Amazon Prime Day Sales Surge by 13% in First Six Hours

Amazon Prime Day Sales surged by about 13% in the first six hours compared to the same period last year, according to Momentum Commerce, which manages 50 brands across various product categories. The initial results indicate a robust Prime Day performance, with sales peaking in the first few hours of the 2023 event. Momentum Commerce, overseeing Amazon sales for brands like Crocs, Lego, and Beats by Dre, reports generating approximately $7 billion in annual sales on Amazon, providing a substantial sample to evaluate Prime Day’s performance.

Strategic Consumer Spending

“Consumers are still spending, but they are doing so more strategically, which can benefit a sale like Prime Day,” said Sky Canaves, an analyst at EMarketer Inc. “I anticipate shoppers will purchase items like headphones and chargers rather than expensive electronics like laptops.” This shift in consumer behavior highlights a trend towards practical and essential purchases rather than high-ticket items.

Consumer spending shifts to practical items like headphones, benefiting events like Prime Day strategically, according to WSJ Subscription Offers.

Prime Day’s Significance

Amazon launched Prime Day in 2015 to attract new subscribers, who pay $139 yearly for shipping discounts and video streaming. The event helps Amazon secure shoppers before holidays and strengthen relationships with existing customers. As of March, about 180 million US people had Prime memberships, up 8% from the previous year, per Consumer Intelligence Research Partners.

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Economic Indicators

Prime Day can act as an indicator for the holiday shopping season. Adobe Inc. estimated that online sales across all retailers would total $14 billion over the two-day event, up nearly 11% from last year. EMarketer provided a more conservative estimate of 6% growth to $13.8 billion in US online spending during the Prime Day sale, with direct sales on Amazon increasing by 5.5% to $8.2 billion.

Worker Safety Concerns

US Senator Bernie Sanders often criticizes Amazon. He released a preliminary report coinciding with Prime Day. The report claims the sale increases the likelihood of Amazon workers being injured while fulfilling orders. Amazon contests allegations from the federal government and Washington state about exposing workers to injury risks.

Prime Day and the holiday season bring extremely high volume and intense pressure to work long hours. Employees often disregard safety guidelines. The report, based on interviews with over 100 Amazon workers across the US, was released Monday.

Amazon’s Response

Amazon spokeswoman Kelly Nantel said the report draws broad, inaccurate conclusions based on unverified anecdotes. She added it misrepresents documents that are years old. The documents contain factual errors and faulty analysis. Nantel emphasized Amazon’s commitment to worker safety and investment in protective measures.

Prime Day’s early success highlights Amazon’s e-commerce dominance. However, it also raises concerns about worker conditions. As the holiday season nears, attention focuses on how Amazon manages peak sales while supporting its workforce.

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