Overhaul product listings, increase ad spend and check your math to ensure you're making successful sales and making a profit.

Amazon Prime Day continues to expand, offering savvy Amazon sellers plenty of opportunities to increase their sales. The retailer's 2-day annual sale is returning this July, and while we don't have a date yet, it's never too early to start preparing for Prime Day.

Last year, Prime Day raked in a staggering $11 billion in two-day sales , making the event a bit bigger than Cyber ​​Monday, which netted $10.7 billion in a single day last year . Prime Day sales in 2021 were even up 6.1% from the 2020 event, suggesting that Prime Day profits will only continue to grow.

Sales have expanded beyond Amazon over the past few years, and you'd be hard-pressed to find a retailer that doesn't offer some sort of summer sale event to compete with Prime Day. In fact, the $11 billion in sales includes not only sales on Amazon, but also events at Walmart, Target, Best Buy, and Kohl's.

So what can sellers do to prepare for Prime Day 2022 and make the most of it? Let's take a look at strategies that can help you succeed on Prime Day.

When is Prime Day 2022?

Amazon has announced that Prime Day will take place in July , but the exact timing is unknown. But you can find plenty of reasonable guesses. Prime Day 2022 is predicted to be July 18-19 .

Remember: Although the most recent Prime Day sale lasted only two days, the sale for this event will start early and continue after Prime Day officially ends. You should be ready to start your Prime Day sales and advertising ahead of the big day.

Important dates for Prime Day 2022

Some of your Prime Day preparations must start early. In fact, we've passed the deadline to submit Prime Day Week Deals and Prime Promotions. But if you don't get these deals, don't worry – they're pricey promotions, and there are plenty of other ways to get sales on the big day.

However, as you prepare for Prime Day 2022, there are some deadlines to keep an eye on:

June 10, 2022: Deadline to submit coupons to run during Prime Day

June 20, 2022: Deadline for Amazon inventory shipments to ship during Prime Day

July 8, 2022: Deadline to submit Prime exclusive discounts

Keep an eye out for more news from Amazon to prepare for any deadlines or restrictions the company may announce ahead of the holidays.

What's New for Prime Day 2022

Fuel surcharges will increase FBA costs

Amazon recently added a 5% fuel and inflation surcharge for FBA sellers, increasing fulfillment fees. In fact, this fee can range from an extra 15 cents for the smallest, lightest items to $8.54 (plus 4 cents per pound over 90 pounds) for heavy, oversized, hazardous items. Check out the current Amazon FBA fulfillment fees (including the new surcharge) to see how this will affect your pricing.

With this new fee, you should recalculate to see how far you can discount your product and still make a profit. Amazon shoppers are very price-conscious, so it's imperative to offer discounts and coupons on Prime Day. If you're not sure how to price your listings considering these new FBA costs, Amazon has some tools to help you, including an FBA revenue calculator .

But you may want to consider whether FBA is still worth using, fees are rising. For example, can you ship and fulfill orders fast enough to switch to using Fulfillment by Merchant (FBM)? Do you have the staff and supplies to process orders during Prime Day, when sales are high? Don't forget that if you're dealing with this part, you'll also need to handle customer service requests, returns, and other tasks that add to your overhead.

If you already have your own fulfillment and logistics systems — for example, if you're used to handling your own shipping to sell on sites like Walmart or eBay — the new FBA fuel surcharge could be a turning point. Be sure to run these numbers ahead of Prime Day to see which fulfillment method works best for you. Amazon has a calculator that can help you compare the costs of FBA and FBM to help you decide which option makes the most sense.

Stick with FBA? Then, you'll need to double-check your settings to make sure you're not overspending. Make sure all your product dimensions are accurate so you don't overpay for shipping or storage. Also pay attention to the inventory you stock, as large products that take up a lot of space or products that don't move quickly can incur additional storage costs. As fees go up, you want to keep costs as low as possible.

Watch out for supply chain issues

While supply chain issues have been a hallmark of the COVID-19 pandemic, we're likely to see more of them this summer. Between the new restrictions in China and Russia's war in Ukraine, Bloomberg warns we may see new disruptions to shipping . If your products are sourced from China, they reportedly take more than 100 days on average to reach a US warehouse.

That could make it harder to get your inventory ready for Prime Day. If you're dealing with shipping delays, you may want to rethink your Prime Day strategy and look for discounts and promotions on the products you have on hand, rather than hoping for a timely arrival. Before your Prime Day sale, you'll want to keep an eye on your inventory and be prepared to adapt and change your plans in case of inventory issues or shortages.

"Small and Light" maximum item price increase

Amazon's latest news isn't all bad: Amazon has raised price limits on its Small and Light program, allowing you to ship cheap items at a lower cost. Small and Light products weigh no more than 3 pounds, must come in boxes 18" x 14" x 8" or smaller, and must be priced under $10 (was $8). Using the Small and Light program reduces storage and Shipping smaller items is expensive for you.

