Prime Day 2023: Amazon and Ecommerce Industry Set New Records

Amazon announced that the first day of Prime Day on July 11, set a record as the largest sales day in the company’s Prime Day history.

The two-day shopping extravaganza witnessed Prime members across the globe purchase over 375 million items and save $2.5 billion on millions of deals available throughout the Amazon store.

Doug Herrington, CEO of Amazon Stores, expressed his delight, stating, “The first day of Prime Day was the largest sales day in Amazon’s history, and Prime members saved more this year than any other Prime Day event.

“Prime is an incredible value, and we’re proud to offer additional value for members through exclusive deals events like Prime Day.

“Thank you to our Prime members for continuing to shop in our store, and to our employees and independent sellers around the world who delivered for customers this Prime Day.”

This year, Prime members experienced unprecedented discounts, surpassing previous Prime Day events by saving over $2.5 billion on millions of deals. Moreover, they gained exclusive access to the lowest prices offered on Amazon throughout the year for select products from various renowned brands.

Additionally, Prime members had the opportunity to explore deals beyond the Amazon store through Buy with Prime, a new perk exclusively available to U.S.-based members.

This benefit enables members to enjoy the same trusted advantages they experience when shopping directly from participating brands’ websites.

To promote awareness of these enticing offers, Buy with Prime invited a diverse range of merchants, including small, medium, and larger businesses, to participate in promotional activities in conjunction with Prime Day deals on their respective sites.

These deals were prominently featured across multiple Amazon channels, encompassing premium on-site banners on the Amazon store, influencer content, and digital awareness campaigns.

Merchants who took part in Prime Day activities collectively witnessed a tenfold increase in daily Buy with Prime orders and experienced an eightfold surge in daily revenue generated from those orders during the Prime Day event period, as compared to the month preceding the announcement of Prime Day.

Adobe Analytics Digs Deeper Into Prime Day Results for Ecommerce Industry

Consumers demonstrated their enthusiasm by spending $6.3 billion on July 12, the second day of the Prime Day event, marking a 6.4% increase year-over-year (YoY).

Online spending in the U.S. buyers reached $12.7 billion over both days, reflecting a 6.1% YoY growth and setting a new Prime Day record.

On day two, shoppers continued to be enticed by discounts across key categories, such as electronics (peaking at 14% off the list price), apparel (12%), toys (12%), home & furniture (9%), computers (8%), appliances (7%), sporting goods (6%), and TVs (5%).

Buy Now Pay Later (BNPL) Services Flourish During Prime Day

On July 12, BNPL accounted for 6.6% of online orders, generating $466 million in revenue, and exhibiting a 21% increase compared to the corresponding day of the previous year (July 13, 2022).

Throughout both days, 6.5% of orders were sold via BNPL, contributing to $927 million in revenue, reflecting a remarkable 20% YoY growth. Notably, the utilization of BNPL services continues to be driven by categories including apparel, furniture/home, and electronics.

Vivek Pandya, lead analyst at Adobe Digital Insights, observed, “For months, consumers have felt the effects of persistent inflation and an uncertain economic environment, and it has pushed shoppers to embrace more flexible ways to manage their spending around the Prime Day event.

“The revenue growth attributed to Buy Now Pay Later is a preview of what we can expect in the months ahead, especially as we near the holiday shopping season.”

Consumer Purchasing Trends on July 12

On July 12, online sales soared in categories such as appliances, with a 52% increase compared to average daily sales in June 2023.

Housekeeping supplies witnessed a surge of 27%, while electronics experienced a growth of 15%. Other notable categories that witnessed significant growth included apparel (24%) and stationery/office supplies (76%), largely driven by back-to-school shoppers.

Curbside pickup proved to be an enduring service, utilized in 20% of online orders on July 12 by retailers offering this convenience. This represents a slight increase from the previous year when curbside pickup accounted for 19% of orders in 2022.

Mobile Shopping Dominates

Smartphones played a pivotal role, driving 44.8% of online sales on July 12, up from 41.5% the previous year, showcasing consumers’ growing comfort with shopping on smaller screens, particularly for last-minute impulse purchases.

Prime Day Is Industry-Wide Success in 2023

While conceived by Amazon in 2015, Prime Day has evolved into a national phenomenon not limited to the United States but now with a global reach.

Independent retailers have embraced this event, offering their own deals during Amazon’s Prime Day week, often mirroring the discounts provided by the ecommerce giant. For many online merchants, this occasion presents an opportunity to reduce inventory and raise cash ahead of the bustling holiday shopping season.

Prime Day has transcended Amazon to become a highly anticipated shopping extravaganza that garners attention beyond the company.

Data from both Amazon and Adobe, which predominantly tracks non-Amazon sales, already indicates that this year’s Prime Day has been an enormous success for ecommerce.

Without a doubt, the second day at Amazon is expected to replicate the triumph of the first day.

In the coming days, the company will likely release additional data, including insights into the performance of small business third-party sellers on the platform.

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