Amazon Prime Day Spending Expected to Rise 9%

Consumers Projected to Spend $26.3 Billion June 23-26

Amazon warehouse
The Amazon fulfillment center in Daytona Beach, Fla. (Miguel J. Rodriguez Carrillo/Bloomberg)

Key Takeaways:Toggle View of Key Takeaways

  • Amazon’s four-day Prime Day sale begins June 23 with U.S. online spending expected to hit a record $26.3 billion, up 9% from last year.
  • The event matters as inflation and higher gas prices drive deal-seeking, with Adobe and Tinuiti data showing strong cross-shopping at Walmart and Target.
  • Amazon aims to convert shoppers into Prime subscribers and capture about 60% of event spending, reinforcing loyalty ahead of the holiday shopping season.

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Shoppers feeling the sting of higher gas prices are expected to snatch up deals on back-to-school clothes and household goods, pushing online spending to another record during Amazon.com Inc.’s 12th annual Prime Day sale that begins June 23.

U.S. consumers will spend $26.3 billion online at Amazon and other retailers during the four-day sale, up 9% from last year’s event in July, according to Adobe Inc., which tracks visits to retail sites. Discounts are expected to be in line with last year’s deals.

Competitors such as Walmart Inc. and Target Corp. are holding their own sales, helping to set in motion a deal-seeking frenzy. Consumers compare prices across various retailers during the event, which can boost sales on other sites.

Almost 60% of Amazon Prime Day shoppers will also browse Walmart, while 35% will check out Target, according to a consumer survey conducted in April by the New York-based digital marketing agency Tinuiti.



Amazon launched Prime Day in 2015 to attract new subscribers, who pay $139 a year for shipping discounts, video streaming and other benefits.

 

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The event helps Amazon lock in shoppers before the holidays and deepen its relationship with existing customers by offering them exclusive deals on Amazon gadgets and other products.

About 201 million Amazon shoppers in the U.S. were Prime subscribers as of March, up about 3% from a year earlier, according to market research firm Consumer Intelligence Research Partners.

Amazon will capture about 60% of all U.S. online spending during Prime Day, its highest market share since 2019, according to estimates from EMarketer Inc.

Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 1 on the TT Top 50 list of the largest global freight companies. It ranks No. 15 on the TT100 list of the largest private carriers in North America. 

Walmart ranks No. 1 on the private carriers list.

 

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