Amazon Prime Big Deal Days sees shoppers trim spending
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Protein shakes and batteries were the most popular items during Amazon’s Prime Big Deal Days this week but analysts warns that shoppers are tiring of discount days and are delaying Christmas shopping.
Amazon’s second October bumper sales event offered Prime customers exclusive discounts on everything from smartphones to air fryers.
Adobe Analytics predicted the Big Deal Days event would rake in more than $8bn (£6.5bn) after July’s Prime Day sale generated almost $13bn.
While the e-commerce giant does not release sales figures from its Prime events, consumer data agency Numerator’s tracker showed the average order size for Deal Days was $54.47 — lower than the summer Prime sale of $58.67.
Data from Numerator showed that premier protein shakes, Amazon Basics batteries and Amazon Fire TV sticks were the most purchased items this year.
But it comes amid challenging times for UK shoppers who are scaling back on purchases during the cost of living crisis.
Jonathan De Mello, head of consultancy JDM Retail, told City A.M, this week’s deals “paled in comparison” with those shoppers can secure on Amazon on Black Friday and the cost of living is “leading to significant belt tightening when it comes to discretionary spend”.
“Given the recent warm weather we have had it is unlikely that many shoppers will be in a Christmas shopping mindset this early in the year.
“Shoppers have, through necessity, become increasingly savvy and deal driven, and many will wait for Black Friday to start purchasing items for Christmas shopping — benefiting from the deeper discounts that will be on offer across the vast majority of the retail sector; not just Amazon,” he explained.
Recent figures from the ONS show that UK customers are buying less online, with the percentage of digital retail sales falling from 27.4 per cent in July to 26.9 per cent in August.
“Many of us expected [Tuesday] especially to be more impressive than it has been,” said Julie Ramhold, consumer analyst at DealNews.com.
“While there are some good offers on Amazon devices and services, outside of those, it’s been somewhat lacklustre,” she added.
However, Wizz Selvey, founder and chief of Wizz&Co, said: “In the midst of the cost of living crisis shoppers are certainly more likely to purchase big ticket items, homewares, electricals and even fashion when sales are on, or trade down from more luxury/high end brands.”
Last October, Amazon chief Andy Jassy said “during these uncertain economic times, customers appreciate Amazon’s continued focus on value and convenience.”
But data and analytics company Globaldata estimates that there will be a 9.3 per cent increase in retail prices by this Christmas and this could mean customers hang onto their cash.
“Sharply higher prices mean shoppers will spend less in real terms than last year, choosing either to trade down or trim the number of presents they buy,” said Nick Gladding, lead retail analyst at Globaldata.