A recap of Prime Day 2023
Amazon’s annual sales bonanza, Prime Day, which concluded on July 12, achieved its most successful run yet in 2023. Total sales for the two-day event reached a record-breaking $12.7 billion, marking a 6.4% increase over the $11.9 billion generated in 2022. Despite falling short of Adobe’s expected growth rate of 9.5%, this year’s event still saw impressive figures.
Appliances and home goods lead sales
This year’s Prime Day marked a shift in consumer trends, with appliances and home goods stealing the limelight from electronics. Adobe reported a 52% uptick in appliance sales compared to the average day in June. Home goods and household essentials also experienced a significant boost in demand, as customers focused their spending on everyday essentials.
The top-selling categories according to Amazon’s press release were home, fashion, and beauty. Notably, the Fire TV Stick (3rd Gen) with Alexa Voice Remote topped the best-selling products list. Research by Numerator, a data research company, indicated that 52% of consumers had postponed purchases until the Prime Day discounts kicked in.
Evolving shopping patterns and mobile purchases
The 2023 Prime Day event also saw changes in consumer shopping behaviors. The average Prime Day order increased from $52.26 in 2022 to $54.05 this year. Also, a considerable number of households (65%) made at least two separate orders, averaging a total spend of $155.67. Mobile orders accounted for 45% of purchases, up from 41.5% in 2022, indicating a growing comfort with mobile shopping and its convenience for impulse purchases.
Buy now, pay later (BNPL) sees a surge
The BNPL option experienced a significant rise in usage during Prime Day. The service accounted for 6.4% of all orders on the first day of the sale, driving $461 million in revenue. This figure represents an impressive 19.5% increase from the first day of the sale in 2022. By the end of the second day, the usage of BNPL had increased to 6.6%, contributing to a total of $927 million in revenue across both days.
Consumers price compare and opt for curbside pickups
More than half of the Prime Day shoppers (54%) compared prices at competing retailers. Major competitors like Walmart and Target saw 36% and 25% of shoppers checking their prices respectively. The consumers who ventured beyond Amazon demonstrated a slight preference for curbside pickup, with 20% opting for this service, up from 19% in 2022.
Competitors struggle to match Amazon’s prime day success
While Amazon celebrated record-breaking sales on Prime Day, competitors found it challenging to replicate this success. Non-Amazon retailers saw a 10% year-over-year decline in online sales during Prime Day. Yet, consumers showed interest in comparing prices across retailers, with 65% indicating their intention to shop other sales, demonstrating the strong pull of Prime Day.
Amazon’s prime day reigns supreme
Despite a few retailers opting to run promotions during the 4th of July holiday rather than compete directly with Prime Day, Amazon’s event has clearly established itself as one of the most significant e-commerce moments of the year. From electronics to apparel, home goods, and everyday essentials, consumers flocked to take advantage of the steep discounts offered by Amazon. However, the competition isn’t backing down, and as Prime Day sales continue to surge, it remains to be seen how they will strategize to draw customers in the future.