Amazon dangles deeper 'Prime Day' discounts for stressed US shoppers
Send a link to a friend
[July 11, 2023] By
Granth Vanaik and Ananya Mariam Rajesh
(Reuters) - Amazon.com hopes to tempt U.S. shoppers on Tuesday to open
inflation-thinned wallets by offering deeper discounts on a wide range
of goods and services during this year's "Prime Day" 48-hour shopping
event, including its first-ever travel discounts.
A year of inflation has lifted mortgage rates, rents and food prices for
consumers ahead of Prime Day, which falls on July 11-12 this year.
CFRA Research analyst Arun Sundaram said Amazon's U.S. Prime Day
discounts this year are mostly deeper than in previous years. The online
retailer is marking 60% off Gap clothing, 50% off on Sony headphones and
40% off Peloton exercise bikes, according to Bank of America.
Amazon Prime members can also save up to 40% on items such as Sherpani
bags and ZOA Energy drinks, by checking out using "Buy with Prime,"
directly from Amazon's third-party merchants.
Last year, U.S. online sales during Amazon's Prime Day shopping event
reached nearly $12 billion, up 8.5% from the previous year, as
inflation-hit Americans pounced on discounted essentials and
electronics, according to Adobe, which tracks online spending.
Michael Ashley Schulman, chief investment officer at Running Point
Capital Advisors, said Amazon Prime sales growth will be slower this
year, as many American consumers still have post-pandemic shopping
fatigue and are cautious about "abusing their wallets."
They "are looking to spend more on experiences, travel, and
entertainment," Schulman added. Running Point Capital Advisors has
exposure to Amazon through Exchange Traded Funds (ETFs), among others.
He predicted Prime Day 2023 may add about $4 billion to $6 billion of
incremental revenue for Amazon, up 10% to 16% from last year, as
shoppers also take advantage of discounts for everyday staples like
pantry items, toiletries, and cleaning supplies.
[to top of second column] |
An Amazon worker loads a trolley from a
Prime delivery van in Los Angeles, California, U.S. February 25,
2019. REUTERS/Chris Helgren/File Photo
Criteo's Global Chief Revenue Officer Brian Gleason said such
discounts may have more appeal to shoppers in a more difficult
economy.
Amazon is also offering its first-ever Prime Day travel discounts
this year, partnering with travel booking site Priceline to offer an
additional 20% off on Priceline's Hotel Express deals, which offers
60% off hotels.
Prime Day is expected to encounter stiff competition from other
retailers like Walmart which is offering extensive deals during its
"Plus Week." Geared to Walmart + members, Plus Week began on Monday.
Home electronics chain Best Buy is also giving out more discounts
through its "Black Friday in July" savings event, which also began
on Monday.
"This week is turned into a pretty major shopping event, similar to
the likes of Black Friday and Cyber Monday," Sundaram said, adding
that all retailers are fighting over market share.
Bank of America projects this year's Prime Day sales event will
generate $12 billion in gross merchandise value (GMV) for Amazon in
the United States, up 12% on year-over-year basis.
Amazon plans yet another Prime sales event this year, according to
screenshots of its seller notification platform seen by Reuters. The
company has notified its marketplace vendors to submit deals for a
"Prime Fall Deal Event" that will begin in the fourth quarter. The
exact date was unclear, and Amazon had no comment on the fall event.
Last year's sale was Oct. 11 and 12.
(Reporting by Granth Vanaik and Ananya Mariam Rajesh in Bengaluru.
Additional reporting by Arriana McLymore in New York City; Editing
by David Gregorio)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|