Amazon Prime Day: What consumers are buying.
Amazon will be offering discounts on a variety of items during its two-day Prime Day shopping event that began on July 22nd, 2022.
The North American retail market has been experiencing an intense battle for attention with ecommerce giant Amazon leading the charge. Starting in 2015, they began hosting “Singles Day” on their site which was designed specifically as a way to compete against traditional shopping holidays like Black Friday and Cyber Monday but now other companies are taking part too.
This year, Amazon is hosting another huge sale. Prime Day has been an opportunity for the company to get people signed up with their $139 per year membership that gets you faster shipping and access into deals before they happen! So far we know this event could bring in about 16% more money than last years’ total of about 7 billion dollars (which was still pretty impressive).
WHAT ARE CONSUMERS LOOKING FOR?
Google search trends are used to find the best deals they can find, including time-sensitive offers that come on their site for a short period.
There’s some new data that suggests consumers are buying more electronics, which would explain why Amazon tends to emphasis this category for deals. It looks like last year was no exception either-the top three purchased items were health and beauty products along with apparel (both of these categories saw an increase)
Some preliminary information from Numerator shows us what people seem interested in purchasing: a majority want cheaper prices on high quality goods without sacrificing customer experience; they also appear keenly aware when there’s a promotion going live so you can save money while still getting your order delivered quickly.
The items that were purchased most often on Prime Day so far have been Amazon’s Fire TV Sticks, the Echo Dot smart speakers and Cascade Dishwasher Pods. The top three purchases for this event are still unknown but Insignia TVs make up another popular choice among shoppers at earlier stages in their shopping experience.
It’s been a good month for those looking to buy from Numerator! The average price customers have spent per item so far has been $34.08, with most items selling at less than 30 dollars and 6% going over 100 bucks but not by much though–the difference between these two numbers may not seem like much on its own However when you consider how many people are buying everything in sight then this small increase can really add up rapidly.
HOW MUCH DO CUSTOMERS TYPICALLY SPEND?
The average order value on Prime Day has declined by about 8% compared to last year, but it still remains among the highest ever. So far this season Numerator says that consumers are spending an estimated $52.22 per purchase – less than what they spent in 2019 when purchasing items from Amazon’s site or any one of its third party vendors (which includes companies like Because Life).
The CEO of a leading e-commerce company says that while it’s difficult to draw year-over comparison, there are likely multiple factors at play in the decline. The reason may be because consumers have been buying cheaper alternatives on sites like Amazon instead and also due changeable dates making this event less attractive for buyers than before.
Amazon’s Prime Day is in full swing, with sales of $2 billion cumulatively reached on July 11th alone. The event has been beneficial for both consumers and retailers alike as it provides them an opportunity to save money by shopping during the week when people have more time off work or school due date announcements (which can delay plans). However there are some risks associated including slower global growth rates than expected last year following record highs seen earlier this month which could indicate that shoppers may start spending cautiously again following their recent enthusiasm over affordable products.
ARE THERE MAJOR DISCOUNTS ON ALL ITEMS?
This is an interesting finding. It seems that while some products saw a significant rise in price cuts on Prime Day, others were pretty static despite being sold by Amazon and other third parties before the event took place (like electronics). The data tracked discount levels for many items over time which showed 30% discounts during 2020-21 while hovering around this mark or slightly below it until 2021 when things started getting more competitive again due to other events happening like Black Friday, or before and after Prime Day.
CommerceIQ found that only home and kitchen items saw an increase in discounts during the shopping event. Tools, office supplies or anything related to household work had lower levels of discount compared with surrounding days while building materials experienced high rates on offers for customers interested primarily by their budget rather than preferences when it comes down how much they can spend at any given time.
July 28, 2022
About the Author:
Nick Uresin is the Founder and CEO of ArgoMetrix, a New York based software and consulting company established in 2013. Nick is an Entrepreneur, Electronics, Communications and Computer Science Engineer, who has a passion for problem solving with technology. Nick built an online retail company with annual revenues of over $10 million. He developed his vision to organize the knowledge and technology he developed to become a large Amazon Seller and provide it as a service to manufacturers and sellers of consumer products. Let's get social! Follow us and get ArgoMetrix's latest updates on Twitter, Facebook or LinkedIn.