That’s how much money Prime Day brought into Amazon’s coffers

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Several months later than usual, Amazon Prime Day has now taken place this week. The postponement of the date is likely to have turned out to be a stroke of luck for the online retailer: Analysts assume that the discount battle was more successful than ever because of the later date.

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?? Amazon postponed Prime Day from July to mid-October this year

?? Prime Day 2020 as the start of the Christmas business

?? Analysts assume a sharp jump in sales compared to the previous year

Actually should Amazon rename his bargain campaign from “Prime Day” to “Prime Days” because, as in the previous year, the discount battle at online retailers lasted a full two days instead of just 24 hours. But one thing in particular was different this year than in 2019: For the first time since its introduction in 2015, the shopping event did not take place in July, but had been postponed to October 13th and 14th. The reason for this is the corona pandemic, which already pushed the logistics of online retail to its limits due to the increasing number of orders in the summer.

Postponing the date is a godsend for Amazon

However, the postponement should not have harmed sales – on the contrary: Instead of filling the summer slump as usual, Prime Day marked the start of the Christmas business this year, according to analysts. The event is “close enough to the Christmas season that people will think ahead when they are looking for deals,” said Andrew Lipsman of the market research company eMarketer, according to “Fortune” in advance. In concrete terms, this means that in the past few days customers have probably not only been shopping for products for themselves, but also for their first Christmas presents for family and friends. The Christmas business usually doesn’t start until a few weeks later: traditionally in the USA it reaches its first peak on Black Friday, which does not take place until the end of November. Amazon anticipated this first highlight with its Prime Day this year – however, it is questionable how successful the upcoming Black Friday will be, since it should not be celebrated with large crowds in front of and in the shops due to the current infection situation.

For the Christmas business itself, the earlier start forced by Amazon means that the flood of orders to be expected thanks to the corona pandemic will in all probability be drawn over a longer period of time, which should significantly relieve the logistics in e-commerce. And the later Prime Day should also have brought advantages for Amazon. “I think Prime Day will allow Amazon to better cope with the likely very robust demand in online retail this year in the Christmas season,” said RBC Capital Markets analyst Mark Mahaney to “CNN”. He also generates “new Prime members at exactly the right time and puts Amazon in an even better position to gain market share in November and December,” Andrew Lipsman told the news magazine.

Analysts speak of a new sales record for Amazon on Prime Day

The earlier start of the Christmas business and the corona pandemic, which is causing many people to shop less locally and more online, are likely to have paid off financially for Amazon. The online retailer itself usually does not publish sales figures for Prime Day, but there are all the more analysts who come up against their estimates. For example, the Telsey Advisory Group estimates, according to “CNN”, that sales during the shopping event on Amazon could have amounted to up to 11 billion US dollars. eMarketer estimates in its research report that sales of $ 9.91 billion were generated. That would be a new high and a 43 percent increase over the previous year when it added an estimated $ 6.93 billion in sales. At 6.17 billion US dollars, the largest part of sales in 2020 will again have come from orders from the USA.

The analysts at JPMorgan According to “MarketWatch” assume that Prime Day 2020 brought in around 41.5 percent higher sales than last year. However, they speak of $ 7.5 billion compared to $ 5.3 billion last year. “We believe that Amazon will benefit from the earlier start of the Christmas business, with Prime Day being a good pull-forward effect that should help balanced demand in the fourth quarter,” the investment bank experts told MarketWatch. They expect the trend towards online shopping to intensify and that Amazon is now facing its busiest quarter yet. Therefore, they rate the online giant with “Overweight” and a target price of 4,050 US dollars.

Prime customers are willing to donate despite Corona

Despite these huge numbers, Prime Day has only been responsible for one to two percent of Amazon’s annual sales in the past few years, according to “CNN”. According to the news magazine, the share could increase this year, as customers are likely to spend more in the Christmas season than in the summer. Because as “CNN” writes with reference to analysts, the wallets of Amazon customers are currently loose anyway. Prime members allegedly have a higher income and are therefore less affected by the negative effects of the corona pandemic, such as job loss or a lack of a second stimulus package in the USA. In addition, less money has probably been spent on travel or other leisure activities so far in 2020. “If anything, a lot of people are swimming in money, and that could drive sales higher this year,” said Brian Yarbrough, an analyst at financial services company Edward Jones, to CNN.

A survey by the market research company Kantar among 3,000 Amazon customers with and without Prime membership, which is available to the online magazine “StoreBrands”, confirms this assessment. In the run-up to Prime Day, 56 percent of those surveyed said they wanted to spend at least as much money as last year. 28 percent even said they wanted to spend more on Prime Day than in 2019. Only three percent of Prime members said they didn’t want to buy anything at all. Their share was 16 percent last year. Another survey available to “StoreBrands” found that 57 percent of those surveyed planned to do some of their Christmas shopping during Prime Day. Amazon’s strategy should have worked with the later shopping event. editors


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