Amazon workers sort packages for delivery in New York, July 12, 2022.
Michael M.Santiago | Getty Images News | beautiful pictures
AmazonEarly data shows Prime Day is off to a good start, lifting online sales by third-party sellers and other retailers.
On Tuesday, Amazon’s first day 48 hour sales eventOnline spending in the U.S. jumped about 6% to $6.4 billion, making it the biggest e-commerce day of the year so far, according to Adobe Analytics, which measures transactions at stores. US retail site.
Prime Day starts on Tuesday and runs through Wednesday. Amazon launched the event in 2015 as a way to attract new Prime subscribers and reinforce existing members’ loyalty to the program, as well as promote its products and services. themselves. Other major retailers include Walmart, Target, Kohl’s And Best buy has been running discounts to compete.
adobe expects total U.S. online sales to grow 9.5% year-over-year to $13.1 billion during the two-day event. Last year, US consumers spent more than $11.9 billion.
As of Wednesday noon, Prime Day shoppers have spent more per order, with an average order size of $56.07, compared with $53.14 a year ago, according to the report. data from Numerator. Both Adobe and Numerator say consumers are shopping for home and home goods, household essentials, toys and clothing. The Fire TV Stick and Apple Watch are also top sellers.
Analysts and investors will be keeping a close eye on the event to see if economic uncertainty puts pressure on consumer spending. US inflation cooling in june, up 3% year-over-year, the lowest level in more than two years. Excluding food and energy, core inflation increased 4.8% on a year-over-year basis.
Telsey Advisory Group analysts wrote in a note to clients on Wednesday: “Amid a slower consumer spending environment, we believe Amazon’s Official Day 2023 has made its mark. a wave of retail spending.” The company maintains an outperform rating on Amazon’s stock. “The company appears to have successfully leveraged its relationships with brands — those that tend to be weaker due to the tough environment — to offer good deals and attract shoppers.”
Fahim Naim, a former Amazon employee who now runs e-commerce consulting firm eShopportunity, said some of his clients are seeing Prime Day promotions pay off more than they did last year. . Naim said protein powder maker Ascent Protein and BOX Partners, which own the shipping packaging brands Aviditi and BOX USA, have seen their sales increase by nearly 40% year-over-year. last in Prime Day so far. Another client, Harmless Harvest, known for its coconut drinks and smoothies, has seen sales double.
Strong Prime Day preliminary sales data is the latest indicator that consumer spending may be more resilient than feared. About 28% of consumers said their spending increased in the second quarter, compared with 23% in the first quarter, according to the statistics. Forest Scoutswhich provides software and research for Amazon sellers.
“You have a good portion of the market that says they’re cutting, but you also have people who have a lot of pent-up demand post-Covid,” said Mike Scheschuk, president of SME for Jungle Scout. , in an interview. “So they’re saying, ‘You know what, I’ve got enough money and I’m back and I’m settled, so I’m ready to start spending again.”
Scheschuk, who also sells pet products on Amazon under his own brand, said his sales have grown 25% year-over-year since Prime Day began. He added that week after week, they increase by 50%.
Amazon usually doesn’t provide sales data from Prime Day. But third parties including Adobe and Salesforce are expected to announce total online sales from the event on Thursday.
