We’re in the final hours of the second Amazon Prime Day event of 2022 and the numbers aren’t as strong as the July event.
According to a Business Insider article, leaked documents show a slowdown. “Amazon expects to generate a peak of roughly 50,000 orders a minute in its key North America region for its second Prime Day event this year. In comparison, July’s Prime Day event saw a peak of approximately 60,900 orders a minute in the North American region. On a normal day, sales peak at about 35,000 orders a minute.”
Could this signal a slow start to the 2022 Holiday season due to increased inflation or is it something else? I believe the answers to this question may be a combination of three factors.
My Three Theories
1.) Increased inflation is impacting decision-making
It’s no secret that the economy has been cutting into the pockets of consumers. September Consumer Price Index (CPI) rose 8.3% in August (compared to the prior year). Even as gas prices have been dropping from their June peak, inflation is still ongoing because of significant increases year-over-year in the cost of groceries, rent, and other things that consumers must have.
2.) A bubble effect of an overfull inventory
Due to the excess of retail inventory, consumers have more options to choose from when it comes to where they will purchase. We have the usual big-box players like Target Deal Days, Walmart’s Rollbacks & More sale, and Best Buy Flash Sale which hope to sway shoppers away from Amazon Prime Day. In July, Target reported that they had over-inventory, but it’s not just them. We’re seeing over-inventory at TJ Maxx, Marshalls, Ross, and Burlington. Simply put, shoppers have more options. Retailers are slashing prices which overcrowds the market and make Prime Day deals less appealing. Lastly, with less disposable income, consumers will be more apt to hunt for the best deal to make their dollars go further.
3.) Prices reflected may not be truly discounted
Is what we are seeing on Prime Day really a discount? Some analysts are warning that the prices you see, aren’t the deal you’re hoping to find. A recent study showed that the prices reflected on Amazon may appear to be a deep discount but are truly the normal price.
Where do we go from here?
Is a slow Prime Day is a precursor to a slower Q4 or is there just a lack of awareness around the second Prime Day? It may be too soon to tell. Whichever theory you’re buying, we should get the results of Prime Day 2.0 soon. I am curious what our readers think the lackluster response to Prime Day 2.0, and will this signal what advertisers should expect during the Holiday season?
About the author: Amanda Grow is the Marketing Lead at Chacka Marketing. With over 10+ years experience in the digital field, she enjoys sharing her commentary on marketing trends and product news with her peers and clients.