Amazon (AMZN) has been building momentum for Prime Day (10-13-20) since its inception on July 15, 2015 as a 20th birthday celebration for the company, and while Prime Day does not compare to other global shopping ‘events’ on a gross basis it does generate significant revenue which has been increasing each year. This year however is different from others in that the typical Prime Day is done in July, while this year’s has been moved to this month due to the COVID-19 pandemic, changing the seasonal position of the event.
Expectations remain high for this year’s Prime Day overall, as can be seen below (38% increase y/y), which seems a bit optimistic given the economic situation of many in the US and the other 17 countries that take part in Prime Day, but much will depend on how aggressive discounts will be this year. One positive point however is the number of Prime subscribers, which was over 150m as of the 1st of this year and that number has had more time this year to grow given the event delay, although the proximity to Black Friday is considered a negative by some.
According to a PC Mag survey 39% of Prime Day shoppers will be shopping for TVs and streaming devices, 34% for smart home devices, 31% for computer/components, 30% for tablets or readers, 24% for smartwatches or trackers, and 20% for gaming consoles, but given that this is an Amazon event, big sellers last year were the Amazon Echo Dot and the Amazon Fire TV Stick, will likely be aggressively priced again, with older Echo Dot models already on sale this year. Amazon is giving Prime members a special deal this year, offering a $10 Prime Day bonus if you spend $10 with a small domestic business before the event.
While Prime Day will likely offer consumers (members) some valuable deals, if one is shopping for TVs, Black Friday tends to be the time when the most TV set deals are available, and with this year’s more intense focus on on-line sales, we expect the competition to be intense. Rather than camp out in front of a Best Buy (BBY) or WalMart (WMT) all night, its going to be sitting in front of your computer or phone and digging out the best deals.
Expectations remain high for this year’s Prime Day overall, as can be seen below (38% increase y/y), which seems a bit optimistic given the economic situation of many in the US and the other 17 countries that take part in Prime Day, but much will depend on how aggressive discounts will be this year. One positive point however is the number of Prime subscribers, which was over 150m as of the 1st of this year and that number has had more time this year to grow given the event delay, although the proximity to Black Friday is considered a negative by some.
According to a PC Mag survey 39% of Prime Day shoppers will be shopping for TVs and streaming devices, 34% for smart home devices, 31% for computer/components, 30% for tablets or readers, 24% for smartwatches or trackers, and 20% for gaming consoles, but given that this is an Amazon event, big sellers last year were the Amazon Echo Dot and the Amazon Fire TV Stick, will likely be aggressively priced again, with older Echo Dot models already on sale this year. Amazon is giving Prime members a special deal this year, offering a $10 Prime Day bonus if you spend $10 with a small domestic business before the event.
While Prime Day will likely offer consumers (members) some valuable deals, if one is shopping for TVs, Black Friday tends to be the time when the most TV set deals are available, and with this year’s more intense focus on on-line sales, we expect the competition to be intense. Rather than camp out in front of a Best Buy (BBY) or WalMart (WMT) all night, its going to be sitting in front of your computer or phone and digging out the best deals.
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