Amazon Prime Day Braces For Slowdown Like Alibaba On Pandemic Recovery, Inflation Concerns
Amazon.com, Inc's NASDAQ:AMZN Prime Day has hit a slowdown as consumers cut down on their order size, the Wall Street Journal reports.
Amazon, too, appears to have curtailed its investments in the event. Most of the deals have focused on the company's products.
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Data proves that the discounts on many items failed to surpass those on other days at Amazon, excluding electronics.
Amazon will hold its Prime Day on
Amazon's sales will likely reach
The 2021 average order size totaled
Contrastingly, Amazon acknowledged "great success with Prime Day" and looks to offer its lowest prices ever this Prime Day on products from various brands. It also disclosed that Amazon's third-party sellers had their most significant Prime Day sales. Amazon also continued heavy investment in the event by expanding the number of countries and adding new experiences, WSJ notes.
Sales on Amazon typically increase by twice the usual amount on Prime Day, according to CommerceIQ.
Copycat deals from Walmart Inc NYSE:WMT and Target Corp NYSE:TGT capitalizing on the Prime Day will likely grow by 17.8% in 2022 versus 72% in 2018 and 2019 as they battle excess inventory due to pandemic recovery.
Prime Day's slowdown coincides with overall challenges at Amazon, which curtailed investment in its massive delivery operations to cut costs due to changes in shopping trends following pandemic recovery and inflation.
Price Action: AMZN shares traded higher by 0.85% at
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