Amazon Prime so popular it cost U.S. $10 billion last Tuesday?
CNBC has reported that Amazon’s last Prime Day – a day of special offers targeted at members, and prospective members, of its Prime scheme to – could have cost the U.S. up to $10 billion in productivity. The argument is that many Prime members are happy to shop at work, as Amazon puts up new deals all day, and the moments of attention they divert from work – added up across the country – could have resulted in a $10 billion productivity loss. Still, there’s no need to panic about the economy quite yet.
CNBC concluded its piece with this telling paragraph: “that $10 billion might not be taken away from their jobs, though. It could just be part of the daily bleed from other time-wasting activities such as Facebook, Twitter and this week’s Wimbledon tournament.” Given that this is not the first time Amazon has held Prime Day, and the economy seemed to tolerate the previous ones just fine, there’s probably not any cause for alarm.
Amazon’s share price is up 34% so far this year
SOURCE: Yahoo Finance
What’s striking about CNBC’s calculation, though, is that it exists at all. The fact that Amazon has become so huge a presence that shoppers will spend an extra $10 billion of conceptual attention-time on it in a single day is staggering. What is perhaps even more staggering is that Amazon has carved out a space for itself in the Ecommerce Trend’s retail space where this is, probably, the new normal.
Joe McCann, CEO of enterprise software firm NodeSource, said: “the reality is everyone is shopping on Amazon at work, at home, on the train, everywhere. Are people going to be even more distracted at work? Absolutely. Just as much as they would be during Cyber Monday or even Black Friday.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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