Home Business What we know about Amazon’s annual Prime Day

What we know about Amazon’s annual Prime Day

7

This post was originally published on this site

  • Amazon’s annual Prime Day event will take place on Oct. 13 and 14.
  • Amazon is spending $100 million to help small businesses reach more customers.
  • The retail landscape will likely respond in kind with their own sales.

The premier selling event in the online retail space, Amazon.com, Inc.’s (NASDAQ: AMZN) Prime Day, will take place on Oct. 13 and 14.

The details

Amazon’s annual Prime Day is taking place later than usual this year due to the COVID-19 pandemic. But customers can expect the same theme as prior years: “incredible savings and deep discounts” across every category, the company said in a press release. 

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Read this analysis to better understand how Amazon Prime adds value to the stock?

Amazon also pledged to help support small businesses on its platform by offering consumers a $10 credit. Effective immediately, customers who spend at least $10 at select small businesses will receive a $10 credit for use on Prime Day.

Amazon will spend more than $100 million through this and other initiatives to support small businesses that struggled throughout the COVID-19 pandemic.

The company also plans to follow up on last year’s format that included live entertainment. This year, Amazon noted, “celebrities and influencers will be joining live to surprise customers with exclusive experiences.”

Amazon will also be using its upcoming sales event as a “test run” ahead of what it expects to be a surge in demand during the holiday season, The Wall Street Journal quoted Cowen analysts as saying in a note. Amazon will also take advantage of the sales event to better understand how to proceed with a 50% expansion of its fulfillment square footage space.

Amazon will also be taking advantage of the opportunity to promote its own hardware and services, including Alexa devices, its Prime Rewards Visa Signature credit card, and a monthly styling apparel services, among others.

“This year’s Prime Day is the perfect opportunity for Prime members to get their holiday shopping done early from the comfort of their homes – and to have more time to spend with their families and friends throughout the season,” Jeff Wilke, Amazon CEO Worldwide Consumer, said in the press release.

The retail industry paying notice

As is the case every year, rival online and offline retailers will be paying close attention to Amazon’s Prime Day event. Amazon has grown to become a behemoth in the retail space with a fiercely loyal base of more than 150 million Prime members worldwide, according to WSJ.

Retail analysts are assuming Amazon will win big in the fourth quarter as consumers seek out good deals and an early start to the holiday shopping period, the publication noted. Amazon’s peers will scramble to offer customers their own promotions to avoid losing share.

In total, 200 other retailers fought back against Amazon last year. So far, one of Amazon’s closest competitors, Target Corporation (NYSE: TGT), already confirmed its own two-day online sales event on Oct. 13 and Oct. 14.