Prime Day is back. Amazon finally revealed on Thursday that the e-commerce pseudo-holiday would return on July 12 and 13, with member-only deals starting as early as Tuesday.
For Prime Day 2022, Amazon (NASDAQ: AMZN) highlighted that customers will be able to buy from more third-party sellers than last year. He touted the number of small and medium businesses that would be available, and Amazon is rewarding customers who buy from small businesses with big prizes, including tickets to Super Bowl LVII.
“With the small businesses and national brands our members love and trust, we’re excited to bring some of our best Prime Day deals to even more customers around the world,” said Jamil Ghani, Vice President. from Amazon Prime. “This year, we’re making it easier for members to find the best deals, from personalized deal recommendations to Alexa reminders. It’s never been easier for Prime members to shop, save, and get the most out of Prime Day.
With Prime Day 2022 less than a month away, here’s everything you need to know.
The Prime effect
Prime Day has set the e-commerce world on fire since its introduction in 2015. Total e-commerce spending was under $1 billion on the first Prime Day. But as the event grew in popularity, other retailers launched their own offers to compete.
Total e-commerce sales during the Prime Day period have increased steadily over the years. In 2021, digital sales during Prime Day topped $11 billion, more than online retailers sold during Cyber Monday the previous year, according to Adobe Analytics. Expect to see other retailers like Walmart and Target continue to roll out competing offers this year.
But Prime Day 2021 actually marked a slowdown in growth. Between 2019 and 2020, total e-commerce sales during Prime Day grew by over 45% – that number was just 6.1% between 2020 and 2021.
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Supply chain disruptions are likely to blame for the slowdown, with many retailers unable to offer their full catalogs due to concerns over product delivery to consumers. This thesis is supported by the decrease in order sizes that Amazon has seen in the past year. The average order during Prime Day 2021 was $52.33, lower than in 2019 and 2020.
Still, Prime Day was a precious time for third-party sellers on the platform. Ahead of Prime Day 2021, Amazon gave its customers a $10 rebate for purchases from small businesses, similar to the rewards it plans to offer this year. These promotions brought third-party sellers nearly $2 billion in sales before the event even began.
Additional incentives to buy with third-party sellers could help level the playing field between small and large companies. Typically, third-party sellers have a harder time sourcing products from overseas, especially China and Southeast Asia, than corporate retailers.
In the Prime Day 2022 retailer announcement, Amazon said deliveries of Prime orders would be “free” and “fast,” but it didn’t specify how fast. Prime is known for its free same day and next day delivery. But with the astronomical volume of orders arriving on Prime Day, it may take customers a little longer to receive their products. Experts expressed similar fears about delivery delays last year.
While Prime Day 2022 isn’t until mid-July, the holidays begin in earnest this month. Starting Tuesday, the market will launch deals on Amazon devices like the Echo or Kindle. It will also offer nearly half off Fire TV smart TVs and launch live shopping with celebrities and influencers.
From June 28 through July 11, Prime members will also be able to enjoy a buy-it-now, pay-over-time service through Affirm. By spending $50 or more on eligible products, customers can earn 0% APR on three equal monthly payments. This means that a $300 product could be paid for in three $100 installments rather than upfront.
Then, starting June 29, Prime customers will get a 20% discount at Amazon Fresh stores in the US. To extend the benefit year-round, members can either scan their Amazon app at checkout or pay with a card registered to their Prime account.
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Another promotion seems to be a kind of scavenger hunt for Prime members. Prime members will receive stamps for streaming a show on Prime Video, listening to a song with Prime Music, borrowing an e-ook on Prime Reading, or making a purchase that qualifies for Prime shipping. Once all four are completed, Amazon will award $10 in Prime Day credit.
One of Amazon’s biggest moves for Prime Day 2022 is the relaunch of its small business promotion. For every dollar spent with sellers who have the new Small Business badge between Tuesday and July 11, Amazon will give members the chance to win big prizes. A private New York screening of an upcoming Prime Video series, a VIP trip to Los Angeles and tickets to the upcoming Super Bowl are some of the prizes on offer.
The goal is to drive more traffic to third-party sellers, which Amazon managed to do last year. Customers spent more than double what they spent on small businesses during the promotional period in 2020, helping to make Prime Day 2021 the most profitable two-day period ever for third-party sellers. ‘Amazon.
It should be noted, however, that after revealing third-party Prime Day sales data for the first time in 2020, Amazon declined to reveal such information in 2021.
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