Multifamily

Prime Day 2024: Predictions and How to Prep Your Property

Here we go again! Amazon is getting ready to light up the internet with its annual Prime Day sale, anticipated to occur in July 2024 . With sales expected to leapfrog over last year’s $12.9 billion, now is the time to start preparing your multifamily property for the onslaught of your residents’ Prime Day packages.1

2024 Prime Day Predictions

The 2024 sale marks the 10th annual iteration of Amazon’s now two-day event, Prime Day. Amazon said that Prime members purchased over 375 million items during the event last year, making it the biggest Prime Day ever.2 Digital Commerce 360 estimates that global sales on Prime Day 2023 jumped 6.7% from 2022.3 The mass merchant also said it had its fastest-ever global shipping speeds for Prime members in 2023, with more than 4 billion units arriving the same or next day for U.S. customers.4

This year, SellersFi anticipates that 42% of shoppers will purchase in the electronics category; this makes secure package storage paramount, since this category is often associated with high-ticket and oversized items such as TVs and computers.5 Further, Buy Now, Pay Later (BNPL) options are expected to spur even more sales, especially in home furnishings and electronics. Adobe Analytics indicates that BNPL options comprise $927 million in sales, up 20% from a year ago.6

Amazon expects this year’s Prime Day event to be even bigger, adding up to more deliveries at your property – and potentially more high-ticket items at risk of being pilfered by porch pirates.

More Purchases, More Packages

Over the past year, Amazon has expanded its shopping footprint even further with holidays like the Big Spring Sale in March, Amazon Pet Day in May, and Prime Big Deal Days in October. The delivery influx from this retailer is relentless.

It should come as no surprise, then, that Amazon Prime Day and other sales holidays created by the brand have inspired other retailers to offer equal discounts and sales to their consumer base in-store and online. Last year, for example, Best Buy held a holiday-themed sale with special promotions available only to its reward members. Now, Target is also “targeting” its Target Circle members with special deals. And Walmart, which rang up sales of $648 billion last year, is competing for a share of consumers’ wallets with its Walmart + Week, which directly overlaps with Prime Day.7

This scale of activity underscores the importance of being prepared for the surges in resident package deliveries, both during the usual holiday shopping season as well as outside of it.

How to Prepare Your Property

Review Your Package System

Before the Prime Day purchases arrive, ensure your package management process is effective. Smart lockers can alleviate the burden of package management for on-site teams while also providing on-demand access for residents’ deliveries. Remember to account for oversized items and remind residents that some packages might require assistance for retrieval.

Alert Residents

Communication is critical. Remind residents about the logistics of package retrieval, including any necessary identification, scheduled holidays, and hours for package pick-up. Remind those using Parcel Pending lockers about late fees, Vacation Mode for extended absences, and the procedure for retrieving oversized deliveries.

Prepare Your Team for Key Peak Periods

Competition between retailers at this time is fierce, meaning consumers will likely be lured to spend more – and therefore to receive more packages. To streamline your package management system, consider extra staffing and instituting a “no-grace period” package pick-up policy immediately after major retail sales events.

4 Key Benefits of Smart Parcel Lockers

Investing in smart parcel lockers, like those from Parcel Pending by Quadient, brings many benefits including enhancing resident satisfaction and boosting operational efficiency.

1. More Package Security

The theft of parcels left at residents’ doors by porch pirates or building bandits is a growing concern in multifamily communities. Smart parcel lockers address this issue head-on. Equipped with steel construction and a sophisticated photo capture system, these lockers, combined with their innovative technology and app notifications, virtually eliminate the theft risk. Your residents can rest assured their deliveries are safe until they retrieve them, significantly enhancing their peace of mind.

2. More Convenience

Parcel lockers’ 24/7/365 accessibility removes friction from package delivery and retrieval. Residents no longer need to rush home or adjust their schedules to ensure their parcels aren’t left unattended. This level of convenience is not just a luxury; it’s becoming a baseline expectation for residents’ community experience.

3. More Operational Cost Savings

Parcel management can be a significant time sink for property staff, diverting valuable resources from other essential duties. By automating the acceptance, storage, and retrieval of packages, smart parcel lockers free up your staff to focus on tasks that enhance resident services and property management. Communities have reported saving an estimated 24 hours per week after installing parcel lockers, a testament to their efficiency and impact on operational costs.

4. More Lease Renewals

The most compelling benefit of smart parcel lockers is their positive impact on lease renewal rates. The correlation between residents’ satisfaction and their decision to renew is well-established, and the convenience and security offered by parcel lockers significantly boost this satisfaction. Some communities have seen renewal rates surge by as much as 40% after installing parcel lockers, making them a wise investment in the future of your property.

Preparing for Prime Day 2024

Prime Day 2024 is not just another sales event; it’s a pivotal moment that sets the tone for how your property addresses parcel management and resident satisfaction. By investing in smart locker solutions, you not only enhance the security and convenience of package deliveries for your residents but also position your property as a forward-thinking, resident-centric community.

Ready to lock in your property’s package management solution? Contact a Parcel Pending representative today.

Sources:

  1. Digital Commerce 360. When is the next Amazon Prime Day sale and everything else you need to know. www.digitalcommerce360.com. April 29, 2024. https://www.digitalcommerce360.com/article/everything-about-amazon-prime-day/
  2. Ibid.
  3. Ibid.
  4. Herrington, Doug. Amazon delivered to Prime members at the fastest speeds ever in 2023–and is working to get even faster in 2024. www.aboutamazon.com. January 30, 2024. https://www.aboutamazon.com/news/operations/doug-herrington-amazon-prime-delivery-speed-2024-updates
  5. SellersFi. 3 Must-Know Amazon Prime Day Predictions for 2024. sellersfi.com. n.d. https://sellersfi.com/resources/blog/amazon-prime-day-predictions/
  6. Berthiaume, Dan. Amazon Prime Day 2023 sets records with nearly $13 billion in sales. chainstoreage.com. July 13, 2023. https://chainstoreage.com/amazon-prime-day-2023-sets-records-nearly-13-billion-sales
  7. Nassauer, Sarah. Walmart Posts Sales Growth, Raises Earnings Outlook for the Year. www.wsj.com. May 16, 2024. https://www.wsj.com/business/retail/walmart-posts-sales-growth-raises-earnings-outlook-for-the-year-d0eb3cfc