Amazon made a groundbreaking announcement today, declaring the first 24 hours of its Prime Day event as the “most profitable sales day in the company’s history.”
The two-day extravaganza went on to become the “largest Prime Day ever,” with consumers in the United States contributing to a staggering $12.7 billion in sales, as per data from Adobe Analytics.
This figure represents a remarkable 6.1% year-over-year growth, setting a new record for the renowned sales event, which took place on July 11 and 12 this year.
During the two-day sale event, customers purchased an impressive amount of 375 million items, a notable increase from the 300 million items sold last year.
Reports reveal that U.S. sales on the first day of Prime Day soared nearly 6% year-over-year to $6.4 billion. On the second day, consumers spent $6.3 billion, representing a growth of 6.4% year-over-year.
This news led to a surge in Amazon’s shares, which rose as much as 2.1% during pre-market trading on Thursday.
The average order size increased this year, with customers spending an average of $54.05 per order, compared to $52.26 during the previous Prime Day event, as reported by data firm Numerator.
Notably, Amazon highlights that Prime members saved more this year than in any previous Prime Day event, with savings totaling over $2.5 billion across its numerous deals. Home goods, fashion, and beauty emerged as top categories during the sales event.
According to an insider from SurgeZirc SA, the second day of the sales event witnessed significant growth in various categories. Appliances experienced a remarkable 52% surge compared to average daily sales in June.
Sales of housekeeping supplies rose by 27%, while electronics saw a 15% increase. Apparel sales increased by 24%, and office supplies skyrocketed by 76%, partly driven by back-to-school shoppers.
In an intriguing trend, a data revealed that consumers are increasingly comfortable shopping on smaller screens, with smartphones accounting for 44.8% of sales on the second day, up from 41.5% the previous year.
Furthermore, Buy Now Pay Later (BNPL) options played a significant role in driving sales, with 6.5% of orders utilizing this feature, generating $927 million in revenue—a 20% year-over-year increase.
We predict that BNPL usage will continue to rise, particularly in categories such as apparel, furniture/home, and electronics, as shoppers seek flexible ways to manage their spending amid persisting inflation and economic uncertainty.
Vivek Pandya, a lead analyst at Adobe Digital Insights, stated, “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.
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.”
Amazon initiated its inaugural Prime Day event in 2015 and has since held it annually. This sales event not only allows the company to attract new paying customers but also deepens its relationship with existing ones.
Amazon also utilizes the occasion to promote its range of devices, including smart speakers and tablets.
While Amazon conducted two Prime Day sales last year, occurring on July 12-13 and October 11-12, it remains unknown if the company plans to replicate this approach in 2023.
Full Story Source: Amazon Achieves Record Sales Of $12.7 Billion During Prime Day