The closer Amazon’s Prime Day sales promotion gets to the holidays, the worse shoppers can be about spending, experts say.
The company’s two-day event – where Prime subscribers are offered a “parade of deals” – is usually held in July. However, this year’s premiere day has been delayed as a result of the COVID-19 pandemic.
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Although a new date has not yet been set, a spokesman for Amazon confirmed to FOX Business that the event will occur during the last three months of the year, usually the most lucrative for retailers. Observers have speculated that it may be in October.
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While the company will see strong traffic no matter what, the exact date will determine how much revenue e-commerce behaves, says Peter Kearns, former Amazon CEO and vice president of partnerships at Buy Box Experts, to FOX Business.
The company may have problems the closer the day moves to the holidays and compete effectively with major shopping events such as Black Friday and Cyber Monday, according to Kearns.
If that happens, he said, “consumers will be more aware of how they spend their money.”
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Relatively speaking, Amazon will see a “stronger response” if the event – which Kearns called Christmas in July – is held earlier this fall.
It would help “spread consumer purchases”, which in turn would “reduce the impact on affiliates around the holidays,” Kearns said. However, there is always the risk that the incident may occur immediately after shopping at school, which may weaken sales.
When Prime Day is announced, brands must be prepared to “swing fast” to prepare for a possible flood of orders, he said.
In 2019, Prime Day became the largest shopping event in the company’s history with sales surpassing Amazon’s previous Black Friday and Cyber Monday combined. In total, the subscribers bought more than 175 million items.
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