Amazon suffers Prime Day wobble – but makes up for it with soaring sales
If you’re an Amazon fan, Prime Day might just be the biggest shopping event of the year. The Ecommerce giant uses the ‘day’ (actually, a 36-hour window so that customers all round the world can join in, regardless of time zone) to drum up interest in its Prime Membership scheme, by dropping deep discounts on over a million products throughout the event. However, this year, something went wrong – and lots of people couldn’t make an order properly.
Amazon’s share price has risen by 56% so far this year
SOURCE: Yahoo Finance
When the promotion began on Monday, it was beset by “sweeping technical glitches”. Customers took to social media to proclaim their annoyance with the hashtag #PrimeDayFail. But, for all that, it looks like Prime Day was a roaring success!
Amazon doesn’t release sales data over Prime Day. But Feedvisor, which advises online merchants about prices, was able to crunch the data from their customers’ experience as Amazon sellers during the event, and it’s looking good for the online retail juggernaut: sales over the first 12 hours of the event look to have risen by an astounding 89%!
All Amazon would say (regarding sales figures) was that, over the first ten hours, sales grew faster than they had the previous year. However, the company also admitted that it had sold “millions” of devices that will take Alexa into homes around the world – giving them even deeper integration into their customers’ lives.
The Prime scheme itself has turned out to be an enormous boon to the company’s performance: Prime includes special deals, free postage and packing, access to Amazon Video, Amazon Music, and more… and it only costs $119 per year. But given that the average Prime customer spends roughly double what their non-Prime peers do, the deal works well for everyone involved – especially Amazon itself.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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