Amazon finds itself at the center of attention once again as it hosts Prime Day, an annual event where the company promises to give one-day shipping for over 10 million products its users buy online. This Prime Day event in 2019 promises to shatter all sales records achieved for the past four years when Amazon started the same day delivery service. However, Amazon made some changes to the event, including Prime Day’s two-day run to celebrate the company’s 20th anniversary.
The 48-hour same day delivery service will present a new and exciting challenge for Amazon. Last month, the e-commerce giant tried to match the next-day delivery service rolled out by its rival Walmart by providing Prime members with the one-day shipping offer on select products. Prime Day will give Amazon a huge test when it comes to keeping its faster shipping promise on a larger scale, especially as the holiday season approaches. Amazon hopes that its fast delivery service, coupled with lower prices or discounts, can encourage customers to continue shopping at their website.
According to Forrester market research analyst Sucharita Kodali, Amazon will be taking on a feat that will test their skills to deliver. Kodali expects the volume of transactions to go over hundreds of millions within the 48 hours. However, Kodali believes that Amazon will use Prime Day as a trial run for the holiday season, which will take in more customers and last-minute shoppers expecting their items within the day.
Amazon reached the highest shopping day sales record last year during Cyber Monday, which falls after Thanksgiving. The e-commerce giant received over 180 million orders from customers in a five-day period, which is between Thanksgiving and Cyber Monday.
While Amazon may be preparing for shopping sprees during the holiday season, Prime Day remains a significant event for the e-commerce giant. Prime Day allows Amazon to promote its branded products and the benefits customers will receive when they avail a Prime membership, which includes lowered prices. Prime members will get to enjoy free shipping services, Whole Foods discounts, and Prime Music and Prime Video streaming access for about $119 per year or just $12.99 every month.
Justin Post, an analyst from Bank of America, reveals that Amazon’s best branding event remains Prime Day, which will help the company get more Prime subscribers and Alexa customers because of device sales.
The rival companies of Amazon, however, are trying to match the e-commerce giant’s plans for Prime Day. Both Target and Walmart have plans of sale days and weeks in the works that will go into effect during Amazon’s Prime Day. The rival companies are giving customers the option to not apply for memberships to avail the benefits during the sale days.
Despite the highly-competitive atmosphere in the market, investors continue to have high hopes for Amazon. The company currently has a valuation of over $989 billion and is experiencing the eighth day on the positive spectrum over the past nine. Amazon is also maintaining shares of over 34% since January 2019.
Amazon plans to deliver over one million deals for shoppers for the next 48 hours starting on Sunday. The offers include Amazon’s electronic devices, Whole Foods, and other private-label products as a way for the e-commerce giant to promote its products. Shoppers have the chance to get a Fire TV DVR for a low price of $129.999, a Toshiba Fire TV for only $17.99, and a Ring Video doorbell at $169. Prime subscribers who plan to buy Whole Foods at Amazon will get a $10 credit when they spend $10 during shopping. Prime members will also receive significant discounts on private labels like modern furniture retailer Stone & Beam, AmazonBasics, and other apparel brands.
Amazon expects a gross merchandise value of almost $6 billion during Prime Day. The $6 billion figure does not include the expenses and fees yet. Amazon’s aggressive approach is forcing Walmart to create a plan to combat its rival. Walmart recently announced its Google Week, which will offer customers with huge discounts on Google products like the Google Home Smart Speaker, the Google Home Mini, and the Nest Hub. Shoppers will also find low prices for electronic devices like Apple, LG, and Samsung during eBay’s sales event, “Crash Day.”
The plan to compete with Amazon during Prime Day worked wonders for Target. Last year, Target reached its most significant record on online shopping during its one-day sale. Adobe Analytics reports that US online and store retailers received a 79% surge in sales in July. Prime Day, meanwhile, grew over 54% on average sales in 2018.
However, there are reports that Amazon workers with a planned protest may affect the sales record of Prime Day this year. Amazon employees from Minnesota are slamming the company for poor working conditions and its failure to accommodate religious practices for its East African Muslim division. In line with the workers’ protest, many consumers are thinking about joining the rally and boycott Amazon during Prime Day, which may bring about a new test for the e-commerce giant to face.