Is Amazon taking its foot off the Prime Day marketing pedal?
Amazon Prime Day, to take place between July 12 and 13, is expected to be less robust than pre-pandemic years due not only to inflation concerns but possibly less investment from Amazon.
Insider Intelligence predicts U.S. Prime Day sales will grow 17 percent in 2022 across Amazon and other retailers, well below the gargantuan gains seen in the pre-pandemic years since the event was launched in 2015.
A Wall Street Journal article, “Amazon’s Prime Day Isn’t Quite the Blockbuster It Once Was,” suggests that the novelty could be wearing off. Prime Day fans are recognizing that the deals are largely focused on tech, particularly Amazon’s own products.
The WSJ also says Amazon appears to be reducing investments around the event as Amazon Prime subscription growth has slowed and excess inventory isn’t as much of a challenge as competitors.
For the first time last year, Amazon did not convert its home page to “a giant Prime Day wallpaper with a small number of widgets,” according to the WSJ. This year, Amazon is skipping a free Prime Day concert that last year featured Billie Eilish and H.E.R. and is no longer featuring exclusive Prime Day product launches.
Amazon Prime Day nonetheless continues to expand globally, adding Poland and Sweden in 2022. Last week, Amazon debuted a Prime Day ad featuring five-time Grammy winner Jon Batiste.
Other surveys show continued high interest in Prime Day amid financial concerns.
A RetailMeNot survey from late April found 88 percent of U.S. Prime members planning to shop on Prime Day, with 47 percent waiting until Prime Day to make their biggest purchases of the year. However, average Prime Day-related spend was projected to be down 35 percent from 2021, a trend that RetailMeNot attributed to inflation concerns.
An Adobe survey taken in June found 24 percent of consumers don’t plan to shop on Prime Day because they have less discretionary money to spend due to inflation. Adobe’s survey found 61 percent looking forward to summer holiday sales like Prime Day. Of those planning to participate in summer sales, 76 percent say they will spend more or the same amount as last year.
- Save the Date: July 12 & 13—Prime Day Returns Offering Amazon’s Lowest Prices Ever on Select Products – Amazon.com
- Amazon Prime Day 2022 – Insider Intelligence/eMarketer
- Amazon’s Prime Day isn’t quite the blockbuster it once was – The Wall Street Journal
- Prime Day Shopping and Spending By the Numbers – RetailMeNot
- Adobe Commerce study highlights the importance of personalized experiences – Adobe
- Prime Day 2022: What to Expect – CommerceIQ
- Amazon Prime Day to be more muted: survey – New York Post
- Here’s How Our Clients Are Getting Ready For Prime Day-2022 – Bobsled Marketing
- Amazon Prime Day Again Sets Records – FDRA
- This year’s Prime Day broke sales records – CNN
DISCUSSION QUESTIONS: Will Amazon’s marketing efforts or supply chain and inflationary pressures have the bigger impact on Prime Day performance this year? If Amazon is in fact reining in its Prime Day marketing, how do you expect its rivals to support their July sales events?