[ad_1]
ATLANTA – Amazon has successfully invented a new shopping party, a kind of black Friday in July. The e-commerce giant and its retail competitors will capitalize on buyers sure from clothes to televisions next week.
Amazon Prime Day will return for the fifth time from Monday at midnight Pacific time. This year, the discount will run over two full days. Amazon says it will launch new offers every five minutes, encouraging Prime members to keep coming back to the site.
"There is no doubt that Amazon Prime Day will be another flagship event for Amazon, especially since it has been extended and that it seems to work even harder with suppliers to get contracts. said Sucharita Kodali, an analyst at Forrester Research.
Amazon's global sales for Prime Day are expected to reach $ 5.8 billion over two days, according to estimates by Coresight Research. According to Coresight, Amazon generated $ 3.9 billion last year. Amazon, which had sales of $ 232 billion last year, is not meeting Prime Day revenue.
Amazon, however, is facing increased pressure this First day. Rival retailers such as Walmart, Best Buy, Target and EBay have developed strategies to refine their Prime Day strategies and offer their own discounts.
"It will be the most competitive Prime Day of all time," said Justin Belgiano, Nielsen's Executive Vice President. More than 250 retailers are planning deals and are preparing to grab Prime Day's "halo effect".
Prime Day has become the annual summer show of Amazon in the world of shopping.
Amazon must be discriminating against its competitors and adding quarterly revenue to an event that it claims to be exclusive to Premium members. But, more importantly, Amazon is using the event to hook up new members to Prime, a subscription program that more than 100 million people around the world consider an indispensable part of their professional lives.
Prime Day is helping Amazon attract new members to its $ 119 free shipping program and is strengthening existing customer relationships with the company's products and operations, including Whole Foods. This year marks the second First Day with Whole Foods.
"Amazon has not yet reached a saturation point in terms of growing the number of subscribers and will exploit this year's Prime Day to add more," said Greg Portell, lead partner AT Consulting Firm Kearney's global consumer and retail practices.
Amazon tested its first inaugural day in July 2015 to celebrate the 20th anniversary of the company. He designed the day to replicate Black Friday on Amazon hard-hard, but recorded more transactions than the November purchase tradition.
"Step Aside Black Friday – Meet Prime Day," said Amazon in a press release unveiling the event.
Amazon recorded sales of $ 900 million in the first year, according to Coresight. Amazon's chief financial officer, Brian Olsavsky, called it "Christmas in July".
The company has decided to bring it back for a second year with more contracts. Sales reached $ 1.5 billion, according to Coresight 's estimate.
In 2017, Prime Day "has been much more successful, especially internationally," Olsavsky told analysts last October.
The company had a record number of free registrations at Prime Trials and its Echo Dot Smart Speaker was the best-selling product.
Amazon has recently updated its Prime offer. Under the increased pressure of traditional retailers such as Walmart, Amazon has extended next-day free delivery to more than 10 million premium member products. This is the first First Day in which a free one-day shipment will be available to members without a minimum purchase amount.
Rival retailers like Target want to claim some of the Americans' spending next week.
"Competitors will seek to siphon demand and trap Amazon's traffic," Portell said.
Target launches "Deal Days" on Monday and Tuesday. Target announced that it would offer 40% off some furniture, 30% off some small household appliances and kitchenware, as well as other offers related to toys, sporting goods and bedding. .
Target seeks to compete in part by highlighting the fact that customers do not need membership to sign offers. The two-day event of this year is an expansion: Target organized last year a one-day sale, which she described as "one of our most big days of the year for online sales.
Other companies are also trying to make money next week.
In its announcement, EBay made a more specific reference to Amazon, citing periodic breakdowns of its website last year during Prime Day. EBay has announced that it will launch an "Exceptional Sale" on July 15, which would include "Great Deals on Biggest Brands" at over 50% off, with free shipping – and "if it's not enough." history repeats itself and that Amazon hangs that day ", eBay will add other offers.
"Competitors are learning to counter-program," Portell said.
The-CNN-Wire ™ and © 2018 Cable News Network, Inc., a Time Warner Company. All rights reserved.
[ad_2]
Source link