Amazon has returned with their annual Prime Day sale running for the 11^th and 12^th. This event often entices other retailers to get in on the action and run their own comparable sales. This summer sales race has become the litmus test for the all-important Black Friday sales and what kind of revenue retailers can expect for the second half of the year. If Prime Day goes off without a hitch, we are in store for a November windfall, otherwise we could be in for a tight budget holiday season. So, how is it shaping up this year and how does it compare to 2022?

Prime Day was off to a fantastic start before it was even announced. Gone are the supply chain issues of the past few years and there are not expected to be any major shortages. This could lead to lessened demand, yet it will also mean less price hikes and a wider array of items available for sale. Unfortunately, inflation will be a factor working against the sales this year. Costs have gone up everywhere from the manufacturer to the retailer and those costs are being passed onto consumers. How willing consumers are to absorb all of those costs is yet to be seen and Prime Day will give us some insight into that adjustment.

So far, deals seem to be centered around tech products and specifically Amazon’s own devices like Alexa. Other major sales seem to be on household items and clothing. This is pretty similar to what we have seen the last few years with TV’s and electronics dominating at other retailers too. In 2022 consumers purchased over 300 million items globally and generated over $3billion in revenue for the retail giant. Amazon also claimed that Amazon devices broke a record with more selling than previous years. There is a good chance that the $3billion mark is broken this year by virtue of higher prices overall. It may be hard for them to break their Amazon device record with consumers being more selective in 2023. A quick look at some of the deals reveals that many popular items are receiving a comparable discount percentage to last year.

On Tuesday, Amazon pulled in their largest sales day ever with over 375 million items purchased worldwide, a 25% increase over 2022. Top sellers again appeared to be Amazon branded devices like the Fire Stick and the Alexa Voice Remote, which became their best-selling product. Amazon also boasted that members saved more than $2.5 billion, an impressive number considering how high prices have been during the year. It is possible that consumers are avoiding higher prices and holding out for these big annual sales. If Prime Day is any indication, then we could be in for some impressive and record-breaking Black Friday numbers. According to Numerator data, consumer average order size was $54.05, up from $52.26 for last year’s Prime Day. Consumers seem willing to spend more for big sales and we should see retailers copy Prime Day’s strategies later this year.

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