On this episode of the Business Beat, Jeff shares sales insights from Amazon Prime Day and what is driving consumer spending.
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Good morning, Paul! Amazon Prime Day. That special day when Amazon provides deals in the form of discounts on select goods, in which consumers look forward to in order to pick up items that we want or need at attractive price points. Now this year, Amazon Prime Day took place on July 11th and it generated $11.9 billion in sales, up 8.5% over last year.
The interesting thing here, Paul, is that consumers are spending, but a closer look provides important insight into what they’re spending on and what drives those purchases. In fact, many watching the retail sector now look to Amazon Prime Day as a bellwether for what may be ahead in retail. Now, Numerator, a data and technology company, indicates that average household spend on Prime Day was about $117 with one in six households spending more than $200. And Adobe just this past Tuesday released data on key themes and categories around consumer spending habits for Prime Day.
Some key takeaways: While sales are up over last year consumer spending slowed significantly when the discounts ended. So discounting is a major factor in driving retail sales today. Further fueling sales? Consumers relied on buy on credit opportunities like buy now pay later. Brick-and-mortar retailers actually benefited from Prime Day as well as a result of buy online pickup in store options. So the data indicates, Paul, consumers are indeed still spending, but spending more carefully and relying more and more on discounts as a major driver in this time when inflation is impacting all of us so significant.
I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.