.svg)
Latest Business News
Amazon Prime Day Boosts Online Sales for Third-Party Sellers and Retailers
Overview of Prime Day
Early data shows that Amazon's Prime Day has gotten off to a strong start, resulting in a significant boost in online sales for third-party sellers and other retailers. On the first day of the 48-hour sales event, online spending in the U.S. increased by approximately 6%, reaching $6.4 billion. This makes it the largest e-commerce day of the year so far. Prime Day was launched by Amazon in 2015 with the aim of attracting new Prime subscribers, increasing loyalty among existing members, and promoting Amazon's own products and services. To compete with Amazon, other major retailers such as Walmart, Target, Kohl's, and Best Buy have also been offering discounts.
Projected Growth in Online Sales
Adobe expects total online sales in the U.S. to grow by 9.5% year over year, reaching $13.1 billion during the two-day Prime Day event. Last year, U.S. consumers spent over $11.9 billion. The average order size per Prime Day shopper has increased this year, reaching $56.07 compared to $53.14 in the previous year. Home goods, appliances, household essentials, toys, and apparel are among the most popular items purchased. Fire TV sticks and Apple Watches are also top-selling products.
Impact of Economic Uncertainty
Market analysts and investors are closely monitoring Prime Day to assess the impact of economic uncertainty on consumer spending. In June, U.S. inflation experienced a cooling, with a 3% year-over-year increase. This is the lowest rate in over two years. However, core inflation, excluding food and energy, rose by 4.8% annually. Despite this uncertainty, Telsey Advisory Group analysts believe that Prime Day has stimulated retail spending during a period of slower consumer spending.
Success Stories of Prime Day Promotions
Many companies have reported positive results from their Prime Day promotions this year. For example, Ascent Protein, a protein powder maker, and BOX Partners, the owner of shipping packaging brands Aviditi and BOX USA, have seen a nearly 40% increase in sales compared to the previous year. Harmless Harvest, known for its coconut drinks and smoothies, has experienced a doubling of sales. These success stories indicate that consumer spending may be more resilient than anticipated.
The preliminary data on Prime Day sales highlights the significant impact of the event on online sales for both Amazon and other retailers. It also suggests that consumer spending is showing signs of resilience, with certain market segments exhibiting pent-up demand. The full extent of the sales figures from Prime Day will be announced by third-party providers, including Adobe and Salesforce, on Thursday.
The Impact of Prime Day on New Businesses
Prime Day as a Sales Boost Opportunity
Prime Day has proven to be a significant opportunity for new businesses to boost their online sales. The early data from this year's Prime Day shows a substantial increase in online spending, with a 6% growth on the first day alone. This trend indicates the potential for new businesses to tap into the surge in consumer activity and capitalize on the heightened online shopping interest during this period.
Growth Potential in Online Sales
With projected growth in online sales reaching $13.1 billion during the Prime Day event, new businesses have a chance to benefit from this annual shopping extravaganza. The average order size per Prime Day shopper has increased, indicating a willingness among consumers to spend more on products and services. By offering enticing deals and discounts, new businesses can attract customers and capture a share of the expected sales growth.
Resilience of Consumer Spending
Despite economic uncertainty, Prime Day has shown that consumer spending can remain resilient. Even during a period of slower consumer spending, this event has stimulated retail spending and showcased pent-up demand in certain market segments. This resilience offers new businesses an opportunity to tap into consumer interest and drive sales during a time when customers are actively seeking deals and promotions.
Opportunity for Success Stories
The reported success stories from companies like Ascent Protein and BOX Partners demonstrate the potential for new businesses to experience significant sales growth during Prime Day. These success stories indicate that consumer spending may exceed expectations, providing new businesses with a platform to showcase their products or services and gain new customers.
In conclusion, Prime Day presents an excellent opportunity for new businesses to boost their online sales and gain exposure. With growing projected sales and evidence of consumer spending resilience, new businesses can leverage this annual event to drive revenue and establish their presence in the market. By offering compelling deals and promotions, they have the chance to capture the attention of consumers actively seeking discounts, ultimately helping to fuel their growth and success.
Article First Published at: https://www.cnbc.com/2023/07/12/amazon-prime-day-off-to-a-strong-start-early-data-shows.html
