Тhe aftermath of Amazon Prime Day

In our previous Amazon Prime Day blog post we discussed the choice brands have to make on whether or not to invest in this event which is full of unknowns. Since a handful of large retailers were also offering rival sales events: Target’s Deal Days (June 20-22 in 2021, July 11-13 in 2022 ), Best Buy’s Bigger Deal Savings Event (June 20-23 in 2021), and Walmart’s annual Deals for Days (June 20-23 in 2021), many other businesses of different scale followed this pattern using their own platforms for offering deals, bundles, and discounts around the same time as Amazon’s Prime Day.

Amazon Prime offers shopping and entertainment to more than 200 million paid members around the world. Since data* suggested that people were itching to spend, this year the retailer offered more than 2 million deals, which makes it the largest Prime Day according to Amazon since it began in 2015. As Amazon makes the same proclamation every single year, this year it’s worth seeing what’s really happening. 

In 2021, Amazon invested billions in the success of its selling partners. Two weeks before Prime Day 2021, Amazon supported small business sellers with the Amazon-funded Spend $10, Get $10 promotion. With customers spending over $1.9 billion on more than 70 million small business products during the promotional period the campaign was a big success.

In 2022, shoppers look less enthusiastic about the big annual sale because of the soaring inflation. Consumers are cutting back on spending and are warier of impulse shopping that the “Lightning Deals” are designed to encourage.

The other drawback is that other retailers are holding their deals events and some of their best bargains.

Despite these concerns, Amazon had its most successful Prime Day in its history topping the charts in the UK and USA.

2021 Amazon annual mega-sale was pushed from summer to autumn due to the pandemic. In 2020, Amazon Prime customers still saved $1.4 billion when they shopped the Prime Day sale. Adobe Analytics tracked $10.4 billion in sales over the 2020 October event. This year, the sale was back to its summer roots and took place on June 21 and June 22 with $11 billion in sales. The very slight increase in sales gave birth to the rumour that we may witness a second Prime Day in October 2021.

More than 50% of U.S. consumers (especially higher-income millennials) answered that they planned to spend extra cash by splurging or treating themselves post-Covid. In a recent survey* about consumer sentiment during the pandemic, Prime members in 20 countries shopped more this Prime Day than any previous Prime Day. Even when the Prime Days are over on paper, many of the most popular Prime Day deals are still available right now. On top of everything this year, Amazon has revealed the list of Prime Day’s best-selling products.

How did car owners win the Prime Day drive in 2021?

Even though Amazon doesn’t often lower the prices on auto parts, tools and other frequently found-in-the-garage items, this Prime Day was a huge success in this category too (compared to previous years). There were deals everywhere – even outside Amazon. A good example is Walmart’s ’ ”Deals for Days” Tyre & Auto Sale landing page, where shoppers could discover deals that Amazon couldn’t beat.

On Prime Day some of the best-selling products with good discount were, as you would expect, Amazon’s own products. In the automotive sector that was Echo Auto followed by 31% off, plus an additional 5% with coupon on LED Headlight Bulbs and 38% off on Portable Jump Starters. Battery Maintainers and Portable Tyre Inflators/Air Compressors were following closely with all kinds of mechanic’s tools and car covers. Additionally, there were savings of up to 25% on Automotive Parts and Accessories from Amazon Warehouse Deals, with added discount at the checkout.

Even if you’re not a Prime member, you can still find good deals. Shopping around to find the best Prime Day deals is always a good idea – because some may not even be on Amazon at all, but on other sites hoping to benefit from the Prime Day halo effect.

More competition in 2022

This year more competitors step up their drive. Target’s 72-hour “Deal Days” kicked off earlier than last year and the day before Prime Day (July 11) and is running for longer. Not only that, but Target is price matching select Prime Day deals and take an additional 5% off for all Red Card members. Other retailers like Walmart, Best Buy, and Lowe’s have yet to announce when their summer sales are taking place.

In 2022 Amazon doubled its donations with Amazon Smile and it introduced the small business badge.

The top selling products included Headphones, Homeware, Lighting, Vitamins, Amazon products, Hardware and Bosch 50-Pieces X-Line Titanium Drill and Screwdriver Bit Set.

To find out more about the automotive aftermarket, or for a no-obligation introductory discussion, please contact us.

*McKinsey survey