Does Amazon need a great Prime Day now more than ever?
Amazon.com is holding its Prime Day event on July 12 and 13 with promises of offering its lowest prices ever on select products from its own lines and those of top brands.
Prime Day 2022 is different from previous events, however, because it comes after a quarter for which Amazon reported seven percent year-over-year sales growth, its smallest increase in two decades, according to a Wall Street Journal article. Amazon, during the first three months of the year, also posted its first loss in seven years as a result of higher costs and ongoing supply chain disruptions tied to the pandemic.
This year’s promotional event also follows the departure of Dave Clark, CEO of Amazon’s consumer business. Mr. Clark, Amazon’s former head of logistics who moved into the consumer role in January 2021, led an unprecedented hiring spree and accelerated the spread of Amazon’s warehouses to meet surging demand during the pandemic. When online sales growth slowed, during the first quarter, however, Amazon found itself in an overcapacity situation, resulting in $6 billion in incremental costs in the first quarter. It is estimated the tab will be $4 billion in the second quarter.
Amazon, for its part, is looking to build anticipation around Prime Day 2022 with promises that this year’s promotion will feature a greater selection of brands and products than before. The promise of great deals is likely more important than ever to the event’s success considering the pressure that consumers are feeling from inflation that is tracking at the highest level since the 1970s.
The retail giant is looking to build momentum leading up to the two-day event with deals on Amazon devices, Fire TV smart TVs and a 20 percent discount on select products at Amazon Fresh stores.
Prime members who make purchases with their Prime Rewards Visa Card can earn six percent back shopping at Amazon and Whole Foods Market.
Amazon is also offering a buy now, pay later option. Prime members can make purchases between June 28 through July 11 and pay for what they buy in three equal monthly installments at zero percent interest.
“We’re making it simple for members to find the best deals, from personalized deal recommendations to Alexa reminders. It’s never been easier for Prime members to shop, save, and make the most of Prime Day,” said Jamil Ghani, vice president of Amazon Prime, in a statement.
- Save the Date: July 12 & 13 — Prime Day Returns Offering Amazon’s Lowest Prices Ever on Select Products – Amazon.com
- Amazon.com Announces First Quarter Results – Amazon.com
- Amazon Posts First Quarterly Loss Since 2015 as Costs, Rivian Stake Weigh on Results – The Wall Street Journal
- What will Dave Clark’s exit mean for Amazon’s retail business? – RetailWire
DISCUSSION QUESTIONS: Do you think there is more pressure on Amazon to have a great Prime Day in 2022 than there has been in years past? What will be the keys to success for Amazon and other retailers running promotions between now and July 13?