Is there hope for other retailers?
In the UK, Amazon processed over eight million transactions in just two days. In our last blog, Prime Day 2019 Wrap Up, we showed that this was a record. Compared to last year’s Prime Day, transactions grew by +25%. The number of Prime member sign-ups were also up +147% YoY.
Some startling stats there, demonstrating that Prime Day is increasingly becoming a staple in the UK retail calendar. Was it Amazon’s own devices or other merchants that drove this yearly growth? How did other retailers fair, and which ones took advantage with counter-offers, or even “pinched” some of Amazon buyers?
Find out below in our deep-dive analysis for the UK market.
Purchase rates on all Amazon categories grew, except Toys, Children & Baby
Consumers are getting more direct with their paths to purchase on Amazon’s site. All categories, except Toys, saw an uplift in purchase rates, which were the number of product page views that led to product purchases.
The number of UK households with smart home devices is predicted to more than double over the next year (see our latest Smart Home & Electronics Report for more). This trend, along with Amazon’s aggressive discounting on their top devices, resulted in a +47% jump in purchase rates for the category.
Another fastest-growing category was Food & Grocery, rising from 14.4% in 2018 to 16.2% in 2019. This was driven by household staples, like Dettol and Presto!, and whiskey brands, such as Laphroaig and Bulleit, all of which achieved over +40% increases.
UK Prime Day 2019
Category Purchase Rates
Source: Hitwise, UK. www.amazon.co.uk. July 15/16 2019 vs. July 16/17 2018. Top 250K products on Amazon, average purchase rate and YoY % change.
Amazon Devices grew +70%, Oral-B and Sony spiked +100%
With the Amazon Devices category growing, it’s no surprise that Amazon was also the top-purchased brand over Prime Day. Amazon’s private fashion label, AmazonBasics, was also up +32% YoY, showing their intention to expand further into the Clothing & Accessories category.
Oral-B and Sony purchases spiked by over +100% YoY. Oral-B’s top models, the Genius 9000 and Genius 8000, were slashed by over 50%, offered for under £100. Amazon’s exclusive deal with Sony’s Xperia XA2 32GB model, was also the top purchased product by Sony.
UK Prime Day 2019
Source: Hitwise, UK. www.amazon.co.uk. July 15/16 2019 vs. July 16/17 2018. Top 250K on Amazon.
Other retailers have gained from Amazon, especially Curry’s and Etsy
Hitwise figures also show that other retailers have benefited. 3.6 million Britons made a purchase on Amazon in the week of Prime Day, but a further 12 million only “browsed” on their site, so visited but didn’t transact.
Top retailers, such as John Lewis, Screwfix and Boots, attracted over 100K of these buyers and browsers to their own site. Curry’s, in particular, saw the biggest YoY uplift of +11.4% from Amazon Buyers. Etsy saw the largest jump of +10.5% from Amazon Browsers.
Amazon’s Audience Visiting Other Retailers
Source: Hitwise, UK. Amazon Buyers = made a purchase on www.amazon.co.uk. Amazon Browsers = visited but did not make a purchase. 1 week ending 20/07/2019 YoY. Number of Buyers/Browsers and YoY % change.
Curry’s went head to head through search, and it paid off
The electronics retailer attacked head-on, launching their own “Black Tag Summer Event” the week before Prime Day. Search was key to their rise, with Curry’s getting a larger share of clicks from hot Prime products, such as the iPad, Nintendo Switch and Xbox One, all at high paid rates of over 50%.
There’s no mistaking their intention. Curry’s also cheekily referenced on their own site “No subscription free, just great deals […] Prime Day has now passed, but we still have some great deals!”.
Top Rising Searches over Prime Week
|Searches||YOY Search Clicks||2019 Paid Rate|
|1. “Samsung fridge freezer”||+736%||63%|
|2. “Wireless headphones”||+248%||38%|
|4. “American fridge freezer”||+113%||57%|
|6. “Bosch washing machine”||+88%||33%|
|7. “Nintendo Switch”||+87%||50%|
|9. “Google home mini”||+40%||0%|
|10. “Xbox One”||+33%||56%|
Source: Hitwise, UK. www.currys.co.uk, Top rising searches from top 50 searches. 1 week ending 20/07/2019 YoY.
Amazon Browsers were seeking quirky and vintage gifts on Etsy
Etsy had taken a different approach. Instead of going head-to-head on Prime Day, Etsy underwent a wider re-vamp in the past year, improving their search, payment, and shipping process. Their focus has remained on promoting products and sellers that reflect Etsy’s core values – handmade, vintage and imaginative.
The number of Amazon Browsers visiting Etsy’s site grew by +10.5% YoY. These consumers were more likely to look for quirky and vintage items, such as birthstones and funny aprons. Etsy is still the go-to place for gifts, with searches also trending for teacher gifts, wedding favours, and graduation presents.
Over-indexed Searches by Amazon Browsers
|4.||“Etsy sewing patterns||2.2X|
|6.||“Cheap wedding favours”||2.0X|
|8.||“Love Island water bottle”||1.7X|
Source: Hitwise, UK. Amazon Browsers = visited but did not make a purchase on www.amazon.co.uk. Searches to www.etsy.com. Index is compared to the general online population. 4 weeks ending 20/07/2019.
How to use Prime Day to your advantage
A deep dive into Amazon’s performance shows that the e-tailing giant is expanding rapidly. It’s not just their own devices; Amazon has seen a significant uplift in category conversions, like Food & Grocery, and leading brands, such as Oral-B and Sony.
Some retailers have used this sales peak to their advantage. Curry’s went head-to-head on top electronics, pinching Amazon Buyers. Other retailers, like Etsy, have taken a long-term approach to improve their UI and differentiate their product offering, attracting more Amazon Browsers in the process.
The key message is that retailers need to take stock of Prime Day’s knock-on effect to their category and industry. This analysis is crucial particularly heading into the second half of the year. With Black Friday fast-approaching, retailers and brands need to strategically decide – should they combat or collaborate with Amazon.
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