Amazon’s Prime Day expected to break all records

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This year’s Amazon’s Prime Day on July 16 is expected to be up 60% on 2017’s record revenues, with even bigger bargains for Prime members.

The e-commerce delivery specialist ParcelHero says Prime Day could easily top US$1.6bn this year, tempting millions more consumers into Amazon’s Prime membership scheme.

David Jinks, ParcelHero’s head of consumer research, said, “This year’s shopping bonanza, which has been booted back a week to July 16th to avoid a World Cup clash, will last a whole day and a half, from midday on July 16th to midnight on July 17th.

“Amazon is really priming the pump this year with its special offers – it will offer even bigger bargains than 2017 as it attempts to lure in ever more members to add to the 100 million it already has.

“Prime members spend double the amount non-members spend so Prime Day is a big hook to reel in more members,” added Jinks.

“Even though it creates a huge income, it certainly doesn’t generate huge profits – as many participating traders will confirm. It is really a promotional event to get more people joining Amazon Prime.

“Amazon can afford to take a big hit on the day because it will more than gain that money back long-term though its expanded base of loyal, high-spending members.

“The true prime numbers for Prime Day are tricky to pin down, but JPMorgan Chase and Cowen & Co both believe last year saw US$1bn in revenue on the day. That seems sensible, and with growth last year of 60% and Amazon pushing its Prime services even harder, US$1.6bn seems a likely figure.”

ParcelHero has published an in-depth report on Amazon’s new retail and distribution plans, Amazon’s Prime Ambition, in which it explains how Prime Day is one of many strategies deployed by Amazon to lure customers over other retailers.

“Amazon is prepared to deal in wafer-thin margins to gain new members,” said Jinks. “In its first 14 years, it scarcely ever turned a profit, but long-term shareholders don’t care; they know the end game.

“Amazon aims to tempt us all into Prime membership, through great delivery options such as free deliveries and Prime Now one-hour services, and huge bargains on Prime Day. Eventually most of the products we buy may well be either be bought or delivered through Amazon. And that’s when it realizes those potential huge profits.”

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Dan joined Postal and Parcel Technology International in 2014 having spent the early years of his career in the recruitment industry. As assistant editor, he now produces daily content for the website and supports the editors with the publication of each exciting new issue. When he’s not reporting on the latest logistics news, Dan can be found apprehensively planning his next DIY project for his new home.

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