As any Amazon seller will tell you, Prime Day can be as much of a bane as it is a boon.
On the one hand, you have hundreds of millions of Prime customers (a figure now estimated to account for some 75 percent of US consumers) who specifically wait for Prime Day for deep deals on everything from new appliances to early holiday shopping to… well, just about any purchase imaginable, impulsive or otherwise.
On the other hand, you have hundreds of millions of smaller brands who are struggling at the very last minute to ensure accurate forecasting, demand, inventory, campaign optimization and just about any operational minutiae imaginable for what could very well be a crap shoot.
A crap shoot which can make or break a business.
In fact, the only real winner in the roulette that is Prime Day is Amazon, which saw $14.2 Billion in sales during this year’s 48 hour event, leading to yet another round of self-congratulatory accolades.
Not that there aren’t rivals to Prime Day—a phenomenon that has historically dwarfed both Black Friday and Cyber Monday for five years straight. Walmart has their Deal Days. Target has their Circle Week. But in terms of both opportunity, scope and sheer, unabashed (yet deservedly so) hype, there’s nothing quite like Prime Day. In fact, it’s an event so ubiquitous that no retailer in their right mind would even think of running competitive sales promotions within that same 48 hour period (not that they haven’t tried.)
Quick Facts
Prime Day 2024’s $14.2 Billion represented an 11 percent YoY increase over 2023
In comparison, Prime Day 2023’s $12.7 Billion was reportedly only a 6.1 percent increase over the previous year
Yet both those numbers pale in comparison to the YoY growth Amazon enjoyed between Prime Day 2019 and 2020: a staggering 45.2 percent (although admittedly spurred on by the pandemic)
Predictions from Adobe Analytics indicate that the $14.2 Billion lift Amazon enjoyed from Prime Day 2024 could ultimately contribute to an estimated $84.4 Billion in sales for Amazon for the month of July, representing a 8.2 percent YoY growth
Some $7 Billion of sales were conducted via mobile devices during Prime Day 2024, marking an 18.6 YoY increase
According to estimates from Digital Commerce360, the three top-performing verticals by sales growth included Health & Beauty (a 23 percent increase), Handbags (12 percent) and Active Footwear (10 percent)
While it’s unclear what definitive role decreased inflationary prices may have played in determining the success of Prime Day 2024, Adobe Analytics data has indicated that eCommerce revenues in the US enjoyed a steady growth of 7 percent YoY during Q1 2024 to account for some $331.6 Billion in sales
Higher Discounts, Higher Sales
One historical struggle for small businesses looking to maximize visibility during Prime Day has been balancing profitability with marketing momentum.
Yet analysis from Salesforce indicates that discounts have increased 10 percent between Prime Day 2023 and this year to an average of 22 percent, while US sales grew at a rate of 3 percent.
“For the first time in a long time, we’re seeing order volumes turn positive and discounting is high,” elaborated Salesforce’s Caila Schwartz, director of consumer insights. “The lesson is a simple one: If retailers deliver on discounting and providing true value, they will release that pressure valve of built-up demand and see incredible success. If they don’t, retailers may risk losing out as shoppers will go elsewhere.”
Yet one clear winner when it came to the presence of promotional discounts this year appeared to be Prime Exclusive Discounts, which helped brands see a sales lift of 247 percent according to analytics firm Acadia. Brands utilizing a mix of coupons and PEDs saw a 170 increase in sales, whereas coupons and Lightning Deals alone saw boosts of 114 percent and 110 percent respectively.
Product Upgrades and Back to School Offers Dominated Prime Day 2024
According to a report from Adobe Analytics, one critical driver of growth during Prime Day 2024 was consumer spending on product upgrades or entirely new home furnishings and electronics purchases.
The report found that the home, furniture and appliances category stood the most to gain from Prime Day 2024, with sales for small kitchen appliances reporting an increase of 76 percent across both days, while kitchenware and cookware sales were up 25 percent, mattresses increasing up 21 percent, home office furniture seeing a lift of 14 percent and bedroom furniture seeing an increase 11 percent.
Similarly, electronics saw a boon of 61 percent across both days, including tablets (up ny a whopping 117 percent), televisions (an increase of 111 percent), headphones and bluetooth speakers (up by 105 percent), fitness trackers (an 88 percent increase), desktop and laptop computers (up 80 percent), smartphones (up 71 percent) and cameras (up 60 percent.)
One surprising winner during this year’s Prime Day Back-to-School shopping, which saw spending for products such as backpacks, lunchboxes, stationery, and other supplies increase by a staggering 216 percent across both days, followed shortly behind kid’s apparel (an increase of 165 percent during that same time period.)
Prime Day 2024, Part 2?
While Amazon has yet to confirm it, there’s a very strong chance of a second Prime Day in October or November if the past four years have been any indicator.
With that being said, it could also be an extremely different purchasing climate. Not only are we facing the potential of an increasingly volatile economic cycle (both overseas and domestically), but seasonal purchasing trends differ significantly between summer and fall.
One trend that hasn’t changed is the popularity of Prime Day. As we’ve indicated, it can be as much a primary sales resource as it can be a primary source of frustration. But it’s not going away any time soon. And maximizing your visibility during it means keeping one eye on historical factors and the other on the future.
Color More Lines can help you grow faster on Amazon during Prime Day and beyond. Find out more at Color More Lines
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