Amazon's Prime fall sale for subscribers launched on Tuesday, and it seems that price-conscious shoppers are focusing on snagging deals on low-cost kitchen gadgets and apparel rather than splurging on big-ticket items. According to Attain, a research firm that analyzes credit card transactions, customers spent an average of $38 during the first eight hours of the event, representing a 2% increase from the same period last year.
While shoppers may be exercising caution in their purchases now, Amazon is paying close attention to their browsing activity. This allows the company to offer customized deals later in the season when shoppers may be more inclined to spend. Other retailers are also looking to leverage Amazon's sale by following a similar strategy.
Brian Mandelbaum, CEO of Attain, commented on Amazon's approach, stating, "This is a master class of how to have foresight into the consumer ahead of the season. Each shopper will have their own symphony of offers heading into the holidays."
Inflation concerns and rising debt obligations are factors that seem to be weighing on consumers' willingness to spend. Additionally, the resumption of student loan payments, which were paused during the pandemic, is further expected to impact spending. According to Adobe Inc., US online sales in November and December are projected to increase by 4.8% to $222 billion, surpassing last year's 3.5% growth but still significantly lower than the pre-pandemic level of 13% achieved in 2019.
Numerator, another research firm, revealed that the best-selling items during Amazon's fall sale so far include their own branded batteries. Furthermore, approximately 60% of the items sold are priced below $20, while only 3% exceed the $100 mark. Numerator gathered this data from 890 shoppers who placed a total of 1,379 orders.
Initially launched in 2015, Amazon's Prime Day summer sale aimed to attract new subscribers with shipping discounts, video streaming, and other benefits for a $139 annual fee. The event provides Amazon with an opportunity to solidify customer loyalty before the holidays and deepen relationships by offering exclusive deals on Amazon devices and other products. Last year, a second event called Prime Early Access Sale was introduced, where shoppers largely focused on discounted pantry items rather than pricey products. This year's fall sale has been renamed Prime Big Deal Days.
According to Adobe, US online sales are expected to reach a total of $8.1 billion during the two-day sale period, marking a 6.1% increase from last year. Consumers appear willing to kickstart their holiday shopping early as long as the discounts are compelling. A survey conducted by RetailMeNot, a platform that tracks online deals, revealed that 64% of shoppers plan to start their shopping in October this year, compared to 53% in the previous year.
Of those surveyed, approximately 58% stated they intended to shop during Amazon's Big Deal Days and planned to spend around $154, which is considerably less than what respondents planned to spend during the July Prime Day sale. Kristin McGrath, editor at RetailMeNot, highlighted that while people are actively searching for deals, the success of these sales and the actual amount spent remains to be seen.