Amazon.com Inc.’s Prime Day sales for the first six hours of the relevant event showed an increase of approximately 13% compared to the figures recorded last year.
The mentioned data was released by Momentum Commerce, which manages 50 brands in a variety of product categories. Preliminary information on the initial results of Prime Day indicates the high performance of the event as a whole, although for objective reasons it does not and cannot reflect the fullness of the data. In this case, it is implied that the figures recorded during the first few hours of the event traditionally signal a general tendency and also demonstrate, as a rule, a kind of scale of the ratio to the results of a year ago. In the relevant context, it is also worth paying attention to the fact that last year sales within the framework of Prime Day reached a peak level in the first few hours.
Momentum manages Amazon sales on behalf of brands such as Crocs, Lego, and Beats by Dre. This company generates sales of about $7 billion annually in the trade space of the mentioned e-commerce giant, which, among other things, owns the best American delivery service. Momentum has an extensive sample to assess the performance of Prime Day.
Sky Canaves, an analyst at EMarketer Inc., says that consumers continue to spend, but carry out relevant activities within the framework of a strategic approach. In this context, the expert stated the benefits of sales like Prime Day. Sky Canaves predicts a high level of consumer demand for product categories such as headphones and chargers. According to the analyst, buyers will not show significant interest in big-ticket electronics, for example, laptops.
It is worth noting that currently in many countries of the world, there is what can be described as consumer restraint. People are careful to spend money and try not to make purchases, the need for which is below average. The corresponding behavior model is explained by the difficult situation in the global economy and the lack of certainty about appropriate prospects. For example, there is currently moderate consumer activity in China. This behavior is associated with the uneven and difficult economic recovery of the Asian country. Also, consumer activity in China is moderate due to the lack of confidence in the further positive dynamics of the local economic system.
Amazon launched Prime Day in 2015. In this case, the e-commerce giant is aiming to gain new subscribers who pay $139 a year for discounts on shipping, video streaming, and other benefits. Prime Day helps the company lock in shoppers before the holidays and deepen interaction with existing customers. As part of this event, the e-commerce giant offers consumers exclusive offers and gadgets and other goods.
Data from Consumer Intelligence Research Partners indicates that as of March of the current year, about 180 million people in the United States had a Prime subscription. This indicator is 8% higher than the figure recorded a year earlier.
Prime Day can be the bellwether for the holiday shopping season. Adobe Inc. estimates that virtual sales across all retailers will amount to $14 billion during the two-day event. This estimated figure is almost 11% higher than the result of a year ago.
At the same time, EMarketer adheres to a more restrained forecast. According to the experts of this company, online spending during Prime Day will reach $13.8 billion. They also expect direct sales on Amazon to amount to $8.2 billion.
US Senator Bernie Sanders, who often negatively criticizes the mentioned e-commerce giant, has published a preliminary report timed to coincide with Prime Day. This report claims that a sharp growth in the number of purchases during sales contributes to the increased likelihood that Amazon employees will be injured when completing orders.
The e-commerce giant is also currently facing allegations from the federal government and its home state of Washington. These allegations relate to the fact that the company allegedly exposes employees to the risk of injury.
The report, which was published last Monday, July 15, and is based on interviews with more than 100 Amazon workers across the United States, indicates that Prime Day and the holiday season are characterized by high volume and intense pressure to work long hours and ignore safety guidelines.
Amazon spokeswoman Kelly Nantel said the mentioned report made sweeping and inaccurate conclusions. According to her, the relevant conclusions are based on unverified anecdotes. Moreover, Kelly Nantel claims that the report misrepresents documents that are several years old and contain factual errors and faulty analysis.
