Amazon’s second Prime Day a flop as inflation slams consumer spending
Amazon’s second Prime Day sale came and went with a whimper last week, according to an analysis by Bank of America.
The Seattle-based e-commerce giant generated just $5.7 billion in revenue from last week’s Prime Early Access sale — falling well short of the $7.5 billion that the company recorded in July for its first Prime Day sale, according to Bank of America analysts.
Klover, the commerce data firm, said that transaction frequency from last week’s event was 30% lower compared to the first sale, according to CNBC.
The market research company Numerator did a study which found that the average spend per order during the recent Prime Day event was $46.68 — down significantly from the $60.29 for the first Prime Day.
Numerator found that those who shopped both the Prime Early Access sale last week and Prime Day earlier this year, 64% spent the same or less last week while just 36% spent more last week.
When asked about the impact of inflation, 29% of customers who bought something last week said that they were waiting to buy at a lower price while 26% said they passed on an item that was a great deal but not a necessity.
Meanwhile, 17% of shoppers who bought something during the Prime Early Access sale said they stocked up on items that were on sale while 14% said they didn’t buy anything that they weren’t planning to buy.
An Amazon spokesperson declined to comment. The company referred The Post to a statement touting the sale as a “great kickoff to the holidays.”
Despite the lower sales figures, analysts said that Amazon accomplished its goal last week, which was relieving itself of the inventory glut.
“I think it did fine for what Amazon was trying to do, which was to reduce the amount of products they have in their warehouses,” Juozas Kaziukenas, founder of research firm Marketplace Pulse, told CNBC.
Amazon and other retailers like Walmart and Target have stocked up on items that were popular during the pandemic but are now occupying shelves as customer tastes shift rapidly, according to analysts.
That has prompted the retailers to offer discounted sales before peak holiday shopping season sets in.
Target last week began offering holiday deals.
Meanwhile, Walmart expanded its window for gift returns to between Oct. 1 and Jan. 31, compared with last year’s return window of Nov. 1 to Jan. 24.