Is Amazon taking its foot off the Prime Day marketing pedal? RetailWire


Jul 05, 2022

Amazon Prime Day, to take place between July 12 and 13, is expected to be less robust than pre-pandemic years due not only to inflation but possibly less investment from Amazon.

Insider Intelligence predicts US Prime Day sales will grow 17 percent in 2022 across Amazon and other retailers, well below the gargantuan gains seen in the pre-pandemic years since the event was launched in 2015.

A Wall Street Journal article, “Amazon’s Prime Day Isn’t Quite the Blockbuster It Once Was,” suggests that the novelty could be wearing off. Prime Day fans are recognizing that the deals are largely focused on tech, particularly Amazon’s own products.

The WSJ also says Amazon appears to be reducing investments around the event as Amazon Prime subscription growth has slowed down and excess inventory isn’t as much of a challenge as competitors.

For the first time last year, Amazon did not convert its home page to “a giant Prime Day wallpaper with a small number of widgets,” according to the WSJ. This yearAmazon is skipping a free Prime Day concert that last year featured Billie Eilish and HER and is no featuring exclusive Prime Day product launches longer.

Amazon Prime Day nonetheless continues to expand globally, adding Poland and Sweden in 2022. Last week, Amazon debuted a Prime Day ad featuring five-time Grammy winner Jon Batiste.

Other surveys show continued high interest in Prime Day amid financial concerns.

A RetailMeNot survey From late April found 88 percent of US Prime members planning to shop on Prime Day, with 47 percent waiting until Prime Day to make their biggest purchases of the year. However, average Prime Day-related spending was projected to be down 35 percent from 2021, a trend that RetailMeNot attributed to inflation.

An Adobe survey taken in June found 24 percent of consumers don’t plan to shop on Prime Day because they have less discretionary money to spend due to inflation. Adobe’s survey found 61 percent looking forward to summer holiday sales like Prime Day. Of those planning to participate in summer sales, 76 percent say they will spend more or the same amount as last year.

DISCUSSION QUESTIONS: Will Amazon’s marketing efforts or supply chain and inflationary pressures have the bigger impact on Prime Day performance this year? If Amazon is in fact reining in its Prime Day marketing, how do you expect its rivals to support their July sales events?

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“Will Amazon’s marketing efforts or supply chain and inflationary pressures have the bigger impact on Prime Day performance this year?”

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