Amazon says its Prime Day event – which got underway in the UK just after midnight – will be its biggest yet, as it extends the annual members-only discount event over four days. One commentator forecasts that the event will turn over nearly £2bn in the UK, out of $21.4bn worldwide. But there are warnings of downsides as well as benefits to the event.
Amazon promises millions of deals during the course of the event – with new ones appearing as often as every five minutes. The deals come from small traders selling via the Amazon marketplace as well as from household name brands.
“We’re excited for Prime members to experience our biggest Prime Day yet, with more days than ever and millions of deals from brands customers are eager to shop this season – from trending products and newly discovered brands to tried and true favourites,” said Carmen Nestares, vice president of North America Marketing and Prime Tech at Amazon.
“Prime members can shop with confidence knowing they’re accessing some of our best deals of the summer from brands they love to products they need. This extended four-day event showcases why Prime continues to be the best membership in retail, combining exceptional savings with the convenience of fast free delivery and exclusive benefits all in one membership.”
Benefits – and downsides
David Jinks, head of consumer research at Parcelhero, cites Bank of America figures that suggest Prime Day could see the sale of goods worth more than $21.4bn. That implies a 60% year-on-year increase on the $14.2bn turnover that Statista ascribes to last year’s event. UK Prime Day sales could in turn top £1.92bn over the coming days. “As Amazon’s ecommerce dominance continues to grow, smaller traders could be at risk of becoming over-dependent on the platform,” says Jinks. “If anything goes wrong with the relationship then that could be a big problem for sellers, especially if they have put all their eggs in the Amazon basket.”
Tips for brands optimising marketplace performance
Standing out on Amazon Prime Day means more than offering discounts, says Fiona Reid, director of international business at ecommerce accelerator Pattern.
“Success starts with smart promotions,” says Reid. “Rather than relying on blanket discounting, brands should analyse product performance and customer insights to identify priority SKUs. When executed strategically, targeted promotions can deliver exceptional results.” She also suggests brands focus on securing prime real estate on the digital shelf and being prepared by ensuring there is plenty of stock available.
She adds: “Prime Day can be unpredictable, and even the most meticulous plans can encounter unexpected roadblocks, so contingency planning is essential. Brands must have clear protocols in place, monitor performance in real-time and be ready to pivot quickly. A well-prepared team can mitigate risks and maintain momentum, even when challenges arise.”
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