Prime Day, Amazon’s annual event where it and sellers on the platform discount a variety of items for a burst of sales activity, is coming to a screen near you. Today, the e-commerce giant announced that Prime Day will take place on July 12-13 this year.
The US, home of Amazon, is the company’s focal point for this discount bonanza, but like “Black Friday,” Prime Day has become increasingly global over the years, and so Amazon will also be holding Prime Day on the same day at least once. at least 15 other countries, including Canada, China, Brazil, Germany, Japan, Mexico, Netherlands and UK.
The Prime Day sale will take place in India, Saudi Arabia, Egypt, the United Arab Emirates and a few other markets later this summer, the company said.
Typically, Prime Day is held in the summer, a tactic to fuel activity to offset the more traditionally sluggish sales activity during that period. However, Amazon has had to adjust its schedule for Prime Day over the past two years due to the pandemic. In 2020 it was postponed to October; in 2021 the date has been moved to June.
Prime Day is about boosting sales, but it’s also about boosting something else: as the name implies, it’s one of Amazon’s special features reserved for members of Prime, the loyalty club where people get an extra bonus. pay a fee for free shipping on various items, access the company’s media streaming services, and more. Amazon notes that starting June 21, Prime members will have early access to some Prime Day deals, ahead of the rest of the consumer package.
Deals include discounts on Amazon’s own products – for example, 55% off its own devices such as the Echo Show 5 (2nd generation), the Echo Show 5 (2nd generation) Kids, the Kindle Paperwhite, and the Halo fitness band; as well as discounts on Fire TV-compatible sets from companies such as Insignia, Toshiba, Panasonic, in addition to Amazon’s own devices.
Other offers Amazon is already announcing include 20% off some Amazon Fresh products and $10 credit for completing tasks like listening to a song, streaming a video, and borrowing a book in Prime services. and a chance to win prizes for shopping at small businesses.
It also uses the event to try out other forms of sales.
Beginning June 21, Amazon will broadcast live shopping with celebrities such as Porsha Williams, Joe and Frank Mele, and Hilary Duff on its website, shopping app, and Fire TV. This is a follow-up to last year when Kristen Bell, Karamo Brown and Mindy Kaling were shopping live during Prime Day.
And it uses BNPL to make people click a little more. Fintech firm Affirm partners with Amazon to offer Prime members a Buy Now, Pay Later (BNPL) option to split their payments into three installments for purchases over $50 made between June 28 and July 11 (As with other BNPL platforms, Affirm’s pitch is “interest-free” payments.)
Amazon bets a lot on Prime Day for its profits. It said it sold more than 250 million items at the sales event last year, representing a gross trading volume of $9.54 billion. However, to put that into context, analysts pointed out that annual growth was low. Part of it is simply the outrageous surge that Covid-19 purchase patterns drove, followed by the inevitable return to Earth: In 2020, Amazon saw a 54% year-on-year increase for Prime Day, but that figure shrank to ‘just’ 7% growth in 2021.
Given inflation and the increased pressure we see on consumer spending in the US and elsewhere, it will be interesting to see what 2022 brings in that context.
Something to keep an eye on: This marks the company’s first Prime Day after founder Jeff Bezos stepped down as CEO last year. All eyes will be on whether current CEO Andy Jassy will deliver the goods, so to speak.
He’s definitely on the move with change: in the past few months, Amazon has increased the prices of its Prime Service from $12.99 to $14.99 a month, kicking off an invite-only ordering system for items like PlayStation 5. and Xbox, began testing an AR retail experience, and pledged to launch a drone delivery system in California later this year.
Nevertheless, the company has not had its best year so far, losing $3.84 billion in first quarter results, with estimates of $116 billion to $121 billion for second-quarter revenue, slightly lower. exceeds analysts’ expectations of $125.5 billion. At the time of writing, Amazon’s stock is trading more than 36% lower than a year ago. Amazon is also trying to tackle issues such as fake reviews and counterfeit products on its platform.
A new report from eMarketer suggests the US e-commerce market will cross the $1 trillion mark. However, for the first time ever, Amazon will see its market share shrink so slightly: to 37.8% from 38% previously. Considering how much there is market chatter these days, Prime Day’s results could be the difference between whether Amazon sinks or floats on those words.