Dear reader, according to you what is the best way to share an opinion? I Think the best way to share an opinion is after reading and understanding the language of Data: Commonly called Analytics. That way, we ensure the opinion we share has no bias.
The following infographics from STATISTA looks at how Prime Day has grown longer and more lucrative over the past four years, with global sales quadrupling between 2015 and 2018. Scroll down to the second infographic to see how other retailers are trying to compete with the everything store.
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After just four years, Prime Day has grown into what retailers call the “Black Friday of July.” Last year, global sales during the event nearly doubled year-over-year after Amazon added six hours to the sales spree and an additional 17 countries to the roster of places eligible for the exclusive sales. This year with Prime Day running for 48-hours, analysts estimate that global Amazon sales will hover around $6 billion.
Amazon Prime Day is only available to Prime members, creating an incentive for consumers to turn into Prime members. For the everything store, the main purpose behind the two-day sale is to convert those non-members to Prime buyers. Members buy more, come back more, and provide more data than non-members. Cowen & Co. estimates that roughly one in ten non-Prime households will sign up for Prime during Prime Day.
Extending the hours and country access has helped bolster sales, pushing the sales blitz each year to a new high. Global sales over the past three years have quadrupled for Prime Day.
Amazon Prime began their July event exclusively for Prime members back in 2015. Since then the mid-July sale has drawn consumers to the site in droves and now competes with Black Friday and Cyber Monday as major retail days. Last year, retailers made $4 billion more in July than in December.
Some analysts worry that other retailers may be hurting themselves down the road. Consumers who spend across multiple retailers in July may be less likely to go back later in the summer when back-to-school shopping dominates consumer spending. Stores like J.C. Penny and Staples are rolling out their own mid-July sales blitz, but are placing core back-to-school items on the sales page, potentially cutting into consumer spending in late August.
Whether retailers mark down prices or not, Adobe and Salesforce both estimate that eCommerce overall benefits from a Prime Day halo-effect. Adobe estimates a 79 percent revenue bump for other retailers during Prime Day this year, while Salesforce ballparks the growth for non-Amazon retailers at 51 percent for Prime Day.
Special Credit to: STATISTA