Amazon Prime Day sales to hit record US$14 billion, data firm forecasts
SHOPPERS are likely to spend roughly US$14 billion during Amazon’s Prime Day two-day shopping event this week, according to projections from Adobe Analytics, a firm that studies e-commerce transaction data.
Spending at Amazon on Tuesday (Jul 16) and Wednesday could rise 10.5 per cent from Prime Day 2023, Adobe said.
The online retailer began holding Prime Day a decade ago, typically in July. Prime Day accounts for 1 to 2 per cent of Amazon’s net global sales, according to CFRA Research.
Amazon started advertising pre-Prime Day deals in early July on clothes, back-to-school gear, wellness products and electronics, though it moved Prime Day back by five days on the calendar this year.
Amazon said that Day one of its two-day Prime Day 2023 earned its biggest sales day ever, although it does not disclose total sales for Prime Day.
The US$12.7 billion shoppers spent at Amazon last year during Prime Day was 6.1 per cent more than what they spent during the 2022 event, according to Adobe.
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Amazon’s Prime Day has turned July, an otherwise slow time for retailers, into a season when shoppers look for bargains, especially on back-to-school clothing, electronics, uniforms, backpacks, dorm decorations and supplies.
Rivals Walmart and Target are also launching July discounts and marketing events in a bid to beat Amazon at its own game, and capture some of the US$38.8 billion that the National Retail Federation trade group projects Americans will spend on back-to-school merchandise this summer.
Following years of high inflation, shoppers have delayed purchases of non-essential goods and retailers are tempting shoppers to break that habit with aggressive July discounting.
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“We are expecting really strong momentum for back-to-school,” said Vivek Pandya, Adobe’s lead insights analyst.
Shoppers are now more willing to spend and have started to use Prime Day as a back-to-school shopping opportunity, he said.
Shoppers could spend US$7.1 billion at Amazon on Tuesday alone, up 11.3 per cent from a year earlier, Adobe said. Day two is expected to bring US$6.9 billion in online sales, up 9.2 per cent from a year earlier, it said.
Adobe expects Amazon to dangle discounts of 22 per cent on electronics, 20 per cent on clothing, 17 per cent on home goods and furniture and 11 per cent on sporting goods.
Adobe’s projections are based on its analysis of data measuring transactions from previous Prime Days. REUTERS
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