Amazon Sells More Than 300 Million Items During Prime Day

Dow Jones2022-07-15

Amazon.com Inc. said this year's Prime Day event, its annual shopping blitz, was its biggest ever, offering few specifics in a year when shoppers are being squeezed by inflation.

Amazon said in a statement Thursday morning that customers purchased more than 300 million items during the event, adding that some of the bestselling items were premium beauty products, Apple Watches, diapers and kitchen items.

The company said it sold more Amazon devices during this Prime Day than any other and that Prime members saved more than $1.7 billion from shopping the deals.

An Amazon spokesperson said Thursday that Prime Day sales growth increased from a year ago.

The e-commerce giant didn't report its total revenue during the two-day event, which was held Tuesday and Wednesday. It said small and medium-size businesses saw more sales growth on its website during the event than the company's own retail business.

Amazon shares fell more than 2% Thursday morning amid a broad market drop. The stock has lost more than one-third of its value so far this year.

Amazon launched Prime Day in 2015 in hopes that it would boost summer sales during what is often a slow quarter for the company, making it a summer Black Friday of sorts. Experts have said that Prime Day could serve as a bellwether for the consumer shopping industry as inflation strains shoppers.

The event also drives new subscribers to its Prime membership program because only members can shop the deals. The company on Thursday said that it had more than 200 million Prime members.

This year's Prime Day revenue in the U.S. reached $11.9 billion, Adobe reported Thursday, up from $11 billion during last year's event. Toys and electronics were among the most steeply discounted items.

The research firm Insider Intelligence projected before Prime Day that overall sales from the event would reach about $7.76 billion in the U.S., a 17% increase from last year's event in June.

The research firm Numerator, which tracks Prime Day data, reported Thursday morning that the average order price was $52.26, up from $44.75 during last year's event. It couldn't be learned if the order size increased because people bought more items or because inflation had driven prices up.

U.S. consumer inflation jumped in June to a four-decade high of 9.1%, the Labor Department said Wednesday. Some retailers have marked down their prices to get rid of excess inventory as consumers shift their spending from goods to services. Still, the prices for apparel and home goods rose last month.

About a third of Prime Day customers surveyed by Numerator said that, amid rising prices, they had been waiting for the event to buy certain items at a lower cost.

Frito-Lay chip variety packs were one of the most popular items sold during the event, Numerator reported, adding that a typical shopper during the event was a high-income suburban female.

Amazon began shifting its Prime Day advertising strategy last year, when employees noticed that the company appeared to be investing less in the event. The company also focused many of the deals on its own products.

Amazon has also slowed its investment in delivery operations after years of growth as inflation affects multiple industries.

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Comments

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