Retail Reality

Mind The Store

This Amazon Prime Day, Make Sure to Invest in B&M (Yes, Really!)

By: Keshav Shivdasani Mon, 07/16/2018 - 04:00

Amazon Prime Day, the ecommerce giant’s annual day of deals, has finally arrived to entice shoppers with sizable discounts on popular items. With an estimated 40% – 60% of US households having active Amazon Prime memberships, Prime Day provides consumer brands with a massive sales opportunity.

Beyond just offering deals online, consumer brands should plan for the residual effects of Prime Day across channels, capitalizing on the time when consumers are in the mood to shop. Despite the fact that 80% of Americans shop online, the reality is that 64% still prefer to shop in physical stores. If brands are smart, they’ll complement online deals with promotions in brick-and-mortar stores as well.

The Online Returns Trap

Did you know that 30% of products ordered online are returned, compared with just 8.9% of products purchased in-store? That means there’s a very real danger that much of the revenue consumer brands see on Prime Day could evaporate, as shoppers realize they don’t actually want or need the product once they’ve seen it in person.

And three of the top reasons for ecommerce returns (20% for received damaged product, 22% for product received looks different, and 23% for received wrong item) typically don’t apply to in-store purchases, since shoppers can touch or try on various products, bringing home exactly what they want.

When you factor in those statistics, along with the fact that Amazon Prime is usually just a one-day event (this year it's slightly longer at 36 hours), it's clear that consumer brands need to invest time and energy into in-store execution—even on Prime Day.

In-Store Experience is Still King

In-store interactions play a big part in driving online sales by giving consumers the chance to try a product before they buy. While online shopping offers convenience, the desire to touch, feel and experience products—especially high-end products—before making a purchase is consistent. At least 70% of consumers say they’re more likely to buy a product if they get a chance to try it in store.

Online shopping is also transactional. Physical stores drive higher conversion rates and increase average purchase values because they offer a multi-dimensional “edutainment” experience, where brands have the opportunity to immerse potential customers in their culture.

ThirdChannel data shows that targeted sales efforts during holidays can increase sales 35%. Consumer brands that don’t consider physical store promotions and experiences as part of their Prime Day strategy risk missing out on potential sales offline and online around the busy shopping holiday. 

Prime Day—and Beyond

The bottom line is that for consumer brands, Prime Day is just a one-day event. Though there’s an opportunity for massive sales on Prime Day, consumer brands can see sales lifts throughout the year by partnering with a retail intelligence platform. ThirdChannel analyzes data to help brands pinpoint their best store locations, so they can invest resources intelligently and increase sales.

Brick-and-mortar stores provide a channel for year-round promotions, where consumer brands can intercept and educate customers about their products, and truly boost category and brand sales by creating customer loyalty through great in-store experiences.

Interested in learning more about how ThirdChannel can help your brand? Request a free demo now!

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