The closer Amazon Prime Day sales promotion reaches the holidays, the more avid buyers can become for the cost, experts say.
The company’s two-day event – where Prime subscribers are offered a “deal parade” – usually takes place in July. This year, however, the premiere day was delayed as a result of the COVID-19 pandemic.
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Although no new date has been set yet, an Amazon spokesman confirmed to FOX Business that the event will take place in the last three months of the year, usually the most lucrative for retailers. Observers speculated it could be in October.
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Although the company will see heavy traffic, the exact date will determine how much revenue e-commerce attracts, said Peter Kearns, former CEO of Amazon and vice president of partnerships at Buy Box Experts, for FOX Business.
The company may face problems as the day moves into the holidays, effectively competing with major market events such as Black Friday and Cyber Monday, according to Kearns.
If that happens, he said, “consumers will be more aware of how they spend their money.”
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Relatively, Amazon will see a “stronger response” if the event – which Kearns called Christmas in July – takes place earlier this fall.
This would help “distribute buyers from consumers,” which would then “reduce the impact on employees around the holidays,” Kearns said. There is always a risk that the event will happen immediately after shopping at school, which can erode sales.
Once the premiere day is announced, brands will have to be ready to “spin fast” to prepare for a possible drop in orders, he said.
In 2019, Prime Day became the largest market event in the company’s history, with sales surpassing the previous Black Friday of Amazon and Cyber Monday. In total, subscribers bought more than 175 million items.
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