As with standard FBA, shipping prices vary based on the size and weight of the item, and savings over standard FBA will vary—but you can save up to around 20% on FBA shipping costs. That might mean a difference of just 60 cents, but if you're shipping a lot of small, inexpensive products, those small amounts add up.

Check your inventory to see if you have items eligible for Small and Light . This discount doesn't apply automatically, so you must enroll your product in the program to get these lower prices.

How to Prepare for Prime Day 2022

Start planning your sales today

With Prime Day shoppers flocking to Amazon, you have plenty of opportunities to increase your sales. Even if you miss the deadline for Lightning Deals or other Prime Day promotions, any product is up for sale as long as you stay visible in search results and price competitively.

Sales don't have to be complicated either; they can be straight markdowns that offer attractive discounts to Amazon bargain hunters. When pricing your items, keep your profit margins in mind — and Amazon's added FBA costs — to ensure you're still profitable. These simple price cuts can get a lot of attention — especially from shoppers watching Amazon's price tracker.

Offering coupons on Amazon is a great way to draw attention to your products as they will be featured prominently in search results. Coupon items have a banner labeled "Coupons" next to them in the search results, which will catch the shopper's eye. In addition to the coupons displayed on your website, you can create coupon codes to share on social media or through your mailing list, giving your best customers an extra incentive to check them out on Prime Day your product. Start thinking about your coupons on Amazon now , because the deadline to set coupons for Prime Day is June 10.

Also consider Prime Exclusive Discounts — also available outside of Prime Day — which offer lower prices exclusively for Amazon Prime subscribers. These savings could be another way to differentiate your sales from your competitors with visual indicators next to products in search results. These deals have restrictions on item types and discounts, which are even more restrictive for Prime Day sales . Be sure to submit as soon as possible, as the deadline to submit discounts on Prime Day is July 8.

And don't forget non-Amazon sales. If you sell through other retailers or on your own website, you should also offer discounts there. Prime Day shoppers aren't limited to Amazon, and expanding your promotions to other sites will give you more opportunities to grab shoppers' attention.

When you're planning an offer, don't limit yourself to one strategy; you can use any or all types of discounts on Prime Day to grab the attention of shoppers. But it's important to remember to consider profit margins when setting discounts — especially if you're offering stackable sales and coupons, which could potentially save your customers a lot of money, but potentially lower your profits.

Automate pricing to stay competitive

If you're not using automatic pricing, now may be the time to set it up. Amazon's automated pricing tool will adjust your prices based on the rules you set so you can stay competitive and win the Featured Offer box .

You can expect a lot of price competition on Prime Day, and you may want to set up price automation beforehand if you want to win the Buy Box. Just set the rules for it and Amazon will adjust your prices so you don't have to. You set specific pricing rules for each product and can adjust or delete them at any time. It's not a Prime Day must-have, but it will make things easier if you're interested in changing prices throughout the event to stay competitive.

Increase your advertising budget

Shoppers will flock to Amazon during Prime Day, but you have to get their attention before you can make a sale. Dropping prices and offering coupons are the first steps, but if you want to attract shoppers in the first place, ads can help. Increasing your ad budget and managing it wisely can be the key to Prime Day success.

SEE ALSO: How to Create Coupons on Amazon

Expect to pay more for Prime Day ads, especially pay-per-click ads like Amazon Sponsored Products. These are some of the best buys for Amazon sellers because they feature your products prominently in search results. But since these are CPC ads and more and more sellers are vying for ad space, costs could skyrocket.

How much you should increase your ad spend depends on your budget and goals, but SupplyKick recommends doubling or even tripling your daily campaign budget to keep your ads viewable. No matter how you use Sponsored Products during Prime Day, be sure to review your budget and bids so your products are in front of shoppers when it matters most.

And don't forget off-site advertising. While Sponsored Products tend to lead to high conversion rates, they are not your only option. Consider advertising on social media and other sites (such as DealNews ), as well as simply promoting sales on your own website, social media accounts, and mailing lists (if you have one). Promoting your products on Amazon can attract more shoppers who might not be checking in on Prime Day.

Plan to start your promotion about two weeks before the big day. This lets you see how your ads are performing and make adjustments if necessary in preparation for Prime Day. Getting started on your social platforms early also gives you the opportunity to send out multiple rounds of reminders so your customers remember to check on your sales on the big day.

There is no one-size-fits-all approach to advertising on Prime Day, and what you do will depend on your advertising budget and marketing strategy. But even a little extra investment in advertising or other promotions can pay off hugely.

Optimize your product listing

One of the best ways to boost your Amazon sales — whether it’s Prime Day or any other day of the year — is to take the time to optimize your product listings . Even if you think your listings are terrific, it's a good idea to review them so you can be sure your product pages are really doing great on Prime Day. You want to use all the tools Amazon has to offer to make your listings attractive, so shoppers who visit your page click "buy" right away.

