BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Amazon Prime Day Sales Rise as Deep Discounts Tempt Inflation-Hit Shoppers

Amazon headquarters. (Shutterstock)’s Prime Day two-day shopping event saw US online sales rise nearly 6 percent to $6.4 billion from a year ago on its first day, as heavy discounts lured bargain-hunting customers who splurged on appliances and toys, Adobe Analytics data on Wednesday showed.

US shoppers have been waiting for the best possible deals and discounts as rising interest rates and food prices have led them to delay purchases of big-ticket items in recent months.

Online sales for appliances jumped 37 percent compared to average daily sales in June, while sales of toys rose 27 percent on the first day of the sales event.

Data firm Numerator said the average Prime Day spend per order rose to $56.64 from $53.14 a year ago.

Adobe Digital Insights expects Amazon’s event to rake in between $12 billion and $13 billion.

Amazon did not immediately respond to a request for comment.

To add more customers, Amazon has partnered with travel booking site Priceline to offer discounts as US consumers prioritise experiences over non-essential spending.

In the weeks leading to Prime Day on July 11-12, members of the loyalty program were given access to “invite-only deals” where shoppers could request invites to specific products that they were looking to purchase on deals.

Rival retailers, including Walmart, Target and Best Buy, are also offering large discounts during the Prime Day week. Walmart is also using the week as a way to lure more customers to its subscription program Walmart+ by offering 50 percent discount on annual membership sign-ups.

Rob Garf, vice president and general manager of retail at Salesforce, said that shoppers have now been conditioned to compare deals from various retailers during Prime Day week, meaning rising competition for Amazon.

Garf said that although people are shopping online, retailers are seeing a drop in conversion rates -- the measure of consumers who visit a store compared to those who make purchases.

“That’s telling us is each visit is less profitable,” Garf said. Amazon offered steep discounts to “positively influence” membership sign ups when Prime Day launched in 2015 and now Walmart is “taking a page out of the Amazon playbook,” he said.

Prime Day week deals aren’t “just about the initial sale and providing a discount, but it’s Walmart and others looking to gain new customers and turning them into strong lifetime value of those customers,” Garf said.

International Council of Shopping Centers Chief Executive Tom McGee said that deal events like Prime Day, Walmart+ Week and Target Deal days “drive spending across the board, including at both small and large retailers.”

Shoppers can find the biggest discount across retailers of 16 percent on electronics on Wednesday.  Apparel is discounted at 13 percent, while toys would be 15 percent cheaper, according to Adobe Digital Insights.

Adobe’s Pandey said Prime Day is a chance to stock up on back to-school items, especially apparel and electronics, whose sales were up 26 percent and 12 percent, respectively, compared to average daily sales in June.

Data from Deloitte showed 69 percent of shoppers planned to rely on Prime Day sale for back-to-school purchases. But that spending is expected to decline for the first time in nine years as sticky inflation hurts non-essential purchases, it said.

Adobe’s data relies on direct consumer transactions based on more than 1 trillion visits to US retail websites.

Meanwhile, nearly 900 Amazon workers at a warehouse in Coventry, Britain, are striking over a pay dispute for three days from July 11-13, coinciding with the Prime Day sales event.

Amazon said the site does not directly serve customer orders and there will be no disruption to customers.

By Arriana McLymore, Granth Vanaik and Ananya Mariam Rajesh; Editing by Arun Koyyur and Sandra Maler

Learn more:

Amazon Prime Day Isn’t the Only Game in Town Anymore

The e-commerce giant’s rivals are planning their own sales events, while Shein and Temu are luring consumers with the promise of year-round discounts.

In This Article

© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Technology
Analysis and advice on how technology is disrupting fashion and creating new opportunities.

Apps that let shoppers scan themselves and customise products to their precise measurements haven’t revolutionised the way we buy basics like T-shirts and jeans, but one company thinks bridal wear’s characteristics make it the perfect fit for the technology.

view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
Enjoy 25% off BoF Professional Membership Until December 19
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
Enjoy 25% off BoF Professional Membership Until December 19