Expectations around Prime Day are very high, both on the consumer side and on Amazon’s partners, who see in this season of the year the opportunity to find offers and to sell a good number of products. EMarketer numbers indicate that for this 2021, Prime Day sales expectations are above 10 billion dollars globally.
With only five years of existence, Prime Day has become a major shopping event, rivaling Black Friday and Cyber Monday. The Prime shopping party normally takes place in July, before the fall shopping events, but in 2020 it was delayed until October, due to the coronavirus pandemic. Now it came in June, so brands and users see it as a short period between one season and another, ”says Statista analyst Katharina Buchholz.
A Bloomberg report indicates, for its part, that given the high expectations, the analysis that can be given of this year’s online sales is that there are few offers, since the season arrives while the world is still in economic crisis, there are interruptions in Supply chain and customs costs are hitting several of Amazon’s suppliers.
“There’s a growing deal fatigue at Amazon,” Peter Darch, who manages inventory and supply chain at Perch, a company that owns a number of brands that are popular on Amazon, told Bloomberg. “We are being a bit more selective with the offers.”
Beyond not having offers, what many brand sellers will do is have less aggressive offers, which may discourage users from buying.
And while Amazon, which has posted record profits this year, can afford deep discounts. Many consumer products companies don’t have that luxury and are considering raising prices by as much as 10% this year, making it difficult to participate in a big sale, Shanton Wilcox, a partner at PA Consulting, told Bloomberg.
According to eMarketer, Prime Day sales will approach $ 12 billion worldwide, although growth will once again be slower this year, as the analytics firm predicts that this year, the season will only grow 19% , which compared to the growth registered in 2018, where it was 67.8%, is a low rate.
The event helps Amazon engage pre-holiday shoppers and deepen its relationship with existing customers by offering them deals on Amazon devices, such as the Fire TV device and Alexa smart assistants.
In 2020, small entrepreneurs sold 3.5 billion dollars worldwide and the company expects that similar figures will be reached this year, so it invested 100 million dollars for this segment of the population.
