By Lynne Gillis, Survey & Segmentation Practice, IRI
Amazon Prime Day is a week away, but consumers are already taking advantage of early Prime Day deals and planning their shopping strategies for when the big day (June 21-22) arrives. Despite the excitement by those in the know, getting the word out remains job number one for Amazon, as over half of Amazon Prime Members and 72% of Non-Prime Members currently aren't sure or don't know when Prime Day is occurring this year, according to a recent survey conducted by IRI.
What began seven years ago as a way to celebrate Amazon's 20th anniversary has grown into one of the most massive shopping events of the year, second only to Black Friday. With U.S. sales estimated to reach $2 billion,* this year's Prime Day event will be Amazon's largest ever as the company launches deals on millions of products across the platform.
For consumers, the Prime Day excitement starts well before the event itself, and this year, Amazon is going in strong to fuel shopper engagement (and potential Prime Member recruitment) by focusing on the more than 300,000 small business sellers who will be participating in the event. Amazon has curated collections to make it easier for shoppers to connect with the small business sellers on its site. Additionally, in an effort fully funded by Amazon, the “Spend $10, Get $10” promotion will offer a $10 credit to use on Prime Day for members who spend $10 on select U.S.-based small business products and brands in Amazon's store. This focus on small businesses is likely to hit a sweet spot for the nearly one in five Gen Z/younger millennials who is interested in shopping for handmade products (significantly more than in other generations), according to the IRI survey.
Keeping the Amazon Prime Day deals both enticing and fresh is no small feat for a company that has outdone itself year after year, and is increasingly meeting with intense competition from Walmart, Target and other retailers looking to capitalize on the shopping needs of consumers who are preparing for summer vacations, returning to outdoor sports, entertaining once again and continuing to refresh and/or upgrade their homes and home office environments. While Amazon brand products, especially electronics/technology items, have been at the top of the popularity list for years, this year, those Amazon Echoes are likely to be vying with air fryers and dining sets as shoppers (especially Gen Z and millennials) also set their sights on home and kitchen items at record levels.
Keeping the attention of these younger shoppers from initial discovery to making an actual purchase is going to require that the Prime Day deals meet their hype. According to the IRI survey, almost half (48%) of Gen Z/younger Millennial Prime Members will be setting a budget for their shopping this year, and 85% of them will be making price comparisons across the internet and other retailers before hitting the “buy now” button on Amazon.
Will Prime Day this year really meet all the hype? Stay tuned for updates as we follow consumers through the remaining pre-event days and the long-awaited Prime Day event itself to see how their plans translate into the reality of their buying. We'll be posting additional survey results soon, so more to come!
To learn more about IRI's Survey Practice and how it can help you get the latest pulse on consumers, reach out to me at Lynne.Gillis@IRIworldwide.com.
*Source: eMarketer, May 2021