Amazon’s giving its annual Prime Day sales event an unprecedented, pandemic-prompted twist this year. For the first time ever, it will span four days long, allowing customers even more opportunities to shop and save. The event started out in 2015 and expanded to two days in 2019. Now, you can watch deals fall every five minutes during peak times! By enforcing the new rule expressly for tariff-inflated prices, rising inflation concerns and potential price increases from tariffs triggered this shift. Now analysts are asking if the extra days will make a difference in consumer spending.
The first of the two new Prime Days is intended to draw in everyday people. It particularly aims to lure younger shoppers, zeroing in on the Gen Z demographic. Amazon aims to enhance the shopping experience for members aged 18-24 by offering them exclusive perks, including a limited-time 5% cash back on their purchases. This demographic benefits from a lower subscription rate of $7.49 per month for Amazon Prime perks. By comparison, older customers that don’t qualify for any discounts pay $14.99 per month.
Increased Discounts and Shopping Patterns
With Prime Day just around the corner, expect big savings again this year. Consumers might see, for example, that a candle regularly sold for $34 is now marked down 32%. These kinds of promotions are aimed at attracting consumers in an increasingly cutthroat retail landscape. Online sales skyrocketed a whopping 6.1% in comparison over the same four days in July 2023. That surge comes on the heels of a remarkable 11% growth uptick in 2024.
From Amazon’s perspective, pricing is obviously going to be the one thing that they feel really confident about. Unfortunately, this has left many third-party sellers to keep their prices high, failing to adapt to these new market dynamics. This variability of discounts being offered by sellers poses concerns regarding the value actually being provided from the discounts during the event.
“What we saw last year was that (shoppers) bought and then they were done,” – Schwartz
Some analysts warn that we don’t really know the overall long-term effects of lengthening sales’ duration on consumers’ buying habits. Lingering worries about inflation, compounded by uncertainty over possible price increases due to tariffs, create a challenging situation. Whether this new shopping window will drive more sales volume remains to be seen.
Targeting Younger Consumers
As part of its attempts to attract younger consumers to the platform, Amazon has launched new membership perks designed specifically for Gen Z shoppers. Members who pay an annual fee monthly for Prime benefits will benefit from a 5% cash back reward. Hurry—this offer is for a limited time only! These efforts are designed to inspire brand loyalty and grow increased spending among this vital age group.
In a blog post announcing the move, Amazon Prime Vice President Jamil Ghani said customers told them they wanted more time to shop. He noticed for one that shoppers demanded more time to shop and save. This is indicative of their desperate need for more flexibility as consumer shopping habits rapidly change.
“They’re going to buy more everyday items,” – Brett Rose
The focus on convenience and savings would fit into larger consumer trends seen at past events like Prime Day. Retail experts advise that providing customers with a little extra time helps them buy more. This change tends to emphasize the consumption of practical goods rather than just high-status wares.
The Impact of Economic Factors
The new backdrop of economic uncertainty will present challenges for the company as it plans for this summer’s even longer Prime Day extravaganza. Worries over inflationary effects and tariff-induced price hikes are still in the air. White House Press Secretary Karoline Leavitt condemned these economic squeezes as a “hostile and political act.” Here, she underscored all the hurdles that retailers have to jump through today.
In all, Amazon’s decision to expand Prime Day is further proof of its commitment to being flexible to consumer desires. This decision further reinforces the company’s commitment to aggressive value pricing strategies. Retailers are taking a very hard look at the effects of external economic factors. The business media will have their eyes glued to Amazon’s sales performance over this unprecedented four-day event.
