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Prime Day 2 is about winning the race for 360-degree customer loyalty
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4 min read

For the first time in its history, Amazon has announced a second Prime Day to take place on October 11-12. Amazon shoppers know Prime Day shopping deals become available during mid-summer to commemorate the company’s founding. So, why is Amazon having a second Prime Day celebration in the Fall? One simple reason - Loyalty. Growth is slowing! Amazon inventory rose 58% YoY to $38b in Q2, just as revenue at its online stores fell 4% to $51b. Finding more ways to monetize loyal customers is key to future revenue growth for Amazon and other top retailers.

Amazon’s actual name for the second Prime Day is “Amazon’s Early Access Sale,” which puts an emphasis on holiday shopping. The sale event comes on the heels of Amazon raising membership fees for Amazon Prime members by 17% this year to $139 a year and $14.99 a month (a $180 hit for monthly subscribers).

Last October, Motley Fool published an insightful article explaining how Amazon’s biggest online competitor, Walmart, was wooing customers from Amazon with a one-two punch: the new Walmart+ online shopping subscription service and its brick-and-mortar store experience, which many consumers like. To stay competitive, Amazon needs to bring together online and offline shopping and service experiences and ensure that its Prime subscribers remain loyal, not only to its marketplace platform but in as many other areas as possible. Evidence of this strategy is everywhere, notably by Amazon’s aggressive expansion into healthcare, evident in its 2018 $753 million purchase of Pill Pack and the recent $3.9 billion pickup of One Medical, described by some as the “Whole Foods” of Primary Health Care.

Customer loyalty has always been an important focus of Amazon and of its founder. Jeff Bezos well understood that customers would abandon their store or brand loyalty when they are introduced to a better product, service, price, or shopping experience. He famously remarked in a 2017 interview with Fast Company that, "Our customers are loyal to us right up until the second somebody offers them a better service." A second Prime Day is Amazon's way of helping their customers stay loyal as the gift-buying season gets underway.

In a previous post examining Prime Day's impact, IPSecure noted that because of the increased sales volume during Prime Day, it's crucial that brand owners and e-commerce managers double down on their anti-counterfeiting and brand protection efforts. Counterfeit merchants will be trying to win the Buy Box, so be prepared! IPSecure reminds brand owners to enroll in Amazon's Marketplace brand protection programs to help them identify and mitigate IP abuse and unauthorized sales of their products.

Like all peak shopping periods, Prime Day 2 means more competition and an increase in aggressive unauthorized sellers attempting to take advantage of the increased demand. Most consumers will not know – or even care in most cases – who the actual seller in the Buy Box is when they click buy. During major buying events like Prime Day 2, it's critical that online monitoring and takedown efforts are closely coordinated with the e-commerce sales and marketing teams, especially as it relates to Amazon. By closely coordinating tactical steps, positive inverse correlations can and do happen. When a company doubles down on its anti-counterfeiting efforts, it can increase sales making Prime Days 1 and 2, two of the best online shopping days of the year.

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