Here are a few things to check when you want to make your product listing sparkle:

Product Title: Make sure the title clearly describes your product and includes relevant keywords to help the item appear in search results and catch the eye of shoppers. Each word in the title is a searchable keyword, so the more relevant keywords are included in the title, the more likely the product will appear in search results. While you don’t want to turn your product title into a keyword salad, you do want to use every character as much as possible to give your product a short, click-worthy description. You can enter up to 200 characters, so count!

Product Description: Your description should be clear, compelling, and highlight the main features and benefits of the product. Vague or confusing descriptions that don't highlight details of interest to buyers are unlikely to translate into sales.

Product images: Make sure your images comply with Amazon's image guidelines and are as large and clear as possible. Don't just upload one or two images. Instead, aim to use as many images as Amazon allows, showcase your product from multiple angles, including using lifestyle photos of the product, and point out key features in text. (Please note that your main product image cannot contain multiple angles, lifestyle photos or text, but subsequent images can be more diverse.)

Videos: If you can use videos in your list, it's well worth adding them. According to the data, shoppers who watch product listing videos are 3.6 times more likely to buy, which can greatly increase the conversion rate of products on the day of membership, and give listing more weight.

A+ Content: If you are eligible to use A+ content on your product pages (for professional sellers registered in Amazon Brand Registry only), be sure to use it and include additional images, longer descriptions, diagrams, and more product details information. You want to use all the tools Amazon has to offer to promote your products, so be sure to flesh out your A+ content.

Sellers of registered brands should also review their storefronts to make sure they are easy to navigate and look great.

Improve your product reviews

Efforts to improve your product reviews can make a big difference to your sales. 79% of Amazon shoppers read reviews before making a purchase , so if your review isn’t great, those shoppers may move on to the next product. Listings with good reviews also tend to rank higher in Amazon search, increasing overall visibility. That's why it's crucial to get as good a review as possible.

But be sure to follow Amazon's rules when pursuing these, as the company has strict policies on what sellers can do with reviews. You cannot compensate for reviews, ask for positive reviews directly, ask reviewers to change reviews, or have employees or family members submit reviews. While it may sound like there's nothing you can do about bad reviews, there are some legitimate options that can help you improve your review score, including:

Request product reviews. You can't specifically ask for positive reviews, but you can – that alone is enough for a buyer with a good experience to let others know. You may insert an insert in the package thanking the shopper for their purchase and requesting a review, or you may request a review through the Buyer-Seller Message or the "Request Review" button on the order details page.

Address any negative reviews. There's no escaping negative reviews, but responding to them in a professional manner and offering good customer service may impress shoppers. You can reply publicly via comments or privately via Buyer-Seller Messaging to resolve issues. You can't ask a customer to change their review or offer help in exchange for a better review, but if you fix their problem, they may revise their original statement.

Before you do anything, though, check out Amazon's full updated list of what sellers can and can't do with product reviews .

Last Minute Prime Day Preparation

While it's best to figure out your Prime Day plans ahead of time, there's a lot you can do at the last minute to boost your sales. If you have little prep time, these are the best ways to prepare:

Improve your product listings . Even a little effort in optimizing your product listing can pay off hugely. If you're really pressed for time, just look at product titles to make sure they contain relevant keywords so your products show up in searches.

Increase your advertising budget. You don't need a lot of prep time to set up Sponsored Products, which is a solid return on your advertising investment. If you already have Sponsored Products, review your budget and bids. Regardless of your advertising strategy, be sure to monitor your campaigns during Prime Day and make adjustments as needed.

Set up sales . It’s never too late to discount your products, and it’s always a great way to catch the eye of shoppers—especially shoppers who use price tracking tools.

Advertise your sales. If you have a social media or mailing list, now is the time to tell your followers that you are running a promotion. It's a quick and easy way to promote your products to shoppers who have already purchased your products.

Even last-minute efforts can go a long way to grab a shopper's attention. With a large number of consumers browsing Amazon on Prime Day, this could lead to a lot of sales.

What not to do on Prime Day

While there are many things you can do to prepare for Prime Day, there are some things you should never do, such as:

Raising prices ahead of Prime Day makes it look like you're offering a bigger discount. Shoppers will usually know the list price of an item, or use a price tracker to see what's on sale – you probably won't fool anyone with a "discount" like this.

Manipulate your product reviews . While having good product reviews is vital to sales, you must follow Amazon's review guidelines carefully. The company has a zero-tolerance policy on censorship interference and may permanently ban you from selling on the site.

Set up your sale and walk away . You'll want to keep an eye on your sales, shipments, and ads during Prime Day so you can make adjustments as needed. Products that don't sell may require fine-tuning of their product pages. Unconverted ads may need to be edited or deleted. Keep an eye on your Prime Day performance so you can respond as needed to maximize your Prime Day profits.