Get Your Logistics Ready for Amazon Prime Day

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With summer just around the corner, Prime Day is also rapidly approaching. For brands selling their products online, this is one of the most important days of the year. In 2021, Amazon saw members across 20 countries shopping more than any Prime Day prior, with over 250 million items purchased worldwide. This year, it looks to be another booming Prime Day, with the marketplace projected to see large numbers of customers scrolling for the best deals.

“While eCommerce is a continual process of handling logistics, brands that are looking to make a profit during this event need to put in extra work.  Thus, ensuring that they are prime ready for the Prime Day event.” Here are three tasks you need to consider when getting your logistics prepared for this two-day event:

 

Understanding IPI Scores

Before planning out the logistics of Prime Day, brands need to take the time to understand their Inventory Performance Index (IPI) score and look for ways to improve this number. In order to gauge inventory in the Amazon marketplace overtime we use this metric. The score provided by Amazon measures the efficiency of a brand and productivity in managing Fulfillment by Amazon (FBA) inventory. Ideally, you should target 500 IPI for Prime Day.

The following are all ways to contribute to a better IPI score:

Getting rid of excess or aged inventory: Amazon will already be forcing many brands’ hands on this one by immediately liquidating aged inventory before Prime Day, so taking a proactive approach is ideal.

Improving 90-day rolling sell-through: Brands should focus on striking the right inventory balance during a three-month period, particularly during the summer months.

Increasing the stock of popular items: Before Prime Day arrives, brands should be ready to stock their most popular products to ensure they do not miss out on critical sales due to a lack of inventory availability.

 

Implementing Inventory Forecasting

Another critical task on the list of logistic preparation is implementing inventory forecasting to ensure that you ship enough product to FBA centers before Prime Day.

For brands that sold products during last year’s Prime Day, the previous year’s data is a great place to start. However, inventory forecasting will require a more fine-tuned approach for newly launched brands or those offering a different set of products compared to last year.

To begin, brands should take the time to do an inventory analysis. This should include a deep dive into currently available inventory and consider the baseline demand for products they will offer via the Amazon Marketplace during the upcoming sale. 

Tip: Expect a 1 to 1.5 times increase in sales for the week and up to 2 to 2.5 times daily during Prime Days.

From here, it is critical to plan for the large amount of purchases during Prime Day, which influences everything from seasonality to proposed promotions.

 

Stocking in Advance

With the headaches that already exist around the supply chain, it is no mystery that stocking inventory well in advance of Prime Day is a must. For those who participate in FBA, the timing for getting freight to FBA centers is critical. Based on the information provided by Amazon, brands need to plan and send shipments so that they arrive at fulfillment centers before June 20. Keep in mind your inventory must be in transit by June 2nd to meet this deadline. 

 

” This should not be left as a last-minute task. Instead, brands should already have this action in motion”.

 

It is also essential for brands to keep in mind that there will be limited space for smaller and large sellers at FBA. Getting stock in place ahead of time can help brands understand what inventory they should be marketing most during this sale.

All things considered, to have a highly profitable Prime Day, brands need to plan how to be scalable during the spiking demand. This involves a good IPI score, ensuring the necessary inventory to get enough products into FBA, and not missing any fulfillment deadlines. 


 

Need guidance in eCommerce and want to make the most of Prime Day? Contact us, our team of experts is here to help you grow and support your brand!