The internet is patiently waiting for the next Amazon Prime Day quickly coming up on October 13th and 14th. But, the magic behind what Amazon Prime Day really means is why the e-commerce giant has been able to redefine how consumers shop and how online businesses sell to them.
In 2019, it is estimated that Amazon made $7.2 billion just on their Amazon Prime Day sales alone, nearly double the revenues from the previous year’s Prime Day promotions. However, this unofficial shopping holiday is not only important to Amazon, but to the entire e-commerce marketplace and is likely the most talked about shopping event for consumers.
According to MarketWatch, large retailers, with annual revenues over $1 billion generate a 72% increase in online purchases on Amazon Prime Day than on any other non-holiday time of the year. Likewise, smaller e-commerce brands, with less than $5 million in sales, also experience a marked jump in online sales by at least 30%, especially for their ‘online only’ deals.
This is why Prime Day is the third largest shopping day outside of the Thanksgiving and Christmas holidays, and it’s also why online companies can ride the wave to reach more eager-to-buy consumers now more than ever.
As Prime Day historically floods the internet with irresistible ‘online only’ deals, 100 million Prime subscribers are poised to take part in the two-day-long promotional sale, with the average Prime user spending over $1,000. However, with the pandemic and unemployment being more widespread than previous years, exactly how much consumers will spend is still up in the air.
A recent PC Magazine survey asked over 9,000 prospective Prime Day shoppers if they would be participating in the October 2020 Prime Day. Analysts found that only 8% of respondents said they would definitely buy at least one product, while 39% of those saying they are ‘likely’ to buy are looking specifically for a technology-related deal.
What does Amazon Prime Day 2020 mean for online retailers?
The simple answer is EVERYTHING.
Despite the economic uncertainty and with many consumers putting off large purchases, sales experts still believe that there is a large subset of consumers who are ready to buy – no matter what. And, with online sales being at an all-time high already, as consumers have been forced to look for a host of new online options, online shopping has seen a consistent and rather large 66% spike in daily online purchases. So, October 13th and 14th could represent the largest single day in e-commerce sales in history.
That’s why the next three weeks are the best time to start promoting and rolling out ‘online only’ deals to cash in big on the highly-anticipated Prime Day.