A decade ago, mid-July was not exactly the hottest time of the year for retail. Summer months tend to have lower sales, after all, many people are on vacation and there are still months to go before the holiday season.
On Amazon’s 20th anniversary, the company launched a virtual shopping event that offered Amazon Prime members exclusive deals for a 24-hour period in nine countries.
Now in its ninth year, Amazon’s annual Prime Day (taking place on July 11 and 12 this year) has become part of American life and has prompted other retailers to offer discounts as well.
In its first year, despite negative criticism and technical failures, consumers bought tons of items – about 34.4 million – and signed up for Prime in droves, with Amazon adding 1.2 million new members.
The second year saw an increase of about 60% in sales. Since then, the event has only grown. Amazon expanded Prime Day to two days in 2019.
Last year, Amazon generated over $7 billion in sales on Prime Day, according to Insider Intelligence. This year, the retail giant is expected to surpass its previous record, with around $8 billion in sales.
The number of Amazon Prime account subscribers has also increased, with nearly 175 million people using Amazon Prime in the U.S. today – about two-thirds of the country’s population – according to a report from Insider Intelligence.
Not Everything Is Perfect
In 2019, thousands of Amazon workers in the U.S. and Europe went on strike during Prime Day after Amazon extended the one-day event to two and promised customers a one-day delivery option. Workers and union organizers said at the time that the changes would increase the physical limitations on employees and showed a “callous indifference to worker safety.”
Employees claim that working near Prime Day is physically exhausting, especially with overtime, but that the extra money is a perk.
Now Everyone Is Doing the Same
What started as a company promotion has become a must-do for both large and small retailers, many of whom have even introduced their own Prime-like subscriptions.
Walmart is offering a similar event called Walmart Plus Week from July 10 to 13. While the first 24 hours are exclusive to Walmart+ members, anyone can access the deals on the second and third days of the event.
Target calls its shopping holiday Target Circle Week, and this year it takes place from July 9 to 15 and is exclusive to Target Circle members. Best Buy has an event it calls “Black Friday in July” lasting three days, from July 10 to 12.
Source: Insider