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Amazon workers sort packages for delivery in New York on July 12, 2022.
Michael M. Santiago | Getty Images News | Getty Images
AmazonPrime Day is off to a strong start, driving sales from third-party sellers and other online retailers, early data shows.
On Tuesday, the first day of Amazon 48 hour sales eventOnline spending in the US rose nearly 6% to $6.4 billion, making it the biggest e-commerce day so far this year, according to Adobe Analytics, which measures transactions at US retail sites.
Prime Day started on Tuesday and runs through Wednesday. Amazon launched the event in 2015 as a way to attract new Prime subscribers and deepen the loyalty of existing members to the program, as well as promote its products and services. Other major retailers incl WalmartAnd GoalAnd kohl And best buy Discounts were made for competition.
Adobe It expects total online sales in the US to grow 9.5% year-over-year to $13.1 billion during the two-day event. Last year, American consumers spent more than $11.9 billion.
As of midday Wednesday, Prime Day shoppers had spent more on each order, with an average order size of $56.07, compared to $53.14 a year ago, according to data from Numerator. Both Adobe and Numerator said consumers are snapping up household goods and appliances, household necessities, toys, and apparel. Fire TV Sticks and Apple Watches were also top selling items.
Analysts and investors will be watching the event closely to see if economic uncertainty puts pressure on consumer spending. US inflation eased in June, rising 3% year-on-year, its lowest rate in more than two years. Excluding food and energy, core inflation rose 4.8% year-on-year.
“Amid a slower consumer spending environment, we believe Amazon Prime Day 2023 created a spark for retail spending,” Telsey Advisory Group analysts wrote in a note to clients Wednesday. The company maintains an outperformance rating for Amazon stock. “The company appears to have successfully leveraged its relationship with brands – which have seen softer trends due to the challenging environment – to offer good deals and attract shoppers.”
Faheem Naim, a former Amazon employee who now runs e-commerce consulting firm eShopportunity, said many of his customers are seeing Prime Day deals pay off more than last year. Protein powder maker Ascent Protein and BOX Partners, which owns shipping packaging brands Aviditi and BOX USA, has seen its sales rise nearly 40% year-over-year during Prime Day so far, Naim said. Another customer, Harmless Harvest, known for its coconut drinks and juices, has seen its sales double.
Strong preliminary Prime Day sales data is the latest indication that consumer spending may be more resilient than feared. Nearly 28% of consumers said their spending increased in the second quarter, compared to 23% in the first quarter, according to Jungle Scoutswhich provides software and research for Amazon sellers.
“You have a large portion of the market saying they are cutting expenses, but you also have people who have a lot of pent-up demand post-Covid,” said Mike Cheschuk, Jungle Scout’s president of small and medium business. , in an interview. “So they’re like, ‘You know what, I’ve got enough money and I’m going to come back stable, so I’m ready to start spending again.'”
Scheschuk, who also sells pet products on Amazon under his own brand, said his sales have jumped 50% year-over-year since Prime Day began. Week after week, he added, they are up 50%.
Amazon does not usually provide sales data from Prime Day. But third parties including Adobe and Salesforce are expected to announce total online sales from the event on Thursday.
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