Prime Day Sets Another Sales Record, Experts React
Amazon’s Prime Day has become more than just a one-day flash sale ― it has become a full-fledged consumer holiday. In just its third year in existence Amazon’s mid-summer sales blitz has become a cultural phenomenon ― evidenced by the scores of media coverage and the millions of customers that flocked to the site to check out the deep discounts and make a purchase.
The event continues to grow in both popularity and success. Long before the curtain was raised on the 30-hour event on Monday July 10 at 6 pm it was easy to predict that Prime Day 2017 would once again set a single-day sales record for Amazon: and it did.
In a post-event statement, Amazon confirmed that sales on July 11 beat both Black Friday and Cyber Monday, making it the biggest single sales day in Amazon history. “The Prime Day 2017 event grew by more than 60% compared to the same 30 hours last year, and sales growth by small businesses and entrepreneurs was even higher,” the company issued press release said. “More new members joined Prime on July 11 than on any single day in Amazon history. Tens of millions of Prime members made a purchase on Prime Day 2017, more than 50% higher than the prior year.”
While the full sales figures have not been reported, below are a few Prime Day tidbits released by both Amazon and independent third parties, as well as some related commentary from industry insiders.
A record number of Prime members shopped across 13 countries, and members saved hundreds of millions of dollars on product discounts globally.
“Price can also be a strong driver of customer loyalty, and Amazon is smart to provide an added incentive in offering major deals and discounts to its Prime members on Prime Day. What’s more, offering exclusive deals and early access to promotions plays into what the modern consumer wants from their status as a loyalty program member: priority, personalized offers and early access to benefits.”
― Pamela Sullins, VP of Retail Client Services, Kobie Marketing
“Prime Day is a promotional event, and every retailer can, and does, run promotions. The difference with Amazon is that Prime membership is all about locking customers into their fulfillment experience. So many other retailers still seem to miss the point that order fulfillment is critical to customer loyalty. Not all retailers can offer the world’s biggest product selection. But many retailers can combine their online presence and, unlike Amazon, their brick and mortar locations to offer customer convenience and instant gratification through a differentiated, omnichannel strategy.”
― Nick McLean, CEO, OrderDynamics
Customer orders on the Amazon App more than doubled this Prime Day compared to last year.
“Amazon Prime Day is a clear indicator of consumers’ continued search for a mobile-enhanced shopping experience that is both fun yet accessible. Consider Amazon’s flash sale technique and how it grabs consumers’ attention by offering an almost gamified experience where consumers have limited minutes of time to take advantage of that flash sale on their mobile devices.”
― Casey Gannon, VP of Marketing, Shopgate
Amazon offered, on average, a 31%-45% discount. Deals offered by Amazon’s third-party sellers had, on average, a greater discount of 45% vs. a discount of 35% for items shipped and sold by Amazon.
"Amazon has realized the importance of letting its third-party sellers positively contribute to the customer experience by promoting great offers and deals. In years past, Prime Day has mostly benefited Amazon, as the company more heavily promoted its own inventory. But, the power of the marketplace model has shown through and Amazon learned that Prime Day is even better and more compelling when third-party sellers have an equal opportunity for every sale."
― Adrien Nussenbaum, U.S. CEO and Co-Founder, Mirakl
Prime members purchased seven times more Amazon Echo devices globally than on Prime Day 2016. Echo was offered at a 50% discount, the lowest price ever.
“Prime Day sales show that there is not only continued growth in e-commerce with 50% more sales compared to last year, but also a clear consumer trend towards adoption of IoT solutions. The Echo Dot, the best-selling item of the day, paves the way for IoT and connected devices as new e-commerce channels, enabling brands to build direct relationship with consumers to increase sales, loyalty and customer engagement.”
― Ofer Klein, CEO, kwik
“Prime Day not only showcased the retailer’s ability to dominate the market, but also displayed the retail industry’s continued movement toward voice-assisted shopping. For example, Amazon leveraged Prime Day to go heavy on their voice assistant ― the steep discounts on the devices showed Amazon’s push for adoption, along with the voice-only special deals they offered. Voice-based search is skyrocketing and with the number of households equipped with Echo devices increasing, voice-assisted shopping will continue to increase.”
― Luke Starbuck, VP of Marketing, Linc
Walmart, through its marketplace model of third-party sellers, had the largest overlap in the number of items that Amazon offered. Target was well represented in children’s items with a 39% overlap in selection. In the tech category Best Buy had a 48% overlap in products.
“At this point, if a retailer is not capitalizing on Amazon Prime Day, they are passing up a huge opportunity. Strategically, it is a no-brainer to go head-to-head with the retail juggernaut because, for three years now, shoppers have been systematically ‘trained’ to not only anticipate the best deals and promotions from Amazon but to also assume they will see the same ‘sales frenzy’ from other leading retailers come mid-July.”
― Tushar Patel, CMO, Kibo