Prime Day 2019 was once again Amazon’s biggest event of the entire year. It eclipsed the revenue of last year’s Black Friday and Cyber Monday combined. With the huge event also came a staggering number of competitors. According to an estimate by RetailMeNot, 300 retailers announced counter sales which is now being called Anti Prime Day. Tons of retailers from Walmart to Macy’s took on the ecommerce giant in the hopes of attracting customers who do not have Prime. Over the years, the competition has escalated. Last year, the number was at 195. With the constant increase in competitors each year, it’s possible Prime Day can become the summer’s Black Friday event. All retailers will simply follow Amazon with their own massive sales events to attract as many customers as possible. How did the summer retail holiday pan out?
- Prime Day 2019
- How Did Anti Prime Day Fair?
- Did Amazon Still Come Out on Top?
Prime Day 2019
On Monday, July 15th, Amazon held it’s two day sales extravaganza and broke records. For a whole 48 hours, customers looked through deal after deal. Some were even lucky enough to take advantage of a pricing error on expensive camera equipment. Amazon saw a record number of Prime members purchasing over 175 million products. Amazon’s main objective of Prime Day is to gain more Prime members. According to Amazon, they succeeded in this objective. However, once Prime Day was over, just as many people were looking to cancel. According to Captify, Amazon needs a retention plan. Other analysts state that Amazon’s retention rate is over 90%. How many of those members are a result of Prime Day deals, however, is uncertain.
Despite the uncertainty with membership, data showed what customers really want. Amazon’s major sellers included their smart speakers and the Fire TV stick. The Echo Dot was the top most seller, along with all of Amazon’s other devices. It’s difficult to say what were the most popular items as Prime customers purchased hundreds of thousands of items across all different retail sects. According to MarketWatch, the top products purchased differed across countries around the world. From water filters to gaming consoles, purchases varied widely. Though Amazon products ranked the highest, third party sellers did well also. Independent businesses reached $2 billion in sales, a record high.
But Amazon wasn’t the only retailer offering sales on Prime Day. To compete, several other major retailers launched sales of their own. It’s become known as Anti Prime Day.
Lady sitting on couch with laptop and credit card
How Did Anti Prime Day Fair?
Walmart, Target, Best Buy, eBay and others all saw boosts in sales this past week. Monday, especially, saw a 64% increase in sales for the largest retailers. Experts say that the retailers were looking to gain non-Prime customers, as well as offer an alternative in case of an Amazon glitch. eBay even named their sale “Crash Sale”. As far as these retailers are concerned, they definitely cashed in with their counter sales. While there was definitely a spike in sales for some, others saw losses. Macy’s, Nordstrom and J.C. Penney saw a decline.
This was especially important due to the concurrent Amazon employee strike that took place Monday and Tuesday. With that in mind, some consumers looked toward other retailers to get their deals. That said, even the boycott wasn’t enough to really kill Amazon’s thunder.
Did Amazon Still Come Out On Top?
According to Bloomberg, consumers spent ten times more on Amazon than they did at any other retailer. There was a 53% increase in sales this year in comparison to last year. This is likely in part due to Amazon’s lack of site glitches. Aside from the pricing mishap on the camera equipment. To make their deals even more enticing, Amazon offered Prime members $10 to use Amazon Assistant. If members allowed Amazon to track websites they visit, they would get the credit. That data would show them whether or not consumers visited other retailers. Amazon Assistant compares prices of items on sites like Walmart or Target to provide consumers with better access to deals. The offer was only provided to new installations of the add-on, making it another draw to Amazon Prime membership.
Amazon stated that the Prime Membership enrollments were at an all-time high. Earlier this year, Amazon announced that they had 100 million Prime members. Some analysts believe that Amazon may be at its peak. The Prime Day deals weren’t exclusive to online. Amazon-owned Whole Foods also saw a boost in sales for its week long Prime Day event. Shoppers who purchased at Whole Foods could receive a $10 credit for use on the Amazon site. That said, according to experts, groceries weren’t nearly as much of a hit on Prime Day as other retail sectors.
Overall, Amazon won the competition between all the retailers. Though there was a major increase in searches for Walmart, eBay, Target, customers chose Amazon. That can change in the next few years. Savvy shoppers are always looking for the best deals and some might find that Amazon’s Prime membership cost is a little too steep. If the trend continues where shoppers cancel their membership soon after Prime Day, Amazon might find it losing to others, like Walmart. Shoppers looking for the best sale won’t stick to one retailer. This year, Amazon marketed Prime Day across all of their channels, including Twitch and Prime Video. This served to generate excitement for the event, but with major marketing campaigns, they will need to do it again. We can’t wait to see how retailers begin to change the landscape of this newest and hottest retail holiday.
Shopping on mobile device
How Can You Make the Most of Amazon?
If you weren’t quite prepared for Amazon Prime Day this year, there is always next time. Considering the way Prime Day has exploded with competition, your business needs to be in the mix. If you’re selling on any of the major big box retailers, you’ll want to cash-in on the sales. This year, third part sellers saw a major sales boost. They achieved $2 billion dollars worth of them, and that number will only grow. With Walmart and Target in the competition, no matter where you’re selling, you can see growth in your business.
Eighteen Knowledge Group can help you get ready for next year’s Prime Day. We’ll work with you to make your business a success. We can take care of all the logistics from on-boarding to management. All you have to worry about it making your product the best it can be. By this time next year, your products will be one of the top sellers.