Analysts Estimate Single-Digit Growth for All Retailers During Prime Day Sales – TechCrunch

Amazon Prime Day’s annual sales event generated more than $12 billion in sales, according to third-party estimates. The retailer hosted the popular shopping event in the United States and in more than 15 other countries around the world from July 13-15. It was the first event on Prime Day under new CEO Andy Gacy, who took over from Jeff Bezos last year after the Amazon founder stepped down.

The company was upbeat about its Prime Day results and said it was “the best ever,” noting that consumers worldwide are worth $1.7 billion. Amazon claimed to have sold more than 300 million items during these sales, but has not disclosed any revenue figures.

She also noted that she sold “more devices than any other Prime Day”, but declined to put any number on her. The company said shoppers purchased more than $3 billion in merchandise on more than 100 million small business items during the two-day event.

For weeks into Prime Day, Amazon has relied on influencers to drive sales from its QVC-style live video shopping. The company has partnered with celebrities such as TikTok creators Joe and Frank Mele, Porsha Williams from “The Real Housewives of Atlanta”, “Selling Sunset” star Chrishel Stowes, comedian Kevin Hart, and Australian model Miranda Kerr. The company said these direct streams have generated more than 100 million views but has not confirmed how much sales they have generated.

A report from The Information paints a different picture: It said some videos of some of the top influencers failed to attract more than 4,000 live viewers. Amazon isn’t the only one struggling with live commerce. Earlier this month, the Financial Times reported that TikTok is working to scale back its plans for live video shopping in the US and Europe.

Amazon has not commented on revenue or sales numbers recorded during Prime Day or through Amazon Live experiences.

Amazon Live Prime Day

Image credits: Amazon

Since Amazon does not disclose its Prime Day sales numbers, we have to rely on analysts and third-party data to paint a picture of how event sales are doing.

Analysts estimated that Amazon sold total merchandise between $12.09 billion and $12.59 billion in Prime Day sales globally. It is important to note that some countries such as India, Saudi Arabia, Egypt and the United Arab Emirates have not yet hosted Prime Day sales.

Additionally, a report by Salesforce indicated that global sales for retailers selling merchandise on their own sites grew 8% year-over-year for Tuesday and Wednesday in the second week of July. But sales figures for non-Amazon sites globally are down 12% compared to Prime Day 2021.

As usual, major US retailers have taken advantage of Amazon’s Prime Day to offer their own discounts, encouraging consumers to splurge more in an inflation-driven market that has seen prices for various items skyrocket lately.

A study from the Adobe Digital Economy Index reported that total US online spending via online retailers touched $11.9 billion – an 8% increase from last year which saw $11 billion spent. It is noteworthy that sales of the second day of Prime Day achieved more than 5.9 billion dollars, recording a growth of 9.2% over the second day of last year, which achieved 5.4 billion dollars.

“With significant gains on the second day of Prime Day as well, retailers were able to generate nearly $12 billion in spending online, during the two-day event. Consumers are clearly incredibly price conscious, and it will be important for retailers Retail is leveraging pricing effectively, in order to unlock new growth potential online,” said Pat Brown, Vice President of Adobe.

Additionally, the data set Numerator published its own study based on nearly 59,000 Prime Day orders and a survey of more than 4,800 buyers, which said average order volume rose from $44.75 last year to $52.26 in Prime Day sales. He notes that 65% of shoppers who made purchases on both days, spent the same amount or less than last year.

The company’s study highlights some numbers that suggest Amazon’s impact on Prime Day sales may have diminished a bit. 24% of shoppers made purchases from another retailer compared to 20% last year; 44% of people only considered Amazon this year compared to 52% last year; And 34% of people reviewed prices at other retailers before buying, compared to 33% last year.

Image credits: numerator (Opens in a new window)

These studies indicate that inflation has affected Prime Day sales and that retailers may not have seen a significant increase in their sales compared to last year.

Amazon has had a tough year, with its stock price dropping from roughly $181 a year ago to $110 at the time of writing. It’s important for the company to boost sales, so much so that it may hold another peak day later this year. This year, company workers also raised questions about workplace safety and wages during Prime Day’s peak sales.

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