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Analysts estimate single digit growth for all retailers during Prime Day sales – TechCrunch

According to third-party estimates, Amazon’s annual Prime Day sales event generated more than $12 billion in sales. From July 13th to 15th, the retailer hosted the popular shopping event in the USA and in more than 15 other countries worldwide. This was the first Prime Day event under new CEO Andy Jassy, ​​who took over from Jeff Bezos last year after the Amazon founder’s resignation.

The company expressed optimism about its Prime Day results, saying it was the “best ever,” noting that consumers around the world hit $1.7 billion. Amazon claimed to have sold more than 300 million items during those sales, but didn’t provide sales figures.

It also noted that it sold “more devices than any other Prime Day,” but declined to give a number. The company said shoppers purchased more than $3 billion worth of merchandise across more than 100 million items from small businesses during the two-day event.

For weeks leading up to Prime Day, Amazon relied on influencers to boost sales through QVC-style live video shopping. The company has worked with celebrities such as TikTok creators Joe and Frank Mele, The Real Housewives of Atlanta’s Porsha Williams, Selling Sunset star Chrishell Stause, comedian Kevin Hart and Australian model Miranda Kerr. The company said those live streams generated more than 100 million views, but didn’t emphasize how much revenue they generated.

A report by The Information paints a different picture: some videos by some of its top influencers didn’t reach more than 4,000 live viewers. Amazon isn’t the only one struggling with live commerce. Earlier this month, the Financial Times reported that TikTok is rolling back plans for live video shopping in the US and Europe.

Amazon has not commented on revenue or sales figures registered during Prime Day or through Amazon Live experiences.

Amazon Live Prime Day

Photo credit: Amazon

Because Amazon doesn’t disclose its Prime Day sales figures, we have to rely on analysts and third-party data to paint a picture of how the event’s sales have performed.

Analysts estimate that Amazon sold $12.09 billion to $12.59 billion in gross merchandise from Prime Day sales worldwide. It’s important to note that some countries like India, Saudi Arabia, Egypt and the United Arab Emirates are yet to host Prime Day sales.

Additionally, a report by Salesforce found that global sales from retailers selling goods on their own websites rose 8% year over year in the second week of July on Tuesday and Wednesday. But sales for non-Amazon sites fell 12% globally compared to Prime Day 2021.

As usual, major US-based retailers took advantage of Amazon’s Prime Day to offer their own discounts and encourage consumers to spend more in an inflation-driven market where the prices of various items have risen sharply recently.

According to a study by the Adobe Digital Economy Index, total spending by online retailers in the US was $11.9 billion — an 8% increase from the previous year, when they spent $11 billion. It noted that sales on the second day of Prime Day generated more than $5.9 billion, which posted 9.2% growth over the second day last year, which brought in $5.4 billion.

“With the second Prime Day also showing strong gains, retailers were able to generate approximately $12 billion in online spend over the two-day event. It’s clear that consumers are incredibly price conscious, and it will be important for retailers to leverage price effectively to unlock new growth potential online,” said Pat Brown, vice president, Adobe.

Additionally, data group Numerator released its own study, based on nearly 59,000 Prime Day orders and a survey of more than 4,800 shoppers, stating that the average order size has increased from $44.75 last year to $52.26 for sales on September 1st Prime Day has increased. It found that 65% of shoppers who made purchases on both days spent the same or less than last year.

The company’s study highlighted some numbers that suggest Amazon’s influence on Prime Day sales may have waned somewhat. 24% of shoppers shopped at another retailer, compared to 20% last year; 44% of people only considered Amazon this year, compared to 52% last year; and 34% of people check prices at other retailers before making a purchase, compared with 33% of people last year.

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Photo credit: counter (opens in a new window)

These studies show that inflation has impacted Prime Day sales and retailers may not have seen a large increase in their sales compared to last year.

Amazon has had a rough year as share prices have fallen from around $181 a year ago to $110 at the time of writing. It’s important for the company to grow sales, so much so that it could host another Prime Day later this year. This year, employees at the company have also raised questions about workplace safety and wages during the Prime Day sales spree.

https://techcrunch.com/2022/07/16/analysts-estimate-single-digit-growth-for-all-retailers-during-prime-day-sales/ Analysts estimate single digit growth for all retailers during Prime Day sales – TechCrunch

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