Is Prime Day the New “Black Friday”? New Survey from Flippa Takes the Pulse of Small Business Owners
Flippa, the #1 global online marketplace to buy and sell online businesses, Amazon stores, apps, websites, and other digital real estate, announced the results of a new survey of small business owners about how Prime Day positively impacts business. The survey revealed key trends and insights about how small businesses are getting ready for the holiday retail season, what concerns are top of mind for business owners as the economy recovers from the pandemic, and how Black Friday might be losing its luster as the highest ranking event for retail sales.
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Amazon Prime Day – the New Black Friday
After a year of lockdowns, social distancing, video calls and canceled plans, Americans are ready and rarin’ to spend again. With Amazon offering a free 30-day trial of its Amazon Prime membership and with Amazon sellers offering a variety of deals and discounts to entice online shoppers, Amazon Prime Day (June 21-22) has become a new national holiday for online retail.
Flippa’s survey of small business owners found that Amazon Prime Day (June 21-22) may become the new Black Friday:
- 46% of small businesses said that Prime Day is now equally important to Black Friday with respect to sales.
- 35% of survey respondents said they are bullish on Amazon Prime Day 2021 – versus only 4% who were bearish.
- 24% of respondents said they are betting on Prime Day to help recover from a sales decline due to COVID.
“With over 1.5 million active sellers, Amazon’s Prime Day is fast becoming the most important day on the calendar, and for many small business owners, it could be the difference between a good or bad year,” said Blake Hutchison, CEO at Flippa.
For online business owners who are considering selling their business, Amazon Prime Day can help boost their sales and profitability to increase valuation for selling a business, or to assess impact on a businesses performance when considering acquiring a business. Thirty-three percent of Flippa’s survey respondents said that Prime Day positively impacts business valuation.
Hutchinson added, “Successfully selling a business is all about performance, specifically the last 12 months. We encourage sellers to do everything they can to drive value prior to considering a sale so we are not surprised that Amazon Sellers would treat Prime Day as an opportunity to improve valuation. It’s a key sales driver and that’s what matters when you come to sell a business, Amazon store or other.”
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Shipping and Supply Chain are Top Concerns for Small Business Owners
After a year of pandemic-related disruptions to businesses, small business owners are cautious about the economic landscape in 2021. When asked “what is your biggest concern related to your business this year,” respondents said:
- Shipping costs/fuel prices (23%)
- Supply chain disruption (20%)
- Inflation (15%)
- Marketplace taxes (10%)
- My Amazon Seller reputation (8%)
Despite the rise in security breaches, getting hacked was rated as the least concern by business owners (0%).
Christmas in…June? Holiday Shopping Prep is Underway
Christmas is still more than 5 months away, but small business owners are already gearing up for what they hope will be a profitable 2021 holiday retail season. The survey data reveals small business owners’ top priorities for how they are preparing for the holidays:
- Social media advertising (42%)
- Stocking up on inventory (42%)
- Email marketing campaigns (27%)
- Affiliate marketing (22%)
- Collaborations (19%)
- Influencer campaigns and reviews (17%)
On the other hand, hiring workers (7%), bullet proofing online security (4%) and offering new payment options like Buy Now, Pay Later (4%) are rated as low priorities for small business holiday preparedness, at least for now.
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