Many shoppers plan to spend more on Amazon Prime Day
3 key data points:
• 55% of Prime members say they put off purchases until Prime Day to get a deal.
• 61% of Prime members say they prefer to shop during Prime Day than during other major sales events like Black Friday, Cyber Monday, or Wayfair’s Way Day.
• While 61% of current members made a Prime Day purchase last year, 67% are planning to this year.
Fresh from lockdowns, consumers appear ready to spend big on Amazon's Prime Day shopping holiday, which will run from June 21 to 22 this year. Some 40% of current Prime members plan to spend more than they did last year, according to the Ad Age-Harris Poll. After a record-breaking year for e-commerce, many shoppers are now more comfortable with online purchases, which could also help with sales gains next week for both Amazon and competitors such Target and Walmart—which are each offering their own deals and promotions.
In general, consumers expressed general satisfaction with Amazon, and overall enthusiasm to spend on Prime Day, particularly among the sale’s returning customers. Just 3% of those surveyed said they plan to cut back on spending.
Apparel, tech and home goods are expected to top sales for the event. Ad Age-Harris found that 66% of shoppers were interested in buying "a treat for themselves," such as clothes or tech, and 62% were on the hunt for household upgrades, including furniture, kitchen appliances, and groceries. Roughly a third even plan to begin their holiday shopping early and purchase gifts in advance of the winter season.
Analytics firm Profitero, which conducted its own Prime Day study, anticipates big wins for these sectors as well.
“Apparel is going to be interesting," says Sarah Hofstetter, president of Profitero, noting that last year, a big winner in the sector was sweatpants but that Amazon has "made a big play over the past couple years getting into apparel and fashion."
Amazon promotes Prime Day is a major opportunity for third party sellers, who can improve their standing on the site and bring home above-average sales numbers. Last year, third party companies, many small- and medium-sized, made a total of 3.5 billion over the course of the two-day sale according to Amazon. This marked the highest overall performance ever for these businesses on the platform.
While small and medium retailers might get a lift from the Prime Day buzz, Amazon’s relationship with small businesses, both within and outside of its platform, can be stressful. In the past, Amazon has been accused of ripping off its small and medium sized retailer's products, and brick-and-mortar small businesses from around the U.S. have lobbied to break up the behemoth company.
Amazon and its partners aren’t the only anticipated winners on Prime Day. Once consumers get online, they are more likely to make a purchase at any digital storefront, and retailers across the market plan to take advantage of Prime Day traffic. Profitero found one in three consumers were planning on making a purchase at another online retailer during Prime Day and may use the event as an opportunity to price check or match at other retailers. Walmart, Target, and Best Buy topped the list of competitors according to Profitero.
Despite optimism on the sales front, companies will need to shift their advertising approach in light of recent changes to the rules around ad targeting. While tracking and targeting consumers presents a greater challenge in general, Amazon’s ability to put its in-house data to use for itself and its partners will be on full display.