Amazon.com has recently announced that its most recent Prime Day sale has surpassed the sales figures of last year’s fall event. However, it seems that customers are still anticipating more attractive deals later in the season.
According to Doug Herrington, CEO of Amazon’s Worldwide Amazon Stores business, “Prime Big Deal Days was a strong start to the holiday shopping season.” He also mentioned that more Prime members participated in this year’s fall event compared to the previous year.
Although Amazon does not disclose detailed sales data, some insights can be gathered. The company revealed that during the period of October 10th to October 11th, Prime members purchased over 25 million items with same-day or next-day delivery, as well as a staggering 150 million items from independent sellers in Amazon’s store. In contrast, last year’s event saw “tens of millions” of members shopping and ordering over 100 million items from Amazon’s selling partners.
To obtain a more comprehensive understanding, third-party data comes into play. Numerator, a data intelligence company, compiled early information indicating that the average order size for October was $53.47, a slight increase from $50 the previous year.
This marks the second time Amazon has organized a Prime shopping event in the fall, alongside their signature Prime Day, which typically takes place in July.
However, it appears that customers have not embraced the fall event with the same enthusiasm as they do for the summer deals. For example, in July, Amazon reported that members purchased over 375 million items worldwide. Numerator estimates that the average order size during that time was $58.67, higher than the figures for October.
Overall, while the Prime Day sale has exhibited a strong start for the holiday shopping season, customers seem to be retaining some anticipation for future deals. With the festive season approaching, it remains to be seen how this trend will evolve.
Analysis of Recent Sales Events
According to Numerator, this year’s Big Deal Days sale saw a similar level of household participation as July’s Prime Day. However, households spent less on average during the sale. This trend was also observed last year, indicating a consistent pattern. It’s important to note that Numerator is still analyzing the purchase data, so the findings for this fall’s Prime event may change.
Non-Amazon Retailers’ Performance
Amazon isn’t the only retailer facing challenges in attracting shoppers in October. Salesforce data reveals that U.S. online sales for non-Amazon retailers experienced a 1% year-over-year decline during the same two-day period. Even major retailers like Target, Walmart, and Best Buy, who held sales events in early October, faced a similar decline.
Shifting Strategy for Retailers
In their bid to capture consumer spending, retailers have been launching their holiday shopping events earlier each year. This is in response to Americans tightening their purse strings. Consulting firm Deloitte predicts that retail sales will only grow between 3.5% and 4.6% from November to January, significantly lower than the 7.6% growth seen in 2022.
Shoppers Anticipating Black Friday Deals
It’s worth noting that some shoppers may be delaying their purchases in anticipation of Black Friday deals later in the holiday season.
While the recent sales events have shown a decrease in spending, it’s crucial to wait for the complete analysis of purchase data before drawing definitive conclusions. Regardless, these findings highlight the challenging landscape retailers face during the holiday season.