Amazon on Tuesday, October 10, launched a fall sale for Prime subscribers.
The e-commerce giant aims to benefit from the expected season of monotonous holiday shopping. According to Adobe Inc., in the United States in November and December, sales in the virtual space will increase by 4.8% and will be in the monetary equivalent of $222 billion. This dynamic, if the forecast is realized, will exceed last year’s growth by 3.5%. At the same time, the expected increase in sales in the virtual space is significantly lower than the level of 13% recorded in 2019, shortly before the outbreak of the coronavirus pandemic.
Currently, American consumers, as part of their economic behavior, are making efforts to combat inflation, which has proved to be stable and so far shows no signs of an imminent decline. Their debt obligations are increasing. Also, against the background of unfavorable economic circumstances, the amount of savings of American consumers is decreasing. The resumption of payments on student loans, according to experts, is likely to increase the financial burden on citizens and will have an impact on their spending figures.
Adobe analyst Vivek Pandya said that during the two-day Amazon sale, the main theme will be avarice. In his opinion, in this case, there will be relatively intensive shopping, since other retailers, including Walmart, refuse to hold such events. The analyst also said that factors such as competition and unsold inventory will require significant discounts.
Vivek Pandya says that the availability of offers from several retailers encourages consumers to compare prices. In this case, buyers tend to make a choice in favor of the best option, while taking into account the need for reasonable cost management in expensions of inflation.
Adobe also predicts that the Buy Now, Pay Later this year services will set a new record of usage intensity. This opinion is based on the fact that against the background of negative economic conditions, buyers whose financial capabilities are declining tend to minimize personal damage from rising prices and increased borrowing costs.
Amazon launched the Prime Day summer sale in 2015. The purpose of this decision of the e-commerce giant was to attract new subscribers who pay $139 annually for discounts on shipping, streaming video, and some other benefits. The event helps the company to establish interaction with new customers before the holidays and deepen relationships with existing clients by offering them exclusive offers for the purchase of Amazon gadgets and other goods.
Last year, the e-commerce giant launched an event called Prime Early Access Sale, during which consumers refused expensive purchases, making a choice in favor of products from the warehouse with a discount. The 2023 Fall sale was renamed Prime Big Deal Days.
Adobe predicts that by the end of the two-day period, the total volume of digital sales in the United States will reach $8.1 billion, which is 6.1% higher than a year ago. Consumers are probably ready to start holiday spending early if the discounts are sufficiently compelling. According to a survey conducted by RetailMeNot, it was found that about 64% of buyers will start shopping in October.
As we have reported earlier, Amazon to Introduce Limited Ads in Its Prime Video Service.