Published -July 13th, 2023 @ 12:07 PM (GMT+2)

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Prime Day: Boosts Amazon's Online Sales

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According to data released by Adobe Analytics, Amazon's two-day shopping event, Prime Day, witnessed a nearly 6% surge in U.S. online sales, pushing the total to $6.4 billion on the first day. This significant jump was credited to hefty discounts that drew customers looking for bargains on appliances and toys.

With mounting interest rates and food prices, U.S. consumers postponed their big-ticket purchases, anticipating the best deals and discounts. This wait turned fruitful as appliance online sales shot up by 37% compared to the average daily sales in June. Similarly, toy sales observed a 27% rise on the first day of the sale.

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Prime Day Spending Skyrockets

The average spending per order on Prime Day also saw an upward trend, with the data firm Numerator revealing a rise to $56.64 from $53.14 the previous year. Adobe Digital Insights has projected Amazon's event to generate between $12 billion and $13 billion. Amazon, however, has yet to comment on this data.

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Amazon & Priceline: A Partnership Beckons

To attract more customers, Amazon joined hands with Priceline, the travel booking site, offering discounts to U.S. consumers who prioritize experiences over non-essential spending. Leading up to Prime Day on July 11-12, loyal members received access to exclusive "invite-only deals" for specific products.

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The Prime Day week also saw rival retailers like Walmart, Target, and Best Buy offering significant discounts. Walmart leveraged this week to invite more customers to its subscription program, Walmart+, by giving a 50% discount on annual membership registrations.
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Online Shopping Up, Conversions Down

Prime Day has now become a time when shoppers compare deals from various retailers, noted Rob Garf, the vice president and general manager of retail at Salesforce. Despite the growing online shopping trend, conversion rates are falling, indicating that each visit is becoming less profitable. Garf observed that Walmart is emulating Amazon's strategy of using steep discounts to stimulate membership sign-ups, a tactic first used by Amazon during the Prime Day launch in 2015.

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Prime Day: Gateway to Customer Loyalty

According to Garf, the Prime Day week deals go beyond initial sales and discounts; they are about acquiring new customers and enhancing their lifetime value. Adding to this, Tom McGee, Chief Executive of the International Council of Shopping Centers, opined that deal events such as Prime Day, Walmart+ Week, and Target Deal days spur spending across various small and large retailers.

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Adobe Digital Insights revealed that the most significant discount across retailers:

• 16% on electronics
• 13% on apparel
• 15% on toys

Adobe's Pandey suggested that Prime Day offers an opportunity to stock up on back-to-school items, especially apparel and electronics, which saw a 26% and 12% sales increase compared to average daily sales in June.

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Prime Day Sale's Downside: Inflation Impact

Despite these opportunities, data from Deloitte showed that 69% of shoppers are depending on the Prime Day sale for back-to-school purchases. However, this spending is expected to decline for the first time in nine years due to persistent inflation affecting non-essential purchases.

Prime Day Strike

Simultaneously, nearly 900 Amazon workers at a warehouse in Coventry, Britain went on strike over a pay dispute from July 11-13, coinciding with the Prime Day sales event. Amazon reassured customers that this strike wouldn't disrupt customer orders as the site doesn't directly serve customer orders.

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