Photo: Amazon
Even as consumers struggle with record-high debt and inflation, Amazon made more money than ever on Prime Day this year.
According to U.S. News & World Report, “Adobe Analytics data showed U.S. online sales reached $12.7 billion on the two shopping days, up 6.1% compared to a year ago.” That makes this the biggest Prime Day event to date, with Amazon selling over 375 million items to Prime members.
Amazon Prime Day has become a staple summer savings event each year, one that many people dub “Black Friday in July,” and big box retailers are eager to compete for sales.
In a recent article, Business Insider stated that Prime Day has “transformed July from a slow time for retailers into one of the hottest sales stretches of the year.” Rivals like Walmart and Target aren’t letting Amazon go unchecked, hoping to lure Amazon shoppers to their own sites with competitive deals. “But while other retailers can try to get in on the shopping spirit,” Business Insider notes, “it’ll be hard to beat Amazon at its own game.”
One way Amazon’s competitors tried to set themselves up for success is by offering their sales to everyone, not just those signed up for an annual membership like Amazon Prime. Walmart did offer 24-hour early access to Walmart+ members for its Walmart+ Week sales, but it didn’t limit who could shop the deals for the three remaining days. Additionally, Walmart cut its Walmart+ membership cost in half during the week of sales.
Most competing retailers also extended the length of their events beyond Prime Day’s two-day run. Those that started early may have hoped to grab consumers’ attention before Amazon could outshine them, and those that ended later might have aimed to attract buyers who were too indecisive to make their purchases on July 11 or 12.
Here’s a look at the competitors this Prime Day:
- Target: Target Circle Week from July 9-15.
- Walmart: Walmart+ Week from July 10-13.
- Best Buy: Black Friday in July from July 10-12.
- Kohl’s: Summer Cyber Deals event from July 11-12.
- JCPenney: Cyber sale offering an extra 30% off online from July 10-12.
- Macy’s: Black Friday in July from July 6-13.
Even with the growing amount of competition each year from other big box retailers, Amazon still came out on top this year with its best sales ever.
So, what does Amazon’s record-breaking success during Prime Day mean for shoppers and the retail industry as a whole? According to Footwear News, “Spending turnout for Prime Day and other July shopping holidays this year could be a strong indicator of how consumers will come out for major shopping holidays through the remainder of 2023, a year in which inflation, high interest rates and economic concerns [have] weighed on spending.”
However, even though Prime Day was a hit, Forbes noted, “Years of uncertainty and stress have changed what matters to consumers, how they want to shop, and where they’re willing to spend their money.” One new trend this year was the “significant increase in Buy Now Pay Later orders, which accounted for 6.4% of online orders or $461 million, a 19.5% jump from Prime Day 2022.” This growth indicates that shoppers are looking for flexibility when making purchases.
Ultimately, shopping events like Prime Day, Walmart+ Week, and Target Circle Week continue to entice buyers with great deals, even during an economically uncertain time like this when consumers are cutting back on their discretionary spending.
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