Every July, Amazon's Prime Day creates a whirlwind of opportunity and anxiety for emerging brands. The question isn't whether Prime Day generates massive sales—it does.
The real question is whether your brand should dive into the deep end of Amazon's biggest shopping event outside of Black Friday. Competing with established sellers, navigating rising CPCs and maintaining margin discipline requires more than just a good deal.
The answer depends on your growth goals, infrastructure and ability to execute a coordinated strategy. Let's break down when Prime Day makes sense for emerging brands and how to approach it.
Prime Day in context: what the data tells us
The numbers around Prime Day are staggering. Amazon reported over $14 billion in sales during Prime Day 2024.
For established brands with deep pockets, participating in Amazon Prime Day is a no-brainer. But for emerging or scaling brands operating with constrained marketing budgets, the decision requires careful analysis.
However, it’s important to note that much of the established brands’ success came from enterprise brands with full-funnel marketing support and dedicated Amazon Growth Agency partnerships.
There's a bright spot for emerging brands: those who implemented coordinated advertising strategies—leveraging Sponsored Products, Sponsored Brands, and Sponsored Display—saw a 139% increase in sales compared to average category growth.
The takeaway? You don’t need to be the biggest player, but you do need a smart, integrated Amazon advertising strategy.
Is your brand ready? The growth marketer’s litmus test
Before committing resources to Prime Day, emerging brands need to honestly assess their readiness across multiple dimensions. It requires examining your entire operational and marketing infrastructure.
Ask yourself:
- Do we have the inventory depth to support volume without stockouts? You should model demand scenarios and ensure inventory levels can support 3-5x normal sales velocity.
- Is our ad budget flexible enough to absorb competitive CPCs? If your advertising budget is already maxed out, Prime Day participation might strain other growth initiatives.
- Are your product listings conversion-ready, with optimized titles, bullets, and enhanced content? New customers encountering your brand for the first time will make split-second decisions based on your product presentation. Listings with fewer than 15 reviews or conversion rates below category average will struggle.
- Can your fulfillment operations scale to handle a surge in orders? Amazon's algorithm heavily weights fulfillment performance, and any shipping delays or inventory issues get amplified during high-traffic periods.
- Is your brand presence strong enough to attract new buyers in a saturated marketplace? Prime Day attracts deal-seekers who may not be familiar with your brand, but they're also more likely to convert if you have existing brand recognition.
And just as important: can you measure what matters?
Revenue is only part of the picture. Smart brands look deeper:
- New-to-brand customer acquisition
- Blended Return on Ad Spend (ROAS) and customer acquisition cost (CAC)
- Email capture and retargeting pool growth
- Projected customer lifetime value (LTV) from Prime Day-acquired cohorts
If Prime Day doesn’t accelerate your 12-month growth plan, it’s likely a distraction—not a growth lever.
Pros: Prime Day isn't just about sales, it's about pivotal growth
When executed properly, Prime Day functions as a growth accelerator that extends far beyond Amazon's platform. It can be a moment to fuel momentum, increase discoverability and lay the groundwork for Q4.
Here’s how to make Prime Day work beyond discounts:
- Increase brand exposure
The event generates widespread media coverage and social conversation, creating organic search results for participating brands. A compelling offer and strong creative can bring your brand in front of high-intent shoppers.
- Acquire high-value customers
Unlike regular promotional periods, Prime Day customers often have higher lifetime values because they're motivated by discovery rather than just price sensitivity. These first-time buyers acquired during Prime Day show significantly higher retention rates and are more likely to make repeat purchases during Q4 holiday shopping.
- Build momentum for the holidays
The algorithm improvements and customer reviews gained during Prime Day provide lasting advantages. Brands that perform well during Prime Day often see continued elevated performance through back-to-school and holiday periods.
- Strengthen customer loyalty
The customers you acquire can be retargeted through email marketing, social media campaigns and Google Ads. This creates a compounding effect where your Prime Day investment continues generating returns through multiple touch points throughout the customer lifecycle.
Cons: the hidden costs many startups underestimate
Prime Day success stories often hide the operational strain and trade-offs required to get there. These can catch emerging brands off-guard and can quickly erode profitability if not carefully managed.
- Advertising cost inflation
Expect elevated CPCs and increased competition. Without sufficient budget flexibility, emerging brands often find themselves priced out of competitive keywords or forced to reduce ad spend precisely when traffic is highest.
- Margin compression from aggressive discounting
The pressure to offer compelling deals can push discount levels beyond what's sustainable. Brands sometimes end up losing money on each sale while hoping to make it up in volume.
- Operational pressure
The sudden spike in orders can overwhelm customer service, create shipping delays, and strain inventory management systems. Poor execution during this high-visibility period can damage brand reputation and customer trust in ways that take months to repair.
- Attribution complexity
It is difficult to accurately measure Prime Day ROI, especially for brands with limited analytics infrastructure. The compressed timeline and multiple touchpoints can obscure true performance metrics, leading to poor optimization decisions during the event.
Smart alternatives to a full Prime Day push
Not every emerging brand needs to go all-in on Prime Day to capture value from the increased shopping activity. Several alternatives can provide meaningful returns while managing risk and resource allocation.
- Target Prime Day “halo week”
Run lighter, budget-friendly campaigns in the days before and after the core event when competition dips. Many shoppers research during Prime Day but purchase later when deals are less aggressive but still attractive.
- Leverage owned channels
Drive sales through email, SMS and paid social to capture attention without high Amazon CPCs. This strategy works particularly well for brands with established direct-to-consumer channels and email lists. You can offer exclusive deals to your audience while Amazon shoppers are in purchasing mode.
- Test products with Sponsored Display
Launch or retarget specific products using Sponsored Display to learn what resonates. These campaigns typically have lower CPCs than Sponsored Products and can effectively retarget previous customers or introduce new products to relevant audiences.
- Partner with an Amazon growth agency
A short-term consulting engagement can help you make data-driven decisions without overextending your team or budget. A full service Amazon agency offers Prime Day readiness assessments, campaign audits or specific tactical support that can improve results while maintaining cost control.
- Product launch timing
Launching new products or product variations in the weeks surrounding Prime Day can capture spillover traffic and attention while avoiding direct competition.
Prime Day is a lever, not a one-off tactic
It’s easy to treat Prime Day as a “big sale” event. But for emerging brands focused on growth, it must be more than that.
With the right high quality creative, media planning and post-event strategy, Prime Day can be a powerful driver of long-term business growth. Without it, it can become a costly distraction.
Cart.com’s growth marketing team works with scaling brands to architect strategies that turn seasonal spikes into sustained performance.
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