(Bloomberg) – Amazon Prime Day Promotion has helped increase online sales to all US retailers by 30.3%, totaling $ 24.1 billion, according to Adobe, exceeding 28.4% growth estimate for the period closed on July 11.
This is a good sign for both online retailers and competitors like Walmart and Target, who have made their own simultaneous promotions.
This year, Amazon has expanded Prime Day from two to four days in an attempt to give consumers more time to sail between millions of discounts offered in their online store. But the strategy had a negative side. Consumers – already cautious because of President Donald Trump’s trade war – were more hesitant, filling their carts without finishing the purchase immediately.
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And instead of spending on expensive electronics or luxury items, many took advantage of the promotion to stock up home products, such as detergent and disposable dishes. Two thirds of the items purchased cost less than $ 20, and the average home expense was $ 156, according to the research company Numeator, which collected data from a sample with over 50,000 homes.
Amazon said the promotion was “longer than any other four -day period that included a Prime Day event,” a statement released on Saturday. The company said it sold millions of its own brand devices, including voice -activated gadgets on the Alexa platform, Ring bells and streaming fire devices.
Predicting that inflation -tight consumers would seek offers, Elavi, a low sugar chestnut butter launched in 2020 by Los Angeles Entrepreneurs Michelle Razavi and Nikki Elliott, increased his marketing budget and offered 20% off his blue cashew chestnut butter. The bet worked, and the startup mark fired for the top of sales in the cashew chestnut butter category.
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“With our product costing less than $ 15, we knew it would perform exceptional in this high traffic environment, so it would be foolish not to announce and take this opportunity,” said Razavi, CEO of Elavi.
More expensive products, imported from countries with high rates such as China, have faced a greater challenge, and some brands have decided not to participate in the event this year or reduce the number of offers. Only 3% of the items purchased from Prime Day cost more than $ 100, according to Nameor.
Still, Prime Day is not just about the amount of products sold by Amazon. Originally, the promotion was created to attract more prime subscribers, who pay $ 139 a year to have discounts on freight and other benefits. In addition, a longer event gave the company a chance to sell more ads to traders and suppliers. Advertising is a great source of revenue for Amazon.
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“Extended Prime Day is part of a larger advertising strategy,” said Jared Belsky, CEO of the Acadia Digital Marketing Agency, which serves customers like Monster Energy, Orkin and Takis. “Prime day is no longer just a sponsored ad game game. These are longer marketing campaigns.”
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