Amazon’s Prime Day, the colossal sales event of the year, has stormed onto the scene. This annual two-day blitz, which began nine years ago, showcases the perks of Prime membership through jaw-dropping deals and exclusive benefits.
Shoppers are likely to spend roughly $14 billion during Amazon’s Prime Day two-day shopping event this week, according to projections from Adobe Analytics, a firm that studies e-commerce transaction data https://t.co/9bYzWJQLpP pic.twitter.com/J52jo5yX8b
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“Amazon commands the spotlight on Prime Day, capturing the bulk of the sales,” eMarketer analyst Sky Canaves told Yahoo Finance. “We forecast that U.S. consumers will splurge nearly $14 billion online during these two days.” Last year’s event pulled in $13 billion, with Amazon itself raking in 60% of that, while third-party sellers grabbed the rest. Prime members scooped up over 375 million items, making it the “biggest Prime Day ever.”
This year promises to shatter that record, even though the pace of revenue growth has eased. Research from marketing platform Skai reveals that nearly 80% of online shoppers are on the hunt for the best deals of the year.
But Amazon isn’t the only game in town. Rivals like Target, Walmart, Best Buy, and Costco are unleashing their own mega-sales. Target’s Circle Week, which ran from July 7-13, offered loyalty members discounts of up to 50% on a smorgasbord of items, from clothing and skincare to tech and food.
All this shopping mania is happening even as whispers of a slowing U.S. economy persist. Yahoo Finance’s Josh Schafer noted that retail sales in June were flat, better than the expected 0.3% decline.
Amidst all this, one category is poised to sparkle: beauty products. “Beauty is a standout where Amazon’s sales growth outpaces overall e-commerce,” said Canaves. “It’s a robust, resilient sector, with brands eager to be where consumers are – on Amazon.”
Adobe Analytics forecasts a 10.5% rise in spending from last year, with shoppers likely to spend $14 billion. Day 1 of Prime Day already marked Amazon’s biggest sales day ever!#Amazon #PrimeDay #Sales #Ecommerce #Amznu
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Amazon is making significant strides in the health and beauty sector, one of its fastest-growing categories. Morgan Stanley predicts that by 2025, Amazon will dethrone Walmart as the leading beauty retailer in the U.S. The e-commerce titan has enticed premium brands like Clinique and Kiehl’s to join its platform.
A 2023 McKinsey & Company report underscores the “premiumization” trend in beauty and fragrance, forecasting an 8% annual growth for prestige beauty from 2022 to 2027, compared to a 5% growth rate for mass-market beauty. This trend is prompting more luxury brands to reconsider Amazon as a viable sales channel.
“If beauty brands don’t sell on Amazon, third-party resellers will,” Canaves pointed out. This market reality is driving more high-end brands to take the plunge and set up shop on Amazon to tap into its vast consumer base.
Meanwhile, in the financial markets, gold soared to a record high and bonds rallied, but semiconductor stocks took a nosedive. The catalyst? U.S. presidential candidate Donald Trump’s lukewarm stance on defending Taiwan. TSMC, the world’s largest chipmaker, saw its shares plummet 3%, wiping out nearly $30 billion in market value. ASML, a crucial supplier to chipmakers, despite reporting strong quarterly profits, saw its shares tumble as well.
🔵 AMAZON PRIME DAY SALES TO HIT RECORD $14 BILLION, DATA FIRM SAYS
Shoppers are likely to spend roughly $14 billion during Amazon’s Prime Day two-day shopping event this week, according to projections from Adobe Analytics, a firm that studies e-commerce transaction data.
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The broader market reaction was mixed. European and U.S. stock futures dipped, while the Taiwanese dollar and Chinese yuan showed signs of weakening amid the geopolitical jitters. Oil prices slipped slightly, weighed down by indicators of weakening demand from China. Meanwhile, the Japanese yen and euro remained largely stable.
Major Points:
- Amazon’s Prime Day launches, expected to hit nearly $14 billion in sales.
- Competitors like Target and Walmart host rival sales events.
- Beauty products, especially premium brands, poised to shine on Amazon.
- Geopolitical tensions impact semiconductor stocks; gold reaches record highs.
- Consumer spending remains strong despite economic uncertainties.
Conner T – Reprinted with permission of Whatfinger News
