Amazon’s Prime Day Ain’t What it Used to Be

The Thrill is Gone

Since 2015, Amazon (AMZN) has leaned on its “Prime Day” to boost sales, often during the typically slower summer season. This year’s event is scheduled for July 12 and 13. The tech giant endeavored to “make it the biggest day ever” and featured special graphics on its home page and even sponsored concerts as well as celebrity appearances to generate buzz around the event.

Last year, the prime day party seemed to lose its allure as the company maintained its standard home page and ditched the special events. Some industry analysts contend that as the novelty wore off, so did the interest from consumers and Amazon alike.

Temperature Check

Part of the reason for slowing growth may be Prime Day’s emphasis on Amazon’s own products. Discounts on all other items are largely on par with what is offered year-round. Declining order sizes and revenue may indicate consumers don’t see the day as much of a benefit.

Still, market observers contend that the event’s success can provide a temperature check for consumer spending, since sales during the event roughly double those at other times of the year.

Bargain Hunting

In the past, some retailers like Target (TGT) and Walmart (WMT) attempted to thwart loss of market share during the event by price-matching the deals offered by Amazon. This typically snagged them a 72% pop in revenue during the period. This year the boost is projected to be just a fraction of that amount, estimated at just under 18%.

While some consumers may lament the potentially diminishing number of juicy online deals, there is another trend that could fill the gap. Many retailers are looking to unload excess inventory caused by supply-chain snarls. This may prove to be fertile hunting grounds for the budget-minded shopper.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender