Amazon Prime Day: what consumers are buying

Amazon Prime Day: what consumers are buying

Amazon will offer discounts on a variety of items during its two-day Prime Day shopping event that kicked off Tuesday.

The Seattle-based e-commerce giant started the sales event in 2015 in response to Single’s Day, a Chinese shopping holiday popularized by Chinese e-commerce company Alibaba. Other retailers, including Best Buy and Target, are offering their own online discounts during Prime Day, trying to grab the attention of shoppers looking for deals online.

For Amazon, Prime Day has been a way to get people to sign up for its $139-a-year Prime membership, which gets shoppers faster shipping and access to deals. The company doesn’t disclose total Prime Day sales, though research firm Insider Intelligence suggests sales could rise to around $7.76 billion in the US alone, or 16.8% more than the last year.

WHAT ARE CONSUMERS LOOKING FOR?

The best deals they can find, including hot deals offered on the site for a short period of time, based on Google search trends.

Data on what customers buy directly remains limited. But some preliminary information from the Numerator dataset shows that consumers are buying more electronics, a category that Amazon tends to emphasize for deals. Electronics was also one of the top categories bought last year, along with health and beauty items and apparel.

In an analysis of approximately 4,830 Prime Day orders placed as of 4 p.m. Earlier in the day, Insignia Fire TVs and Apple Airpods were listed as some of the most purchased items.

So far, the average price customers spent per item has been $34.08, Numerator said. Most items have sold for $30 or less, while 6.2% have sold for more than $100.

HOW MUCH DO CUSTOMERS TYPICALLY SPEND?

Not as much as before. So far, Numerator says the average Prime Day order this year is $52.22. Last year, consumers spent an average of $54.15 per order, a decrease of about 8% from $58.77 in 2019, according to Numerator.

The reason for the decline could be in part because consumers are buying cheaper alternatives to the site’s products, said Guru Hariharan, chief executive of CommerceIQ, a software company that helps brands sell online. But analysts also say the changing dates of the event make year-over-year comparisons difficult.

Still, global sales growth has also slowed. Sales from last year’s event grew 8%, well below the peaks of 67.9% and 43% in 2019 and 2020 respectively, according to Insider Intelligence. This year, the firm projects that global sales growth on Prime Day will increase to 17% due to a higher level of frugal shopping among consumers and in mid-July, which will allow Amazon to attract more consumers who return to the store. school. shopping.

ARE THERE BIG DISCOUNTS ON ALL ITEMS?

Not necessarily. According to a CommerceIQ analysis that tracked an index of discount items that brands sold directly to Amazon, products that were already on sale before Prime Day (excluding electronics) did not see a significant increase in price cuts in the market. Prime Day. The group’s data, which tracked discount levels in 2020 and 2021, showed discount levels for many items hovering around 30% before and after Prime Day.

CommerceIQ said that only home and kitchen items saw an increase in discounts during the shopping event. Meanwhile, tools, home improvement and office products actually saw lower levels of discounts compared to surrounding days.