Amazon Prime Day runs the risk of losing its allure unless the company ups its discounts to to offer “unmissable deals on top brands”.
So says GlobalData’s senior retail analyst Eleanor Simpson-Gould as two day discounting event enters its first day, amid warnings that “many retailers are already advertising a plethora of discounts”.
Simpson-Gould explained: “The proportion of consumers with access to Prime membership has been accelerating since 2019, up 24.7 percentage points to reach 67.8% in 2022, according to GlobalData’s Prime Day Surveys.
“Yet the proportion of consumers reporting that they bought something during Amazon Prime Day has not kept pace – Prime Day participation has only risen 13.6ppts over the same period.”
According to the data analytics company, while consumer sentiment in terms of retail spending has shown early signs of improvement, the online non-food market is only predicted to experience modest growth, meaning Amazon will struggle to entice shoppers.
Simpson-Gould continued: “As the UK’s inflationary hangover will be slow to ease, Prime Day discounts will be scrutinised with a finer lens than ever before.
“Amazon’s purchasing power must come into play to secure deeper discounts than competitors.”
Meanwhile, Criteo SVP of global vertical strategy Michael Greene added: “”Prime Day is always a major shopping event, but this year it will be a bellwether for early holiday shopping amidst high inflation and rising interest rates that have consumers more cautious of their spending.
“But it’s not just Amazon that benefits from the summer shopping excitement, other retailers have launched competing events — like Walmart+ Week and Target Circle Week — that led to a boost in traffic and sales. That, in a nutshell, is the Prime Day ‘halo’ effect.”
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