Amazon continues to solidify its position as a titan in the online retail space. The recent Prime Big Deal Days event in October 2024 demonstrated remarkable growth, with sales increasing by 42% year-over-year for some sellers, as reported by the consulting firm Momentum Commerce. This is a significant jump compared to Amazon’s prior October sales events, indicating not only an upswing in consumer interest but also a trend that may redefine holiday shopping strategies for brands across the globe.
Momentum Commerce manages Amazon sales for brands accounting for over $7 billion in annual sales, including well-known names like Crocs and Lego. Although specifics on total sales volumes were not disclosed by Amazon, the company’s claims of having its “biggest October shopping event ever” signal an optimistic outlook ahead of the holiday season. Doug Herrington, the CEO of worldwide Amazon stores, characterized the event as the “start of great deals” aimed at helping shoppers fulfill their gift lists in an efficient manner.
The performance indicators point towards a thriving marketplace. For instance, Day 1 of the October event outperformed Day 2 by a marginal 9%. In 2023, this gap was wider—10%. However, it is essential to note that Day 2 of this year still lagged behind the remarkable July Prime Day sales, getting 32% less than those numbers. This decline, though concerning, shows a notable improvement from disparities seen in previous years where the gap may have reached as much as 50%.
Investment in discounts appears to have played a crucial role in catalyzing purchases this October. Across the globe, total discount rates surged by 9% year-over-year, reaching an average of 18%. In the U.S., these rates saw a more conservative increase of 4%, averaging 21% off product prices. This strategy aligns well with findings that higher discounts correlate to increased sales growth, particularly in high-demand categories.
Categories showing the most substantial global sales growth during the event included apparel, electronics, and health and beauty. The apparel sector reported average discounts of 27%, while electronics experienced a significant 25% year-over-year increase in discount percentage, averaging around 20%. The health and beauty category held steady with an average of 17% off, underscoring the diversity in consumer interests.
However, outside of Amazon, the retail landscape painted a different picture. Salesforce noted that retailers other than Amazon experienced flat sales growth during the Prime Big Deal Days 2024 event. Specifically, U.S. online retailers showed a 5% decline compared to the previous year. This contrasted with European retailers, who enjoyed a more favorable climate with a 9% growth in sales.
Consumer sentiment seems to inform these contrasting results. Caila Schwartz, director of consumer strategy and insights at Salesforce, pointed out that external factors, such as weather events and looming uncertainties surrounding the upcoming U.S. election, likely contributed to less-than-expected performance for many retailers. The strategy adopted by many brands to keep discount rates conservative also reflects apprehension as they prepare for larger promotions during Cyber Week.
One notable observation from this year’s event is the shift in consumer shopping patterns. Historically, morning hours have been the strongest for sales. However, analysis from Momentum Commerce indicated that sales spikes occurred more prominently in the evening this year. Andrew Waber, the firm’s director of marketing, emphasized this significant shift, suggesting a transformation in shopper behavior that retailers need to consider for future marketing strategies.
As e-commerce continues to evolve, the implications of Amazon’s Prime Big Deal Days are clear. While Amazon capitalizes on the event to boost its status as the Number 1 online retailer in North America, other sellers face challenges that require thoughtful responses. In a world where consumer preferences are in flux and external factors can heavily influence spending behaviors, brands must adopt adaptive strategies to compete.
To remain relevant in the retail sector, businesses should analyze consumer trends and consider optimizing their marketing approaches based on the time of day and prevailing economic conditions. Investing wisely in discount strategies and inventory management can create an edge over competitors, especially amidst uncertain market operations.
As the holiday shopping season draws near, the success of events like Amazon’s Prime Big Deal Days serves as a reminder that adaptability, customer insights, and strategic promotions are key components to thriving in today’s digital marketplace.
