days, increased usage of influencers, and reduced focus on private label and Amazon products. Other retailers appeared to get more aggressive Y/Y in competing with Amazon’s event, including Walmart offering discounts on hot Prime Day items, Target highlighting its competing “Deal Days” event, and eBay targeting Amazon specifically with its “Crash Sale” (referencing technical issues Amazon has had on prior Prime Days).
Amazon Deals With EU Antitrust Investigation
A number of European countries and Commissions announced investigations into possible antitrust violations tied to Amazon’s role as a marketplace platform this week. The European Commission’s investigation into Amazon appears tied to Amazon’s use of 3P seller’s data, particularly as it concerns “winning the buy box”. Amazon settled claims with both Germany and Austria by updating terms of service, including providing notice before account suspension/termination, allowing for local court jurisdictions for sellers, and easier refund appeals.
AVS Benchmark indicates Limited Adoption, and Mixed Value Add
Feedback from a benchmark done on Amazon’s AVS program indicated that 39% of companies have adopted the program, and, of those that have adopted it, 54% believed that it delivered a sufficient return on investment. Brands that believed that it offered a strong ROI tended to view the AVS resource as critical to running their Amazon business, often because they needed help in areas where the AVS resource excels, such as promo execution, getting updates on Amazon tools and programs, and coordination with Vendor Managers.
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Photo source: Mein Deal https://www.mein-deal.com