Amazon.com Inc. launched its fall sale on Tuesday for Prime members. Price-conscious shoppers opted to buy low-cost kitchen appliances and clothing rather than spend big on expensive items.
Attain, an independent research company that collects credit card transaction data, found that customers spent $38 on average during the first eight hours of the event. This is a 2% increase over the same period in the previous year.
According to Brian Mandelbaum of Attain, a Chicago-based company, Amazon monitors the browsing habits of customers so that it can offer customized offers later in the year when shoppers are more willing to spend. Amazon is not the only retailer looking to take advantage of its sale.
He said: “This is an excellent example of foresight in the consumer’s mind ahead of the holiday season.” “Each shopper is going to have their own symphony as we head into the holiday season.”
The consumer is struggling with a stubbornly persistent inflation, even as debts balloon and savings shrink. Spending is also expected to be affected by the resumption in student loan payments that were suspended during pandemic.
Adobe Inc. estimates that US Online Sales will increase 4.8% in November and Decembre to $222 billion. This is a better growth rate than last year, which was 3.5%, but still well below the 13% pre-pandemic levels reached in 2019.
Numerator, a second research firm, reported that Amazon-branded batteries were the top-selling products during this sale. According to Numerator, 60% of the items sold were priced below $20, while only 3% exceeded $100. The firm gathered data from 890 customers who made 1,379 purchases.
Maria Boschetti, a spokesperson for the company, said that “we’re only getting started” and are pleased with the response from customers. Prime members have been shopping great deals on electronics, toys and home products, as well as fashion, beauty, and Amazon devices.
Amazon’s Prime Day sale was launched in 2015 as a way to attract new customers. These subscribers pay $139 per year and receive shipping discounts, video streaming, and other benefits. This event allows Amazon to lock in customers before the holidays, and strengthen its relationship with current customers by offering exclusive deals on Amazon gadgets.
Last year, the Seattle-based company held a second event called Prime Early Access Sale. This saw shoppers shun expensive products in favor of discounted pantry items. Prime Big Deal Days has been the new name for this year’s fall sales.
Adobe estimates that total US online sales during the two-day period will be $8.1 billion. This is an increase of 6.1% compared to a year ago.
As long as the discounts are compelling enough, consumers seem willing to begin their holiday shopping early. According to RetailMeNot’s survey, 64% of consumers said they would begin their holiday shopping in October, up from just 53% last year.
Around 58% of respondents said they would shop Amazon’s Big Deal Days. They planned to spend $154 which is approximately $100 less than the amount that those surveyed intended to spend on Prime Day in July.
RetailMeNot’s editor Kristin McGrath said, “People are out looking.” How well the sales go and how many people buy is yet to be seen.