According to the analysis company Adobe Analytics, which researches e-commerce transaction data, it is predicted that shoppers may spend around $140 billion during Amazon’s two-day Prime Day promotion this week.
This forecast by Adobe was made after analyzing past Prime Day transaction data. Compared to Prime Day in 2023, consumer spending on Amazon on Tuesday and Wednesday of this week is expected to increase by 10.5%, according to Adobe.
Data from Adobe shows that during Prime Day in 2023, shoppers spent $12.7 billion on Amazon, a 6.1% increase from the spending during the event in 2022.
CFRA Research data indicates that Prime Day typically accounts for 1% to 2% of Amazon’s global net sales.
Amazon has been holding Prime Day for the past decade, offering discounts exclusively to Prime members who pay an annual fee of $139 in exchange for benefits like fast delivery and streaming services. The promotional event, usually held in July, turns what used to be a slow month for retailers into a season where shoppers look for deals on items like clothing, electronics, school supplies, backpacks, dorm decor, and essentials.
Amazon mentioned that the first day of the two-day Prime Day in 2023 achieved record-breaking sales, although the total sales figure for Prime Day was not disclosed.
This year, Amazon has been promoting discounts on clothing, back-to-school gear, health products, and electronics since early July.
As usual, Amazon will roll out millions of promotional items during this event, with new additional discounts available every five minutes during specific times throughout the event.
Amazon will also offer special deals exclusively for invited Prime members, which often lead to quick sellouts. Last year, Amazon introduced this exclusive offer for Prime members for the first time.
Vivek Pandya, Chief Insight Analyst at Adobe, said, “We expect back-to-school shopping momentum to be very strong.” He noted that shoppers are more willing to spend now and see Prime Day as a great opportunity to purchase back-to-school items.
Adobe projects that shoppers may spend $7.1 billion on Amazon on just Tuesday, an 11.3% increase from the same period last year, while online sales on the second day are expected to reach $6.9 billion, a 9.2% increase from last year.
Adobe forecasts that Amazon’s discounts on electronics will be around 22%, clothing at 20%, home goods and furniture at 17%, and sports equipment at 11%.
Amazon’s competitors Walmart and Target have also launched their own discount promotions in July to compete with Amazon, as they aim to grab a share of the $38.8 billion Americans are expected to spend on back-to-school items this summer, according to the National Retail Federation.
(Reference: Reuters)