Why there should be fewer bargains on Prime Day this year

Why there should be fewer bargains on Prime Day this year

Because of the corona crisis, Amazon postponed the sales event to October. This has implications for brand manufacturers, marketplace dealers – and customers.

The US giant is hosting its Prime Day sales event in October this year instead of July.

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The US giant is hosting its Prime Day sales event in October this year instead of July.

As every year, Amazon makes every effort to arouse anticipation for the so-called Prime Day. The online retailer announced that there will be more than a million offers in 19 countries on October 13 and 14. Prime members who use the voice assistant Echo can find out about the bargains two days in advance via Alexa.

The focus is on Amazon’s own devices. For example, the Echo Dot smart speaker will be reduced by 68 percent. But big brands like Samsung, Olympus, Sodastream or Melitta are also there.

And yet a lot is different this year. Because the corona crisis also has the planning for Amazon’s most important sales event Mighty mixed up – with great effects for brand manufacturers, marketplace dealers and last but not least the customers.

Prime Day was originally planned for July. But at the time, consumers – and retailers – had completely different concerns. “Amazon was forced to postpone Prime Day,” says Nils Zündorf, an expert on Amazon-Marketing at the agency factor-a. “The corona crisis had the in July logistics already pushed to the limits in online trading, ”he explains. “An additional sales event would have sent the completely wrong signal.”

In addition, many marketplace dealers would only have been able to deliver to a limited extent at the time. On the one hand, Amazon preferred to deliver items that were particularly in demand during the corona crisis, which meant that many other products had delivery times of several weeks. In addition, the supply chains – especially from Asia – were disrupted, so that supplies stalled.

But even if a new date has now been found, Prime Day for customers will not be like in previous years: There will be fewer bargains. “This year there is a clear reluctance to be felt among retailers, many large brand manufacturers and retailers do not want to take part in Prime Day,” observes the expert Zündorf, who advises large brands on their presence on online marketplaces. “Therefore there will be fewer products and fewer deals.”

Competition to Black Friday and Cyber ​​Monday

And that’s because of the new date. “This year the event does not fill the summer slump as usual, but is too close to the Christmas business,” says Zündorf. The providers’ e-commerce teams are overburdened and are already working on preparing for the Christmas business.

The big online sales days are now following in quick succession. In less than a month, on November 11th, the Chinese Singles Day will take place, which is also slowly gaining a foothold in Europe. At the end of November, Black Friday and Cyber ​​Monday will ring around the in the USA very significant Thanksgiving family festival “Thanksgiving” is the actual Christmas business.

This means that the Christmas business starts on Prime Day. Carolin Jaretzke, retail expert at the market research company Mintel, therefore sees the date chosen as a good one, at least from Amazon’s point of view: “This means that the online giant is ahead of its rivals twice in this crucial phase.”

On the one hand, in view of the looming second corona wave, many consumers increasingly avoided stationary shops and increasingly bought online. On the other hand, Amazon could extend the Christmas business for a longer period of time and thus prevent the logistics from becoming overloaded again.

“The postponement was a catastrophe for the third-party dealers, because they completely threw their planning overboard,” adds Zündorf. Many start planning for this day six months in advance, and in some cases have goods produced that were intended for the summer season.

In addition, there was uncertainty because it was not clear for a long time whether and when Prime Day would actually take place. The retailers had to take the risk and send goods to the Amazon warehouse practically flying blind. Many have shied away from this – which in turn should also reduce the variety of offers.

For many customers, however, a look at the range will probably be worthwhile – especially if they want to buy Amazon devices. That’s why experts expect the two-day event despite everything a new sales record. The market researchers from eMarketer assume that global sales on Prime Day will rise again this year by 43 percent to then 9.9 billion US dollars.

More: Amazon is further expanding its market power in the corona crisis.


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